Am I getting hosed by my contractor?
There might be a better sub for this, but I'm trying here first. I am about to rent commercial space for my small business for the first time ever. It's a big, empty unit that needs everything except the exterior wall drywall, plumbing, and electrical to be completed. This means: Flooring installed, interior walls put up, HVAC run through the unit (furnace/ac comes with the space; the ducts would be my responsibility, as they have to be configured to however I lay out the space).
The property is roughly 900 sq. ft. and has 10 ft. ceilings for some context.
I met with a contractor who seems great. He was recommended by someone I trust dearly, and the quality of his work I've seen is fantastic.
I have never rented commercial space or done anything like this before, so I'm trying to figure out what is normal and what is not.
The contractor asked my budget for the leasehold improvements, which I told him was roughly $50,000. He came, saw the space, and emailed me saying he was ready to get started and needed a deposit since we agreed on the budget. But, to me, we didn't agree on a price. I want to know what the actual costs will be, not just "here's my full $50k, please spend it all."
Is it normal to ask for a quote that's broken down? I want to see the material cost, and the labour cost. I also want to know the impact of certain material choices on the overall cost.
For context, I have priced out some materials so some of those costs are:
- approximately 1000 ft.² of vinyl flooring, which is approximately $5,000. ($3.28/square foot plus tax, over estimating)
- light fixtures are approximately $1700 after taxes. There is no installation cost as electrical work is included by the landlord.
- doors for the offices. Each door is approximately $500 after tax. Again, I am overestimating. there will be four doors required, so $2000
There will be other things that I don't know the price of like:
- framing and drywall for three offices. This will include four walls that are 9 feet long and one long wall connecting all of the offices that is approximately 23 ft.
- permits
- paint
- running ductwork (landlord is providing a furnace and heat pump for air-conditioning)
I am leaving the ceiling unfinished for an industrial look, but we will be painting it black.
I know that there are a lot of variables, and there is probably some information that would make this post more helpful. Overall, I’m just trying to wrap my head around what a reasonable price for this work would be.
If it truly is a $50,000 project, fine. But that is the absolute top of my budget and I am worried that things will come up during the build that will make it more expensive.