This is a question we often get from clients as they look at determining their development options. Whether it is a School District that is weighing the options of modernizing a classroom building vs. building a new one, or it is a developer looking to complete a new multi-family housing development, we are often asked what the best solutions are for saving money while also providing the best long-term solution for the end user.

As specialists in both renovation work and new construction, Legacy has been on both sides of the isle when it comes to construction projects. Assisting our clients in determining what their best options are for construction is just one of the areas we specialize in. When looking at a potential project, there are a few things you may want to consider that will help you along in the process.

Advantages of Renovations and Remodels:

• Usually fewer impact fees and unknown costs. New developments are often plagued with impact fees. From ground preparation fees, development impact fees, EIR fees and higher permitting fees, new construction projects generally have higher impact fee costs than renovations.
• Remodels provide an opportunity to preserve the character of historic buildings while upgrading the systems to current standards. Historical buildings provide communities with identity and character that can bring an owner added value. Preserving these architectural icons are trademarks of smart growth and commitment to the communities in which we live.
• Depending on the age of the building, hard construction costs are usually less with remodels. This of course is driven by a number of factors, but generally speaking, because the building is already standing, fewer construction materials are needed to complete a renovation.
• Typically, remodels and renovations can be completed much quicker than new construction projects. This of course is reliant on the scale of the renovation, but many times an owner can retain building occupancy even during construction.

Advantages of Building New:

• Unrestricted design potential, which will often allow a building to have better circulation, ventilation, and incorporate the latest systems and technology right into the design. Starting with a blank sheet of paper will allow a client to maximize the side opportunities and plan for the most efficient use of space.
• Typically in new construction, your long term energy costs will be lower because of new construction materials, green building solutions, and the maximized use of space. While buildings can be upgraded to LEED standards, many times a new building can operate more efficiently.
• New construction usually provides less disruption to an owner. Because tenants and users are not occupying a building as it is under construction, the construction itself can be more efficient. This can save time, energy and the disruptions that can come with relocating tenants, students or end-users.

So what about costs?
There is no general rule for the cost differential between new construction and renovation. This is due to the fact that each project has its own unique factors and challenges. Depending on the age of the building, building codes, hazardous material cleanup, inspections, and retrofits, you could be looking at a remodel that is more costly than building new. We often assist our clients in examining these cost breakdowns in order for them to be able to make these decisions.

As new raw land is becoming scarcer, the decision to build new or remodel will be one that developers and building owners will continually wrestle with. Our goal as a General Contractor is to help make these decisions a little easier and clear up some of the unknowns.