The Weitz Company has built over 365 senior living facilities in the last 50 years totaling 31,000 various units and over $3 billion worth of projects. Senior living construction is one of our core markets and an area we consider ourselves experts.
Using the cost history of the projects we’ve built, we created an infographic detailing what contributes to the overall budget of an average senior living community. Below are a few takeaways:
To little surprise, labor and materials account for over 80 percent of senior living construction costs. They are the most critical components to constructing a project, and that is unlikely to change anytime soon.
Preconstruction, at 0.5 percent of a project’s overall cost, can add tremendous value to a project. Why pinch pennies on the front end if it can save you millions of dollars down the line? Cutting preconstruction costs does not lead to a more economical project. Often, we find the opposite to be true.
General conditions, which can ensure a project is properly staffed to be delivered on time and on budget, can drive the rest of the costs of a project. Cutting the middlemen out of procurement and enabling general contractors to procure materials on their own might push general conditions above its 5 percent average. But, doing so will trim costs from the overall budget and can generate better value for the customer.