Preconstruction
How to budget an office build-out in Los Angeles
Two office proposals can cover the same floor area and include different work. One might include moving the air distribution for new conference rooms, while another assumes the existing system can stay. I would resolve that difference before comparing the totals, then separate the construction scope from furniture, technology and the other costs the owner is carrying directly.
Establish the condition of the space
A shell space, a previously occupied office and a furnished suite each create a different starting point. The useful question is how much of what is there can support the proposed use and layout.
Existing ceilings and partitions may be reusable, but their locations can conflict with the new plan. Moving enclosed rooms can affect lighting, air distribution, sprinklers and controls. A reception area or conference room can require different finishes, acoustics and services from the open office around it.
The review needs to connect the drawings to the site. Record which conditions have been inspected, what information came from the landlord and what still needs investigation. Where access is limited, the estimate should state the assumption and identify how the team intends to confirm it. An allowance for an unresolved condition needs enough description for the owner to understand the exposure.
Separate construction from the owner's other costs
Turner & Townsend's Global office fit-out cost guide 2026 separates construction from loose furniture, audiovisual equipment and professional fees. Its benchmark assumes a defined office layout and a shell-and-core starting point. When comparing it with a project estimate, check which of those assumptions apply to the space you're considering.
For an actual project, assign each scope to the party carrying it and confirm what is included in the estimate being discussed.
Illustrative budget-scope worksheet, prepared for this article.
| Budget item | What to establish |
|---|---|
| Construction | The drawing set, trade scope, general conditions, fee and insurance included in the proposal |
| Furniture and equipment | Who purchases each item and who receives, stores and installs it |
| Technology | The division between cabling, audiovisual equipment, security and the owner's network |
| Design and other fees | Which professional services and approval costs the owner carries separately |
| Building work | Which modifications belong to the landlord and which belong to the tenant's project |
| Contingency | What uncertainty it covers and how its use will be tracked |
| Move-in | The owner's relocation, setup and operating preparations outside construction |
These are budget categories to resolve with the team. Their inclusion in a particular contract follows the written scope. A line marked owner supplied still needs a connection to the construction work, especially where the item affects power, dimensions or installation access.
Check how the floor area was measured
Cost per square foot is the stated cost divided by the stated area. Both sides of that calculation need a definition.
Confirm whether a comparison uses rentable area, usable area or the area receiving construction work. If a project improves only part of a suite, dividing the estimate by the entire leased area can make the rate look lower without reducing the work being purchased.
The mix of rooms matters as well. An office with extensive meeting rooms, custom millwork and upgraded acoustics carries different work from a largely open plan. A whole-floor average is useful for an early comparison, but the estimate needs to follow the actual layout as design develops.
Include the way the work will be carried out
In an occupied LA building, access and working conditions can change the plan. Confirm permitted work hours, loading arrangements, freight elevator availability, protection requirements and how shutdowns will be coordinated. Work that must be completed in phases needs temporary arrangements and a sequence the building can support.
The estimate should also identify when its prices were obtained and what assumptions were made about purchasing. If the owner changes the start date, review the effect on trade proposals, procurement and site supervision. Keep that discussion tied to the affected work rather than applying an unexplained adjustment to the whole budget.
Our preconstruction process brings the drawings, existing conditions and planned sequence into the estimate so the owner can see what each revision is based on.
Compare the assumptions behind each estimate
A useful comparison identifies the drawing revision, scope, allowances, exclusions and construction period behind each proposal. Put unresolved items beside the trade they affect, with a person responsible for obtaining the missing information.
For the air-distribution difference described earlier, have the design team confirm what the new layout requires and ask both contractors to price that scope. Record the clarification with the comparison so everyone can see what changed between the original proposals and the amounts now being considered.
As the design develops, keep a record of what changed in the estimate and why. That makes it possible to distinguish a design decision from a newly discovered condition or an updated trade price.
If you're planning an office build-out in Los Angeles, let's talk about the space, the drawings and the budget you need to work within.
