In my line of work, I regularly see churches doing capital campaigns in order to raise funds towards building new construction, expanding their churches, and/or doing major renovations. If that is something your church is considering doing in the near future, be prepared for some sticker shock as construction costs are rising.
My friend Tim Cool of Cool Solutions Group and eSpace recently wrote a blog post about the subject and does a great job of explaining why these costs are rising. I encourage you to read it here.
Here are 3 things Tim wants you to be aware of when it comes to your upcoming construction project:
- If you plan to build, you need to add an inflation contingency in ADDITION to your normal contingency. You need to safeguard your project from becoming derailed due to sheer inflation.
- If you planned a building more than 2-3 months ago, you need to get it repriced. In fact…if your plans have 12 months age or more, you need to REALLY take a hard look at the costs.
- If you are considering a major or even minor capital improvement, be aware of these cost increases and plan accordingly.
This post isn’t intended to scare anyone out of building or to push your plans further into the future, but rather to help you be prepared as you and your church move forward in your plans to build and grow.