Although some challenges of the last few years have persisted in commercial real estate development, the outlook has become cautiously optimistic, and leaders are shifting from defensive to proactive strategies. In the realm of interior design, we’re making targeted choices to engineer value right from the start. We’ve used the term “engineering value” as a calculated approach to project budgets knowing that intentional design results in a more successful project. There are a few ways to do this during the design process: simplifying material selections and applications, working closely with the general contractor and, where possible, approaching the project like a rollout with standard finishes and best practices.
Simplified materials and applications can have a significant effect on design aesthetics, and it can be difficult to find the right balance between a tighter budget and high design. However, we are finding more clients asking for this up front during the proposal phase, so we can prioritize billable hours and establish the approach upfront. This carries into the design by prioritizing funds in key areas and elements throughout the property to work within construction costs. This could be as simple as planning for one main accent wall per space that has more expensive materials, while the other ones are mainly paint or letting furniture and art be the focal points while the custom millwork and high-cost finishes are kept to a minimum. Using prefabricated millwork elements or simplified details can also cut down on costs without sacrificing the design. Another way is to streamline the specifications. By using the same manufacturers for multiple products — for example, all the flooring through the same vendor — the ordering process is simpler and, typically, the pricing is better for product and shipping due to higher quantities. Using the exterior finishes throughout parts of the interior spaces can streamline the process as well. Manufacturers are also a great resource to value-engineer their own products and give options that will work within the design and budget.
A general contractor who is willing to work with the design team is integral when trying to have a successful project. Bringing them on earlier during the design phase and working with their preferred vendors from the beginning can help eliminate some of the back and forth during the bid process. Every time we work with a general contractor and we’re provided with a lower-cost vendor or construction detail, that becomes a standard for future projects.
While most projects aren’t rollouts, approaching them with standardized best practices and preferred vendors can help bring costs down and create efficiency for the team. While a GC may not be on board early with that list of vendors, the interior design team can establish their own list of cost-effective materials and details that are tried and true from past projects. With a repeat client who is open to standardizing, there are many efficiencies to gain from this process. Traditionally, while used mainly in retail or hospitality design, developers in all markets are looking at ways to standardize.
Everyone is developing their own strategies to help move projects forward with each new challenge, and the more we can be proactive and plan for them ahead of time, the more beneficial the projects will be in the end.
Christina Johnson is creative director of Phoenix- and San Francisco-based Private Label International, a full-service interior design studio that develops hospitality environments and lifestyle brand experiences for clients worldwide.
Photo of Clubhouse Lounge at Sante, a multifamily community in Henderson, Nevada; courtesy of Private Label International
