The construction costs can vary significantly, depending on various factors such as the type of workshop, structural design, materials used, etc.

Costs of Workshop Construction

The main costs associated with workshop construction include:

Land purchase/rental costs
Workshop design costs
Costs for obtaining construction permits
Infrastructure construction costs
Mechanical and electrical costs
Quality supervision costs (if applicable)

In addition, the investor should prepare contingencies to address issues that may arise during construction, such as increases in material costs or adverse weather conditions affecting construction schedule.

Estimating the construction costs of a workshop requires careful and comprehensive consideration of these expenses, as the higher accurate budget, the more effective schedule and quality management.

Factors Affecting Cost Estimates for Workshop and Factory Construction

Type of Workshop

Each industry and manufacturing field has different requirements for structure and materials, leading to variations in the construction costs of workshops.
For precision mechanics workshops, which often include many large, heavy-duty machinery lines requiring high precision production, a solid and strong foundation is required. Therefore, the cost of foundation reinforcement and overall workshop construction is higher than that of a standard workshop. Some specialized workshops (such as food or pharmaceutical ones) require clean rooms, anti-dust materials, and specialized environmental control equipment, leading to higher construction costs.

Geological Conditions

Geological factors directly affect the cost of workshop foundations. In weak soil areas, especially those near rivers and lakes with thick mud layers, pile foundations must be driven deep to reach a stable, bearing loads layer. This additional reinforcement measures, increasing drilling and pile-driving costs and, consequently, overall construction costs.

Piling for a factory project in Ha Nam, where there is flowing sand and weak soil, the good soil layer where pile tips can be placed lies nearly 40 meters deep, significantly increasing the cost of foundation treatment.

Workshop Design

The complexity of the workshop design also affects construction costs. The more complex the design, the higher the construction cost will be. Specifically, workshops with complex architecture, such as large glass designs or round columns, require specialized equipment and advanced construction methods, leading to higher construction costs compared to simpler designs using composite panels or square columns. Designs that demand high technical and aesthetic standards require experienced and skilled engineers and workers, which increases labor costs.
Choosing an appropriate design helps investors optimize construction costs and time while ensuring workshop quality and saving costs on maintenance and upgrade in the future. Therefore, investors need to carefully consider technical, aesthetic, and budgetary requirements to select the good workshop design.

The two-story GS Battery Factory in Binh Duong, with DELCO as the Design-Build Contractor.

Construction Methods

Different construction methods use different materials and techniques, leading to variations in workshop construction costs. For example, building a pre-engineered steel workshop reduces construction time and labor costs, saving a portion of expenses. Similarly, precast concrete construction can shorten timelines and reduce labor costs compared to reinforced concrete, but transportation and production costs may be higher. Therefore, investors need to carefully consider construction methods to select the solution that fits their budget and schedule.

Construction Materials

Purchasing materials typically accounts for 40–60% of workshop construction costs. Different types of materials have different prices; for example, epoxy flooring is relatively expensive, ranging from 500,000 to 900,000 VND/m², depending on the type, while vinyl flooring is cheaper at around 300,000 VND/m². Materials from big or premium brands usually cost more than regular ones. However, they often have better quality, durability, and technical features, helping investors save future maintenance and repair costs.

In addition, fluctuations in the materials market can increase construction costs. Therefore, when estimating workshop construction costs, market material risk factors must be carefully considered, and there must be a plan for managing, purchasing, and staging materials on-site appropriately.

Investor’s Schedule Requirements

Sometimes investors want to accelerate construction to avoid the rainy season, or the workshop is being built within an existing operational factory, necessitating a fast schedule to avoid disrupting production activities. To meet schedule requirements, contractors must mobilize additional labor and machinery; during peak times, workers may need to work overtime, increasing labor costs and raising factory construction prices. Additionally, if the investor requires the use of compressed schedule methods such as fast-tracking or crashing, a tight cost-control plan is necessary to ensure effective budget and resource allocation.

Furthermore, a compressed schedule means materials must be supplied continuously in a short time, increasing transport and storage costs. Thus, investors need to carefully balance schedule demands and project budgets when constructing a workshop.

See more: 2024 Comprehensive Workshop Design and Construction Quotation Template with Detailed Items

See more: Optimizing Material and Resource Schedule in Construction Project Management