This method of determining an estimation of probable costs can be used for renovation projects, new freestanding or add-on buildings, and for outpatient facilities. Renovation projects typically reflect higher costs per square foot (needed to determine line item A) than new construction. Outpatient facilities or type B occupancy buildings also have a lower cost per square footage projection because they are not subjected to the same building requirements for fire and safety codes as type I occupancy buildings. The nurse executive must understand how the building type and construction type (renovation or new) will affect the cost per square footage and, ultimately, the total project cost.
Unfortunately, total project cost projections do not reflect other associated costs of a new project such as the cost of interim financing, the escalation of the net present value of the dollar to the midpoint of construction, or additional interior design costs for amenities beyond the standard architectural design. These values must also be considered beyond the formula provided in this article.
Project Cost as an Outcome Variable in Evidence-Based Design Projects
In planning new buildings, it is important to analyze previously
completed projects to determine the effect of specific design features on operational performance, patient outcomes, and the nurses and other provider experience. Until recently, many completed projects only published the total cost of the project, pictures of the beautiful interior features accompanied by a floor plan, and written description of the final project penned in the most positive marketing language. Descriptions of what did not work after occupancy of the building and how the design affected daily operations were rarely described. In essence, a new building was a multimillion dollar experiment.