Adding value is important in many industries because it ensures that selling assets will gain you a profit. But what exactly does it mean within the construction industry? We focus on commercial buildings in this blog, and outline some of the most effective ways to add value.
What is added value in construction?
Value is the measurement of the benefits that something brings in relation to the cost or resources that were needed to achieve it. In construction, it is often expressed as a ratio between a function and the whole life cost of the function. So, added value refers to an increase of value created by the addition of a function.
The gross value added can be calculated using the actual numbers involved, if these measurements are available.
However, added value isn’t just measured in monetary terms. It can also refer to how well a commodity compares in function to other similar commodities on the market, that may not be able to be calculated by price. A building may not be more expensive when value is added but it will set it apart from its competitors with a new and unique feature, meaning its worth is increased and depending on the market, it may see more profits as a result.
This is particularly important because manufacturers of construction products and property developers are always competing with a large number of similar products and properties on the market, so they need to make themselves stand out if they are going to get noticed and sell.
How is value added in construction?
This can be embodied in construction in many ways. Take commercial buildings, for example, value is often increased by adding space either through a renovation of an existing space or by building an extension. This can add value in monetary terms (a larger building usually equals a higher price) and also through beneficial worth even if the market value doesn’t go up, as a more spacious office is much more likely to sell.
Or, for a less costly and quicker option, value can be added by something as simple as installing new flooring. Adding fresh luxury vinyl tiles, carpet tiles or vinyl safety flooring to a commercial building can add both monetary and beneficial worth, which extends the life and quality of the building and increases the chances of it selling for a higher profit in the future.
We found an article on other ways to add value – these include:
If you want to add value to your commercial building with new flooring, get in contact with Duraflor today.