What does it cost to build?

It depends how big you build-and on the site fees, appraisals, zoning fees, and interest rate. Here's help with your estimate.

While you might think that the land cost would be a huge chunk of the budget you'd spend on a new practice, the site should actually total about 18 percent of your total costs. Construction costs make up 68 percent of your total, according to Larry Gates, principal of Gates Hafen Cochrane Architects, a veterinary design firm based in Boulder, Colo. And some extras you may not even think about fill out the list. (See "Where does the money go" below.)

Obviously, your square footage, materials used, zoning fees, and other decisions affect your final costs. And your colleagues are building all sizes of clinics, from the 12,760-square-foot 2003 Hospital of the Year to the 1,870-square-foot Best Small Hospital. For the 2003 Veterinary Economics Hospital Design Competition, the average size of the 11 winning facilities was 6,774 square feet. The average construction cost was $120.39 per square foot, with an average total cost of $1.4 million.

Wonder what goes into the total bill? See the sample pro forma for a 4,000-square-foot practice below, and adjust the costs based on your community and the practice you plan to build.

Where does the money go?

While building costs eat up most of the budget, you also need to consider such issues as land cost and architectural fees. Here's the breakdown:

68% Building cost

18% Land cost

8% Architectural and engineering fees

3% Contingencies

3% Interest, insurance, and fees

Pro forma

Sample costs: 4,000 square feet of hospital

Hard costs:

Land..........$150,000

Building costs:...........$600,000

Building size= 4,000 square feet

Cost per square foot= $150

Total hard costs.........$750,000

Soft costs:

Architectural fees.......$42,000

Engineering fees:

Civil (survey, soils, and drainage)....$7,500

Structural..........$7,500

Mechanical.........$9,000

Electrical.......$4,500

Regulatory and utility development fees:

Water/sewer tap fees...........$3,000

Financing:

Appraisals..........$4,000

Construction loan:

Points.......1%.......$6,000

Interest rate......8.25%....$12,375

Permanent loan

commitment.....1.5%.....$9,000

Closing costs?...........$4,500

Contingency......3%?......$21,280

Total soft costs.........$130,656

Total project costs?.........$880,656

Source: Gates Hafen Cochrane Architects, Boulder, Colo.