First and foremost, it is most important to understand is that each project is different. There will not be a ‘one price fits all’ in any dental fit out. Each project has differing factors that affect the cost of a Dental Practice renovation. Namely, Location, site access, size of the practice, the technology wish list, personal aesthetic preferences, work safe requirements and so much more.
The idea to fit out or renovate your dental practice is usually a decision that has been brewing for a while. Potentially your current practice is poorly laid out and patient flow is affected. Maybe your current practice is looking tired, and you aren’t quite as proud of it anymore. Potentially a new practice has popped up down the road and you are losing patients to your competitor – these are common factors that help consolidate the decision to proceed with a dental fit out.
Therefore, most investors/owners/dentists want to know where the money is being spent and to have a budget figure in their head of how much a dental clinic design and renovation will cost.
In short, here is a guide to help you understand the costs of a dental practice renovation: Please note: these costs are round figures only and are dependent on the size of the practice, site access, wish lists, preferences and current condition of the shell.
Dental Clinic Design – $30,000 to $150,000
The process would begin with an initial consultation… where your vision is detailed. You colour pallet explored and your wish list tabled. The design phase has the designers and project managers visiting site to fully understand the challenge. Further, using cutting edge technology the design team will develop a dental office layout using 3D renders and drawings. Once these plans are approved, the design phase enters construction phase.
Dental Equipment – $100,000 to $300,000
Investment in quality dental equipment during a dental fitout is critical to the success of the renovation. Up to date dental equipment demonstrates to patients that your dental practice takes their health seriously. From experience, we have realised that patient confidence is directly related to up-to-date equipment and chair side manners.
Furniture and Fittings – $20,000 to $150,000
A complete Dental Fitout Melbourne or Dental Fitout Sydney might involve some or all furniture. We find that most renovations will replace full joinery etc in treatment rooms as a minimum. In the case where all joinery is replaced throughout the entire dental practice, then the budget would be toward the higher end noted above.
Plumbing and Electrical Work – $30,000 to $100,000
Legislation has changed over time and what would have passed legislation in the past will not suffice today. Today body protection is a must. These sorts of additional electrical requirements add cost to the bottom line.
IT and Software – $10,000 to $50,000
Investment into Practice Management software, cyber safety and 3D printing machines are all very costly yet compulsory for business owners to consider.
Regulatory Requirements – $20,000 to $150,000
Stringent regulatory requirements are a necessary investment. Acts like the Disability Discrimination Act further adds costs to a Dental fitout. The DDA requirements makes it against the law for a public place to be inaccessible to a person with a disability. Hence ramps and elevators might be required as an alternative or addition to stairs.
Other Things to think about
Leasing vs outright purchase
The outright purchase of a renovation has a higher initial investment but can have cost-effective long-term returns. Your accountant or tax professional can discuss immediate write offs, depreciation and other Australian Taxation Office allowances. They can also prepare a cost/benefit analysis for consideration of leasing versus outright purchase.
Other Cost Saving Tips
Many suppliers offer discounts for bulk orders
Adjust your expectations and commit to mid-level finishes.
Budget adjustments can be made by removing non-essential fixtures and fittings.
How long does the dental fitout take?
Most dental fitouts Melbourne and Dental Fitouts Sydney take 3 to 9 months to complete. There are opportunities for dental clinics to remain open whilst renovations are occurring yet for more in-depth renovations the clinic might require closing.
Final Words.
Regardless, one of the most important starting points to any dental practice renovation is to get your budget right. Understand the costs, your wish list, the finished product and the path to get there. Ensure you invest your time partnering with specialist accountants and tax advisors and also ensure you partner with a specialist medical construction and fitout company.
The key to your success is the time you put into planning.
