7 Key Considerations Before Starting Your Next Construction Project

Whether you're planning new construction, a renovation, or an expansion of your current space or campus, preparation is essential. The road ahead will likely include uncertainties, but being well-informed will help you navigate each phase with confidence. Here are seven crucial factors to consider before launching into your next project.

1. Is Your Financial Foundation Solid?

   Before engaging with banks, lenders, or potential partners, ensure your accounting systems are accurate, current, and easy to interpret. If explaining your balance sheet takes 20 minutes, it's time to simplify. Additionally, if your church hasn't closed recent months--or years--you're not ready. Financial clarity builds trust and confidence in your readiness.
   
   

2. Can You Sustain the Project Without Increased Giving?

   Avoid the "If we build it, they will come" assumption. Instead, evaluate your current financial position and ask: Can we absorb the cost of this project if giving remains steady? Build projections around multiple giving scenarios to understand the full financial impact and avoid overextension.
   
   

3. What Are the Ripple Effects of This Project?
   

   Every project influences more than just the structure. Use "If/then" scenarios to think through potential outcomes:
   - If construction affects the children's ministry area, then...
   - If we borrow $5 million with a $750,000 down payment, then our cash reserves will...
   - If we pursue this initiative, then our ability to support new ministry ideas may be limited...
   Thinking through these trade-offs now helps avoid painful surprises later.
   
   

4. Have You Accounted for Ongoing Operational Costs?
   

   Beyond the initial construction expenses, consider the increase in both direct and indirect costs. Utility bills, property insurance, ongoing maintenance, and additional staffing needs can significantly affect your operating budget. Factor these into your financial forecasts from the start.
   
   

5. Have You Invited Diverse Perspectives Into the Conversation?
   

   It's easy to find people who agree with your vision. It's wiser to invite those who see things differently. Seek input from trusted advisors who might challenge assumptions or raise new concerns. Their perspective could be crucial to avoiding blind spots.
   
   

6. Who Will Own Key Responsibilities?
   

   Clarify leadership roles before the first shovel hits the ground:
   - Who will manage the project timeline?
   - Who will track and enforce the budget?
   - Who approves change orders?
   Lack of clarity here can derail even the most well-planned projects. Clear lines of responsibility are essential.
   
   

7. Are You Willing to Walk Away If Necessary?
   

   Perhaps the hardest--but most vital--question: Can you walk away? If the collective wisdom suggests it's not the right time or the risk is too high, are you prepared to pause or cancel the project? Walking away after investing time and energy is difficult, but sometimes it's the wisest move. Make sure you have the emotional and organizational readiness to do so if needed.

Looking Ahead

Over the next few months, we'll be sharing real Q&As with churches who've recently completed similar projects. Their experiences, lessons learned, and candid reflections will provide helpful insights for your own journey.

Stay tuned--we're here to walk with you every step of the way.