Church Loan Construction

Each church and each project is unique. Finding the best project starts with clarifying the vision, determining all the parameters, and counting the cost. This may happen before contacting a designer and builder. CFR's team can help you jump-start this process.

Sizing the project starts with using attendance numbers and per-square-foot averages for various spaces. Start by gathering attendance trends broken down by service time for all areas of the church, along with future attendance projections. Prepare floor and site plans for your existing property that are drawn to scale. Using this data, your team will determine the proper sizing. Then, they will apply a current average cost per square foot value to the project as a starting point for budgeting.

There are many ways to structure the project team, and selecting the best Project Delivery Method depends on many factors. First, decide on the Project Delivery Method (design bid build, design-build, self-perform, multi-prime, etc.) and then research possible firms. Develop a long list for each role, narrow it down to interview 2-5 companies, and then have a small committee make the selection(s) based on analytical data using a tool like our Scorecard.

Your project will have many roadblocks along the way, and finances may be one of them. Project funding generally only comes from a few sources, so verify all possibilities: cash on hand, fundraising, operating surpluses, property sales, and manageable debt. If those sources are short of your proposed project costs, consider phasing the project, cutting scope, or value engineering. It's always challenging to let go of parts of a project, but that may be the best answer. This process is not easy, but it will generally refine into the best project God has for you.

The pre-planning phase of determining the best project should not be rushed and may take many months to years for the church to develop. Once ministry leadership has greenlighted a particular project, design, and permitting generally take 4-12 months. Simple renovations move faster than expansions, which both move faster than new builds. Once permitted, a typical renovation of an existing building takes 6-9 months, and a typical new build takes 10-14 months. Project phasing, seasonal weather (winters, hurricanes, etc.), and funding shortfalls all tend to slow the project down.

This is a tricky question; you will likely have to prioritize these three elements. It is challenging to have it all because contractors and designers don't work for free. Ministries that are tight on budget tend to hire project teams that aren't as robust, meaning details slip through the cracks and, quality suffers, or the project slows due to limited resources. Similarly, ministries that are tight on schedule tend to hire large project teams that expedite the process but may come at a higher cost. Churches that desire that wow factor may pay a premium in design with finishes that cost more, but more details and more scope tend to slow things down.

The relationship doesn’t stop after the papers are signed. Our staff has significant experience in helping church leaders think through the entire construction process and plan for unexpected costs. It's worth a call to see how CFR can help you.