How to Establish a Budget for an Animal Care Building Project

A Realistic Budget

The success of any animal care facility project—whether an animal shelter, animal hospital, or doggy daycare—is strongly connected to establishing a realistic budget from the initial design through completed construction. Often, executive directors and business owners are surprised to learn that they not only need a construction budget but also a comprehensive project budget that includes many aspects they may not have considered. 

Here are some of the distinctive components of each type of financial report. 

Construction Budget

The construction budget is a targeted financial figure that includes all hard costs related to the construction process. These are the expenses incurred in physically building the facility, such as:

• Construction materials

• Construction labor

• Subcontractor costs

• Building permits and fees

• Site work (grading, drainage, and preparation)

Another critical aspect of the construction budget is the construction contingency. The construction contingency is a vital component of the budget. At the start of a project, the Design Learned building experts allocate a more significant contingency to accommodate potential unknowns. Throughout the design process, we can often gradually reduce the contingency amount until the design is finalized. When construction begins, the design team typically narrows the final contingency to 3–5%. This approach helps mitigate risks and buffer unforeseen changes or challenges. Note that different projects may require different contingency amounts.

Design Learned has extensive experience in animal care facility design, and that depth of knowledge allows our animal care experts to provide accurate, data-backed opinion of cost for construction cost budgeting. 

As of spring 2025, our construction costs for animal care projects average $500 per square foot (though recent industry-wide cost escalations may impact final pricing). Unlike general design professionals, the Design Learned team of animal care engineering and building experts has specialized knowledge of the unique cost factors associated with animal care facilities.

Key components of the construction budget include:

• Specialized cleaning systems

• Multiple small independent HVAC zones

• Comprehensive dehumidification

• Durable, animal-friendly flooring

• Animal enclosures and caging systems

• Wall construction optimized for hygiene, noise control, and safety

• Acoustic ceiling tiles to manage sound levels and maintain effectiveness in wet and humid environments

These specialized elements can significantly impact the overall construction budget, and decision-makers must account for the costs early in the planning process.

Project Budget

The project budget is a broader financial plan that includes all costs associated with the project. It consists of the construction budget and other key expenses to ensure the project's success. The project budget encompasses hard (construction-related) and soft (not directly tied to physical construction) costs. 

Key components of the project budget include:

• Construction costs (as outlined in the construction budget)

• Professional design fees (architects, engineers, consultants)

• Legal and permitting fees

• Survey and site analysis costs

• Animal enclosures and veterinary equipment

• Moving and transition costs (if relocating or expanding an existing facility)

• Real estate or land acquisition expenses

• Project contingency for unforeseen costs (e.g., additional design services, unexpected regulatory requirements)

When establishing a project budget, executive directors, boards, and business owners must consider these costs. Many organizations make the mistake of focusing solely on the construction budget, only to realize later that additional expenses significantly increase the total project cost. 

A common misconception is equating a project budget with a construction budget. For example, a $5 million project budget includes all costs related to design, permitting, equipment, and land acquisition, whereas a $5 million construction budget strictly covers the building expenses. If stakeholders do not differentiate between these two figures, it can lead to financial shortfalls and project delays.

Ready for a Clear Budget for Your Building Project?

Budgeting for an animal care facility involves many interconnected factors, requiring precise planning and clear communication among all parties involved. Everyone—from design professionals to contractors to project stakeholders—must use the same terminology when discussing budgets to prevent misunderstandings.

By carefully planning both the construction budget and the project budget, organizations can avoid unexpected expenses, maintain financial control, and successfully complete their animal care facility projects. Ready to establish a project budget for your upcoming building expansion or renovation? Call the Design Learned team at 860-889-7078 or schedule a consultation online to discuss your options.