Factory design is the first step but has a major impact on total construction investment. A reasonable design not only meets standards, functions, and aesthetics but also helps businesses save up to 20% of total costs through layout optimization, proper structural selection, and early control of materials.
So what are the design factors that help reduce costs while ensuring functionality, aesthetics, and technical standards? In this article, BIC will analyze cost-optimization solutions from the factory design phase so businesses can proactively plan effective investments from the outset.
When it comes to cutting construction costs, many investors focus on negotiating material prices or choosing low-cost contractors. But in reality, the element that determines most of the project's budget lies in the design drawings. According to industrial construction statistics, about 70% of a project’s cost is determined during the design stage.
Every line on a drawing comes with specific costs: materials, labor, construction time, and even future operating expenses. An unoptimized layout could lead to unnecessary construction space. A wrongly sized component may require custom orders, which are more expensive. A disjointed technical system (electricity, water, fire protection, etc.) might need to be redone during construction, causing delays and cost increases.
Conversely, an optimized design helps control costs from the beginning through appropriate structural solutions, accurate volume calculations, and a well-organized layout.
Factory design isn't just about aesthetics; it's a matter of science and cost estimation. A factory that’s designed with the right capacity and production process can save hundreds of square meters of unnecessary space, reduce the quantity of steel, concrete, and corresponding construction costs.
In addition, clear and detailed drawings help construction teams stay on schedule, minimizing waiting time, repairs, or rework. Every day of construction delay equates to delayed operational costs and sometimes lost business opportunities.
Many businesses encounter additional costs due to skipping detailed designs or choosing sketchy drawings. As a result, once construction begins, issues emerge that were previously missed or fire safety standards not met, requiring changes midway.
Every change during construction results in significant extra costs—not only in added materials but also demolition, rework, and delayed progress. These issues usually stem from a lack of coordination in the initial design. On the contrary, a well-invested design, with close collaboration among architects, structural engineers, and MEP engineers, ensures the entire system is implemented rationally, consistently, and efficiently, minimizing unplanned adjustments.
Design is not just a cost but a key lever for optimizing total investment. A precise design from the beginning allows businesses to manage budgets, control construction progress, and operate efficiently throughout the life of the building. This is not a choice to consider, but a strategic decision that directly impacts investment effectiveness and competitiveness.
Cost savings in factory construction doesn’t mean compromising on quality. On the contrary, effective savings come from optimal, scientific design aligned with long-term operational needs. Here are five key design elements that can help reduce up to 20% of total investment while still ensuring quality and sustainability.
The factory layout is the operational map of the entire production line. If the layout is poorly designed, the business may face several consequences: wasted construction area, increased internal transport distances, and decreased labor efficiency.
On the other hand, a rational and optimized layout delivers clear benefits:
- Reduces unnecessary construction areas, avoiding waste in partitions, corridors, or dead space.
- Shortens movement of materials, products, and personnel thus saving time and operating costs.
- Enhances natural lighting and ventilation, helping reduce electricity usage for lighting and air conditioning.
- Enables easy adjustment, expansion, or reconfiguration of machinery when production upgrades are needed.
Optimizing every square meter not only reduces initial construction costs but also brings long-term operational savings.
The structural system of the factory is one of the most direct and significant factors affecting total construction costs. For industrial projects, pre-engineered steel structures are increasingly preferred by businesses for their cost-saving potential, fast construction, and high flexibility.
Specifically, pre-engineered steel structures offer the following advantages:
- Lower construction costs than traditional reinforced concrete, especially for large-span buildings.
- 30–40% shorter construction time, helping businesses put the factory into operation sooner and improve capital efficiency.
- Easy to expand, dismantle, or upgrade as production needs change ideal for businesses with long-term expansion plans.
- Reduced maintenance costs during operation due to better resistance to cracking, seepage, and foundation settlement compared to concrete.
However, to fully leverage the economic efficiency of pre-engineered steel, the design must be precisely calculated based on load, function, and actual conditions. Poor or copied drawings often lack the technical basis to optimize steel quantities, leading to waste and unnecessary expenses.
Structural solutions must be both robust and cost-effective, aligning with the business’s long-term development direction.
Technical systems including MEP, fire protection, and water-electric infrastructure often account for 15–30% of the total factory budget. Thus, correct, complete, and coordinated design from the outset is the key to controlling investment and operational costs.
- Design the electrical and lighting systems based on actual load: determine the correct load, and arrange lighting based on lux standards for each area to avoid overcapacity and energy waste.
- Scientifically plan water supply and drainage: keep piping routes short, choose appropriate diameters, and utilize natural elevation differences to reduce pipe length, accessories, and labor.
- Design fire protection systems to standard from the beginning: apply relevant QCVN & NFPA regulations, and align them with architectural and structural plans to avoid adjustments during approval, which would increase costs and delay the timeline.
- Maximize natural ventilation and lighting: use louvers, shutters, and polycarbonate skylight panels to reduce reliance on artificial cooling and lighting, lowering monthly electricity bills.
A well-designed technical system doesn’t just reduce upfront costs it also minimizes breakdowns, saves utilities, and cuts maintenance costs throughout the facility’s operational life.
Material selection in factory design shouldn’t stop at low prices; it must be considered across three axes: functionality, material longevity, and life-cycle cost. An optimal material solution balances initial investment with long-term efficiency.
Some cost-effective materials include:
- Insulated roofing and EPS/PU panels: help reduce heat absorption and save energy for cooling systems, especially in temperature-sensitive factories.
- Industrial coatings and anti-corrosion materials: extend the lifespan of structures and reduce repair costs in humid, chemical, or dusty environments.
- Modular and pre-fabricated materials: speed up construction and simplify maintenance or replacement when needed.
- Locally sourced materials: significantly cut transportation costs and delivery times particularly useful in time-sensitive projects.
Moreover, proper material specification by functional area (production, warehouse, office, utility zone) helps avoid "overuse" or "misuse" of materials, saving 5–10% on material costs compared to applying the same material across all areas without distinction.
Choosing the right materials is not just a financial decision, it’s a strategic solution to enhance durability, efficiency, and long-term performance.
A common mistake in factory design is focusing only on current needs and ignoring future scalability. When production scales up, businesses may have to demolish or retrofit, incurring high costs and disrupting operations.
In contrast, a long-term design vision preplans expansion scenarios without additional costs or structural conflicts. For example:
- Reserve expansion areas: allocate zones for potential expansion of the factory, warehouse, or office without affecting internal traffic or technical infrastructure.
- Provide for backup technical routes: predesign piping, electrical cables, escape systems... so future expansion only requires connection without demolition.
- Apply modular structures: allow phased extensions without impacting the overall structural integrity suitable for businesses with staged development plans.
A factory design with future expansion in mind not only saves future investment but also demonstrates a professional and well-managed development approach from the outset.
A factory built on time, on budget, and operating efficiently always starts with a good design. However, many businesses experience budget overruns, delays, or need modifications post-construction. The root cause often lies not in the market or material prices but in early design-stage mistakes.
Here are common mistakes and how to avoid them:
Many businesses select design firms based on the lowest quotes without evaluating their industrial experience or execution capacity. The result:
- Drawings lack technical detail or system coordination (structure, MEP, fire protection...)
- Design doesn't align with actual functions, making construction difficult
- Constant changes during construction, causing delays and added costs
Cheap design can cost you hundreds of millions in construction. Investing in an experienced design firm is an invisible but critical saving.
Many current designs only provide basic layouts, renderings, and a few cross-sections. But real construction requires a complete technical dossier including:
- Architectural and structural drawings
- Water, electrical, and ventilation systems
- Fire protection design
- Foundation, steel frame, roof, and door/window details
Without these, contractors may need to redesign or improvise, leading to discrepancies, volume overruns, and uncontrolled costs and timelines.
A major error is underestimating the production process and functional needs in the factory design. For instance:
- Overlooking machinery size and placement, making installation difficult
- Poor zoning between warehouse, production, and loading areas
- Neglecting clearance height, floor load, or dust/exhaust systems required by industry
When errors emerge during operation, businesses must retrofit or reinvest, leading to severe waste that could’ve been avoided with thorough early-stage research.
A common result of poor or uncoordinated design is frequent changes during construction. Adjustments such as layout changes, material substitutions, or adding systems and space extensions come with risks and consequences:
- Extra material and labor costs for custom orders, demolition, or rework
- Construction delays affecting the factory’s operational launch
- Reduced project quality due to structural patching and technical inconsistencies
Worse, if changes involve the fire protection system or other legally mandated approvals, businesses must revise legal documents. This is costly and slows acceptance, permitting, and handover.
Don’t let small design mistakes become costly burdens. True savings don’t come from cutting design fees, but from choosing a capable, experienced firm that understands industrial specifics.
Many businesses think low-cost design is the top priority. In truth, what they need is total cost optimization not cheap, unusable drawings. A professional design firm offers not only complete drawings but also helps save millions through technical coordination and long-term planning. So how do you choose the right design partner? Here are some principles to consider:
1. Prioritize Firms With Industrial Experience
Factory design is different from residential or office buildings. It requires deep technical knowledge and an understanding of specific production workflows. A reputable firm should:
- Understand production processes and industry-specific requirements
- Know structural standards, load, clearance, fire protection
- Coordinate MEP, water-electric, ventilation, and auxiliary systems
- Optimize layout based on material and personnel flows
Prioritize firms with real experience in mechanical, food, pharmaceutical, textile industries... to avoid risks and provide realistic, executable solutions that save from the drawing board.
A common mistake when choosing a design firm is evaluating based on total price without reviewing the design scope. Low quotes may only cover basic design, missing crucial technical items like: detailed structure, MEP, fire protection, infrastructure...
The result: businesses later discover incomplete or subpar drawings and must:
- Hire another firm to revise or complete drawings, incurring unplanned costs
- Make adjustments during construction, causing budget overruns and affecting quality
Always request detailed quotes with accompanying design deliverables. Compare based on what’s truly delivered and usable not just price.
Choosing firms that offer end-to-end construction design provides a distinct advantage thanks to consistency from drawings to execution. Unlike separate design and construction models, design-build firms:
- Deliver designs that suit actual site conditions
- Optimize materials and methods with full coordination from start to finish
- Minimize conflicts between design, supervision, and contractors
- Better manage progress and budget with one accountable party
If possible, work with general contractors offering full design-build services. This is a risk-mitigating, cost-saving, and quality-assuring approach.
Don’t choose based on referrals or price alone. Evaluate real-world evidence to judge a firm’s capability and reputation:
- Clear company profile showing expertise in architecture, structure, MEP, fire protection, plus staffing, process, and licensing
- List of completed projects with real photos and client references, especially within your industry
- A dedicated team of industrial-experienced engineers and architects who can handle site challenges
Early consultation mindset, practical construction solutions, and legal support all contribute to reducing design costs and enhancing long-term investment efficiency.
Choosing a factory design firm should not start with a price quote but with solution value. An optimized design can cut 20–30% of investment, shorten construction time, and increase long-term performance that is true, sustainable savings.
Factory design is not just a starting point but the core determinant of capital efficiency. When done thoroughly, cohesively, and carefully calculated, it can reduce costs by up to 20%, optimize operations, allow flexible expansion, and strictly comply with technical standards. Businesses should rely on firms with practical experience, industry knowledge, and long-term partnership commitment from the very start. Contact BIC for advice from industrial factory design and construction experts.
