Low-Cost Factory Design: Optimization or Cost Trap?

Low-cost factory design is becoming an attractive option for many businesses when starting a production project or expanding their business

Low-cost factory design is becoming an attractive option for many businesses when starting a production project or expanding their business. In a context of rising investment costs, budget optimization is essential. However, does cheap truly mean long-term efficiency and savings?

A factory design is more than just a blueprint – it's considered the foundation that directly impacts construction quality, project timeline, and future operating costs. If only price is considered, overlooking technical, structural, and legal factors, investors may face serious consequences.

So, should you choose a low-cost factory design? The answer will be analyzed clearly in the article below. BIC helps you gain a comprehensive view and make the right decision for your project.

What is Affordable Factory Design?

The concept of "affordable" in factory design needs to be properly understood. Affordable design isn't just about low cost; it's also about simplifying the content of the design documents, reducing certain items, minimizing unnecessary volume, or reusing existing design templates to shorten the design timeframe and reduce labor costs.

However, not all affordable designs offer the same value. Some providers offer prices that are too low compared to the market standard, often accompanied by a lack of detailed structural drawings, inadequate site surveys, or failure to meet legal requirements – leading to the risk of increased construction costs later on.

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Understanding "Affordable" in Factory Design

In reality, "affordable" can be divided into two cases:

- Reasonably Affordable: This is an optimized price that minimizes costs while still ensuring that all basic design elements are included (structure, architecture, electrical, plumbing, fire protection, permits, etc.). These packages are usually applied to small-scale projects with simple functions or are designed from existing templates.

- Unusually Affordable: This is a price significantly lower than the market average, accompanied by a lack of detailed drawings, no site survey, or the absence of a specialized engineering team. This is often a warning sign of construction risks.

Factors Affecting Factory Design Costs

Several important factors determine the design price:

Influencing Factor

Brief Explanation

Construction Area

The larger the factory, the higher the cost.

Type of Factory

Heavy industrial factories require more complex structural designs than warehouses or light processing workshops.

Standard Level

Are fire prevention, environmental, and construction permit drawings required?

Number of Drawings & Detail

Preliminary design differs significantly from detailed construction design.

Design Firm

Reputation, experience, and working style significantly impact the price.

Some Popular Budget-Friendly Design Packages:

- Preliminary Design Package: Only includes functional layout plans; no structural details. Suitable for presenting ideas.

- Existing Template Design: Reuses and slightly modifies an old factory design template. Commonly used for warehouses, small workshops, and temporary factories.

- Online Design: Remote work saves on-site survey costs, but requires the investor to provide clear topographic drawings.

Advantages of Choosing Cost-Effective Factory Design

Opting for cost-effective factory design isn't always a bad choice. If executed correctly, it can offer numerous practical benefits for investors – especially for small and medium-sized enterprises (SMEs) or projects with urgent timelines.

1. Savings on Initial Investment Budget 

For small businesses or manufacturing startups, saving on design costs can free up budget for more crucial areas like equipment procurement, raw materials, or initial operating expenses. A simple, fit-for-purpose, and easy-to-construct design can still meet requirements if the project doesn't involve complex technical specifications. 

Example: A small 500m² factory might only require a basic structural drawing, without demanding architectural or interior design features, thereby significantly optimizing costs.

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2. Reduced Design and Implementation Time 

Affordable design packages often utilize existing templates or simple, easily customizable structures. This reduces the time spent on brainstorming, finalizing plans, and delivering design documents, accelerating the construction process.

- Average: Basic designs can be completed in 7–10 days.

- Standard designs or those requiring inspection and construction permits: 15–25 days.

3. Suitable for Small Projects with Minimal Technical Requirements 

For factories used as warehouses, garages, or light processing workshops, the demands on architecture and structure aren't excessively complex. In these cases, cost-effective factory design can fully meet requirements without compromising actual usage quality.

4. Easy to Compare and Control Costs 

Affordable design firms typically publish transparent, clear pricing based on per square meter or package deals. This makes it easier for investors to compare different providers, optimizing their budget without extensive negotiation.

Hidden Risks of Budget-Friendly Warehouse Design

While budget-friendly warehouse designs can help save on initial costs, choosing them carelessly can lead to significantly higher expenses later on. Here are some common risks that investors should be particularly aware of:

1. Incomplete and Lacking Technical Detail Design Documents 

Many low-cost designs only include general layout plans, missing crucial drawings such as:

- Elevations and Sections

- Structural drawings of foundations, beams, floors, and steel frames

- Electrical and plumbing systems

- Designs for fire protection, lighting, and emergency exits

Without these drawings, contractors lack a solid basis for accurate implementation, easily leading to discrepancies and requiring numerous adjustments during construction.

2. Increased Construction and Repair Costs 

Inaccurate drawings or incorrect structural calculations will force the contractor to make frequent adjustments during construction, resulting in:

- Delays in construction progress

- Waste of construction materials

- Increased completion costs

More seriously, the investor may have to demolish and rebuild a portion if the structure is not up to standards.

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3. Failure to Ensure Safety and Building Longevity 

A warehouse subjected to heavy loads but designed carelessly can face:

- Wall cracks and foundation settling after only a few months of use

- Weak frames that are easily deformed by strong winds or heavy rain

- Lack of proper ventilation and lighting, leading to stuffiness and affecting workers' health

These are serious operational risks that low cost cannot compensate for.

4. Failure to Meet Legal Requirements 

A legally compliant factory design requires:

- Construction permit drawings

- Fire protection and prevention (FPP) design documents (approved)

- Environmental protection drawings Many low-cost design firms do not include these items, forcing investors to hire another firm to redo the work from scratch or face suspension of construction by authorities.

5. Difficulty Expanding or Renovating Later 

A poor initial design lacking long-term vision will create difficulties if the business wants to:

- Expand the factory or install additional machinery

- Add floors or change the function of the building

- Connect items to a central management system This situation results in the business incurring costs to redesign and spending time waiting for adjustments.

Criteria for Choosing a Cost-Effective and Efficient Design Firm

To ensure both cost savings and quality design, businesses should choose a design firm that meets the following criteria:

1. Clear Capabilities Portfolio 

Prioritize firms with experience in completing actual factory construction projects, possessing a team of specialized structural, electrical, and plumbing engineers, and a thorough understanding of construction laws.

2. Detailed and Transparent Quotation 

The quotation should not only state the total price but also include a breakdown of each item: architectural drawings, structural design, fire protection system (FPS), 3D rendering, permit application documents, etc.

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3. On-Site Survey of Existing Conditions 

A site survey ensures the design is appropriate for the actual soil conditions, wind direction, traffic, and surrounding environmental factors. This is a mandatory step to ensure the accuracy of the design documents.

4. Legal and Technical Consulting Support 

The design firm should be capable of providing advice on obtaining construction permits, supporting FPS approval, or consulting on future renovations and expansions. This demonstrates overall competence, beyond simple drafting.

Low-cost factory design can be a suitable option in certain situations, especially for small-scale projects, limited budgets, or tight deadlines. However, if the wrong construction design firm is selected or the quality of the design documents is not controlled, businesses may face a range of risks related to costs, technical issues, and legal compliance.

BIC is a specialist in industrial factory design with over 10 years of experience, having completed hundreds of projects of all sizes nationwide. Contact us for expert consultation.

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