Commercial asphalt paving costs can be considerable for any business. Like any worthwhile renovation, however, these costs can be recouped in the future. Indeed, when properly installed and maintained, an asphalt driveway or parking lot can last up to 25 years. If your asphalt project is significant enough, it may even constitute a capital improvement, increasing your property’s value. According to U.S. tax law, all three of the following requirements must be met for a renovation to be deemed a capital improvement:
- It adds significant value to the real property (or extends the real property’s useful life)
- It becomes a permanent part of the real property (i.e., would damage the property if removed)
- It’s intended to become a permanent feature
Of course, projects that fit this bill are bound to be more costly upfront than basic asphalt maintenance or resurfacing. With that in mind, let’s go over how to budget for your business’ next asphalt-related capital improvement project.
Map Out the Schedule of Your Capital Improvement Project
Capital improvements come in all shapes and sizes. Some of these projects only take days or weeks to complete, while others (usually city- or state-level ones) can span several years. Most asphalt-related commercial capital improvement projects won’t take more than multiple months to complete. That said, determining just how long such a project will take is necessary for proper budgeting. Taking care of basic pavement repair is one thing – overseeing the development of new parking areas and driveways on your property is something else entirely. You may need to temporarily reduce your monthly or quarterly budget in some areas to achieve the proper funding for your capital improvement project. The longer the project takes, the more budgetary oversight is required – at the same time, long-term projects often allow for more leeway since they’re spread out.
Receive Accurate Asphalt Paving Estimates
You can’t properly budget if you’re not sure what your particular project will cost roughly. Depending on the scope and nature of your asphalt-centric capital improvement, your larger estimate may need to be broken down into chunks – for instance, you might require estimates for a new parking lot, wider driveway, updated drainage systems, etc. Whatever the case, it’s wise to receive estimates from more than one contractor to make sure you’re getting the right price for the work ahead. Major disparities between estimates are causes for concern, as they indicate that at least one contractor is severely undercharging or overcharging.
Make Sure You’re Prepared to Care for All Additions
Capital improvements often constitute the addition of features. For asphalt-related capital improvements, businesses often invest in new parking, driving, and pedestrian surfaces, as well as improved drainage. These additions certainly add long-term value to any property, but they also require proper long-term maintenance. If, for instance, you plan on increasing your parking areas from one space to two or more, you must now repair and maintain these additional areas for the foreseeable future. Moreover, increases to your property’s value also come with additional property taxes. So, not only must you budget for the capital improvement(s) outright – you must also budget for long-term maintenance and tax adjustments down the road. Ideally, these costs will be offset by the increased value received by these improvements.
Work with a Qualified Commercial Paving Company
Budgeting is never easy, especially when it comes to large-scale, long-term projects like capital improvements. Fortunately, some commercial paving providers have plenty of experience dealing with these types of projects, so you don’t have to sweat the details nearly as much. Cassidy Paving is MassDOT prequalified for highway construction and resurfacing work, so we're prepared to improve and repair municipal paving, including walkways, highways, roadways, and more. We carry over this New England municipal experience to commercial projects, too, offering the most accurate timelines and estimates for all our clients.
Call us today at 866-978-9788 for a free estimate on your next paving project.