Attending The McKnight Group’s i3 webinars is one of the best ways to learn about the church design and building process. These sessions offer practical advice, insider tips, and the opportunity to ask questions specific to your church’s needs. In our recent webinar on church building pitfalls and epic fails, we received several insightful questions from church leaders. Below are those questions, along with our detailed answers.

Q1: Do you recommend adding a contingency percentage when planning a church building project budget?

Absolutely! Including a contingency in your budget is a must, whether you’re planning a new build or remodeling an existing space. Contingencies account for unforeseen issues that often arise during construction, helping you navigate unexpected costs without derailing your project.

For new builds, where we typically have comprehensive information about the church building project upfront, we recommend setting aside about 5% of the total project cost for contingencies. This percentage helps address minor changes, such as adjustments for materials, last-minute design changes, or other needed updates, which may come up during the building process.

For remodeling projects, however, contingencies should be higher—around 10%—due to the unpredictability involved. Remodels often deal with unknown variables like structural surprises, hidden damage, or necessary upgrades to outdated systems. Depending on your comfort level and the complexity of the project, you might consider a contingency of 10%, or even 20% for extra security. Always remember, it’s better to be overprepared than underfunded when the unexpected arises.

Q2: Do you have current rules of thumb on construction costs for new buildings and remodels?

Yes, we do! Understanding the general cost framework can help you plan your budget more effectively. Let’s break it down:

New Church Building Projects

For a new build project, the costs typically include multiple parts, not just the building. These include site preparation, building construction, architectural plans, fees and permits, furnishings, and equipment. While these numbers can vary based on region, we generally estimate around $350 to $375 per square foot for a comprehensive new church building project in the Midwest.

Remodeling Existing Buildings

Remodeling costs, on the other hand, vary widely depending on the scope of work. For simple aesthetic upgrades like changing flooring, painting, or installing new light fixtures, costs can range from $20 to $30 per square foot. If your remodel involves more substantial changes, such as removing walls, upgrading HVAC systems, or rewiring for modern electrical needs, the costs can rise to between $100 and $150 per square foot, depending on the project’s complexity.

For projects with moderate updates—like converting classrooms into offices—expect costs to fall in the range of $70 to $90 per square foot. These remodel ranges are just for construction and do not include fees, permits, furnishings or equipment. One factor to keep in mind about remodeling: on average, it often costs about 50% or less of what new construction would cost, making it an appealing option for churches looking to maximize their budgets.

Join Our i3 Webinars for More Insight

Our free i3 webinars are an invaluable resource for church leaders looking to enhance their knowledge of church design and building. Stay tuned for our 2025 webinar schedule. and visit our website to sign up and find more church building resources.