Which Factors Influence the Cost of a New Concrete Parking Lot?
Parking lots are critical to business operations, but they’re also a significant investment. When collecting bids, you’ll most likely receive varying costs from different contractors. So, to set the record straight, we’ve created this blog post to help you understand the various factors that influence the overall cost of this type of project.
What Is the Average Cost of a Concrete Parking Lot?
First…how much does a concrete parking lot cost? According to the Michigan Concrete Association, standard-grade concrete costs between $4 and $7 per square foot. For a complete installation, including sub-base preparation, reinforcing materials, and finishing, costs can range from $5 to $10 per square foot.
Cost Factors
Scope of Work
Do you expect the construction company to clear, level, and prep an existing field, or are you removing and replacing a current lot?
Preparing an untouched area involves a lot more work and time, especially if there are trees and other elevation issues to worry about, and therefore will be more expensive.
Location
Location does affect material expenses. For instance, a concrete lot installation might not cost as much in Michigan as it does in California. However, the pricing variations are not just limited to states—prices can vary from county to county and even city to city, depending on the company you are using.
Distance
Another factor that plays a role is the distance from the contractor to your location. While it might seem like a small thing to travel 30 to 50 miles, when you are driving heavy specialized equipment that distance, especially filled with concrete and aggregate, it gets expensive. The longer the distance, the more expensive the cost, which is why it’s more cost-effective to go with contractors in your specific location.
Size
How big is your lot? As discussed earlier, the bigger the lot, the more expensive the project will be. For example, a small parking lot, which is considered about 25,000 square feet with room for about 200 cars, can typically be constructed for somewhere between $75,000 and $150,000, depending on the type of traffic you expect. However, it is necessary to highlight the word “average” because every job is different.
Traffic
You might be wondering…why is there is a $75,000 gap between the lower and upper end of the average scale?
The difference has to do with the type of traffic you are expecting.
Light-duty traffic, which mainly consists of car/standard passenger vehicle traffic, is typically at the lower end of the spectrum, around $4 per square foot. However, if you expect a lot of heavy-duty traffic, which comprises frequent semi-truck traffic, then you can expect to pay about $7 per square foot for the extra precautions and construction.
Drainage
Another element to consider is drainage, which is typically only a concern for lots that have not been prepared before. Every municipality has grading requirements for concrete installations to ensure that the integrity of buildings remains intact. So, if your parking lot has not been appropriately graded for drainage, you will need to consider it as an added cost
Labor & Materials
Unfortunately, this is an area where companies can differ significantly. There are many reasons why these prices vary, including:
- Different companies use different concrete mixes. Specialty additives and finishes can increase the cost.
- The cost of materials can increase if they need to be transported over long distances. Even if you go with a local contractor, they may still have to source cement, aggregate, and other components elsewhere.
- Labor costs can be higher for unionized workers due to standardized wage rates and benefits, but the quality of work will likely be higher.
- Labor costs also vary across different regions due to the local cost of living and market conditions.
- More complex designs require more time and skill, increasing labor costs.
- Larger projects, as already mentioned, increase costs, including labor costs, because they require more coordination and management.
- Weather can affect the timing and methods of concrete pouring and curing. Cold or wet weather can delay projects and increase costs.
- Depending on where you live, some contractors may have to pull a permit or schedule an inspection, which adds to the overall cost of the project.
Don’t Forget About Maintenance
It’s hard not to think about the initial cost of a parking lot. Some business owners opt for asphalt parking lots simply because it’s less expensive upfront. When business owners do this, they forget about the expenses associated with asphalt maintenance.
Generally, concrete is less expensive to maintain because it’s more durable than asphalt. Concrete only requires regular cleaning to remove stains and chemicals, periodic sealing to prevent moisture penetration, and some minor crack, joint, and reinforcement repairs. Asphalt, on the other hand, is prone to developing cracks and potholes, which need to be patched or filled to prevent expansion, and over time, the entire surface may need an overlay. Concrete will last up to 40 years or more when properly maintained, while asphalt lasts only between 15 and 20 years.
Request an Estimate From G&G Concrete & Construction
G&G Concrete & Construction has been helping business owners in southeast Michigan install and maintain parking lots for over 20 years.
We know how often project costs can fluctuate—the best way to understand the specific cost of your project is to request a quote. Please contact us today to request a comprehensive site assessment and estimate.
