By Jeff Dunn - expanded upon by ChurchPlansForLess

The decision to expand St. James United Methodist Church’s building was an easy one to make.

“We knew it was time to expand,” says Jeffrey Johnson, associate pastor of the Tulsa, Oklahoma, church, “when we couldn’t squeeze one more child in a Sunday school classroom.”

For others the decision to build is not as clear. South Dayton (Ohio) Presbyterian leased an auditorium from a local Seventh-day Adventist school for 6-1/2 years before breaking ground for their own complex. “We could have waited another year to collect more funds,” reflects Don Ward, pastor of South Dayton Presbyterian.

Both Johnson and Ward confess to making mistakes during the planning and building process. These pastors, along with several construction and financial planning experts, talked with MINISTRIES TODAY about what to do and what not to do when launching a church building project.

Here are 10 mistakes often made by ministers in building or expanding their churches. We hope you can avoid the same pitfalls. (Click on the list below to view more info.)

Mistake #1. Failure to conduct a needs analysis.
Mistake #2. Selecting the wrong architect or builder.
Mistake #3. Relying on the architect’s cost estimate.
Mistake #4. Improper site selection.
Mistake #5. Failure to plan for adequate parking.
Mistake #6. Unrealistic projection of income or inadequate cash on hand.
Mistake #7. Getting on the bad side of city government.
Mistake #8. Allowing the project to overwhelm your life.
Mistake #9. Not praying for the construction workers.
Mistake #10. Waiting to celebrate until the building is complete.
Mistake # 11. Ordering that "On Sale for a Limited Time Steel Building Package".
Mistake # 12. Failing to check for the need of a Registered Architect.

Mistake #1. Failure to conduct a needs analysis.
Yes, you realize you need more space. But what kind of space do you need? Can existing space be utilized, or will you have to add to your building? Do you have the land to expand?

These questions and others should be answered during a needs analysis or feasibility study. Such a study should be done by an architect before any other phase- even before the selection of an architect to design your plans.

“Having an unbiased, outside source do a feasibility study allows a better view of the church’s needs, says Larry Barnhill, vice president of A-E Technologies. “Once a congregation gets beyond their emotions and feelings, they can see the facts. Otherwise, you can end up with a church designed by a committee.”

Barnhill, vice president of operations for the 10-year-old company, cautions pastors not to confuse planning with plans.

“Planning,” he explains, “is taking us from where we are to where we want to be. A plan- the drawing of a building- is where many architects want to start. The architect asks, ‘What do you want to build?’ What most churches need is someone to ask, ‘What do you need- and why?’”

“Don’t think of building what you need now,” says Johnson. “Plan to build what you will need five years from now.” Johnson explains that shortly after the first phase of St. James’ building was finished in 1988, they were already overcrowded in classroom space. Wise use of space above several rooms allowed for a temporary solution until the second phase could begin in 1996.

“Build a building that can be added onto,” says Johnson. “Start from the end- what you want it all to look like- and work back. Picture what the whole campus should look like after all the phases are completed.”

“Churches are the biggest ‘tearer-uppers’ of asphalt in the country,” according to Brachial. “They tear up a parking lot to add to the building when they shouldn’t have put the parking lot there in the first place. You should plan your building for future growth.”

“A healthy church will grow,” says Johnson enthusiastically. “Build your church to accommodate growth.”
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Mistake #2. Selecting the wrong architect or builder.
Barnhill believes it is imperative to choose a Christian architect.

“His Christian perspective allows him to ask the right questions,” Barnhill says, “and allows him to understand the use of your building. After all, a building is a tool for use in your ministry.”

Ward chose a Christian builder and trusted that as a Christian he would do everything in an upright manner. Now he wishes he had not been so trusting. The contractor was using money given him by Ward’s church to pay subcontractors on other jobs. Money soon ran out for Ward’s project.

“If he had been a secular contractor,” says Ward, “we would have held his feet to the fire. Now I know that just because a worker is Christian doesn’t mean we should fail to hold him accountable. Set up procedures and then stick to them. Don’t take excuses.”

Ward admits he did not check the builder’s references closely enough. He suggests checking the two or three most recent projects completed by the builder rather than ones done several years ago.

“If he has any history of late payments,” warns Ward, “you don’t want anything to do with him, whether he is the lowest bidder or not.”
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Mistake #3. Relying on the architect’s cost estimate.
Scott Rolfs, assistant vice president with B. C. Ziegler and Co., a firm specializing in church financing of large-dollar ($1 million or more) projects, sees this problem arise constantly.

“We look at any number of multi-million dollar projects every week,” he says. “The architect tells the church it is a $1.2 million to $1.5 million project; then the bids come back from the builders 10 to 20 percent higher. The problem is the pastor has sold the congregation on the architect’s price. The congregation gets ‘sticker shock’ when they are told what it will really cost to build.”

Then there are the costs not written into the original plans that can end up adding tens of thousands of dollars to the project- or shutting it down completely. Things not foreseen by the architect, such as street improvements or the addition of a traffic light, can drastically increase the overall cost.

“Who is going to pay for the building redesign if it comes in over budget?” asks Barnhill. “The architect should be willing to redesign at no cost, even if that means starting over. That’s our policy- it’s a matter of integrity. If the bid exceeds the projected cost by 7 percent, we’ll redesign at no cost to the church.”
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Mistake #4. Improper site selection.
Proper site selection is the key, says Ward. “It makes all the difference,” he insists. “We chose a site on a high-traffic road. We get a lot of visitors just from drive-bys.”

But it is a much more difficult chore than it was a decade or so ago.

“Gone are the days when you could just go out, buy a plot of land and build a church on it,” says Barnhill. “Now there are numerous environmental issues to investigate.”

Barnhill and Rolfs both stress the importance of the completion of an environmental study before bidding on property. “It’s the best insurance you can buy,” insists Rolfs. “It’s comparable to having a home inspection before buying a residence. The Phase One environmental study tells if there are contaminants on the property. The owner is responsible for the proper removal of these contaminants, whether or not he is the originator of the hazard. And the removal of these wastes can be very costly.”

The cost of the Phase One study, according to Rolfs, ranges from $500 to $3,000. “Sometimes you can get the seller to pay,” he says. Barnhill suggests you check with local planning commissions to see exactly what environmental studies should be undertaken before deciding on a piece of land.
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Mistake #5. Failure to plan for adequate parking.
This is one area many church planners overlook, to their detriment. Barnhill says, “There is no use building a 1,000 seat sanctuary if you can park only 500.”

“Leave room for growth,”is the advice of Rolfs. “If your lot is full, visitors won’t stop.” Ward knows this to be true. They have been in their new building for only two years, and already their parking is overflowing.

“We have 20 cars a week parking across the street,” says Ward. “On Easter Sunday it was more than 40.”

Most city zoning codes call for a ratio of 1 car to every 4 seats when it comes to planning parking. But both Ward and Barnhill believe a more realistic ratio is 1-to-2 or 1-to-2.5. “It’s a mistake to apply code requirements that are too low,” says Barnhill.
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Mistake #6. Unrealistic projection of income or inadequate cash on hand.
This sixth mistake can easily outweigh all the others up to this point. You can have great planning, great drawings, a beautiful and environmentally friendly site, and room for all the cars General Motors will make in a year. Yet without proper financing, all your plans will lie in a drawer gathering dust.

"Most churches start by talking about their needs,” states Barnhill. “They should start by talking about their financial capabilities. Based on the size of the church, how much money can they realistically raise and borrow?”

“In the lending business,” says Rolfs, “we frequently get calls from churches who are putting up a $2 million project. They have members who have pledged $1 million over the next three years, so they believe they need to borrow only $1 million.

“But they don’t realize that contractors must be paid while the building is going up, not three years from now. They must pay the interest on the loan. Plus unexpected costs must be added in. Then take into account that, historically, pledge collectability is only around 70 to 80 percent. The church has to be realistic about what it needs to borrow to finance the project.”

Ward experienced this scenario firsthand. “When we moved into the new building,” he recalls, “we had a huge mortgage to pay, but hadn’t yet grown to where we could pay it.”

And there is the catch: A church can’t grow in an outgrown or outdated building, but while it is still small, it can’t afford to build a larger building to accommodate new growth.

“Here’s how we suggest churches handle that dilemma,” says Barnhill. “We encourage churches to start a capital funding campaign. They should conservatively be able to raise one to 1-1/2 times their annual giving. This is usually enough to make up the shortfall in monthly expenses with the new mortgage until church growth catches up with the need. You should have a 36-month cash-flow ‘bridge’ while the church is growing.”

Rolfs also encourages churches to be realistic about the sale of their existing site. “Church properties don’t turn quickly,” he says. “The normal marketing time for church property is 8 to 30 months. And, if you are in a smaller town, your prospects are limited.”
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Mistake #7. Getting on the bad side of city government.
According to Barnhill, zoning issues for churches are getting more and more testy.

“I think it’s Satan’s last attempt to retard the growth of the church,” he says.

Says Johnson, “You never want to make the city your enemy.

“We’ve taken huge shots from the city. Fifty thousand dollars to install storm water management when we first built, another $75,000 during our second phase to correct it. They said it wasn’t up to specs- but it was their specs we followed in the first place!”

Ward concurs, “We’ve had mega-problems with the city. They are extremely inflexible and legalistic.” It would seem that “friends” like these could easily become your enemies.

“Be sure your testimony extends to the city,” exhorts Johnson. “We’re here to minister to the city. We pray for the city officials.”

“This is one area we did right,” exclaims Ward. “We responded to objections raised at the zoning board hearing. There were concerns raised about drainage, so we made improvements to the plans that helped the situation in the whole neighborhood. We didn’t have to do that, but it created a win-win situation. And if the city leaders want to take all the credit, let them!”
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Mistake #8. Allowing the project to overwhelm your life.
The very week Don Ward was to witness the dedication of his new church building to the service of the Lord, he almost left the church.

“I got too emotionally involved,” he says. “I felt I was carrying it all on my back. As a result, my wife and I felt burned out. I had a job offer the week before our dedication service.” He turned it down and is glad today he did.

“It would have been a mistake,” he admits. “We have had dramatic growth since the dedication. I just didn’t have a good infrastructure under me in the church. Now we are talking expansion again, but I won’t make the same mistake. I’ve told the church, ‘If you want to build, you do the work.’ I’m not even going to all the meetings.”
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Mistake #9. Not praying for the construction workers.
How easy it is for us to miss opportunities to see God work right in front of us each day! Johnson was able to see God’s faithfulness in answering prayer as the first phase of St. James was being built in 1988.

“We prayed for the safety of the workers everyday,” says Johnson. “One afternoon a carpenter put his foot through the roof and fell what would have been about 40 feet. He reached out and grabbed a beam in the sanctuary. One of our members walked in right then and was able to get him down. What a miracle from our Lord! And that worker was in church the next Sunday.”

Perhaps not the ideal church growth method, but if it works…
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Mistake #10. Waiting to celebrate until the building is complete.
Johnson tells how his church celebrates the completion of various steps. For instance, when they had completed their fund-raiser for the second construction phase, the church hosted a catered dinner at a nice restaurant for all the adults in the congregation. They held an “Enlarge the “Harvest” concert one Friday night just to gather the members in an attitude of praise to God for His faithfulness thus far in the project.

“And celebrate big when you finish,” suggests Johnson. “Be sure to recognize all those who helped make it possible.”

JEFF DUNN is a free-lance writer living in Dayton, Ohio.

Above was reprinted with permission from MINISTRIES TODAY.

Below has been updated by ChurchPlansForLess by adding 2 more mistakes to avoid.

Mistake # 11. Ordering that "On Sale for a Limited Time Steel Building Package"
Many church boards are lured into the possibility of saving a substantial amount of money by ordering a "package deal" offered by steel building dealers. In many instances, the building package has a limited number of door and window openings; any additional openings create a heavy additional charge or surcharge. These buildings are usually designed as a single story open structure with a warehouse effect. The surcharge for increasing the steel sizes to accommodate for future second floor expansions is again very heavy. The steel members and panels that create the exterior walls may also need to be re-sized depending on the requirements of the final exterior finish whether it is brick masonry, stucco, etc. We have assisted several churches that have purchased these"package deals" only to discover the costs to upgrade doubles or triples the original price for what they want or need. These costs can equal or surpass regular steel building quotes.

Some churches have purchased these kits without having the land to build upon. It is much wiser to build from the ground up, than to buy a box and build from the inside out.

Mistake # 12. Failing to check for the need of a Registered Architect.
Lots of people will spend time to sketch and draw their building themselves, planning for all they need in their church. But these simple drawings and sketches (in most instances) will not allow you to get building permits.

Most jurisdictions require a registered architect, certified in their state to prepare and stamp the plans before they will permit a project. This person certifies to the state that the plans have been drawn correctly and will be a structurally sound building. A registered architect will also see that all of these requirements are met according to the building codes. Often you can check with your county seat government offices to find your local building authorities.
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