FF&E

Hi, I'm looking for guidance on whether to include FF&E costs in the construction cost that gets modeled in one of the construction sectors? On some of our past projects, we've excluded these costs as a conservative measure since it is our understanding that many of these costs may be incurred outside of the state where the construction is occurring. Another method we've utilized is to model the FF&E costs separately in the Wholesale trade sector and set the LPP to SAM (rather than 100%). Please let me know your thoughts on which method is more appropriate or if, alternatively, FF&E costs should generally be included in a construction cost for modeling purposes. Thank you.

IMPLAN Support

November 09, 2017 21:25

Thanks so much for your forum post.

You are correct in excluding the FF&E costs from your construction cost! The IMPLAN construction sectors do not include FF&E's or capital expenditures. When modeling a construction impact, your input value should be just what it takes to build the building.

If you know that those FF&E's were purchased from a local Wholesaler, you can impact the Wholesale Sector. However adjusting LPP to SAM indicates that not all of the FF&E's are purchased from local Wholesalers. Setting this to SAM allows the Software to decide the amount purchased from the local Wholesaler. If you left LPP at 100%, this would mean that 100% of the FF&E purchases where from local Wholesalers.

If you know the specific FF&E's, you can impact the producing sector of that specific FF&E product (furniture manufacturer, refrigerator manufacturer). If you would like additional information regarding this topic, please let me know.

Thank you,

IMPLAN Staff

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