Surviving A Commercial Construction Project

Growth stages are good for any business.  They signal a time when new equipment can be purchased and new employees hired.  Facility relocations and the building of new facilities happen during growth stages.  Another common project that happens during times of positive cash flow is complete or partial renovation of existing spaces.

If a renovation will solve current challenges, it’s usually a smarter move than transferring to a new space or having a new facility built.  A renovation can increase production capacity, expand infrastructure, make space for new equipment and add work stations for new staff.  Overall, a renovation can streamline your operation, usually for less cost than relocating and always for less cost than building new.

That’s the good news.  The mistake many companies make when undertaking a renovation project is failing to understand all the details.  Renovations involve multiple facets, take time, cause some level of disruption and can represent a significant expense.  For these and other reasons, you must anticipate what’s going to happen and be prepared for unexpected occurrences.

Budgetary issues

No matter how fast cash is flowing, it’s always better for it to flow to you rather that away from you.  With a renovation project, a certain amount of cash will need to be spent.  But a solid budget will ensure that there’s no cash-hemorrhage when unexpected things happen and no expensive corner-cutting when not enough money was allocated for a specific task.

Some project overrides should be expected and built into the budget; but too many of them can have dire implications on the solvency of your company.  For this reason, spend all the time necessary to develop a strong budget and understand every piece of it before the first worker arrives on the scene.  Additionally, don’t bloat the budget for things you really don’t need just because you have some cash on hand.  Be thorough but err on the side of conservative.

The work schedule

Understand going in how long the renovation project will take and when each phase will begin and end.  This way, you can plan ahead for predicted disruptions to keep work and production flowing as efficiently as possible.  In the planning stage, don’t try to rush the finish date.  Better to work around the disruptions for a period of time than to try to squeeze too much into a tight time-frame and wind up with a result that’s more problematic than productive.

Understanding project elements

In addition to knowing what you’re spending and how you’ll address disruptions, you also need a clear understanding of every element of the renovation project.  You should sit down with your GC (or whomever is overseeing the work) and map out the expectations in each project phase so you’ll be able to determine if work is running according to plan.  The last thing you need is to spend time in heated discussions with your contractor when he sees things one way and you see them another.

Clearly the key to a successful renovation project is communication on all fronts, which includes gaining a solid grasp of the project elements and realistic expectations about cost, timelines and dealing with workflow disruptions.

New Horizon Construction Services of Groveland, FL, provides general contractor and construction services to help companies realize their objectives in commercial construction and office renovation projects.  Call (407) 574-2164 and learn the benefits of working with us on your next project.