9 Steps to Constructing Your Commercial Building

With the economy in full swing, many companies are planning commercial construction projects. It is forecast that 2019 total construction starts will come in around $808B, about the same level as the previous year, according to Dodge Data & Analytics. The high volume of construction has contributed to an increase in the demand for skilled labor for jobs like carpenters, electricians, and plumbers, for example. And in 2018, over 12,000 project and construction management jobs were added in November alone, representing approximately 10% of total construction jobs added for the month.

Commercial construction is very complicated. Taking on your own commercial construction project isn’t easy without access to skilled workers. Everything from initial planning to financing to design and construction must be scheduled precisely to avoid costly overruns and delays. And whether you are a large multi-national corporation or a small company with a single location, keep the following steps in mind when building your own commercial building.

 Planning

Effective planning is the first step of any commercial construction project. It doesn’t matter if you are expanding an existing retail store, or building a new hotel, understanding the needs and concerns of all company stakeholders is fundamental to success. During the initial planning meeting, stakeholders should discuss site location, building size, funding, construction management, and goals and objectives.

 Budgeting

The building owner and stakeholders must determine the budget the company is willing to spend on the construction project. Since budgets are usually assigned before receiving a construction estimate, researching the cost of similar projects or assigning an approximate price per square foot can be used to establish an initial budget.

 Financing

Once you have a plan and budget, the next step is to discuss financing options for your project. There are many ways to finance a commercial construction project. You can use cash on hand as a capital expenditure, financing, or both. It may pay to consult with several commercial lenders to obtain the best financing terms for your project.

Design

Now that you have the budget and financing out of the way, its time to hire an architect to bring your construction project to life. The architect will provide a set of blueprints and materials specs that contractors will need to construct your commercial building.

Permits

Understanding the type of permits you will need and obtaining them may seem like navigating a sea of red tape as you meander your way through the government bureaucracy. But it’s a necessary process if you want to get your commercial building off the ground. Some municipalities may even want to see your plans and blueprints before giving your project the green light. And be prepared for building inspections throughout the different phases of construction.

 Build

The next step involves hiring, scheduling, and managing all of the contractors and subs, along with the resources that will be required for the build-out. Before solidifying contracts, you will want to reach out to the various contractors and request a quote. Alternatively, you can publish a Request for Proposal (RFP) and send it to several contractors. Managing the build process is the most daunting task of all and requires someone with a high level of commercial construction and project management experience.

 Contingencies

No matter how well prepared or the level of experience, there are always issues that arise. Labor or material shortages or other project delays can result in unexpected expenses. Generally, at least 10% of your estimated cost should be budgeted for contingencies. But if you are managing your own construction project, a minimum of 20% should be in reserve for contingencies.

 Delivery

The last phase of the commercial construction project is the final delivery. It is when the building is ready for occupancy, and you can finally arrange for acquainting employees with your new facility.

 Generals Commercial Contractor

As mentioned earlier, commercial construction can be a daunting task for any size firm. Hiring a design-build commercial general contractor like New Horizon Construction Services streamlines the entire process.  A design-build contractor provides all of the resources under a single roof, including architectural design, taking most of the risk and burden away from owners and developers.