There’s a lot that goes into the commercial construction process, from budgeting, to planning and acquiring licenses, to actually constructing your plans and closing out the project.
If this is your first commercial construction project, the amount of preparation that’s required may seem daunting, but we’re here to help. Here are five tips on getting through the commercial construction process unscathed.
1. Start With Your Budget
There’s no better way to provide assurance of a successful project than by taking enough time to set your budget before getting started. Making sure you budget accordingly can save you trouble in the long-run.
You should expect to pay several hundred dollars per square foot for a new commercial building in the U.S. This includes the base cost from your construction company which typically includes building permits, materials, and labor. The cost per square foot will increase when you take into account HVAC, electrical systems, and special finishing and decorations.
2. Select A Delivery Method
Not all commercial construction projects work the same way. There are different delivery methods used for commercial construction projects, and you need to know which one you prefer before selecting a construction company.
Each method is slightly different, so make sure you select one that works best with your method of financing.
There is the design-build method, where you work with the same contractor throughout the entire process, from design to delivery. This may be preferred if it’s your first commercial construction project.
There is the hard bid method, where you already have designs, and contractors offer you bids for completing the plans.
Finally, there is a cost-plus delivery method, where you pay the contractor for materials and labor, as well as a set percentage of the total cost of the contract. This can be promising, as it guarantees that the contractor will profit, but also risky because the contractor could potentially overbill for labor or materials.
3. Plan Ahead & Prepare For The Unknown
Planning ahead is essential to the ultimate success of your commercial construction project. You need to make sure that you allow enough time for the approval process as well as the construction itself.
Simply getting the necessary permits can take up to nine months. This isn’t usually the case, but it will be good to take this into account during the planning phase.
During the planning phase, it may be a good idea to hire a commercial construction company. Having an experienced company like FMP Construction to help you navigate the process from start to finish is a great way to ensure that your project is completed in a timely manner, and with minimal hang ups along the way.
When planning your project timeline, you also need to take the unknown into account. Inclimate weather has the potential to stall any construction project for an indefinite period of time, so be sure to take this into account when creating a project timeline.
4. Ask Questions & Communicate
Construction projects have many moving parts, and your contractor doesn’t expect you to know every detail about the process, so don’t hesitate to ask questions if you have concerns.
It’s important to know as many details as you can about the project in process, especially if you have a board to report back to.
Asking questions now will give you the tools you need to clearly explain things to your business partners, and better prepare you for future commercial construction projects.
5. Obtain Insurance
If you’re not working with a construction company, you may need to also purchase insurance.
Construction sites can be extremely dangerous, so making sure that your team and laborers are covered is essential. Some common types of insurance policies used for construction projects are Worker’s Compensation Insurance, Commercial and Contractor General Liability Insurance, and Builder’s Risk insurance.
Making sure you’re covered may increase the cost of your project upfront, but can save you thousands of dollars down the road in a worst-case scenario.
Commercial construction projects can become overwhelming if you don’t understand the process, but if you follow these five tips, we’re certain your first commercial construction project will be a huge success.