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The Complete Guide to Commercial Construction

Commercial construction comprises the building of structures for businesses and commercial purposes, including but not limited to office spaces, retail stores, warehouses, and restaurants. It requires specialized knowledge, experience, and resources to execute effectively and meet the specific needs of commercial clients.

There’s often more at stake with commercial construction projects, and you can never be too well-informed. That’s why, in this comprehensive guide to commercial construction, you’ll discover the importance of planning, the key items to include, how the design process works, and why effective project management is essential.

We’ll also:

  • Explore common construction challenges and solutions you can implement to solve them;
  • Provide a list of commercial construction equipment accompanied by common uses for each;
  • Help you decide whether it’s better to renovate or rebuild; and
  • Offer tips and tricks for selecting the perfect commercial construction contractor

Let’s start by discussing the importance of thorough and well-informed commercial construction planning.

Why You Can’t Skip Commercial Construction Planning

While residential construction can certainly be challenging, commercial construction is a different world entirely. Your project’s success heavily depends on meticulous planning and foresight built on decades of experience.

Planning means more than just identifying budgets, building codes, and regulations: It provides a detailed project roadmap that ensures success.

Timelines are built, budgets and scope are defined, expectations are set, and any special considerations are accounted for, such as material shortages and nuanced codes that can doom a project if planning isn’t done right.

A well-formulated commercial construction plan includes:

  • Goals and objectives: Key steps and tasks required to reach your project’s
    ultimate goal.
  • Risk mitigation: Not every risk can be avoided, but the best plans include an experienced eye and attention to detail.
  • Prioritization of tasks and resources: Current material shortages mean
    contractors must be efficient with material use to avoid delays and budget
    overruns.
  • Budgeting and timeline elements: A proper construction plan makes budgeting easier and helps build a realistic timeline. This, again, requires an experienced eye.

The key elements of an effective commercial construction plan include but are certainly not limited to:

  • The scope. The scope contains the project goal and objectives while identifying essential tasks, milestones, and resources. It must be specific, clear, and measurable to create a realistic action plan.
  • The schedule. Commercial construction projects, such as restaurants, require a detailed schedule outlining timelines, milestones, and how the project will flow through the process, from planning and design to installation, testing, and commissioning. The timeline should consider the potential for risks, bottlenecks, or delays at any phase and include contingency planning.
  • The budget. The budget determines available resources and a rough estimate of the total cost. Contingency funds should be allocated for unexpected costs. A cost-plus approach to budgeting allows for more control and transparency.
  • Design specifications. These specs will dictate the project design and its construction parameters, including structural specifications, materials, safety
    requirements, plumbing, electric, and HVAC. All specifications must comply with applicable codes and regulations.
  • Defined risks and their mitigation. All commercial construction projects are complex and pose potential safety hazards that can lead to unnecessary delays. Open and frequent communication is another key to avoiding risk. This is where a strong project manager comes in, anticipating risks and developing strategies to mitigate them while holding regular team meetings and implementing user-friendly communication channels.

How the Design Process Works in Commercial Construction

Once the construction site is obtained, it’s up to the contractor to fulfill the client’s expectations.

But before work can begin, the building must be designed. The design is, of course, crucial to the project, but it’s equally important to ensure that it’s code-compliant and can be built safely.

Here’s a rundown of the commercial construction design phase.

Pre-Design
This is where the project goals are outlined, and cost estimates start. When you hire a full-service contractor with a design team, the process is streamlined. Otherwise, this is where the architect and the contractor would begin collaborating.

In this phase, costs are determined by considering the building size, orientation, function, and amenities. You’ll select design products and decide equipment requirements. The entire concept should be ready during the pre-design stage because the design phase will finalize these ideas and create the physical layout.
You’ll create contract documents that establish the timeline and set costs for each construction phase. Then, a construction document package that includes your code-compliant designs will be put together.

The Design
Once the pre-design phase is complete, the design phase begins. However exciting it may be, you can’t afford to overlook a few key requirements: a solid design concept and a strategic, innovative, and realistic project plan that achieves your ultimate goals.

The design phase produces a complete set of drawings containing timelines and costs for each construction stage. Your building contractor will use these drawings and their specifications to complete the building.
Remember that multiple professionals will be necessary as you move through the design process: a structural engineer, a mechanical engineer for HVAC and plumbing, an electrical engineer, and a civil engineer. The input and approval of these experts are necessary to ensure the safety and functionality of your project.

Effective Project Management Is Essential
Enlisting the expertise and experience of a construction project manager goes a long way in reducing delays and preventing unnecessary stress. The commercial construction process has many moving parts to monitor and many expectations to meet.

Your project manager will supervise this process and wear the many hats required to ensure it reaches its final destination.

Because no two commercial construction projects are exactly the same, the best project managers know how to develop a customized plan and take a proactive instead of a reactive approach, always ready to act swiftly and efficiently when unexpected issues arise.

The project manager is part of the process from the beginning, handling planning, organization, and design while creating construction plans and budgets that properly allocate resources.

They’ll work closely with external and internal design experts to ensure the finished project fullfils your vision while employing the right time-management strategies that keep your project on pace to completion.

Throughout the construction phase, the project manager will oversee construction operations and serve as the lead troubleshooter, staying on top of each component to ensure that deadlines are met and budget overruns are avoided.

After completion, the post-construction review begins. If anything needs revision, contractors are called back. The project manager also reviews operation and maintenance manuals and any warranties on installed equipment.

A Look at Project Types

Commercial construction comprises many types of unique projects that often require a greater variety of materials and configurations than their residential counterparts.
As such, commercial construction demands effective project management. Let’s take a closer look at seven specific types of commercial construction projects that are best paired
with a commercial construction company.

1. Restaurants

The effectiveness of a restaurant’s style and functionality depends on its initial construction. A well-built restaurant has an inviting atmosphere, admirable lighting, comfortable seating, and a layout conducive to the comfortable flow of customers and staff.

A skilled contractor will help you create a seamless design aesthetic that meets your functional needs, enhances your brand, and satisfies your customers.

2. Retail Shops

Retail stores require functionality, design, and aesthetics to attract customers and meet safety standards. A custom-built retail space with excellent lighting, flooring, and wall treatments creates a pleasant shopping experience and encourages more visitors.

Retail stores have many components, including but not limited to parking lots, restrooms, indoor and outdoor seating areas, office space, and storage. Employing the right commercial contractor who understands the complexities of retail shops is also crucial for success.

3. Medical Facilities

Medical facilities are highly regulated environments that must adhere to strict protocols, standards, and safety regulations and be designed with special considerations.

Typical medical facilities include hospitals, clinics, imaging centers, labs, rehabilitation centers, and emergency rooms.

Experienced contractors understand that medical facilities need a functional, sanitary, and aesthetically pleasing space that requires familiarity with building codes, ADA regulations, and the demands of medical equipment and personnel.

4. Office Buildings

Successful businesses utilize commercial construction contractors to create unique spaces that reflect their brand and fulfill the expectations of employees, customers, and investors.

As such, office buildings require adequate lighting, HVAC systems, electrical wiring, and energy efficiency.

To create an optimal working environment, contractors must stay current with the latest building standards and workplace trends, such as open office layouts, computerized systems, and the use of sustainable materials.

5. Factories and Warehouses

Manufacturing companies rely on factories and warehouses for production and distribution, which must be secure, spacious, and efficient to maximize results and minimize costs.

Experienced contractors understand the complexities of these projects and industrial building codes, environmental regulations, fire safety requirements, and energy efficiency measures.

Raised flooring, shipping docks, mezzanines, and warehouse shelving are just a few of the complex components that must be accurately planned for and installed to improve workflow and reduce downtime.

6. Schools, Universities, and Learning Institutions

Educational facilities require structures that are designed for safe, functional, and efficient use.

Classrooms, laboratories, libraries, cafeterias, dormitories, and sports complexes require careful planning, attention to detail, and compliance with building codes and regulations.

7. Sports Arenas and Stadiums

Sports arenas, stadiums, and amphitheaters present unique design challenges. These facilities require a deep understanding of engineering principles, acoustics, ADA compliance, and structural dynamics to create a seamless and safe audience experience.

Experienced contractors know how to create dynamic seating arrangements, incorporate scoreboards and display systems, install sound systems, and design ventilation systems to keep the facility comfortable.

Construction Challenges and Solutions

High-value commercial construction often comprises large-scale projects with the potential for generating economic growth. Such potential, however, doesn’t come without the price tag to match.

Some of the unique challenges faced by project managers of high-value commercial construction projects include:

  • Technology integration: What are the benefits and limitations of each appropriate
    technology? It’s up to the project manager to assess and select the best and most
    cost-effective solution.
  • Sustainability and environmental concerns: Sustainability has become important for high-value commercial construction, but green materials and technical complexities create challenges.
  • Supply chain disruptions: Supply chain disruptions lead to increased material costs and
    shortages. Mitigation involves assessing risks and contingency plans. Relief comes from cost-control measures, including bulk purchasing, value engineering, alternative materials, and strategic sourcing.
  • Labor shortages and skills gaps: Shortages aren’t exclusive to building materials; they’re
    also prevalent in the labor force. Currently, a shortage of half a million workers plagues the building trades. To mitigate this, look for a contractor who invests in training and
    partnerships with schools and trade unions.
  • Communication and stakeholder management: Clients, engineers, architects, consultants, contractors, and suppliers all play important roles in high-value commercial construction projects. It’s up to the project manager to balance competing interests, keep the lines of communication open, and  develop and maintain good relationships.
  • Smart building technology integration: Integrating devices and technology such as
    sensors, artificial intelligence, and cloud-based analytics enhances operational efficiency in high-value commercial buildings. These can monitor and control HVAC systems, lighting, and security to optimize energy use.

Compatibility with existing systems, cybercriminals, and data privacy all pose challenges to commercial project management Thorough research is required in the design phase to select, install, and ensure the proper use of the right technology.

Proper budgeting and continuous cost management are crucial to prevent scope creep and project delays. The best contractors will use strategies, like value engineering, risk management, contingency planning, and cost tracking, to ensure successful project completion.

Equipment and Techniques

Addressing construction challenges starts with using the right equipment for the job. The use of proper equipment can mean the difference between a commercial construction project being completed on time and within budget and one suffering considerable and costly delays. Essential equipment for the completion of commercial construction projects includes the following.

Excavators
Excavators are ideal for creating trenches, foundations, and digging out materials. They can also use their long arm and bucket to help with demolition, heavy lifting, and material handling.

Bulldozers
Bulldozers are used for clearing, spreading, grading, leveling, and shifting large amounts of earth.

They feature a wide, flat metal blade attached to the front and are highly effective at moving large quantities of sand, soil, and debris.

Cranes
Cranes are equipped with a steel cable and pulley system to lift and lower large objects like steel girders, concrete beams, arches, and other heavy materials.

Backhoe Loaders
Backhoe loaders are multipurpose commercial construction machines that combine the features of a tractor, excavator, and loader.

Their primary feature is the backhoe, which is used for digging trenches, ditches, and foundations. A front-mounted loader moves heavy materials effortlessly. Its 200-degree rotation capabilities make this piece of construction equipment especially useful in tight spaces.

Dump Trucks
Commercial construction projects generate massive amounts of excavated material that require proper management and disposal.

Dump trucks, with their open-bed construction and hydraulic lift, are the most efficient way to remove and transport these materials.

Forklifts
Forklifts use a pronged lifting arm to lift and move pallets, heavy boxes, and skids. They also feature side-shifting capabilities, which allow them to maneuver around tight corners and obstacles.

Forklifts are among the most agile commercial construction equipment for moving materials in tight spaces.

Skidders
Skidders are used in site clearing. They feature a large set of wheels and can tow or haul logs, stumps, and debris.

You can also attach a grapple to the skidder’s boom arm to grab, lift, and pull materials away into a landing area.

Graders
Commercial construction projects require a lot of grading and leveling. Graders smooth and level the surface of land, roads, and parking lots.
They feature a horizontal blade between their front and rear axles that you can angle based on your working surface. You can also use a grader to remove excess material and to cut slopes.

Asphalt Pavers
An asphalt paver is used to lay down asphalt on roads, bridges, parking lots, and other such surfaces. It features a flatbed supporting the paving material and two side-mounted steel plates that distribute the paving material evenly.
Asphalt pavers are accompanied by a separate machine called a roller, which compacts the material and provides a smoother finish.

Articulated Trucks
Navigating a construction site can be difficult and dangerous. Articulated trucks are designed to maneuver around tight spots and provide safety for on-site workers.

They feature a unique articulating joint in the middle, allowing the truck’s front and rear portions to move independently.
They also feature a low center of gravity, ensuring stable transport on uneven surfaces.

Compactors
Compactors are crucial for commercial projects. Their vibrating steel drums compress and level surfaces, creating a solid foundation for long-lasting structures.

Should You Renovate or Rebuild?

Deciding whether to renovate or rebuild can be a tough decision, but it’s one that should be made with plenty of research into and consideration of both scenarios.

Renovation timelines can run considerably shorter than those found in rebuilds,
depending on the project size. Renovations are often more cost-effective than rebuilding, but “renovations” is a broad term that encompasses many things.

Renovations can range from installing new fixtures and fittings to larger changes that, while important, don’t significantly alter the structure. These can include upgrading plumbing or electrical systems to comply with current standards or accommodate ADA requirements.

The less you do, the less renovations will cost and the quicker they’ll be completed. Less time renovating means fewer disruptions between renovation teams and on-site staff. You may opt to limit renovations to non-business hours, but that adds time to the project.

It’s a balancing act: more extensive renovations can sometimes take more time and money than knocking down and rebuilding or building on a vacant site. A new building also gives site owners a blank canvas to create the building they envision.

Each project will demand its own solutions, whether that’s renovating or rebuilding. Remember that many of the aforementioned challenges may still apply, regardless of which path you select.

Zoning and historical association requirements may also affect your project

Contractor Selection Tips

Selecting the right general contractor for commercial construction is an important decision, no matter if you’re renovating, rebuilding, or starting from scratch.  An inexperienced contractor may provide a low initial bid, but you’ll pay for it later in change orders, delays, quality issues, and stress. You can avoid unnecessary construction headaches by choosing an experienced contractor with a strong reputation for innovative builds. Here’s what to consider.

Project Needs
Evaluate project needs to establish goals, objectives, priorities, constraints, and other critical parameters. Clearly communicate requirements to potential contractors and evaluate their proposals thoroughly.

The primary considerations for most projects include schedule, budget, and other project-specific requirements.

Qualifications, Expertise, and Technical Competence
Verify that your chosen contractor has the necessary state and local certifications and licenses to perform construction projects in your region.

Ensure they have comprehensive insurance that protects you from liability for property damage, accidents, or any other unforeseen construction mishaps.

Additionally, review their portfolio to ensure they’ve handled projects similar to yours and are adept with state-of-the-art technology and sustainable practices.

Effective Team and Workforce
Commercial construction projects are complex undertakings that demand collaboration between many different professionals.

Choose a contractor with a skilled and coordinated team. Engineers, architects, subcontractors, and tradespeople must work harmoniously and in an orchestrated way to ensure project completion on time and within budget.

Risk Management and Safety
Keeping visitors and employees safe in your finished structure must be top priority. Poor safety practices pose unnecessary risks to workers that can delay or even shut down your project and induce hefty fines.

Check the contractor’s safety rating and ensure their documented safety plan is compliant with Occupational Safety and Health Administration (OSHA) regulations.

Choose contractors with a total recordable incident rate (TRIR) and experience modification rating (EMR) of 1.0 or less.

Clear Legal and Contractual Terms
Carefully review contract terms and conditions to ensure that warranties, change orders, payment schedules, and timelines are all in place.

Verify that the contract complies with local laws and regulations, and seek legal counsel to ensure it protects your interests.

Robust Communication and Transparency
Effective communication and regular progress reports are essential. Find a general contractor who values open communication and meshes well with your preferred communication method and frequency.

To evaluate whether a potential contractor is the right fit, carefully observe your interactions during interviews. Do they listen to your ideas and concerns? Are they responsive? How detailed are their answers?

Contractors with robust communication and transparency in the selection process will likely carry these qualities to the project.

Budgeting and Cost Control
Ask for detailed cost estimates with comprehensive material and labor cost breakdowns at each stage, including fees related to commercial building regulations.

Carefully review contracts and ensure provided quotes account for the full scope of work. Request clarification about any conditions or terms that you don’t understand.

You’ll need a solid grasp of the project’s financial aspects to help keep budgets under control and prevent future misunderstandings and surprises.

Flexibility and Adaptability
Select contractors capable of embracing change and adapting to unforeseen challenges or shifting requirements.

Contractors who take an agile approach to construction are better equipped to navigate unexpected hurdles and keep projects on track.

Quality Assurance and Standards
Prioritize contractors who strictly adhere to building codes and quality control processes.

Ensure they provide post-project assessments to ensure projects meet all safety and durability standards

Encouraging Innovation and Creativity
Look for contractors who have adopted or will soon adopt design collaboration and innovative building technologies, such as Building Information Modeling (BIM), 3-D printing, and construction drones.

These improve operational efficiency, reduce building costs, and create safer work environments.

More Tactics for Selecting the Right Commercial Contractor
The right commercial contractor will ensure your project runs smoothly, is completed on time, and meets your expectations.

Hiring the right construction company can be daunting, requiring diligent research, strategic decision-making, and careful selection among those on your shortlist.

Here are seven tips for you to use to find the right commercial construction company.

Ask the Right Questions

A few examples of excellent questions to ask that will help you vet your potential contractor better include:

  • What types of commercial construction projects have you completed in
    the past?
  • Have you handled projects similar to mine?
  • How do you approach communication and problem-solving?
  • What strategies do you use to manage budgets and timelines?
  • How do you handle unexpected problems and delays?
  • What are your payment terms and timeline?
  • How soon can you start?

Asking the right questions goes a long way in getting the answers you need to make your selection faster and easier.

Verify Their Credentials
Verify the contractor’s license, certifications, insurance, and bonding requirements.

All contractors should be properly licensed, insured, and carry a surety bond, which protects the client from financial losses if the contractor fails to complete the project.

Ask for references to get more information on the contractor’s work ethic, communication style, and overall performance.

Request Refined Quotes and Compare Bids
Request detailed quotes and compare them.
Quotes should include labor and materials costs, timelines, payment terms, fees, and other applicable charges. Compare apples to apples—verify that each quote is for the same work and materials and that the timelines and payment terms are consistent across all bids.

Don’t Be Afraid to Negotiate
You don’t have to accept the contractor’s initial bid. Negotiate terms, payment schedules, and timelines to get the best dea,l but don’t push too hard.
You want a contractor who is confident in their work and won’t cut corners to save a few dollars or land a contract.

The right contractor will work with you to find creative ways to reduce costs, such as using cheaper materials, prefabrication, or offsite construction.
Most importantly, your goal is not always to get the lowest price but to find a contractor who can provide the quality work you need within your budget.

Thoroughly Review the Contract
When you identify the contractor you want to hire, take the time to thoroughly review the contract involved. It should include detailed information such as payment terms, timelines, materials costs, labor costs, permit requirements, warranties, and contingencies.

A well-drafted contract is a legally binding document that will protect both parties and provide a roadmap for the project, so it’s advisable to have a qualified lawyer review it before signing.

Recapping the Key Components of a Successful Commercial Construction Project

Thorough planning is crucial for commercial construction projects. It requires defining goals, budgets, timelines, and considering potential risks. A well-developed plan ensures a smooth project flow and avoids delays or budget overruns.

After securing the construction site, the design phase begins. This involves collaboration between architects, engineers, and the contractor to create a project plan that meets building codes, safety regulations, and your specific needs. It starts with pre-design (defining goals and cost estimates) and moves to the design phase, where detailed drawings and specifications are finalized.

A skilled project manager oversees the entire construction process, from planning and budgeting to construction and post-construction review. They ensure adherence to timelines and budgets, manage communication between stakeholders, and address any issues that arise. Their expertise helps ensure a successful project completion.

Choose a contractor with a proven track record of handling similar projects, the necessary licenses, certifications, and a skilled team (engineers, architects, subcontractors) to ensure a smooth operation.

Safety is paramount. Choose a contractor with a strong safety record and a documented plan that complies with OSHA regulations. Effective communication is crucial. Find a contractor with a communication style that meshes well with yours and provides regular project updates.

Finally, obtain detailed cost estimates with breakdowns for materials, labor, and permits. Ensure the contract clearly outlines payment schedules and change order procedures. Choose a contractor who’s flexible and keeps projects on track.

Bring Your Commercial Construction Project to Life With RPC General Contractors

RPC General Contractors is a full-service construction contractor providing commercial construction and project management services.

Our team of experienced professionals understands commercial construction standards, safety codes, and regulations to ensure that your project is completed within budget and per commercial-grade standards.

We provide a comprehensive range of services:

  • Planning and design coordination for everything, including furniture and décor.
  • Permit submissions and expediting.
  • Development and construction management, including market analysis, planning, zoning, permits, and financing.
  • Inspection, documentation, and finalization.

Contact us today for a free, no-obligation estimate, and let us take the stress of your commercial construction project off your plate.

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