If you are getting ready to start a commercial construction project, there are a few things you are going to want to understand that will make your experience smoother.

1. Start With Your Budget

When it comes to conducting a commercial construction project, you will want to start with your budget. You will want to ensure that you have the right financing available or the capital to finance the project. You will want to work with lenders so you know how much money you can borrow, as this will impact the scope of the project that you are able to undertake.

Once you have financing secured, you need to ensure that you break down that money so that it can cover all the costs associated with the project. You are going to want to save about ten percent for unexpected expenses. You will need to ensure that your budget covers paying your contractor and any fees associated with the design process and fees. You also need to ensure that it covers the cost of the land or building as well.

2. Choose a Contractor Delivery Method

There are various methods that commercial contractors use for building a property. There is the design-build process, where you work with the same contractor throughout the whole process, starting with the design and moving through the construction phase.

Then there is a hard bid, where you already have the design plans, and you have contractors provide you with bids, choosing the best one to complete the process. In this case, the designer and builder are separate entities that you pay.

Then there is a cost-plus agreement, where you pay the contractor for the materials and labor and a set fee or percentage of the total project. The builder will walk away knowing they will make a profit, which can be a strong motivator for your project.

You will want to choose a delivery method that works for your finances and for what you need from the project.

3. Work on a Realistic Completion Date

Finally, when taking on a commercial construction project, it is important to have realistic expectations about completing the work. You will need to consider all the moving parts that will impact your project, from the availability of supplies and rental equipment to weather delays to the time it takes to complete building inspections.

Taking a holistic approach and not rushing the completion date will reduce the stress on the project and allow you time to get your business up and running once the project is complete.

With a commercial construction project, it is essential to secure financing and create a detailed budget with a little wiggle room. You will want to choose a contractor delivery method that you can afford and will give you the results you desire. You will want to set a realistic completion date that considers all the moving parts necessary to complete the job, so you can select a realistic start date on using the newly constructed property.