How to Get Started with New Commercial Construction?

Published on 15th February 2022

With a growing population base, continuous urbanization, increased access to credit, and rising disposable income, commercial buildings are in greater demand than ever. As a result, project managers find themselves in charge of the demanding yet rewarding construction process.


But, how’s a commercial building built? And, what is the best way to go about new commercial construction?


Let’s see the phases of a commercial building’s construction process with a wider pair of eyes to answer those questions. Read on to learn the details and processes entailing commercial construction. 


What is Commercial Construction?


Let’s clear the basics before we go any further. Simply put, commercial construction refers to the construction processes of a commercial building. A completed contract for new construction would either erect a new commercial building or complete the renovation of an existing building.  


Easier said than done. However, commercial construction is not a cakewalk. Instead, successful construction requires a detailed building plan and sharp design execution. The commercial construction process consists of several stages, from choosing the construction location to analyzing the constructed building. And each one of them requires special attention.


So, let’s check out the stages in commercial construction.


Stages in Commercial Construction

  • Choosing the Right Spot
  • Setting a Budget 
  • Financing
  • Pre-design 
  • Design
  • Pre-construction 
  • Construction
  • Post-construction


Choosing the Right Spot


The most important factor to consider before constructing a building is its location. In the competitive construction industry, the right spot makes all the difference. The significance of a location only amplifies for a commercial building. 


Choosing the Right Spot for New Construction


Choosing the right zone and a proper zoning plan for a construction location is paramount to a construction project. Project owners should consider factors such as accessibility, proximity to other buildings (such as city hall), the nature of the soil, water supply, and demand for the spot. 


It is prudent to hire a soil engineer for soil testing to check whether piles are required or not. Furthermore, project owners should test the soil for contamination, which can be costly to remove.


Often, the most suitable spots are the most expensive. This is why budgeting a commercial construction in advance is crucial. Now, let’s see how budgeting works.


Setting a Budget 


Setting a Budget for New Commercial Construction Project


A project without a budget is like a bull unleashed. It will be charged up and difficult to get it back in control. Therefore, project owners should set realistic expectations for their commercial projects. The cost per square foot varies depending on the construction location and the type of the building.


A construction contractor who is well revered in the locality can significantly reduce the estimated cost of construction without compromising on the quality of the building.



Setting a budget is all well and good. But how and where to get the money? This is one of the most significant questions that project owners should answer before construction. Some may have enough savings to execute construction. But for the rest of them—the vast majority—that isn’t the case. 


How to Get Financing for New Commercial Construction Projects


The following are a few ways to finance a commercial construction project: 


A construction loan is the most common type of financing. Commercial construction loans can be availed from banks and other financial institutions. These loans, obviously requiring the approval of the lender, require all the major project details—ranging from budget to building plan and the estimated date of completion.


Money partners can be anyone willing to support the construction project financially. They can be friends and relatives or investment companies. A money partner can have a flexible and casual approach or an approach of solid and structured investment. 




Predesign Stage in New Commercial Construction Process


The pre-design phase of a commercial construction project involves determining the significant factors that impact building design. It includes the following steps:

  • Select design products and equipment as per the allotted budget
  • Determine the orientation of the commercial building
  • Determine the dimensions of rooms and halls
  • Determine the amenities required by the client and their compatibility in the building
  • Determine the total project cost and draft the site plan


The lead architect and the general contractor create a construction document package that complies with the commercial building code.


After the pre-design phase, the design phase begins with assessing the construction specifics.



Designing the Commercial Project is an important step in the New Commercial Construction Process


Construction professionals design various segments with precision and perfection in the design phase. These professionals include civil engineers, electrical engineers, and structural engineers.


The civil engineer takes care of parking spaces, drainage systems, water supply, and connections to the nearby structures. The mechanical engineer is responsible for installing air conditioners, heaters, plumbing systems, elevators, etc. Similarly, electrical engineers deal with the wiring plan, power distribution placement, electrical installation, etc. And the structural engineer, as the name suggests, designs the overall structure.


After the completion of the design, a construction project enters the pre-construction phase.



Steps involved in the Pre-construction Phase in a New Commercial Construction project


The pre-construction phase involves gathering the permits and paperwork related to the commercial construction project. The key aspects of the pre-construction phase are:


  • Obtaining a building permit
  • Getting insurance
  • Creating a construction team
  • Procuring the materials and services required for construction


After taking care of the aforementioned aspects, it is time to begin construction.




Starting Construction of the Project - A Step in New Commercial Construction Process


The first step in construction is to prepare the site. This includes removing vegetation, excavating the site, implementing a drainage system, building temporary storage units, and arranging necessities such as power, sanitation, and water. Then, an inspection is conducted to ensure that everything is in order and ready to go.


The next step is to lay a foundation for the building. After laying the foundation come framing, roofing, siding, and HVAC. Interior construction is succeeded by exterior construction of the building. The building is then made more appealing by landscaping the surroundings.




Post-construction Phase - A step in Commercial Construction


The post-construction phase is essentially a review phase. After construction is completed, a building inspection is conducted to check for defects, errors, and unsatisfactory components. Construction can be labeled “completed” only after rectifying the errors, improving the quality, and passing the final inspection. 




Constructing a commercial building can be challenging. And, getting all those permits and completing all the required inspections can be tiresome. However, it’s all worth the effort to have a commercial building with the desired amenities in a suitable location.


Like any other construction process, the success of new commercial construction requires proper communication and coordination between various construction professionals. Moreover, sound communication between professionals increases safety at construction sites. Thus, ensuring that the project is never short of energy and team spirit is vital for a commercial construction project. Although there are many reasons to get started with new commercial construction, it’s all about creating an inspiring and empowering space! 

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