Commercial Construction Process: The Complete 2024 Guide

1. Finding a location

Before you can accurately plan for the layout, design, and finer details of your new business, you first need to find a location. Narrowing down your location and lot search will involve getting clear about the size of the space you’ll need, how much you’re able to spend on the lot, and the part of town you’d like to build in. 

2. Setting a budget

Getting specific about the budget for your commercial construction project can help you prepare for clear decision-making as the project progresses. In this stage, consider the size and features your new building will require, then conduct research to understand the budget for similar projects in your area. This will help you to establish a baseline so that as you interview possible contractors and sift through various options for each project detail, you’ll have a ballpark number to compare prices to. Setting a budget will help you prepare financially and will also give you a chance to understand which features you will ultimately be able to prioritize.

3. Hiring general contractor

While a real estate agent can help with lot selection, location research, and understanding comparable projects, the vast majority of your project will be completed with the help of a general contractor. A general contractor is responsible for hiring necessary subcontractors, overseeing each small step of the project, scheduling work, and sourcing materials. In short, the general contractor will largely be in charge of your project, which means choosing the right fit for your commercial construction project is crucial.

4. Developing a layout and design

Next, you’ll work with your hired general contractor and appropriate subcontractors such as engineers to develop a layout and design for your new building. In this stage, you’ll think through the main business functions the building will need to accommodate, as well as any secondary functions and requirements such as equipment storage. For example, in this stage, a dental office might nail down details like the exact number of exam spaces to build, in addition to how many square feet of storage they’ll need, how large their waiting area will be, and how many staff and patient restrooms to include. Structural and electrical engineers will help ensure the design is safe and structurally sound.

5. Pre-construction phase

Once you’ve developed a clear understanding of the design and layout of the new building, it’s time for paperwork. You’ll need permits, insurance, and licensing specific to your project and location. This is also the phase in which the general contractor will begin to source materials, which may require input from you in order to make decisions around budget and timeline priorities. The general contractor will also find appropriate construction team members during this phase.

6. Construction phase

The next phase is among the most exciting steps: the construction phase! With all the materials acquired and the plans drawn up, it’s time for the construction team to build your new commercial building. From laying the foundation to building the framework to installing electrical systems, HVAC systems, and more, the construction team will bring your plans to life day by day.

7. Post construction

The post-construction phase is the final step in the commercial construction process. This is the time for you and an inspector to walk through the new building with the general contractor and ensure every aspect is completed at the quality expected. Any unsatisfactory aspects should be noted down and addressed by the general contractor and their team. Once every aspect is satisfactory and the building passes a thorough inspection, it’s time to move in and get the location up and running!

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