What Is Commercial Construction?

The term commercial construction is used to refer to any kind of construction project where the eventual outcome will be a commercial property rather than a residential property or industrial property. It can include warehouses, hospitals, sports centers, shopping centers and hotels, as well as some types of reconstruction and refurbishment of historic buildings. One commercial construction firm may not necessarily be responsible for all aspects of the creation of a commercial property from conception to completion, and a variety of different people may be involved, however some well-established construction firms are able to take complete control of all aspects of the construction process.

Commercial properties differ from residential properties because commercial properties are not intended as full time homes, and therefore the needs, rules and regulations connected to commercial properties differ from those associated with residential properties. Those who are wishing to build a commercial property, or adapt a former residential property into a commercial property are usually required to get planning permission in order to be able to do this. If special planning permission is required, it must be properly obtained before any physical work is carried out, or else the owner may be required to undo or remove all the work which has been carried out.

There are different types of commercial construction companies available. Some construction companies will only be contracted once planning permission is received, and once all surveying etc has been called out at the place where the construction will take place. These companies will work according to the pre-approved architectural blue prints which have been commission by outside investors who wish to develop or build a property for commercial use. Other types of commercial construction company will take charge of the whole process from conception to completion, having either designed and funded the project themselves, in the hope that they will be able to sell or lease the property when it is completed, or having been contracted out by a private investor.

It is one of the construction company responsibilities that all commercial properties adhere to all local commercial building regulations, and if any of these regulations are not adhered to fully, then the construction company may be liable for any damages. In recent years, building regulations for commercial properties in many countries have been extended to take into account changing environmental standards.

As well as being partial responsible for the health and safety of those who will use the commercial property once it is completed, commercial construction companies must take partial responsibility for the health and safety of its own workers. Any building site is a dangerous place to be, so it is important that all workers in construction companies understand the rules and regulations which are put in place and designed to help to keep them safe. All construction workers should be taught the importance of wearing the correct protective clothing whilst they are on the building site or using building equipment: hard hats and high visibility jackets can help to save lives.

Commercial Construction Tips – How to Stay On Budget

Keeping a commercial construction project on budget requires determination, vigilance, creativity in problem-solving, and diplomacy. It begins almost at the moment a project is conceived and continues throughout the entire construction period.

There are many reasons a commercial construction project will go over budget. Some causes simply can't be adequately assessed or budgeted, such as delays and materials losses caused by a natural disaster. But many causes relate to poor planning and even weaknesses in the budgeting process itself.

Typical Cost Control Problems

Cost overruns on a construction project happen, despite the most careful planning and control efforts. Some common causes for overruns include:

  • Lack of a well-defined project scope.
  • Poor estimating methods (or standards).
  • Out of sequence start / completion activities.
  • Inadequate comparison of planned-to-actual costs.
  • Unanticipated technical problems.
  • Poor (or no) project management policy and control practices.
  • Faulty schedule resulting in overtime or idle time expenses.
  • Escalating materials prices.

Three Big Mistakes

Review some of the more egregious construction cost overruns of recent years and you might see a familiar pattern to budget overruns. They are commonly made mistakes that can be adjusted and corrected during the contracting phase of a project.

Managing these three weak areas may mitigate or eliminate many of the problems listed above:

  • Incomplete document design: a project owner may hand over the architect's plans and specs to the contractor believing that every detail has been identified. In truth, the owner-architect agreement often only requires the architect to present the plans and specs of a general design intent. The complete in-depth details may not be included. The lack of complete design information places the contractor in the position of demanding more money for work that had not been clearly defined in the plans and specs. Multiple change orders and budget overruns result.
    • Resolution: the owner-architect agreement should specify that the architect will provide a 100% complete set of drawings, specs, and all related documents prepared by engineers (and others working on the project). Responsibility for overages caused by incomplete design falls back on the architect, not the contractor.
  • Complete review of documents prior to bidding: the contractor may seek additional compensation for necessary work that, according to the contractor, was "not shown on the plans and specifications."
    • Resolution: the project owner's contract language should stipulate that all contractors wishing to submit bids must affirm they have reviewed the plans and specs and fully understand the scope and intent of the project. Their price should cover all necessary work to fulfill the "implied or express design intent."
  • The lowest bid: the project owner may face many pressures from investors, shareholders, and board members to accept the lowest bid. But lowest isn't always the best. Underbidding can be risky and costly.
    • Resolution : work with trusted contractors who have completed projects similar to the current one. The contractor with a track record of successful on-time and in-budget builds is far more likely to be able to produce the same results for your project.

The root of successful budget containment lies in allowing a sufficient amount of planning time to thoroughly define the scope, schedule, quality, risk, resources, and budget for the construction project before the bid invitations are sent out to contractors.

Using Careful Commercial Construction Planning

Commercial construction projects, whether large or small, require careful planning and scheduling. The availability of materials and resources are influenced by many factors that must be taken into consideration. Deadlines are vitally important to many construction projects, where time means money and delayed projects result in significant fines.

In addition to careful advanced planning, commercial construction projects require flexibility as delivery dates shift and activity proceeds at an unexpected pace. Communication is essential during any planning phase and well into the project as it makes its way toward completion. In addition, commercial construction projects have enormous budgets that must be carefully monitored and adhered to. Cost overruns can result in significant losses to the company in charge of the project.

Using an effective, well designed, construction software can help keep a commercial construction business on track. It can enhance the company’s ability to oversee and evaluate the project thereby reducing costs and cutting expenses. Computer software can definitely speed the decision making process and improve communication between project managers and company management.

Cost management is crucial and employing appropriate management techniques can make the difference between bringing a project in on time and within budget and excessive costs and expenses. Estimating prior to bidding on a commercial construction project is the start of cost management even before the project is underway. If it is a project that is given to the lowest bidder, a company’s bid requires careful examination to make certain a profit can be made it the job is won.

Once under way, proper planning and careful record keeping takes over to continue to analyze the profitably of the project as it is underway. Construction managers and project managers oversee various aspects of a large commercial project for profitability as well as scheduling and materials coordination. Some managers work on only one project, others are responsible for multiple projects at once.

Another important element of any commercial construction project is safety. This is a complex aspect of commercial construction planning and thorough knowledge of laws and regulations is a necessity. Most companies have a site safety manger to keep employees and contractors informed and in compliance with these regulations. Safety violations can result in fines and injuries result in lost time, as well as, unnecessary medical and disability costs.

Careful planning of a commercial construction project will bring a project in on time and within budget. No construction company wants to work at a loss, even though on occasion it may be unavoidable. If it happens too often, the company will not survive.

Large commercial construction projects have benefited greatly from the advancements in construction technology and computer software. They have made it possible to improve the accuracy of materials and labors calculations and assist management in planning as the project proceeds. Efficient planning and appropriate adjustments made in a timely fashion throughout the project will increase profits and minimize expense and this is easier to do now than ever before.

5 Handy Commercial Construction Tips

You might have been put in charge of a commercial construction project recently, and though you appreciate your boss's stamp of approval on the work you are capable of doing, you might not know all of the components that go into the project. Here are some handy tips to keep in mind as the project progresses.

1. Start by hiring a good general contractor and then put together a practical budget for your project. This budget will need to be presented to the project owner, aka your boss or maybe even someone higher up than that, for approval. Be sure it is comprehensive. Your boss will want to know just how feasible the project is when he or she presents it to the board for approval. That budget will also be what the finance team will use to obtain financing for the project. If the budget indicates that the project location needs to be moved or that something needs to be scaled back, now is the time to make those changes.

2. Your boss or the board of directors might have one vision of what they want to see, but it might not actually be practicable. The project owner should be a part of the planning process so he or she is comfortable with the changes that are made. Also, while you are in the planning process, be sure you bring in all of the residents including those who will be using the building when it's all complete.

3. Once you have the plan in place, it's time to set up the schedule. If your project owner wants a specific date to open the building included, that should be the place to start and then work the schedule back from that date. Be sure to build in a buffer along the way to compensate for any delays that might happen. Actually, make that will happen. The unexpected is always to be expected. With a schedule in place, your general contractor can keep you appraised of the progress, and also let you know about any delays that were encountered.

4. Don't be afraid to work within your own limitations. It's OK to admit what you don't know, and when it comes to construction, relying on your experts to guide you is not only okay, but a good idea. Your contractor will also know what will be needed in terms of how to best keep you up to date on the project's progress.

5. Communicate, communicate, communicate. There is no such thing as too much communication. Your contractor will need to provide you with regular updates, and you will need to ask key questions to make sure you and your contractor are staying on task. Open communication reduces problems and generally catches them at a point where they are more easily solved. New apps available particularly for Apple products are great communication resources. From the bid process with SmartBidNet to portable CAD apps that let you do quick drawings on site and send them to anyone by e-mail, apps can help everyone stay on target.

These five tips are some of the main ones that will help you be successful. You can also check out some of our other posts for more information about commercial construction. Happy building!

Commercial Construction Staking

Construction staking for commercial projects is a crucial step in the building process that can directly influence whether a project finishes on time, on budget, and free from errors. It is in the best interests of the construction company or developer to utilize the skills of a qualified registered land surveyor to perform the staking. A good surveyor will interpret the plans and layout the project to best fit the site as the designer, engineer, or architect intended. By having someone with the skills and knowledge of a professional registered land surveyor, the builder can be certain of the accuracy and reliability of the results.

Commercial construction staking is needed for a variety of different projects, including subdivisions, streets, utilities, and more complex, multi-story building sites. Construction staking is, at its most basic, the laying out of survey points on the ground to act as a guide for constructing site improvements. In many ways, construction staking can be seen as the opposite of the as-built survey. The as-built assesses a building or project after completion to ensure that is was built according to the plans. Construction staking is performed at the beginning of the project to make sure that the project is built according to plan. Good construction staking will lead to a good as-built survey.

Construction staking, especially in a commercial application, calls upon all the skills that a land surveyor possesses. They are required to complete a boundary and topographic survey to ensure that the property matched the site plan and engineering design. They must also perform field staking for mass grading, building offsets for construction, utilities (sanitary sewers, water mains and storm sewers), as well as any parking lots, streets, curbs, or gutters. These are all done before the surveyor even begins to address the proposed buildings on the property.

Once a surveyor moves on to staking the proposed structures, he provides the location and grade stakes for building foundations, walls, and column lines. This is a crucial step in the process. If the buildings foundations are not staked properly, it can be a very costly mistake for the construction crew that could have the potential to ruin the job altogether. A knowledgeable land surveyor is a builder's best tool to avoid foundation problems further on in the process. A good surveyor will establish a coordinate network with horizontal and vertical controls from the beginning of the property and use it to calculate and determine the exact corners and levels of proposed structures.

While construction staking is seen by many to be a simple step at the beginning of a project, it can have very dire ramifications for the rest of the project if not completed correctly. In commercial projects, the importance of a well-performed construction staking is magnified, given the larger structures and vast amounts of money the construction staking affects. It is money and time well spent to make sure that a qualified individual with the proper surveying knowledge and experience is conducting your construction staking survey.

10 Great Commercial Construction Tips

Commercial construction can be a big undertaking, both literally and figuratively. You might think you have it all under control, but do you really? Here are ten tips that will help make your next commercial construction project a success.

1. The lowest bid is not always your best choice. It’s a counter-intuitive thought compared to everything we have been taught. But even in these times of wanting to be sure to keep the bottom line in check, it’s important to find the best price for the project. Sometimes the low bid is that way because the contractor has no idea what the job entails, and other times they will come in low, get a payment or two, and then abandon the job.

2. Go online and do your research. Check references, run the contractor’s board numbers, and study the backgrounds of your contractors so you can know before you sign on the dotted line just what you are getting. The internet can also be a source of information about current trends in commercial construction.

3. Find a contractor who specializes in what you want done. Sometimes the biggest isn’t always the best. A smaller contractor who is more adept at smaller jobs might be just the right thing your job needs. If you are revamping a store, consider finding contractors who specialize in retail space renovations.

4. Start with the general contractor and build from there. By bringing the general contractor into the job first, you are able to use their knowledge on the job from the beginning and have them help guide the project.

5. Go ahead and add on that maintenance agreement. Once the job is done, you want to ensure that your project will last for years to come. A good maintenance contract that checks over the equipment is a great idea to clean and maintain things like your furnace or drain pipes. A quick cleaning now is much cheaper than an expensive repair later.

6. Does the goal of the project further your company’s image and brand? If it doesn’t, it might not be the right project for you. This is a big capital expense, and you want it to pay off with a solid return on investment for you.

7. Your project should make sense. Do you have custodial closet doors that open inwardly? Did the customer service booth end up with only a small front-facing window? Double check the design proposal before you go out to bid to ensure that the concept diagrams and blueprints make sense and lead to positive workflow.

8. Along with number 7 goes ensuring that the areas like the office supplies and the copier are easy to get to and are going to keep things efficient in the office or administrative area.

9. Decorate in such a way that the colors and furniture enhance your brand and your company’s image. Your customers should feel like they are welcome in your new place, so be sure your contractor includes an interior decorator in the plans.

10. Be sure your contractors are all on board with the project and are capable of meeting the deadlines. This point is probably the most important one of all. Any delays are costly both financially and in terms of getting your business going again in the new location.

Hopefully these tips will help get you going in the right direction for your next project. Happy building!

Tips For People Who Want to Buy Real Estate For Rental Purposes

Buying real estate, when you play your cards right and do your research properly, can be a very lucrative investment. One means of making money out of it is by renting it out. Many people make a lot of money out of rentals, but many people also end up foreclosing the house they just bought because of poor planning. How do you avoid serious money issues when buying a rental property? Here are a few suggestions.1. Research the perfect location for a rental. – If you want to invest on Peoria real estate, for example, it’s good to look at Peoria homes for sale which are located in neighborhoods that are considered to be great rental locations. You can find this out by searching for rental areas online, driving arond the area and asking neighbors, and other means. A great rental location could be somewhere near schools which is something that a lot of parents are looking for. Beachfront properties can also be great rental places, for both long term and short term renting.2. Research how much people pay for rental properties in the area. – When you’ve already established a great rental area where you want to buy a house, look around and establish information about how much people usually pay for the rent. This may be sufficient to cover for at least your mortgage fees, or it may not be sufficient at all.3. Work with your real estate agent. – Find somebody who is conscious about building a good relationship with you because of the potential of repeat business in the future. Real estate agents can give you a wealth of information that will be helpful in terms of finding the right kind of property in the right kind of location.4. Research what it would mean to become a landlord in that area. – Different states have different laws governing landlords and tenants. Research this and check whether this is something you want to get involved with or not. Find out what kind of insurance you need to take out. You may want to take out liability insurance and other insurance policies that would be useful specifically for owners of rental homes.5. Have a back-up plan. – Have a buffer fund ready for you to pay off the mortgage in case you run into problems with current tenants. Some tenants may have difficulties paying the rent because of unforeseen circumstances. Sometimes you may not have tenants at all. Since you still need to be able to pay off the mortgage even if you don’t have tenants, the best solution is to be prepared for such eventualities rather than hope that business will always be good.6. Determine what type of property you want to invest in. – If you’re looking to invest on beachfront homes, you should be prepared for the different requirements or rates of insurance policies that go with it. Beachfront properties have a huge potential to earn you money during certain times. Understandably, there would also be lean seasons such as winter, when the last thing people want to do is to rent a beach house. Learning what kind of property you prefer to rent out will help you a lot in the future.

Analyzing Deals Exposed – Secrets to Buying Real Estate Below Market with Positive Cash Flow

There’s a lot of information about selling real estate out there. It all sounds so simple, you buy cheap properties rent them out and just rake in the dough. How can it go wrong, right? If it was that simple, why would you even need help getting this information in the first place?Equity isn’t everything, just because the house is selling for cheaper then you think it’s worth doesn’t mean you’re gonna be able to make money off it. You have to look at more then just the equity, you have to make sure what you’re getting is really gonna pay off. If you buy your rental properties based on equity alone, you are going to end up with some that are just sucking you dry.You need to know how to really judge the deal you’re being offered. You need to be able to know for sure that you are going to be turning a profit. Of course if you’re reading this you’ve already pieced together that you need to know more. Information is power and you aren’t going to settle for the bare basics.One of the best ways to analyze the value of the real estate is Net Operating Income. Net Operating Income or NOI, sounds complicated but it’s really not. What it boils down to is the market rent minus vacancies and expenses. This still sounds slightly complicated, but it’s an invaluable tool. You need to be able to figure out the Net Operating Income of any possible rental properties.Alright I’ll explain it a little further for anybody who is still confused about Net Operating Income. If you understand the basics of it feel free to skip this paragraph. First you figure out the gross rent possible. Then you subtract an allotment for vacancies you might have. Then you subtract all of your operating expenses. What you are left with is your Net Operating Income.Now once you are able to figure out your Net Operating Income, you get a much better perspective of the property’s worth. Now that you know your Net Operating Income, you know how much debt the property can afford. Take into account the interest rate and duration we can get on a loan, and we can see how much you can really afford to spend on the property.With the Net Operating Income you have numbers you can show to the seller. It will be a very important bargaining chip. You can show the seller exactly how much you are going to need to pay for expenses, and how much rent you are expecting to get. It will help you and the seller see eye to eye, and it should make him understand why you are offering the price you are offering.Nobody wants to lose money, if you don’t evaluate the Net Operating Income of a property you are risking your wallet every time. Enough caution though, I’m sure you understand the risk by now. Since you’re still reading, I’m guessing you’re still interested in more information.If I was you, I’d want an actual example of evaluating Net Operating Income. This article might make sense to you, but everything is proven in practice not theory. Don’t worry we’ve got you covered there. James Orr is a full time real estate investor, and he has came out with an audio CD that will show you how it all works in real use.Don’t take my word for it though, check out James Orr’s “How To Analyze Deals Volume #23 for yourself.

I Like to Buy Real Estate!

I have reached a type of occasions in my stay the place I’m reflecting on what influence I’ve made on the world round me and how many of my private objectives I have achieved. This year I’ll flip fifty years old, a particular mile marker in my life. I have decided that it is time to take a protracted have a look at what I nonetheless need to accomplish.One of many areas I’m most pleased with is how I’ve parented my children. My husband and I were blessed with two sons and a daughter. Each of them has had many accomplishments and is successful in the career paths that they’ve chosen. My daughter and her husband have started their own house based mostly business. This business includes buying actual estate and promoting it in a fast flip round for a profit. My daughter has a level in PC programming. She worked very successfully for a significant PC company. This job involved an excessive amount of travel to help arrange companies with laptop systems and to bother shoot problems that that they had with the systems. She enjoyed the work and journey an excellent deal; nonetheless it was not the type of job that is conducive to raising a family. When she realized that she was pregnant along with her first youngster she determined that she needed to analysis career choices that allowed her to be at home. The PC firm she was with had some choices that she might do by way of telecommuting; nonetheless she thought she would like to strive one thing new. She is good at work with computer systems, but she needed a new problem and in addition wished to stay at residence along with her child.She began trying into home based mostly businesses that may create revenue and would require solely part-time work. Out of the numerous prospects the enterprise she determined to pursue was buying real estate. She went by training on-line and started her new enterprise by shopping for a small condominium constructing within the western a part of the untied states. She then listed the property and bought it for a revenue inside three weeks. She was very excited about her success and immediately bought one other property. She has been buying real property and promoting it for a profit for 3 years. She has been so successful at doing this that her husband has quit his job and is working the enterprise with her. They put in about twenty hours every week and are making a six figure income. She loves the work, however is extra thrilled with the fact that she is home full time. She is now about to offer start to their second child. She has been a full time mom to her first born and is happy that her husband will be capable to be a full time dad to each of the children. Buying actual estate isn’t the home based mostly enterprise for everybody, however it has been very profitable for them. She insists that I ought to look into getting concerned with it also. It could be fun to start a new profession as a reach the half century mark of my life.