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Embarking on a commercial construction project can be both exciting and overwhelming. As your commercial construction partner, we believe an informed client is an empowered client. This comprehensive guide walks you through each phase of the commercial construction process from concept to completion, highlighting what you can expect along the way. Our goal is to demystify the journey, prepare you for key decision points, and establish a foundation for successful project delivery. Whether this is your first commercial project or you're a seasoned developer, understanding the process from your perspective will help ensure alignment, manage expectations, and ultimately deliver a successful project that meets your business objectives.
Pre-Construction Phase: Planning and Design
The pre-construction phase lays the groundwork for your entire project. This critical planning period typically consumes 25-35% of your total project timeline but establishes the foundation for success.
Key Activities:
- Needs Assessment – Defining your business requirements, space needs, and project objectives
- Site Selection and Due Diligence – Evaluating potential locations, environmental factors, and regulatory requirements
- Team Assembly – Selecting architects, engineers, and construction professionals
- Conceptual Design – Creating preliminary designs that align with your vision and budget
- Feasibility Studies – Analyzing technical and financial viability
- Budgeting and Scheduling – Establishing preliminary cost estimates and timelines
Client Responsibilities:
- Clearly communicate your business objectives and requirements
- Provide timely feedback on design concepts
- Prepare for multiple design iterations as concepts evolve
- Understand that decisions made during this phase have the greatest impact on final costs
Timeline Reference:
For a typical mid-size commercial project ($5-15 million), expect this phase to last 3-6 months depending on project complexity and permitting requirements.
Cost Distribution:
Pre-construction services typically represent 5-8% of your total project budget, covering design services, engineering, permitting fees, and consultant costs. While this may seem significant upfront, proper planning here prevents costly changes later.
Procurement and Contracting Phase
Once designs are developed and approvals are in place, we enter the procurement and contracting phase where financial commitments begin to take shape. This phase establishes the legal framework and financial parameters for your project.
Contract Options:
- Design-Bid-Build: Traditional method where design is completed before contractor bidding
- Design-Build: Single-source responsibility for both design and construction
- Construction Management: Construction manager serves as client advisor throughout the project
- Integrated Project Delivery: Collaborative approach sharing risk and reward among key stakeholders
Key Considerations:
- Bid Packages – How work will be divided among contractors and subcontractors
- Risk Allocation – Who bears responsibility for different types of potential issues
- Change Order Procedures – How modifications will be handled during construction
- Payment Structures – Timing and conditions for disbursements
- Project Controls – Methods for tracking schedule and budget compliance
Common Contract Types:
Pre-Construction Completion Checklist:
- Final construction documents approved
- Building permits secured
- Major equipment and materials ordered
- Subcontractors selected and scheduled
- Site logistics plan finalized
- Construction schedule baselined
Construction Phase: Building Your Vision
This is where your project physically takes shape. The construction phase transforms plans into reality and represents the largest portion of your project timeline and budget.
Typical Construction Sequence:
- Site Preparation – Demolition, clearing, and earthwork
- Foundation Work – Concrete footings and foundation systems
- Structural Framework – Steel or concrete structural systems
- Building Envelope – Exterior walls, roofing, and weatherproofing
- Mechanical, Electrical, Plumbing (MEP) Systems – Installation of building systems
- Interior Construction – Walls, ceilings, flooring, and finishes
- Site Work and Landscaping – Parking, walkways, and exterior features
- Final Inspections and Commissioning – Testing and certifying all systems
Client Involvement:
- Attend regular progress meetings (typically weekly)
- Review and approve submittals and samples when requested
- Make timely decisions on any necessary changes
- Process contractor payment applications according to contract terms
- Maintain contingency funds for unforeseen conditions (typically 5-10% of construction budget)
Construction Phase Statistics:
- Approximately 60-70% of your total project budget is spent during this phase
- On average, 10-15% of projects experience significant scope changes during construction
- Weather-related delays impact approximately 45% of commercial construction projects
- Material price volatility affects approximately 30% of projects in progress
Managing Change Orders:
Change orders are modifications to the original scope of work and are a reality in most construction projects. To minimize their impact:
- Establish clear change order procedures in your contract
- Require detailed documentation of additional costs
- Set approval thresholds and designate authorized approvers
- Track cumulative impact on budget and schedule
- Consider "no change order" incentives in your construction contracts
Project Completion and Transition Phase
The final phase marks the transition from construction to occupancy and operations. This critical handover period ensures your new facility functions as intended and is ready for business operations.
Key Milestones:
- Substantial Completion – The project is sufficiently complete for intended use
- Punch List Resolution – Addressing minor outstanding items
- Final Inspections – Regulatory approvals for occupancy
- Systems Training – Education for facility management personnel
- Closeout Documentation – Collection of warranties, as-built drawings, and manuals
- Financial Closeout – Final payments, release of liens, and retainage
- Post-Occupancy Evaluation – Assessment of project performance against objectives
Warranty Period:
Most commercial construction projects include:
- 1-year general contractor warranty on workmanship
- Extended warranties on major systems (5-10 years for HVAC, roofing)
- Manufacturer warranties on equipment and fixtures
Post-Construction Documents to Expect:
- As-built drawings showing actual construction details
- Operations and maintenance manuals
- Warranty certificates
- Final permit approvals and certificates of occupancy
- Commissioning reports for building systems
- Final lien waivers from all contractors and suppliers
Transition Timeline:
The transition phase typically takes 1-3 months after substantial completion, depending on project complexity and the extent of punch list items.
Conclusion
The commercial construction process is a complex journey that requires careful planning, clear communication, and strategic decision-making. You can trust BHR Construction to be your advocate for commercial construction services of any scope. By understanding each phase from pre-construction through completion, you as the client can better anticipate your role, manage expectations, and contribute to project success. Remember that your construction team serves as your guide and advocate throughout this process – the more transparent and collaborative the relationship, the more likely your project will meet your business objectives, timeline, and budget. We encourage you to refer back to this guide as you progress through your construction journey and to maintain open communication with your project team at every stage.
