Commercial construction refers to the business of building as well as selling or leasing assembly or manufacturing plants, standard space for offices, shopping centers and medical centers. The nature of this business varies widely with regards to the size as well as the scale of operations. The usual practice in commercial construction involves a commercial builder getting into a contract with an organization or a company to construct a building or alternatively the commercial builder will start a project with the hope that they could lease or sell it in future.
What is Involved in the Commercial Construction Environment?
Many of the commercial constructions owe their origin to a bidding process. An architect usually comes up with a design which is thereafter let out for bidding and several interested competitors have to submit their bids. Out of these, the best bid in terms of costs and specification match wins the bid. Many a times there is usually a known construction site which has been secured but this is not a must.
Commercial buildings have been brought about by the changes in the business cycles and incessant growth in the population. The increased number of people in a given area creates a demand for rental units as well as more office space. This ultimately leads to the construction of more buildings to meet an existing or expected demand.
The modern trends have made commercial construction companies to specialize in just a single commercial market. In other words, a commercial construction company could solely dedicate its efforts in coming up with high-rise buildings or some could opt to construct heavy investment infrastructure such as dams or other water treatment plans. A commercial builder will gain the required experience to have highly functional and astounding constructions. Preference for specialization has grown to the extent where we have commercial builders who just deal with the construction of perimeter fences.
Some commercial builders have tried to be in business throughout the year by undertaking projects such as refit the office or modifying existing buildings. This is major development from the traditional practice but it is quite a creative way of creating side cash for a given commercial construction company.
This whole business of commercial construction is guided by the existing building codes set up by the various cities, towns as well as counties. The builder is the one who normally foots the bills for inspection by the relevant authorities. Usually the fees accrued from the whole inspection exercise could sum up to about 3 to 4% of the whole construction cost of the building being set up. The inspectors have timetables that guide their inspection work and having a good relationship with them could lead to earlier approval of your building site, there also seems to be some kind of political influence in the whole process.
It is the desire of many commercial construction companies or builders to have a constant flow of projects to handle. This has the benefit of creating some predictability in the type of quality of their work as experience is gained over time. The other advantage is that it’s easier to get discounts from various suppliers who could bank on them due to a flow in the projects they undertake.
Commercial construction is a growing area of interest that has been occasioned by changes in the business cycles and ever growing population, mostly in the urban set ups. It is vital for the creation of more workplace, rental units as well as other heavy construction projects.
Written by Hubert Builders, a full service commercial construction company in Columbia, MO.