Construction Considerations – 6 Things You Need to Keep in Mind When Building a Commercial Property
There is just so much that goes into getting commercial property built and sold or leased. There are so many approvals to get, investors to find, permits upon permits it can all become too much. Without a solid plan and a crack team, your construction dreams can easily become unending nightmares. Here are six things to keep in mind while you are knee deep in the process.
Commercial construction is stressful. Without a solid plan and a crack team, your construction dreams can easily become unending nightmares. Here are six things to keep in mind while you are knee-deep in the process.
1. Thoroughly Plan
Poor planning is the number one reason that large scale projects like commercial property construction fail. Before you lay the foundations, you will need to have done as much research as you can handle and then more! Know what you need to in terms of finance, your team, laws and where your permits are coming from. You need to know that paperwork like your section j report comes from reputable sources that are well versed in the local sectioning and construction laws.
2. Have a Trustworthy Team
There are so many different areas to consider when undertaking such an expansive project, and one person can not possibly oversee every facet of the work. For this reason, you need a team that you can trust to deal with your investment. Your team should at least include:
- A property lawyer to ensure that all proper legal steps have taken place
- A project manager that can make sure all workers are working effectively and efficiently
- An Architect
3. Assess and Secure Funds
Commercial property is an expensive undertaking, but it can also be very lucrative.
Once you have a clear idea of what the undertaking will cost, you need to decide how the project will be funded. You can finance the project privately or with a business loan. Alternatively, you can consider taking on investors. If you choose to go down this route, you need to consider if you want private investors or corporate sponsors and just how much input into the process you are willing to allow them to have.
4. Keep in Mind Your Long Term Goals for the Property
As there is often a very long period between your investment and any monetary returns, it can be vital to your sanity to keep a firm idea of your long term goals for the property. You have done all of the research, and most of your work is done. You now need to ensure that the build stays on track and that timelines and goals are being met.
5. Expect Delays and Unwanted Expenses
Every time-consuming project is bound to have setbacks and unexpected problems. That is just the nature of the investment. So from day one, you need to be prepared for delays and expenses beyond your control. As long as you are expecting them, you can have plans in place so that these problems are never insurmountable. As long as you have a creative team and a budget with some decent wiggle room, your project will be acceptable in the end.
6. Accept That This is a Slow Process
From beginning to end the whole process of building a commercial property can take years. It is paramount that you stay on top of what is going on and are always up to date on what progress has been made. You should receive weekly updates reports and meet with your team often so that things continue to move forward. Finally, you should visit the site as often as possible to see what is going on and to remind yourself that things are happening even if it is slow.