Taking on a large commercial construction project is a daunting task, even for seasoned veterans. There are a myriad of issues to attend to, beginning with the initial planning stages and continuing through the completion of the project. One of the most important aspects of a successful build is choosing the right commercial construction company. Wise investors and developers look at five key factors when contemplated which company will serve the project best.
Price of Project
Perhaps the most important factor that investors consider when choosing a commercial construction company is the quoted price to complete the project. However, it’s also imperative that the scope of the work is fully described in detail, from beginning to end. A lower bid may be more appealing for budgetary control, but the services included in the quote may fall short of the needs and expectations of the investor. For instance, some companies offer complete design and build services, while others only perform construction services and outsource other components. Additionally, it’s advisable to obtain a payment schedule that details amounts and dates funds are to be disbursed to the construction firm.
Insured and Bonded
Large-scale commercial building projects come with an equally large price-tags, making them a risky proposition. Investors must protect themselves against losses incurred by a contractor’s action or lack of action. For this reason, construction companies are required to carry insurance to cover any mishaps that occur in the midst of construction. In addition, they are often required to hold a surety bond, which guarantees the project will be completed within the specified parameters. Should an issue arise, the investor is able to file a claim against the insurer, or the bond, and recoup their investment.
Proposed Schedule
The longer a construction project takes, the more costly it is in terms of construction costs and lost revenues. While delays due to weather can happen during any season, they generally occur during wet, rainy times and during winter months. Commercial construction companies take weather, and a myriad of other things into consideration when proposing a schedule to complete the project. The type of project, its complexity, availability of materials and labor, and the site location all come into play. However, a reasonable time line must be laid out, and adhered to in order to reap maximum rewards.
Project Experience
While construction practices are similar in every commercial project, each type of commercial building, from public facilities to shopping centers and medical buildings, has its own set of special requirements. Because of this, it is vitally important that the commercial construction company in question is experienced in the type of project you’re working on. While it’s nice to give a newcomer a chance, the risks involved are too steep and it’s best to rely on those with abundant experience constructing structures with your intended purpose.
Project Management
Another important question to ask a potential construction company is how they will handle the management of the project. In many cases, subcontractors are called in to perform duties such as plumbing and running electrical systems. While these tradespeople understand their jobs, and are adept at completing projects, supervision is required. The best commercial construction companies make sure someone is on site to coordinate the efforts of architects, engineers, subcontractors and laborers throughout the process.
If you’re considering the possibility of developing a commercial property in Minnesota, contact us. We’re a full-service commercial construction company that provides design and build services to commercial investors such as yourself. Whether your proposed project is an office building, a medical facility, or a stand alone restaurant, we welcome the opportunity to help you accomplish your goals.
