For anyone new to commercial real estate development, the construction piece of the puzzle can be especially daunting and expose stakeholders to a lot of avoidable risk. At RTF Construction, we have successfully guided dozens of developers and owners through the commercial construction process to help GPs and LPs realize successful projects and ROI. Below, we will walk the reader through the 10 phases of the commercial construction process. Keep in mind that the specifics might vary depending on the project size, complexity, and location. Here’s a general step-by-step guide:
1. Preliminary Planning:
- Define the purpose and scope of the project.
- Conduct a feasibility study to assess the project’s viability, considering factors like budget, market demand, and potential ROI.
- Create a project team including architects, engineers, a general contractor (normally selected through the bid process), and consultants.
- Obtain necessary permits and approvals from local authorities and confirm credentials.
2. Design and Pre-Construction:
- Develop a concept design based on the project requirements and preferences. This is the phase where value engineering will occur and yield the greatest results.
- Create detailed architectural, engineering, and MEP drawings that specify dimensions, materials, and construction methods. Ensure all relevant drawings are provided to the GC to obtain accurate project costs.
- Develop a construction budget and timeline, including estimates for labor, materials, and other costs. Long lead items should be identified in this phase and accounted for in the project scope.
- Obtain bids from subcontractors and suppliers for various components of the project.
- Finalize design documents and obtain necessary approvals from relevant parties.
3. Procurement and Pre-Construction:
- GC awards contracts to selected subcontractors and suppliers.
- Procure necessary materials, equipment, and resources for the construction phase.
- Develop a comprehensive project schedule, including milestones and deadlines.
4. Construction:
- Mobilize the construction team, establish on-site facilities, and implement safety measures.
- Begin site preparation, including excavation, grading, and utilities installation.
- Build the foundation and structural elements according to the approved plans.
- Progress through subsequent construction phases, including framing, roofing, electrical, plumbing, and HVAC installations.
- Conduct regular inspections and quality control to ensure compliance with plans and specifications.
- Manage project logistics, including material deliveries, site organization, and waste disposal.
5. Interior Finishes and Systems:
- Install interior elements such as flooring, walls, ceilings, and fixtures.
- Complete electrical, plumbing, and HVAC systems installations.
- Conduct tests and inspections to ensure systems are functioning properly and meet required standards.
6. Exterior and Site Work:
- Complete exterior finishes, such as cladding, roofing, and landscaping.
- Install external amenities such as parking areas, walkways, signage, and lighting.
7. Finalizing and Inspections:
- Perform a thorough review of the project to identify any outstanding issues or defects.
- Address any issues discovered during the review process.
- Coordinate final inspections with relevant regulatory authorities to obtain necessary certifications.
8. Handover and Occupancy:
- Complete any remaining paperwork, including warranties and operation manuals for equipment.
- Hand over the project to the client, obtaining their acceptance of the completed work.
- Agency leasing team will represent owner in the leasing process.
9. Post-Construction:
- Address any post-construction issues that may arise during the warranty period.
- Provide ongoing maintenance and support as necessary.
- As the suites are leased up, work with the GC to perform TI work for the prospective tenants.
10. Project Closeout:
- Complete any final paperwork, including closeout documents and final payments to subcontractors.
- Conduct a post-project review to assess what went well and areas for improvement.
