6 Pro Tips for Constructing Your Commercial Building
Putting up your commercial building requires an enormous investment of money and time. Thus, you need to ensure it’s the best move for your business. You need to ask yourself many questions such as whether the project suits your company, or whether you need the extra space to increase productivity or accommodate more business. Once you decide to proceed, don’t think it will be a smooth ride all through. There are lots of unexpected problems such as delays, unreliable contractors, and budget overruns. So, you need to be ready to manage change when it occurs. Here are professional tips to help you when constructing your commercial building.
1. Evaluate your options
The scale of a construction project requires serious commitment from any entrepreneur. Remember, the time and energy you invest in constructing a building can also be pumped into the business itself. Besides, even if you decide to hire a manager to oversee the project, you will still have to be involved in the decision-making, and this means spending time away from the daily operations. So, consider other options such as renting office space, renovating the existing space, or buying another building. When in doubt, seek a financial advisor or consultant to help in evaluating your situation.
2. Make accurate projections
A banking advisor can help in determining the amount of money you need for the job, the right financing solutions for the job, and the affordability of your project. It is vital to begin with a good business plan for you to make realistic revenue projections. This is beneficial in helping you gain the confidence of the lenders and prove that you can manage a project of this magnitude without endangering the financial health of your company.
3. Get a building permit
After deciding to build, ensure you fulfill all the local requirements by obtaining the right permit. It is vital to do this as soon as possible because it is unwise to build without a license. There are various rules depending on whether you are constructing new premises, altering existing facilities, or changing a building’s use. In Canada, the regulation of construction projects is administered by the municipalities. Thus, check with your municipality to find out what you can do with and without a permit.
4. Find a good designer or architect
Since most professional building designers charge exorbitant fees, sometimes the entrepreneurs skip the vital step of hiring a good designer or architect. Though you may think you are saving money up front, in the end, you will lose because of problems such as structural inconsistencies and inefficient use of space. Thus, hire an expert to ensure the building is functional and efficient. Besides, unless you are a qualified architect, there are many aspects of building you may not understand; thus, you may end up making mistakes.
5. Do your math up front
It is important to ensure your costing is well-done from the start. The banks can provide you with essential guidance on assessing the budgets and costs and to find out whether you are receiving a fair price for your space. Also, be wary of quotes that appear too cheap than the average market rates. Again, always read your contracts carefully because seemingly minute details such as paying water servitude or paving your driveway can significantly affect the price you pay in the long run.
6. Have a contingency plan
It is impossible to predict the exact cost of your project. So, ensure you cover the additional cost with an emergency plan of between five and ten percent of the total estimated cost of the project. Even if you obtain a fixed-price contract, there are aspects of the project such as moving, plumbing modification, electrical and landscaping costs that cannot be avoided.
Building a commercial property requires an immense investment. And to ensure you don’t lose your money while building, it is important to put all these ideas into play to ensure you complete the project successfully.