If you’re planning a new construction project, jumping right in and getting started can be tempting. However, taking some time to prepare before breaking ground on your new business space will help ensure that your project goes smoothly from start to finish. For example, you may want to address various construction finance issues before starting the project to ensure there are no roadblocks during construction.
Other aspects include making sure that you have all the necessary permits and approvals before beginning work and a plan for managing debris. But these are just some of the many factors to consider. Read on to learn eight tips to remember regarding a new commercial project.
Secure Proper Funding
Before starting your new construction project, you’ll need to determine the necessary funding. This may come from various sources, including equity partners, loans, and lines of credit. It’s important to have all your ducks in a row before beginning construction so that you don’t run into any financial roadblocks during the process.
Get the Right Permits
You can’t start work on your new commercial space without the proper permits. The type of permits required will vary depending on the location and scope of your project. Make sure you research and submit all the necessary paperwork before breaking ground.
Hire a Reputable Construction Company
Choosing a reputable construction company to partner with is one of the most important aspects of any construction project. This is key to ensuring that your project stays on schedule and within budget. Do your homework when selecting a construction firm, and ensure they have a good track record of completing projects on time and within budget.
Have a Plan for Managing Debris
During construction, there will inevitably be debris that needs to be managed. Have a plan in place for dealing with this before work begins. This may include renting a dumpster or hiring a company to haul away the debris regularly.
Set Realistic Timelines
Setting realistic timelines for your project is important, so you don’t end up behind schedule. This includes giving yourself enough time for potential delays that may occur during construction. Setting realistic timelines from the start can avoid potential headaches down the road.
Stay Within Budget
Construction projects can quickly go over budget if you’re not careful. Make sure you have a detailed budget and stick to it as closely as possible. Keep track of all expenses to catch any potential problems early on.
Address Any Unforeseen Issues
No matter how well you plan, there will always be unforeseen issues that come up during construction. It’s important to be prepared to deal with these, so they don’t cause major delays. Have a contingency fund in place to address any unexpected costs that may come up.
Inspect the Work Regularly
Once construction begins, it’s important to inspect the work regularly to ensure everything is done according to plan. This will help you catch any potential problems early on so that they can be fixed before they cause major issues.
Bonus: Securing a Commercial Loan – What to Know
It pays to know a few things if you plan to apply for a commercial loan. First, it’s important to understand the difference between construction and regular commercial loans. A construction loan is typically used to finance the costs of building a new property, such as materials, labour, and permits. A regular commercial loan, besides funding construction, can also be used to finance the purchase of an existing property or to refinance an existing loan.
Construction loans usually have a shorter repayment timeline than regular commercial loans. This is because they’re typically paid back once the construction project is completed.
Following these tips can help ensure that your new construction project goes smoothly from start to finish. Contact us today to learn more about our commercial construction services. We’d be happy to answer any of your questions.