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Commercial Construction Company – Large Projects

January 11th, 2021

A commercial construction company is one that specializes in non-residential buildings, such as shops, public areas, and office buildings. They are typically commissioned to build significantly larger projects than residential companies, and therefore have tools and materials that allow them to scale buildings to a relatively larger size. They can be commissioned by either a governing body or by a private investor, and can build anything from a single store to a skyscraper. In this article, we’ll take a look at some of the ways commercial construction is frequently represented in everyday life.

Some of the most popular things a non-residential construction company will be asked to build are independent shops. This can include franchises like fast food restaurants or privately owned retail shops. Many people looking to start their own business will hire a non-residential construction company to build the store itself for them, and will generally plan the layout of the shop with an on staff architect. There are a number of different staff members that can make the process of laying out the construction of a private business a lot easier, due to their level of expertise.

A non-residential construction company might also be employed by a government agency to construct either a public place such as park or museum, or a government building like a courthouse. The construction of public areas is generally a large feat, and commercial construction companies will often use a variety of techniques on a single project. For example, a museum will usually require an architect for the building itself, a landscaper for the construction of gardens, and a security expert for ways to protect valuable pieces in the museum. They might also use someone to make the interior look nice, and various types of glassworkers and masons for unique architectural features.

Non-residential construction companies can frequently be seen performing various types of construction, on virtually any type of building. In fact, the only type of building they aren’t responsible for is housing, and many of the construction projects they have are significantly larger. If you are looking to start your own business or want to get involved in public works, chances are you will be dealing with a commercial construction company at some point, even if it’s just to touch up the interior of an existing building. Using a construction company’s skills can make large projects a snap to complete.

Commercial Construction Company – Specialists Involved

December 15th, 2020

There are lots of different types of buildings that require different types of construction, but a commercial construction company is capable of building virtually anything except housing, which is left to residential construction companies. Almost everything you see that isn’t a private residence is the work of a commercial construction firm, including privately owned shops, malls, parks, museums, government buildings, and others. These places vary so greatly in how they are constructed and what they consist of that commercial construction companies have to keep a large variety of specialists on hand to complete the various tasks required. In this article, we’ll take a look at some common types of labor included in commercial construction, as well as the different types of specialists that are involved in many construction projects.

The most obvious specialist that virtually every commercial construction company project will require is the architect. They are responsible for the layout and shape of buildings, and provide the basis off of which many other specialists can work on. Architects are frequently regarded as the cornerstone behind a building, as they have the most influence over how the building will function, as well as how it tends to look overall. Specialists related to architects include masons and carpenters, who are responsible for making the architect’s plans come to life.

Many public works such as parks and museums have large gardens or spaces of open land, and while many people assume that these are an easy thing to design, it can be pretty difficult to create the right type of walkways and grass areas for optimal aesthetic appeal and functionality. Landscapers typically work with a commercial construction company to place open space, trees, benches, walkways, and other natural features that make up a large part of every outdoor space.

A commercial construction company will generally hire a plumber, an electrician, and an interior designer for the finishing aspects of buildings. These can be staff members of the construction company itself, or private individuals that are contracted out by the company. They are responsible for giving the building its functionality, as well as providing a convenient but appealing way for people to use the building. There are lots of different aspects present in commercial construction, and if they do not all flow together in the right way, buildings can come out a disaster. The key to good construction is getting everyone to work together as a team.

Commercial Construction Services

December 8th, 2020

Commercial construction refers to construction of commercial projects such as office buildings, shopping centers, sports complexes, hospitals, schools and luxury hotels. Commercial building construction is not an easy task; it involves visualizing a concept and translating into reality which needs to be innovative as well as application of engineering brilliance.

Often when it comes to commercial constructions, huge capital finances are involved and invested. In fact, investments in capital property are a widely used method of retaining capital. When huge finances are involved, the legal aspects are another important aspect that needs careful consideration. Any real estate used exclusively or in parts for business purposes are considered as commercial properties. Hence, it is vital that you satisfy all the legal formalities, rules, norms and regulations that need to be adhered to in your locality before you start construction.

Companies or vendors offering commercial construction services need to sign the commercial construction agreement or contract in which a party agrees to furnish all labor materials, equipments, supplies and do all things necessary for the construction and completion of a commercial building. Essentially, the core aspect of the agreement remains the same in all countries/regions subject to a few modifications depending on the local governing laws in that area or locality or country. They must also ensure compliance with a wide range of regulatory requirements such as environmental standards, legal employment practices and such like.

As we all know, most commercial building construction require huge capital investment as well as employment of skilled employees in various departments. In the construction industry, safety regulations need to be adhered strictly. Many workers who work during the construction process need to be protected against any accidents or physical damage during the course of their work. Hence, safety is a major concern in the real estate business and companies or vendors are required to maintain a safe jobsite and minimize or avoid any health risk to their employees through proper planning, training and regular inspections. Planning ahead allows workers to see and avoid mishaps before they occur.

Implementing a successful commercial project requires a great deal of work at all levels of the project; right from conceptualization to the delivery of the project. While overseeing a building construction, a thorough knowledge of the budgets, materials and staying right on schedule ensures a successful and complete project.

Using Careful Commercial Construction Planning

November 23rd, 2020

Commercial construction projects, whether large or small, require careful planning and scheduling. The availability of materials and resources are influenced by many factors that must be taken into consideration. Deadlines are vitally important to many construction projects, where time means money and delayed projects result in significant fines.

In addition to careful advanced planning, commercial construction projects require flexibility as delivery dates shift and activity proceeds at an unexpected pace. Communication is essential during any planning phase and well into the project as it makes its way toward completion. In addition, commercial construction projects have enormous budgets that must be carefully monitored and adhered to. Cost overruns can result in significant losses to the company in charge of the project.

Using an effective, well designed, construction software can help keep a commercial construction business on track. It can enhance the company’s ability to oversee and evaluate the project thereby reducing costs and cutting expenses. Computer software can definitely speed the decision making process and improve communication between project managers and company management.

Cost management is crucial and employing appropriate management techniques can make the difference between bringing a project in on time and within budget and excessive costs and expenses. Estimating prior to bidding on a commercial construction project is the start of cost management even before the project is underway. If it is a project that is given to the lowest bidder, a company’s bid requires careful examination to make certain a profit can be made it the job is won.

Once under way, proper planning and careful record keeping takes over to continue to analyze the profitably of the project as it is underway. Construction managers and project managers oversee various aspects of a large commercial project for profitability as well as scheduling and materials coordination. Some managers work on only one project, others are responsible for multiple projects at once.

Another important element of any commercial construction project is safety. This is a complex aspect of commercial construction planning and thorough knowledge of laws and regulations is a necessity. Most companies have a site safety manger to keep employees and contractors informed and in compliance with these regulations. Safety violations can result in fines and injuries result in lost time, as well as, unnecessary medical and disability costs.

Careful planning of a commercial construction project will bring a project in on time and within budget. No construction company wants to work at a loss, even though on occasion it may be unavoidable. If it happens too often, the company will not survive.

Large commercial construction projects have benefited greatly from the advancements in construction technology and computer software. They have made it possible to improve the accuracy of materials and labors calculations and assist management in planning as the project proceeds. Efficient planning and appropriate adjustments made in a timely fashion throughout the project will increase profits and minimize expense and this is easier to do now than ever before.

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Three Positions in Commercial Construction

November 5th, 2020

The builder you would hire to build your home and the builder you hire to construct your office building are two very different positions. The first deals only with the building codes and regulations required for residential building. And the builder you would hire to construct your office building is experienced in the processes of commercial construction. As the name would suggest, commercial construction deals with construction of commercial buildings like office buildings, shopping malls, sports arenas, restaurants, hotels, etc. Listed below are a few essential positions in commercial construction.

Commercial Real Estate Agent
A commercial real estate agent is responsible for commercial properties. In many cases, owners of commercial real estate will hire a commercial real estate agent to lease the property or land on their behalf. And in other cases, it can work the other way around with a tenant using the agent to help them find a property or land to lease so they can begin construction of a commercial building.

Commercial General Contractor
General contractors coordinate and supervise the construction of the commercial building. The general contractor is in charge of the hiring of subcontractors who will take on the different parts of the construction process, like framing, plumbing, foundation, electrical, etc. The general contractor works directly with the owner or developer during the construction process to ensure that everything is done as directed.

Commercial Subcontractor
A subcontractor is the contractor in charge of a specific division of the commercial construction process. The subcontractor works directly under the general contractor and is responsible for coordinating the schedule and labor of his or her particular area of expertise.

Decline in Commercial Construction Industry Endangering Specialty Contractors

October 22nd, 2020

The last few years have been anything but kind to the commercial construction industry, especially the Specialty Contractors they employ. Specialty Contractors are being forced to re-evaluate and modify everyday operations to adjust to the volatile economic market that is threatening their demand.

Opportunities are few and far between these days, and every opportunity, big or small must be considered. For the majority of commercial construction companies, their futures appear murky, at best. Businesses that have been opened decades long are most concerned of the looming future of the employment of Specialty Workers.

Through desperate efforts to stay in business, contractors are forced to take uncharacteristic jobs and must now scramble to stay competitive and profitable. Plenty of contractors have to cut their staff in half, or more, to merely survive. Even worse, several sectors of commercial industries are still in the midst of a downward spiral. A commercial construction stand still is often the best case scenario for some struggling businesses.

Timelines, deadlines, and budgets are all shrinking. Stress is more palpable, the workload is more demanding, and the competition more fierce than ever. Like all industries, success is measured by supply and demand. Right now there is just no demand for specialty contractors in commercial construction.

For example, Las Vegas and its commercial construction commitments in the last few years have been severely affected by the commercial construction drought. At one point they were building as far as the eye could see, littering the strip with hotels, shops, restaurants, casinos.

With the huge lack of demand and vulnerable economy, the projects have only created thousands of square feet of vacant space. Commercial vacancies which include office space, retail space, etc., are all experiencing record highs. Las Vegas’ surplus of commercial space is so large that some predict the next project won’t take place for another decade.

Credit issues are another factor endangering specialty contractors. The criteria necessary for approval for large credit lines has become much more stringent and has proven to be a huge obstacle. Less credit approvals contribute to the decline in commercial construction and payment for work is significantly more challenging to collect. Combine the lack of demand with a volatile economy, and then compound that with the mounting credit issues. Most will be confronted with the grim reality of the challenges the industry will face to recover for years to come.

Many specialty contractors are coping by trying to be more aggressive and pursuing every possible lead or bid. Now their goals are just trying to maintain a workload to keep employees busy.

If anything positive emerged from the declining commercial construction industry, it yielded plenty of experienced, qualified specialty contractors enthusiastic to work. The few that are afforded the luxury should take advantage of each opportunity and maximize efforts by creating a strong sustainable team for success.

The decline in commercial construction is seriously endangering specialty contractors and their livelihood. With each project that launches, it is more vital than ever to hire valuable, productive, and efficient specialty contractors. This is not going to be an easy recovery and the current state of the industry is not indicative of a rapid growth or rebuilding period. The goal at hand should be how to survive the next few years to make it to the other side of this commercial construction recession. Adaptability is key, and may be the determining factor that keeps business doors open. Those who are willing to sacrifice and adapt will survive.

Tips on How to Save on Commercial Construction Costs

October 15th, 2020

Reusing the right items whether you are constructing a new office building or doing a retrofit can save you on commercial construction costs. We are all aware that construction expenses have skyrocketed the past few years and almost all contractors are looking for ways to save. This is the reason why most owners would rather go with redoing their existing office than constructing anew. The good news is you can save a lot of money if you know how to make use of whatever materials or equipments you have.

There are many business entities out there that do a lot of remodeling or revamping of their existing chain of stores. While working on their construction retrofit, they would come across items that are not useful to them anymore. What they do is to donate a large amount of these materials from their renovation to charities and write off their donations when filing for their income taxes with the IRS. This, in itself, can already save them on their commercial construction costs. Those items that are in good condition can still be used in their new commercial building.

Those items that were donated to charities like the Habitat for Humanity which is an international non-profit organization that construct affordable housing to people in need, can be sold at a lower price. Sometimes these donated items are being used by the organization itself when they are working on a construction project. Either way, anyone taking advantage of these materials will certainly save a lot on their commercial construction costs.

Here are some of the materials that you may reuse:

Existing work stations in the office, as well as, the filing cabinets, desks and chairs. You can also check if the HVAC units are still in good condition. For a minimum amount, you can get it checked to confirm their condition. You can also make use of existing electrical system and panel. Most likely, you just have to rework or keep it in top condition. Unless, of course, there are power component changes that you need to rewire and set it up all over again.

The building or office bathrooms can also be reused. You just need to check out the plumbing system to be sure that it is still in good working condition. If you are renovating a store like a restaurant or any business that has a “back of the house” area, you can certainly save on commercial construction cost by making use of existing shelves or re-grouting the existing tiles. After all, what is important is to make the “front of the house” appealing to bring in more customers. Reusing the “back of the house” area is where most contractors save in construction costs. You can also make use of existing lighting fixtures. Cleaning it up or painting it in different color palette that will complement your new construction design will help you save a lot.

How to Speed Up Commercial Construction

September 25th, 2020

After an unfortunate slumping period in new commercial construction projects, we are happy to report that new development projects are in full recovery mode. This trend has been pointed out through a series of leading indicators including deliveries of new building supplies throughout 2014.Another indication of a growth spurt in the commercial construction industry is found in the Architecture Billings Index (ABI) which comes out on a monthly basis. In the ABI there was a sharp three point jump in May of 2014, as compared with the previous month. Thus, the need to speed up the process of commercial construction has become even more crucial.

“In commercial and residential construction, cost-effectiveness, speed and safety count and functionality dominate over prestige.” This is an excellent and pertinent quote. While factors like cost-effectiveness and speed definitely do count in the world of commercial construction; SAFETY CAN NEVER BE SACRIFICED!! Safety is the number one concern in all commercial (and residential) building projects. In this article we will look at how to speed up the commercial construction process WITHOUT sacrificing safety.

The often complex world of commercial construction is ever-increasing in demand. The range of projects vary from office complexes to shopping malls to factories to luxury hotels. Technically; although there ARE differences, commercial construction projects can also be housing developments or apartment complexes. Typically budgets are tight and the time-frames within which a commercial project can be completed are fairly narrow. Therefore speed definitely counts. An excellent construction company CAN deliver primo results under such conditions. The finished product is often visually gorgeous and is completed within the necessary time-frame and safety IS NOT SACRIFICED!! It pays to hire a reputable company for such a project.

“New Formwork and Scaffolding Supplier on the UAE Market Innovation made in Germany now at home in Dubai.” MEVA Formwork Systems is based in Germany and now boasts that it is the most prolific supplier of Scaffolding (& Formwork) equipment in the Middle Eastern countries. This equipment is essential to the process of speeding up commercial construction projects because it allows workers to complete projects without the use of cranes. In fact; most frequently, the cranes cannot even be used for these types of projects because they are too large to fit in the allotted space. What was once an inaccessible area for these construction workers, the same workers are now able to complete their projects with the use of this MEVA equipment. They can personally assure that all processes of their specific project are completed with SAFETY in mind. Not only for the safety of the building’s future tenants; but also the safety of the workers who are assigned to that specific project. These are of huge benefit to the industry.

Much more information about MEVA (and possibly products by similar competing companies) is available on the Internet. Just go to your favorite search engine and type in the heading name. Not only is there more information specifically about MEVA, there is info and news about other techniques used to speed up commercial construction projects without sacrificing anybody’s safety.

What to Look For in a Commercial Construction Contractor

August 10th, 2020

The overall outcome of any build structure relies on a single, very important decision – choosing the right commercial construction contractor. A poorly selected commercial construction contractor is likely to build a poor quality commercial building that will end up costing more than what was budgeted for and may not be what was originally intended. Therefore, there are a number of important attributes individuals should look for in any prospective commercial construction contractor.

A good commercial construction contractor must always present them self and operate their construction business in a business-like demeanor. A good contractor will respect the schedule of the business owner and always show up on time and ready to do whatever needs to be done that day. They will be competent, organized and able to deal directly with any questions or concerns the business owner may have. They will create a sense of confidence because they will not break any promises. Individuals should look at how a contractor deals with them before they sign the contract. It will say a lot about how that individual expects to be treated throughout the duration of the project.

Communication is a key attribute in any commercial construction contractor. Construction is considered a “people business.” A good contractor is also a good listener and communicator. They will translate the ideas of the individual and their goals into a very workable plan and then provide insight on what can be expected. They will create a strong base for a good working relationship and build positive rapport. If an individual does not feel as though they are communicating with a contractor effectively during the interview process, chances are it will continue through the project.

Commercial construction is a complex task. The contractor needs to demonstrate the experience and skills needed to get the job done. They need to have years of experience before they can manage a large project. There are different kinds of projects and it is important to find a contractor that has the experience in that type of commercial construction work. If they do, ask them to deliver proof in the form of referrals and recommendations.

A good, well established commercial construction contractor will have a professional reputation. This can be determined through the use of references. Ask the contractor to provide references. Have them include not only references for themselves, but any other businesses they may work with, including material suppliers. It is important to know that all companies involved have a professional reputation.

Lastly, look into the business practices of the commercial construction contractor. Ask for a certificate of insurance to ensure they have necessary coverage, including liability insurance and workers’ compensation coverage. Call the insurance company to ensure the coverage has not lapsed. Also check out their licenses and call the state licensing board to see if the license has ever been suspended or if there are any claims against the commercial construction contractor. Make certain they are able to get all necessary building permits and follow all zoning laws.

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How To Get Commercial Construction Loan Financing – Even During a Dismal Economic Downturn

March 13th, 2020

Just the other day, I heard a rather prominent commercial real estate mortgage industry insider (who wishes to remain anonymous) utter something like: “Sorry guys, no commercial lenders are making loans for commercial construction financing these days in this dismal economic downturn.” No wonder that industry insider wants to remain anonymous! He ought to because it seems to me that when executives start to parrot what they hear in the news media, they actually cause the doom and gloom that doesn’t really exist @ all before they proclaim it. Anyway, rest assured that you can get commercial construction loan financing – if you know where to look…

Perhaps where he comes from, commercial construction financing is hard to come by, but he was undoubtedly referring to traditional commercial real estate lenders. Now don’t get me wrong, conventional commercial lenders do have a solid rationale for being reluctant to provide construction loan financing: “In a down economy, lots of standing (existing) real estate sits vacant or unsold on the market. So, why the heck should we finance new construction?”

OK, we get their point, but there are still a lot of good solid new construction projects out there that need to be funded, and yours may just be one of them. If so, private commercial construction loan financing is where it’s at. Here’s what it is, why you may need it, and how you can get access to $250,000 to $500 million in the ideal combination of private commercial mortgage loans and up to 100% joint venture equity capital…

Private Commercial Construction Loan Financing Defined

First of all, let’s define what a commercial construction loan actually is. Private commercial construction loans are typically short-term interim recourse commercial loans from non-bank sources (e.g. private investment firms, individual investors, hedge funds, etc) to finance construction costs. In a typical case, the lender would advance construction funds to you as the builder at periodically at set intervals as the work progresses. By “recourse”, we’re referring to loans where the lender may seek to recover money in addition to real property that the borrow pledges as collateral in the event of a loan default.

Why You May Need Private Money To Fund Your Commercial Construction Deals

Perhaps the toughest issue that we as commercial real estate investors and owners face–especially within this challenging economy is locating financing when our credit scores, resumes, and/or financial statements are less than stellar. Private lenders and equity capital financiers can work with you to find or devise the ideal combination of debt & equity to finance your commercial construction project. Plus, these private capital sources have much greater flexibility, can offer you more creative financing options, and they can fund your deals with eye-popping speed and efficiency.

How You Can Access Private Commercial Construction Loans and Equity Capital Financing

Based upon the information that you have just read, if you feel that either private commercial mortgage finance or private equity capital finance sources are appropriate for your new commercial construction real estate ventures, please just keep in mind that you certainly can get access to the most appropriate form of commercial construction loan financing for your business – as long as you know just where to look for it.

Charles Emery is a Commercial Real Estate Finance Consultant with Radiant Properties LLC, a Philadelphia, PA based real estate investment and commercial real estate finance consulting firm. Prior to his entrepreneurial endeavors, Charles worked as a Commercial Credit Analyst at a large Philadelphia area regional bank where he provided Commercial Lenders with financial, business and industry analysis, upon which those Loan Officers based their commercial loan funding decisions. He also performed marketing & sales calls along with new business prospecting as part of his overall commercial lending related work responsibilities.

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