Commercials include retail stores, shopping malls, industry trading venues and commercial office buildings, various service industry buildings, including hotels (which include guest houses), restaurants (which include bars, clubs, etc.), cultural and entertainment facilities, clubhouses, etc. Maco Construction’s experts have nearly 20 years of experience in hydraulics, electricity, gas, air conditioning, and more. We also have qualifications in commercial constructions.
Twelve Rules of Commercial Development in Vancouver
Commercial construction projects involve a lot of time and money, so before the project officially commences, you need to make sure that this is a thoughtful decision rather than a rash impulse.
You need to ask yourself whether this project is suitable for your company’s needs. Do you really need extra space to accommodate more people or increase productivity? Can you find the space needed in the rental market as an alternative?
If you have decided to go through with this construction, don’t expect a trouble-free journey. “Unexpected problems such as budget overruns, unreliable contractors, and delays are extremely common” – this is a common piece of advice from financial underwriters.
1. Evaluate your choice
Due to the magnitude of the financial investment of commercial construction projects, you need a solid financial guarantee. Even if you hire a project manager to monitor the progress, you will still need to participate in everyday decisions, which inevitably means a smaller amount of time that you can dedicate to your business.
Once you have carefully delineated your goals, you can hire engineers, architects, and interior designers to help you determine the right steps.
Regardless of your decision, another important factor to consider is your long-term needs.
Can the building adapt to your growth? You certainly don’t want large yet unpractical projects, which will force you to make additional expensive investments.
2. Make Correct Predictions
Bank consultants can help you determine the financial affordability of the project, how much money is needed from start to finish, and the right financing options to meet your needs. It helps create a sound business plan so you can make realistic profit predictions, which will help you garner trust from the lender. That way, you can handle these construction projects without compromising the company’s financial abilities.
3. Obtain Building Permits in Order
Once you have decided to go through with the project, the next step is to make sure you have applied for the relevant licenses to meet all the regulations of the area. It is wise to do this as early as possible, because constructing without a license is clearly not an option. Regulations may vary depending on whether you are building, remodeling, changing the appearance, or changing the scope of use of the building.
According to Canadian law, the supervision of construction projects is the responsibility of the provincial government and is usually managed by the municipality. Building codes apply to all buildings; fire safety, structural stability and health are among the factors of consideration. Recent laws have added regulations concerning disabled people, accessibility, and energy conservation.
Contact your local municipality to find out what you can do before the license is approved.
4. Find a good architect or designer
Due to the high cost of hiring professional architects, owners are often tempted to skip this important step. Although owners may think that they have made sufficient preparations, there is a high probability of failure because of their limited knowledge in the specific field.
The right thing to do is to hire a professional to ensure that the business project is both practical and efficient. For example, in a construction plant, you need to ensure that your building and layout have enough space to accommodate your equipments.
5. Be realistic with your participation
Companies mainly assess whether the time they put into the project is realistic. Often, companies’ normal business is impacted during construction projects. Or, the management team is not concerned enough about business performance and are too worried about new buildings. Depending on the size of the project, we recommend hiring a project manager who is capable of taking responsibility for complex processes, and can ensure that the structural designers, architects, engineers and contractors can work together.
Ask yourself: Do I really have the ability to integrate these different projects together? If the answer is “no,” then hire an expert. Of course, you still need to appear on the construction site and become familiar with the environment. Nevertheless, introducing a project manager can ensure that you can also focus on the company’s well-being.
6. Estimate costs in advance
It’s integral to ensure that you have an accurate estimate of your costs from the very beginning. Maco Construction can provide useful advice on assessing costs and budgets and make recommendations on the price per unit of different materials.
Again, you should be wary of quotes that look too good to be true. Pay special attention to the “included” and “not included” contents in the contract. Seemingly insignificant details, such as whether you are sharing lanes or water bills, can have a big impact on the price you ultimately pay.
7. Prepare a Contingency Plan
It is not always possible to predict costs accurately, so ensure that you have an extra 5 to 10 percent of the total project cost to pay for any extra expenditures.
8. Plan Your Financing
Don’t wait until the last minute to submit your financing request to the bank. Get your bank involved from the very beginning. This is never too early.
Bank consultants can help companies determine the affordability of a building and the amount of money it needs from start to finish. Companies seeking financing should expect to be able to prove that they have a healthy balance sheet and demonstrate sufficient profits.
9. Choose the right contractor
A qualified contractor is essential. Also, don’t just consider the price; other criteria should also be considered.
Ensure that the contractor has sufficient construction qualifications, is financially stable, and is willing to provide recommendations and guarantees for past projects. Ask your contractor if he or she can provide the highest price guarantee to protect you from the risk of cost overruns. This precaution will give contractors the incentive to provide accurate estimates and manage costs effectively.
Architects and banks will usually introduce you to a reputable contractor. A rule of thumb is to get at least three recommendations. If they listen to you carefully, and if you have a strong affinity for them, this is a good sign. After all, you will be working closely together. A good contractor will take you to inspect the project he or she has constructed because you want them to be able to live up to their promises.
Determine if your contractor has the expertise to build sustainable buildings. Be sure to obtain a reference from a satisfied customer and information on any legal disputes in the past. Ask your contractor if he or she is implementing new and innovative construction methods, and learn new ways to achieve energy efficiency.
Lastly, be sure to know each person’s role. Small contractors usually work only in specific geographic areas, even if they are subcontracted by large companies. Also, make sure they don’t have any problems with cash flow.
10. Avoid Making Last-Minute changes
Once the project has commenced, one of the most common mistakes is frequent modifications.
This is a common syndrome. Don’t make hasty decisions right away because they can cause delays and budget overruns.
Business owners and architects or designers should maintain close relationships to ensure that every change made is absolutely necessary. Hasty, last-minute decisions have caused many otherwise smooth projects to exceed the budget. Always be careful.
11. Understand the Role of Your Construction Team Members
Construction projects involve many people, and every person has his or her own specific responsibilities. Usually, architects are hired to oversee the entire process because they have the most comprehensive understanding of your goals and parameters. The following is a typical role division of a project:
– The owner is fully responsible for the project. You decide what to build, and ensure that you are working in accordance with the current laws and regulations. You are also responsible for selecting the consultants and contractors.
– Designers work with engineers and architects to plan the layout of the building. Your designer may be your spokesperson when resolving conflicts with contractors or suppliers.
– Engineers and architects design drawings and functional specifications that comply with local laws, regulations, and requirements. As your representatives, they will monitor the progress to ensure that everything is carried out according to the drawings and specifications.
– The prime contractor or project manager assumes full responsibility for the construction work, including purchasing materials, determining work schedules, and hiring workers.
– The prime contractor employs subcontractors to perform specific construction tasks, such as installing electrical equipment, roofing, and setting up heating systems. Subcontractors also typically focus on “ground work” (foundation, flooring, walls, and roof) or “finish-out work” (interior walls, electricity, painting, and piping).
– The supplier provides the main contractor with necessary materials, which must meet industry standards.
– Finally, the municipality is responsible for inspecting the drawings and the construction site to ensure that they comply with local laws and regulations.
12. Know How to Resolve Conflicts
In construction projects, conflicts are almost inevitable, and it is your responsibility to resolve them. These conflicts may involve different opinions at specific stages of the project, and should be addressed by the designer who represents you, and the primary contractor responsible for all work, materials and subcontractors.
If you encounter problems, you must first know each person’s responsibility. In general, all parties that sign a contract with you must ensure that their work is in accordance with the terms of the contract. This means that the prime contractor is responsible for any defects caused by the work of the subcontractor or other workers.
In all provinces and territories except Québec, the contract provides obligations involving the material and manufacture processes. In addition to these guarantees, the contractor is legally obligated to meet established standards and construct a construction project without dangerous defects.
In particular, according to the Civil Law, designers, contractors, subcontractors and developers are responsible for all process defects for up to one year. In the event of a major defect, the liability is extended to five years after the completion of the project. If in doubt, seek legal help.