Mid-rise commercial building frame with a tower crane at dusk

Commercial building, codes and procurement mapped early.

Ground-up shells, tenant improvements and renovations, with entitlements, fire and accessibility rules and long-lead equipment on the schedule from the start.

Typical timeline

10 to 30 months

Planning range

$95 to $720 per sq ft

Retainage

Often 5% to 10%

Ground-up, tenant improvement or renovation

Commercial work splits into three jobs that share a vocabulary and almost nothing else: a new building, the interior fit-out of leased space, and the renovation of an existing building. Each has a different risk profile and a different schedule driver.

TypeWhat it isMain schedule driver
Ground-upNew building on a site: foundation, structure, envelope, systems, interiorEntitlements, long-lead equipment, weather exposure
Tenant improvementInterior build-out of leased space: partitions, ceilings, MEP, finishesLandlord approvals, permit review, furniture and equipment lead times
RenovationChanges to an existing building, often occupiedDiscovery of existing conditions, phasing around occupants

If you are comparing bids across these types, compare scope first. A tenant improvement bid that excludes ceiling, fire protection or data cabling is not a cheaper bid, it is a smaller one.

Entitlements come before construction

A ground-up commercial building has to pass zoning and site plan review before a building permit is even on the table. Parking counts, drainage, traffic, landscaping, utilities and setbacks all get reviewed, and the review is often public.

Build entitlement time into the schedule as its own phase. It rarely runs on the builder's calendar, and it frequently runs longer than design.

Delivery methods and who carries the risk

The delivery method decides who holds design risk, price risk and schedule risk. Owners usually choose between three arrangements.

MethodHow it worksWhere the owner stays exposed
Design-bid-buildComplete drawings, then competitive bids from contractorsGaps and conflicts in the drawings become change orders
Design-buildOne entity holds both design and constructionLess independent check on design choices
CM at riskA construction manager advises during design, then guarantees a maximum priceFee structure and the scope of the guaranteed price

Code, fire and accessibility drive the layout

Commercial space is organized around rules that residential work mostly escapes. Occupancy classification sets fire ratings, sprinkler requirements and the number of exits. Egress width and travel distance fix corridor and stair sizes. Accessibility standards set door clearances, restroom layouts and route widths.

Bring a code review into the earliest layout work, not the permit stage. Moving a stair after the structure is drawn costs far more than moving it on a sketch.

  • Occupancy classification and construction type.
  • Sprinkler and alarm requirements.
  • Number, width and location of exits.
  • Accessible routes, restrooms and parking.

Long-lead procurement

Electrical switchgear, transformers, elevators, curtain wall, rooftop equipment and specialty glass can take many months to arrive. If the schedule only starts ordering when the work needs the item, the building sits idle waiting for a delivery.

If an item has a long lead time

→

release the order at design development, not at construction start

If a submittal needs engineer review

→

add the review time to the lead time

If an equipment spec is still open

→

hold a priced alternate and a decision date

If delivery slips

→

document it and re-sequence the work, rather than absorbing the delay silently

Payment, retainage and closeout

Commercial contracts usually pay monthly against a schedule of values, with retainage, often 5 to 10 percent, held back until completion. Contractors submit pay applications, commonly on AIA-style forms, backed by lien waivers.

What a clean closeout includes

1

Certificate of occupancy or completion from the building authority.

2

As-built drawings and operation manuals handed over together.

3

Warranty documents with start dates and contacts.

Commissioning, the verification that heating, cooling and controls perform as designed, belongs in the schedule before the final inspection, not after move-in.

Planning a commercial project? Send the details through the bid form or use the estimator to frame the budget.

Completed low-rise commercial building at twilightCompleted building
Aerial view of a building site with a foundation and gravel driveSite stage

Quick facts

  • Entitlements often run longer than design.
  • Occupancy class sets fire ratings and exits.
  • Retainage is typically held until completion.

03 / How it should run

Four habits for commercial work.

01

Entitlements on the calendar

Zoning, site plan review and public hearings are scheduled as their own phase.

02

Code review at the sketch stage

Occupancy, egress and accessibility shape the layout before the drawings harden.

03

Procurement released early

Long-lead gear is ordered at design development with a delivery date everyone can see.

04

Commissioned before handover

Systems are tested to the design intent and documented before occupancy.

Commercial building frame with tower crane at dusk

Next step

Frame your commercial project.

Share the building type, rough size and location. We will start from the code, entitlement and procurement picture.

Request
a bid