Constructing a commercial building can be a great way to make money. There is huge demand for commercial property right now, so building your own means you can earn vast amounts of money. Building and then flipping properties is a very lucrative racket. However, there are lots of different things that need to be taken into consideration before commercial properties can be built and sold. Taking time to understand what these are can make your life much easier. This post will explore this topic in more detail, telling you everything you need to know about the construction and sale of commercial properties.
1. Evaluating the Building Type and Location
Planning a construction project can be very difficult. The first thing to consider is the building type and location. What type of building do you plan on constructing and where are you going to build it? A team of commercial builders will be able to work with you to determine the suitability of your project. An architect will also be able to tell you whether or not it’s possible to build the type of building you want in the location that you want it in. Make sure that you think long and hard about building type and location so that you can rule out future problems. For example, you need to make sure the neighborhood your project is scheduled to take place in is suitable for the type of building being built. Building a warehouse in a residential area, for example, is a bad idea. Residents will complain and your project could get shut down.
2. Obtaining Permits and Properly Planning
You will need to apply for permits before you can go ahead and get your project underway. Usually, lawyers handle permit applications. Consider hiring a property lawyer to help you with your permit applications. Ensure the lawyer you hire is experienced, positively reviewed, and knowledgeable about the area of property law that you need help with. A lawyer’s reviews will tell you everything you need to know about them and help you decide whether they’re the right one for you or not. The process of obtaining permits can take a while, so make sure you notify workers that there could be project delays. Finally, ensure you have an experienced project manager planning your project for you. An unplanned project is a chaotic one.
3. Working Out a Realistic, Achievable Budget
Once you have hired a project manager, you will be able to start working out a budget. You won’t be able to get a construction project underway until you’ve got a budget calculated. To work a budget out, make sure that you calculate incomings, outgoings, financial commitments, and savings. In addition to working out a budget, how do you plan on funding your project? It’s fairly common for property developments to be funded by private investors. Do you have any private investors willing to commit money to your project? If not, consider finding some. You can use angel investor sites to find interested parties. Once you have a budget worked out, make sure that you stick to it. The project manager you hire can help you to ensure that your project meets its deadlines and concludes on time.
4. Selecting an Architect and Building Firm
You need an experienced architect working on your project with you. Hiring one who’s underqualified or inexperienced could lead to mistakes being made. One of the best ways to determine an architect’s suitability is to read their reviews and take a look at their portfolio. An architect’s portfolio will contain information on all of the buildings they have been involved in the construction of in the past. Once you have found an architect, you can find a building firm. Typically, architects draw up blueprints and then pass them over to builders. The architect you hire might be able to recommend a construction firm to you. If they do, make sure that you research them independently. Don’t blindly accept recommendations. You need to verify the suitability and credibility of construction firms before you pay them to build anything for you.
5. Familiarizing Yourself with Your Employees
Once you have hired an architect, construction firm, project manager, and other employees, get to know them. Familiarizing yourself with your employees is the best way to build a good relationship with them. The better your relationship is, the more likely they will be to work hard. Having a good relationship with one’s employees can be motivational for them. Make sure that you pay them a fair wage, as well. Don’t try to cut costs on your employees’ wages. It is unfortunately very common for construction firms to underpay their employees. In addition to ensuring employees are paid a fair wage, make sure that you introduce safety protocols to ensure they do not hurt themselves. Also, make sure you have liability insurance just in case anyone is injured on-site. Liability insurance is a legal requirement if you run a business that employs people. Public liability insurance is also a good idea in case any pedestrians are injured by falling objects.
6. Understanding that Projects Come with Risks
In the last part of the previous section, reference was made to the undeniable fact that sometimes people injure themselves when they are working on or in close proximity to construction projects. Liability insurance will prevent you from having to foot the bill in the event of injuries or accidents occurring. Taking some time to understand the potential risks facing your project should be one of your main priorities. You can hire a risk management firm to help you better understand what unique risks your project poses. Make sure that if you do hire a risk management firm, you hire one with affordable rates. Construction projects can be very expensive. The project manager you hire should be able to help you budget (and then stick to budgets).
If you are planning a commercial construction project, there are a few things you need to think about. This post has covered each of them in extensive detail. Make sure you hire the most qualified, experienced professionals you can to help you. The more experienced your workforce is, the better.
