Commercial construction involves building commercial buildings for sale or lease to companies or businesses, or leasing heavy machinery for construction work. They could be shopping malls, hotels or manufacturing plants. The builder will contract a construction company that takes on the project based on their ability to handle such.
In this business, the projects involved are quite large and take a considerable period of time to complete. A 10 storied shopping mall or a 30 story hotel building could definitely take up to 3 years to build in the standards that the owner wants them. The contractor therefore has to have both the resources and the expertise to do be in this industry.
How it all works:
When it comes to a building, an architect’s work is set out for bid by the construction companies. The design would be the agreed upon final product and it is upon the contractors to determine whether they have the capacity to deliver. In the bidding process, the bidder with the best rates and capacity is selected to take on the project. The bidder has to have good referrals as well and their completion rate has to agree with the owner’s timeline.
In an industry where quality is everything, price does not matter so much. It’s definitely an advantage if the firm can deliver the desired results at a budget lower than their competition, but at the end of he end the more important aspect is the end result. The building has a long life and hence the owners of the same would want something that stands out. The value always justifies the cost.
When a commercial building is going up, the owners may decide t offer the entire contract to one company. In very big projects that require a lot in terms of manpower and resources, the builder may prefer to split the contract. They may prefer to have the provider of heavy machinery separate from the one contracted to build, especially when smaller but very good construction companies are involved.
As is in any other business, the contractor has to be consistent in doing a great job. You will be successful by delivering the project within the agreed time as well as charging competitive rates. It’s also important for a contractor to keep steady flow of work as it ensures that they are in business throughout. The upside of this is that the company makes steady purchases of raw material and hence they have an upper hand in bargaining based on quantity. Those discounts go a long way in reducing their operational costs, which in turn give them a competitive edge.
Another advantage is that the construction company is able to keep its best human resources. In an industry where projects end after some time and leave the employees without a job until the next project, the company can keep them its employees engaged all year long.
Construction companies in the commercial sector are taxed with a great responsibility. They are judged by the outcome of their project which is visible for anyone to see. If the contractor is able to make the building as well as it is on the architectural design, then the end results will be visible to all. They therefore will get several connects from that one job. The projects are large hence best suited for companies with long standing and the capacity to handle a big project. Also, the company,-if big enough-can handle more than one projects simultaneously. Nothing is holding them back as long as they can deliver on both without compromising the quality.
Written by Kent Murdock, owner of Randy Adams Construction in Columbia, MO. Randy Adams Construction is one of the premiere companies for commercial construction in Columbia, MO.