Commercial developments and ventures attract great interest among investors of all kinds. These types of projects vary greatly based on various factors. Most importantly, they are mega in size and demand hefty equipment, a large workforce, and thorough planning for execution. Therefore, they need more time to do, from inception to completion, than standard building construction. The timeline for these projects can be months to years based on the site requirements and demands.
Construction firms are always keen to manage commercial developments within the projected timeline. Delays in executing these projects will automatically lead to increased costs. This is something that builders want to avoid at all costs. For that reason, it is important to stay informed of the factors that may affect the construction cost of commercial buildings.
Construction Costs for Commercial Projects
Building costs for commercial developments can escalate when projects are not properly managed. Therefore, it is important to take note of any variations from the initial planning and make necessary adjustments. Construction costs can rise following a delay in the project. Typical issues related to project uncertainties include land possession or the acquisition of legal permits. Therefore, these matters must be discussed when hiring a construction firm for commercial projects.
Different commercial construction projects have different needs and requirements. Therefore, the factors affecting them are not the same. They vary from location to location and from one project to another.
Your commercial building project budget can change along the way. However, the extent to which it will vary depends on how well it is managed and the team involved in executing the construction.
So, what could increase commercial construction costs? Here are notable factors that you should study.
1. Construction Site Location
A remote commercial construction site presents cost challenges to the entire building process. A construction site located off the city may be faced with a labor shortage. That means, organize transport for your workforce. Doing this at your cost will weigh too much on you as these costs tag along. This is also true in the transportation of construction equipment and materials to this remote location.
2. Managing Noise Construction
Noise restriction, especially in residential areas, attracts extra costs. Therefore, it means getting specialized equipment with low noise production during construction. For that reason, you have to be selective in the choice of construction equipment. This equipment is usually more expensive than common construction tools and machines.
Some equipment and machines like diesel pumps for dewatering the excavation may not be permitted for use. Therefore, you will have to acquire expensive pumps to do the job.
3. Cost for Accessing the Construction Site
Construction Costs will increase if it is difficult to access the project site. This is especially when there is no route to the field. Finding access to the site comes with additional costs. First, the project will experience delays since clearing land for access is not part of the main project.
Lack of land accessibility also leads to delayed delivery of workforce, materials, and requisite equipment. Moreover, there is additional labor and time needed to make the project a success.
Construction of temporary access roads would be necessary for such a situation. However, this is an expense that is not directly connected to your building project. Therefore, it is an additional cost to the overall project.
4. Constraints on Work Hours
If your commercial building project is within residential areas, you may face a limitation on working hours during the day. As a result, a restriction on work hours would extend the project deadline. An increased number of working days amounts to increased costs. This happens through the daily mobilization of work resources.
5. Permissible Site Development
Construction firms face restrictions on on-site development limits in certain areas. Residential areas have certain restrictions that come with great challenges to construction projects. As a result of these restrictions, the construction rate will decrease, leading to increased workdays and costs. This challenge and the directive to choose certain construction equipment will add to the overall costs of the commercial building project.
6. High Groundwater Regions
Excavation next to high groundwater levels would escalate the general construction costs. The process of excavation in such conditions is difficult, and that means acquiring specialized equipment for the job. This is especially for constructions near rivers, lakes, or streams.
7. Borrow Pit Requirements
It will take you a lot of time and money to borrow pit permit requirements. Alongside that, you will have to comply and consider different environmental regulations. This is so because borrowing construction materials may impact the environment.
8. Short Construction Contracts
A contracted work schedule may lead to increased construction costs. When the time for construction is short, you will have to get more equipment and workforce. These increased resources will be needed at a price. Given time, the project would have cost much less than in a short construction time. To beat the deadlines, the construction firm will have to extend working hours going into the night.
9. Changing Weather Conditions
Bad weather disrupts construction flow. Unpleasant weather conditions will make it difficult for you to work conveniently. Therefore, you will stop the work quite often to deal with the situation. These disruptions slow down the construction rate and increase the work hours and associated costs.
10. The Flow of Traffic in the Area
Urban construction comes with its challenges and especially when dealing with traffic. Prolonged traffic may interfere with material transportation by causing delays in the delivery process. These delays extend your project timelines and come at an extra cost.
Commercial construction projects are complex and come with heavy costs. Therefore, you must analyze every bit of the construction materials, processes, and associated costs to stay in control of the budgetary allocation. However, you will need proper management and effective teamwork for the successful execution of the projects.