Commercial construction is big business in and around the USA. In fact, the entire commercial building industry is worth hundreds of billions of dollars. Commercial construction refers to the business of leasing or selling structures. Structures, in this case, could be manufacturing plants, standard space for offices, retail shopping centers, restaurants, or even medical centers. Each project is unique, and will vary in size and scale of operations, depending on the commercial builders and their area of expertise.
The dynamics of commercial building projects
Business cycles and population growth largely influence the commercial building business. As the population grows so does the demand for existing workspace. As a result, more schools, hospitals, retail centers and rental offices become a necessity. The same surge in demand leads to an increase in commercial builders in the industry.
Bidding for projects
Before any groundwork begins, a commercial builder first needs to engage in a bidding war with other builders and win. During the bidding stage, commercial builders will submit their architectural designs and budget estimation and pitch them against other bidders. Generally, the builder with the best cost and building specification wins the rights to begin construction at the chosen site.
Specialization in the industry
The building industry is quite broad and most builders have resorted to specializing in a single commercial market. There are those who specialize in retail stores and offices while other hone their expertise in solely constructing medical centers or manufacturing plants. A commercial builder with significant experience in manufacturing and assembly plant structures will have a competitive edge when bidding for such types of commercial projects. Working with specialized contractors is a sure way to guarantee quality and realization of expectations.
How to excel in the industry
Success in this field comes down to how well a builder can maintain a steady flow of projects under construction. This entails dealing with reliable suppliers to ensure you don’t run out of building material and having a constant flow of skilled labor. Similarly, you need to be in the good books of banks and other lending institutions, financing such projects requires bringing lenders on board. In summary, the success of a builder depends on how well they co-work with suppliers, lenders, sub-contractors and building inspectors.