Preconstruction Services: Increasing Efficiency and Cost Savings

Preconstruction services, the first phase of any commercial building project, help streamline the whole construction process and avoid unnecessary issues. Preconstruction gives owners, designers, and engineers a clear picture of everything from building design, to cost estimation, schedules, and overall project scope. 

Behind every commercial construction project lies several hours of meticulous planning and preparation. That’s why pre-construction services are critical for general contractors before laying the first brick. 

According to a 2024 report by PlanHub, preconstruction is currently a high investment priority for contractors to decrease rework, grow profitability, and boost productivity. 

Read on to learn why preconstruction services are essential and how they set up any project for success.

What Does Preconstruction Services Mean? 

Pre-construction services, commonly known as ‘pre-con’ services, help analyze, plan, design, and establish needs for the construction process. 

They are offered before the actual construction begins. From strategic planning, designing, estimating budgets, allocating resources and labor, and everything in between, preconstruction services form the first step toward a smooth and efficient commercial construction process. 

Preconstruction helps identify possible challenges, increase resource efficiency, plan a detailed layout, and streamline the project’s lifecycle to avoid delays and mitigate risks. The purpose of preconstruction services is to ensure that the project is functional and financially viable.

A 2022 survey from FMI and Procore found that preconstruction ranks as the second-highest strategic priority of construction industry professionals. 

Generally, a commercial construction company will take around 2 to 12 weeks to perform all preconstruction activities. The duration of preconstruction will mostly depend on the scope of services and the overall scale of the project. 

Who is Involved in the Preconstruction Phase?

In the preconstruction stage of a commercial construction project, several key professionals play critical roles to ensure the planning activities set the foundation for successful completion. The project owner or developer will assemble a preconstruction team depending on the construction project type, size, and scope. 

Generally, the planning stage involves: 

Construction Project Manager – A general contractor or construction manager monitors every aspect of a building project to ensure it stays on schedule, within budget and meets client specifications. They work with architects, engineers, and designers, offering recommendations on construction logistics, costs, scheduling, and methods.

Architects – Typically, architects create preliminary designs, drawings, and specifications that meet client expectations. 

Interior Designers – An interior designing company selects materials, colors, furnishings, and finishes to make the space aesthetic within budgetary constraints. 

Engineers – Various types of engineers render their skills in a construction project: 

• Civil engineers conduct an analysis of the site, soil conditions, traffic patterns, and determine the feasibility of proposed designs. 
• Structural engineers ensure the building’s design is structurally strong to withstand loads, gravity, and natural disasters. They analyze the foundation, construction materials, and other structural systems. 
• Mechanical, electrical, and plumbing (MEP) engineers are responsible for planning and designing a building’s critical systems to comply with regulatory standards and obtain building permits. 

Plot Surveyors – A surveyor measures precise boundary lines and prepares construction sites to avoid legal disputes. 

Sustainability Consultants – A sustainability engineer or consultant develops solutions to environmental problems on a construction site. They integrate eco-friendly practices and materials to ensure compliance with regulations. 

Cost Estimators – A cost estimator is a professional who forecasts project costs for accurate budget planning. 

Specialty Contractors – Includes specialty trade workers such as plumbers, electricians, HVAC contractors, painters, masons, and roofers among others. 

In addition to these key construction professionals, a commercial building project involves urban planners, government representatives, permit expeditors, and legal experts, vital for smooth execution. 

Benefits of Preconstruction Services

‘Pre-construction services lead to post-construction success.’

McKinsey’s 2022 study on 500+ global projects found 79% cost overruns and 52% delays compared to initial estimates. Such losses can be prevented by strong preconstruction. 

If your project is well-designed and meticulously planned, you save a lot of money by efficient resource use and ensure your commercial construction process runs smoothly. 

Let’s discover the unique benefits of preconstruction services. 

• Helps project owners, architects, and engineers make informed decisions.
• Allows to point out blind spots and nuances that might go unnoticed.
• Prevents field conflicts and ensures that the project is completed safely and on time.
• Streamlines the commercial construction process and forms a budgetary proposal.
• Ensures the most productive use of your time and financial resources.
• With comprehensive reports and schematics, preconstruction services guide you on how to spend your money.
• Preconstruction services also ensure all relevant parties — such as engineers, contractors, architects, and project owners — are on the same page, reducing the chances of delays during construction.
• Detailed project schedules help maintain an efficient, accurate, and cost-effective commercial construction venture.
• Encourages communication and coordination.
• Allows for effective risk management. 

With its detailed cost analysis, project schedule, and framework, preconstruction makes stakeholders understand potential costs and schedule improvements only to leverage them effectively across a project. 

What are the Preconstruction Services?

Preconstruction services offer the right solutions to deal with problems during your commercial construction project. The common preconstruction services that most construction management companies provide are: 

1. An Overall Project Evaluation

In this phase, you work with the preconstruction contractors to bridge the gap between your vision and their implementation. At this stage of the pre-construction phase, you will define the needs and expectations of the project. A framework is developed to illustrate every party’s project by the end of preconstruction.

This helps general contractors define the overall project’s scope. They determine the finishing requirements, strategize to maximize efficiency and identify possible issues. Pre-construction contractors can also use the schematics to check on the project’s feasibility, saving you thousands.

2. Engineering Assessment

Several projects involve renovating or adding to existing structures rather than building from the ground up. Such projects require contractors and engineers to carefully examine the existing space conditions and determine the specifics of the commercial construction project.

Preconstruction services identify problems and help ensure contractors do not face costly issues throughout the project. As part of these projects, an assessment of the building’s structural integrity, plumbing, electrical, HVAC, and extensive systems is undertaken to ascertain if these systems are adequate for the project or if any updates are required.

3. Site Inspections

A careful inspection of the project site ensures that the site is suitable for commercial construction and has the necessary existing infrastructure. Additionally, this preconstruction service ensures that the location chosen for the project is in line with the guidelines and needs.

4. Design Development

The initial schematic design is created during the design development phase. Using advanced engineering processes and 3D rendering software programs during preconstruction allows you to build designs that reflect a project’s life cycle. Preconstruction contractors can use this design to gain valuable client feedback before a finalized design is ready.

The unique ability to visualize your project from a constructability perspective is a valuable tool for landing a bid for a job. It also defines areas of difficulty and how you can overcome them. When you can visualize your project from a constructability perspective, you are better equipped to determine building systems, material selection, sustainability strategies, cost and quality requirements.

5. Value Engineering

Preconstruction services help architects and design professionals identify systems and infrastructures that require specific action and devise the best plan to deliver more at a lower price. Value engineering services during the preconstruction of commercial construction can maximize function and minimize the costs of the project.

Cost analysis of various construction methods and design options are done after which recommendations for alternatives are added to the bid packages. The objective of value engineering is to weigh out all possible cost-saving alternatives and make certain system modifications and value-added breakdowns that promote savings without compromising quality.

You can thus enhance the design and budget of an overall commercial construction project by identifying wasteful expenditures and redirecting those funds elsewhere in the project. 

6. Building Information Modeling (BIM)

Building Information Modeling (BIM) is intelligent software that creates a 3D model of a building’s structure, representing its physical and functional characteristics. BIM allows decision-makers to visualize the building’s dimensions, MEP (mechanical, electrical, and plumbing) systems, location of every room, and other integral aspects during preconstruction.

According to industry experts, nearly 30% of construction costs are attributable to reworks of flawed or incorrect builds. BIM’s advanced level of 3D visualization helps the construction team spot trouble areas during preconstruction itself. This helps to make informed decisions about the final design, construction, and operational phases of the facility.

7. Material Procurement

Preconstruction contractors need to develop a checklist of all the equipment and materials required before the construction begins. However, procuring materials isn’t as simple as you may think. It is important to be aware of market prices to acquire the most cost-effective building materials.

Then, all the necessary materials need to be ordered, assembled, and staged to complete this pre construction process. Considerations are also made for long-lead items that may cause potential delays in your construction project delivery schedule.

8. Logistics

Logistics planners conduct an extensive construction site review to plan the flow and management of traffic for timely on-site deliveries. Usually, project scheduling and logistics coordination go on simultaneously so that construction tasks are accomplished on schedule without restricting subcontractors’ ability to perform their assigned duties.

Preconstruction logistics services also include determining security access points and waste management systems before the commercial contractor begins work on-site.

9. Preliminary Budget Determination

Developing a commercial construction project plan begins with establishing a reliable budget. The pre-construction services involve building a preliminary commercial construction budget based on the cost models and evaluations of the project.

By preparing an accurate initial cost estimate in your preconstruction phase, you can discuss finances with potential investors and secure funding sources for your project. It will also enable you to identify alternative cost-saving measures.

10. Construction Scheduling

Preconstruction contractors establish a realistic preliminary schedule from start to finish. This preliminary schedule will include team activities like design development, permits, approvals, bid packages, and the construction process. With a construction schedule, commercial contractors identify potential issues that could delay their projects and create a remedial action plan. 

You can break down the project work into several milestones that should complete specific dates in the timeline. Despite not being set in stone, you can use a construction schedule to determine lead times, establish goals, and decide the sequence of your building process. Once commercial construction begins, it comes in handy in overcoming problems and monitoring progress. 

Read here in detail on how to create an achievable construction schedule.

11. Pre-Qualification and Selection of Subcontractors

An experienced construction manager rendering preconstruction services will have a well-established network of qualified subcontractors and tradesmen at their disposal. Subcontractor selection is done based on a proven track record of past performance and prequalifications, for example, legal, financial, and training requirements.

Though prequalification of subcontractors may take time, it’s necessary to accomplish your project on time and within budget. The goal is to maintain the highest level of quality and performance by hiring local qualified subcontractors or trade contractors. 

12. Permit Assistance

We all know how arduous it is to get approvals and permits for your commercial building designs. After reviewing it, you may approach several governmental authorities that might or might not approve your project.

Pre-construction services allow the construction manager to identify and submit paperwork ahead of time, preventing delays while processing requests. You can acquire preconstruction services from a construction management company that takes over this cumbersome job for you.

13. Risk Analysis and Safety Planning

There are many risks associated with commercial construction projects that require the implementation of safety measures, especially when development work may affect the public. Thus, the preconstruction phase ensures that Pre-Construction Risk Assessment (PCRA) regulations are followed and materials meet safety standards.

This step aims to reduce the cost of litigation and prevent unwanted accidents in the future. The preconstruction process involves creating safety plans that enforce safety protocols and procedures to minimize hazards and ensure a safe workplace.

14. Development of Reports

Developing regular reports at different time intervals is crucial to keep yourself updated with the project. This preconstruction process ensures that the entire team is on the same page. These reports record the project and may include cash flow projections, monthly project status reports, revision logs, meeting minutes, and variance reports.

15. Bid Packaging

For the project to be successful, everyone involved must have expertise and knowledge in bid packaging. As part of the preconstruction services, a detailed project report is provided to the subcontractor, who secures the bid after interviewing an array of qualified candidates, using all the pre-construction planning data.

16. Cash Flow Analysis

Cash flow analysis is one of the essential preconstruction services that help establish a payment schedule for all parties involved in the commercial project. It ensures a smooth flow of funding for expenses related to materials, labor, suppliers and miscellaneous services incurred throughout the project’s lifecycle.

Large-scale commercial construction projects can last for several months or years; a cash flow analysis will get your project underway without any glitches.

Cost of Pre-Construction Services

Pre-construction costs vary depending on the project’s size and scope, the number of offered services, and the location, but it is usually not a significant expense. In most cases, these preconstruction costs will be between 1% to 3% of the project’s total cost and must be paid before the actual construction process starts. Nevertheless, these minimal preconstruction costs will pay for themselves when the cost control process in pre-construction services allows you to save a large sum of money in the long run.

A ‘pre-construction checklist’ entails all the necessary activities for you and your commercial contractor to perform during the precon stage. Read our comprehensive blog to discover the ultimate preconstruction checklist which will act as a guide and ensure you don’t miss out on any critical step.

How to Choose the Right Preconstruction Service Provider? 

Before engaging in pre-construction services, define your project objectives like budget, timeline, and sustainability goals. Keeping clear expectations from the beginning avoids unexpected disputes later in the project. 

• When researching pre-construction service providers, thoroughly examine their experience, expertise, and past projects. 
• Assess portfolios and client feedback to gauge quality and capabilities accurately. 
• Look into qualifications and certifications relevant to your project type.
• Request detailed proposals from shortlisted firms. Compare aspects like timelines, cost estimates, methodologies, and technology usage, such as Building Information Modeling (BIM). 
• Evaluate proposals by at least three to four preconstruction service providers against project requirements. 
• Prioritize firms with effective communication and a history of delivering on time and within budget. 
• Ensure financial stability and adequate insurance coverage for risk management. 

Ultimately, choose a preconstruction service provider specialized in your project type. For instance, if your project involves constructing an office, hire a construction company with expertise in commercial office design. 

Future Trends in Preconstruction Services for 2024 

As the construction industry evolves, new trends are emerging in the preconstruction process to improve project efficiency. Here are the top preconstruction trends we expect to be adopted by construction companies in 2024. 

Increased Use of AI: Artificial Intelligence (AI) is set to transform preconstruction with its application in BIM, robotics, and takeoff software, automating routine tasks and enhancing project analysis and risk mitigation.

BIM for Quantity Surveying: Building Information Modeling (BIM) will streamline quantity surveying, offering accurate project visualization and reducing errors in the preconstruction stage. 

Cloud-Based Technology: The adoption of cloud technology will optimize the pre-construction process by giving simultaneous access to document updates, thus reducing time and errors.

Sustainability and Green Building Practices: Using construction cost estimating software in preconstruction reduces wastage of material orders. Commercial contractors today are going ahead with prefabrication and eco-friendly building materials to make the construction process sustainable. 

Use of Drones: Drones are revolutionizing preconstruction services by offering aerial surveys and real-time data for accurate site analysis. 

Quicker RFP Documentation: Nowadays, clients are requesting less design information in RFP submittals, leading to quicker turnarounds. This trend is accelerating the preconstruction stage. 

The Bottom Line

Always plan! Pre-construction planning should always be part of your routine. It promises reliability and helps you feel confident about what is to come. Moreover, understanding that preconstruction services are at the crux of an ideal commercial construction project sets the best construction companies apart from the rest. If selected properly, a commercial construction company can offer the most value to your project during the preconstruction phase, guiding the design process, budget, and schedule before the on-site work.

Want to make your dream projects come true? Contact our expert team at Constructive Solutions, Inc. to procure Pre-Construction services.

FAQs

How do you approach a preconstruction phase?

As the project owner, gain in-depth knowledge on what activities, planning, and services go into the planning phase. Keep a thorough preconstruction checklist handy to serve you as a reference.

What are the potential challenges in preconstruction planning? 

Incomplete or inaccurate project information, coordinating various stakeholders, mismanagement of schedule and budget, and permit approvals can pose challenges to the preconstruction stage. 

Who is the Preconstruction Manager and what do they do? 

A preconstruction manager oversees the planning stage of a construction project, including budgeting, scheduling, and team coordination to ensure resource efficiency and meet client expectations. 

Relevant Resources:

• Evaluating the Benefits of Pre-construction Services
• How the Preconstruction Process Enables Owners to Begin Site Selection