A commercial contractor is a central entity that takes care of every facet of a commercial construction project. They take complete responsibility for the project and bring your vision of constructing a small or big commercial project to reality. Usually, commercial contractors are a team of trained professionals with each team member specialized in a particular area of service required to complete the project successfully.
In this blog, understand the various services provided by a commercial contractor, their types, the benefits of hiring one, and tips for selecting the right professional for your next commercial project.
Who Is A Commercial Contractor?
A commercial contractor is a general contractor working with a special focus on commercial construction projects.
Usually, a general contractor is a construction company or a construction professional who has rich experience, long-standing, and training in the construction industry. They take part in a construction project to take overall control of the construction project by –
- Taking care of the ground preparation works
- Creating and finalizing the architectural design of the building
- Obtain all necessary permits and licenses
- Bring in the necessary equipment
- for the execution of the project
- Rope in Vendors for the supply of materials for the project
- Employ the contractors and sub-contractors and manage them
- Take care of the financial matters for the smooth progress of the construction project
Commercial contracting in construction specifically governs the design, construction, and maintenance of commercial buildings like offices, warehouses, retail stores, medical facilities, etc. These contracts are agreements between commercial contractors and clients outlining project scope, budget, timelines, quality/safety standards, and responsibilities of all parties involved. Key components of commercial contracts include performance bonds, insurance requirements, clauses on change orders and dispute resolution to handle any unexpected issues.
6 Benefits of Hiring a Commercial Contractor
1. Brings Team Efficiency
When one general contractor coordinates with all the project teams, construction employees focus on a common goal rather than individual tasks, which increases efficiency. Also, when an interior designer works closely with the project managers and the electricians, then problems are early detected and resolved.
2. Access to High-Quality Resources and Work
Experienced commercial contractors have a broad, established network of subcontractors and vendors. Leveraging these contacts, building contractors procure the highest quality of materials, laborers, and equipment for subcontractors on time at discounted prices, leading to cost savings for the owner. Another benefit of partnering with a general contractor is their offering of ‘warrantied projects’.
3. Ensures Safety and Legal Compliance
A commercial general contractor is knowledgeable about building codes and permit regulations, so stakeholders can rest assured that their project is following necessary compliances. They excel in creating safe, durable commercial buildings that last for decades. Reputable contractors are licensed and bonded, ensuring accountability and protecting clients from legal and financial penalties.
4. Cost and Time Savings
Hiring a single-source commercial contracting company for planning, designing, constructing, and managing a project has inherent cost savings. Teams collaborate to create a strategy, allocate budgets, and find opportunities to save costs. Experienced general contractors guide clients to avoid costly errors and delays, keeping projects on schedule and within budget.
5. Streamlines Communication
Acting as a single point of contact to all the involved parties, a commercial general contractor streamlines communication and improves collaboration. The use of an integrated communication system allows everyone in the team to share and access files, updates, and documents. The construction project owner participates in all team meetings, so they are updated with progress reports and strategy plans.
6. Hassle-free Process
A skilled commercial contractor efficiently handles project complexities, whether building from the ground up or renovating existing structures. They bring the right mindset, expertise, and resources to achieve successful completion. Their experience in designing, building, and finishing commercial projects makes them crucial for your project.
What Are the Different Types of Commercial Contractors?
In commercial construction, various contractors play distinct roles based on their specialties and services. The main types of commercial contractors are as follows:
General Contractors
General contractors are usually commercial construction companies that manage the overall coordination of a project from start to finish. They are project leaders who hire subcontractors, supervise construction workers, manage schedules, and ensure compliance with local building regulations.
Typically, a commercial general contractor works on projects like a new building or major renovations. They specialize in project management and are responsible for completing the project according to plans, budgets, and timelines.
Specialty Contractors
Specialty contractors or trade workers focus on specific areas of construction, such as electrical, plumbing, roofing, concrete work, or HVAC systems. The expertise of a specialty contractor is critical for the technical aspects of commercial building projects, ensuring specialized tasks are finished with precision.
Electrical contractors, plumbing contractors, landscapers, carpenters, masons, and drywall contractors, are some examples of specialty trade workers.
Design-Build Contractors
Design-build contractors provide a comprehensive service that merges the design and construction phases, streamlining project delivery for faster completion and potential cost savings. They manage projects directly for owners without subcontracting, implementing all aspects through specialized design and construction teams. This design-build model offers a single contact point, minimizing the risks of divided responsibility.
Each type of commercial contractor provides services that lead to the successful completion of commercial construction projects. Business owners must hire a suitable type of contractor as per their project needs.
Commercial Contractor VS Residential Contractor, What’s the Difference?
Meaning and Definition
Commercial construction industry is altogether different from residential construction. In fact, a commercial contractor manages complex commercial construction projects and leads teams to execute them successfully. Whereas, a residential contractor handles residential building projects, focusing on constructing, remodeling, or repairing homes.
Work Expectations
Commercial contractors manage medium to large business-oriented projects, overseeing cost estimation, material procurement, scheduling, and timely completion. They coordinate with multiple parties, including owners, architects, engineers, and municipal governments. Residential contractors focus on quality workmanship, personalized service, and client satisfaction while building homes.
Subcontracting and Materials
Commercial contractors employ different subcontractors and heavier materials like concrete and steel for commercial spaces than those used in residential construction. Residential contractors use lighter materials, such as wood in construction, and hire subcontractors for regular tasks like plumbing and electrical work.
Code Requirements
Commercial contractors understand the unique working environments of residential and commercial sites, including hospitals and large complexes. They need to comply with special building code requirements for fire safety, exit points, material regulations, and on-site safety protocols from OSHA. Residential contractors are also required to meet local building codes and zoning regulations, but they are not as stringent as commercial code requirements.
In short, commercial contractors handle large projects, overseeing budgeting, timelines, and compliance with building codes and regulations. Residential contractors focus on smaller-scale projects, tailoring their work to individual homeowners’ needs while complying with local codes and standards.
Commercial Contractor Job Responsibilities
The commercial builder is in charge of the project overall, with many types of roles and responsibilities before, during, and after the project’s start. Here is a detailed job description for commercial contractors:
- Pre-Construction Planning: Commercial contractors perform essential pre-construction tasks with the clients including cost estimation, value engineering analysis, feasibility study, scheduling timelines, and so on. To save time, they also order the delivery of long-lead materials.
- Construction Design: Design-build contractors provide architectural and engineering services under one contract to streamline the building process. According to this building design, builders determine the schedule and a guaranteed maximum price (GMP) for the clients.
- Legal Compliance: All these commercial projects have licensing requirements and commercial contractors obtain permits from local authorities, as they have the necessary abilities to comply with all the local rules and regulations.
- Conduct and Oversee the Project: Your commercial construction company oversees the project from start to finish, ensuring it meets your satisfaction. They handle all phases and essential tasks for successful completion.
- Vendor and Material Management: They manage the material purchase, installation, and vendor logistics management. With this, they ensure that the required construction materials and building supplies reach the contractors or subcontractors working at the required times without any delay.
- Sub-contractor Management: Another key function of a commercial contractor is subcontractor management to ensure the right people work on each aspect of the project, delivering high-quality work throughout its execution.
- Resources Management: They maintain a list of specialized service providers in their list of sub-contractors offering the services of plumbing, electrical works, tiling, carpeting, painting, interior decoration, etc. General contractors understand the specialized skills required for each job and hire the right experts for tasks within their qualifications.
- Logistics of the Project: Apart from proper handling of materials and hiring the required subcontractors, the commercial building contractor is also responsible for keeping the project on budget and on time, maintaining records, and developing a site logistics plan for the project.
- Site Preparation and Cleanup: It’s the responsibility of a commercial contractor to prepare the construction site by removing any debris, trees, or existing structures within 20 feet of the building perimeter. Once the land is cleared, they will evaluate the soil quality and approve laying the foundation. Similarly, at the end of the project, they will employ dumpsters to remove construction waste and start landscaping.
- Project Completion: The commercial contractor performs quality inspections throughout the project, and then conducts a final walk-through with the client to explain building operations, maintenance, and warranties. They address any issues from the “punch list” before handing over the project.
This job role requires a skilled professional with strong communication skills, compliance and regulatory knowledge, a problem-solving attitude, leadership skills, and attention to detail. Hiring the right commercial contractor is critical to the success of any building project, whether it involves ground-up construction or renovations.
How to Become a Commercial Contractor?
In most states of the US, these are the basic requirements for aspirants who want to start their profession as a general contractor.
- At least 18 years of age
- A high school diploma or an equivalent
- Legal permission to work in the country
To advance further as a commercial builder, one needs to finish a Bachelor’s Degree course in Construction Management. This program entails business and engineering principles, typically focusing on budget and time management, as well as quality assurance.
Prospective commercial contractors can also undertake internships to gather valuable hands-on experience and increase their employment opportunities through networking with industry professionals.
Most importantly, acquire a commercial contractor’s license permit to legally subcontract work to other contractors. Applicants have to pass an exam that tests their industry knowledge and business laws. Each state has different contracting licensing requirements.
What Services Does a Commercial Contractor Provide?
Commercial contractors are trained, experienced, and licensed to undertake various projects related to the commercial industry, such as:
- General Contracting
- Design and Build
- Commercial Renovation and Remodeling Project
- Interior Build-Outs
- Preconstruction
- Construction Management
- Tenant Improvements
- Facility Maintenance
- Turnkey Projects
When to Hire a Commercial Contractor
It depends if you are replacing office light fixtures or undertaking an entire construction project. Larger commercial projects need building permits and certificates of occupancy. A commercial building contractor helps with permits and compliance for successful project completion.
Hire a commercial contractor in case:
- You are planning to build a new commercial building from scratch or a major renovation
- Your space needs tenant improvements to comply with building codes
- Large-scale project involving multiple trades
- Your commercial project has time and budget restrictions
- The building is in a historical district
- You don’t know how to manage the construction process
This way, hiring a commercial contractor will let you focus on running your business while they handle the project work.
How to Hire a Commercial Contractor
Hiring a skilled commercial builder is crucial for your project’s success, so select one considering the following factors.
Enlist the Top Commercial Contractors in Your Area:
Firstly, research local commercial contractors familiar with area conditions and legal matters. They have access to reliable resources and experience for high success rates. Contact property management groups for verified recommendations and consider general contractors with positive experiences from recent, similar projects. Prioritize quality over speed and cost.
Search Online:
Search for “commercial contractors near me” online or visit the Builders Association’s Membership Directory. Choose contractors with strong industry experience, positive client testimonials, and reviews. Check their websites for details on past projects, professional credentials, and available resources to assess their suitability for your project.
Work Out the Overall Cost of the Project and Consider the Bids of the Selected Contractors:
Once you have set your budget, meet with the contractors on your list to discuss your project and request preliminary bids, including service fees and other costs. Evaluate contractor bids based on fair price, experience, and past track records, not just the lowest cost.
Prefer Fully Licensed Contractors:
Choose a licensed commercial contractor familiar with local regulations and project requirements. Contractors with proper licensing maintain relationships with vendors, subcontractors, and resources for efficient project management. Avoid unlicensed contractors as they may not be held accountable for problems during project execution.
Verify the Terms of their Insurance:
The commercial contractor’s insurance coverage is key for managing liability related to worker compensation and project mistakes. Request builders insurance documents and review the terms and coverage carefully. If needed, seek legal professional help to understand the coverage fully. This will help protect you from future issues.
Professionalism and Open in Communication:
Your working relationship with a commercial building contractor will last for months, so they must have a strong work ethic, honesty, and professionalism. The right commercial contractor will maintain open, transparent communication and provide quality workmanship. Hire a commercial construction company you are comfortable with, and ensure you discuss project goals and agree on terms before finalizing.
Interview the Potential Candidates
When interviewing potential candidates, ask the right questions that help you understand their abilities and personalities. Here are some noteworthy questions:
- What’s your experience with this type of project?
- Do you have client references?
- What sets you apart from other companies?
- What are your service quality guarantees or warranties?
- Can we see your safety records?
- Who will be supervising day-to-day operations?
After receiving references from the commercial contractor, personally talk to them. Ask about how the contractor handled their work, maintained communication, and whether or not they delivered the project within budget/schedule.
Conclusion
Commercial contracting is a specialized form of construction service, requiring the highest form of competence, professionalism, experience, and the highest degree of integrity and determination to give quality work. So, take your time, consider all the factors, and get all the required documents to verify the credentials of the commercial contractor you want to select and satisfy yourself as to their suitability for your project.
We are here to bring your vision to life! Reach out to the Constructive Solutions, Inc. team today with any questions, and visit our site for more details.
FAQs
What are the signs of a bad commercial contractor?
Here are five common red flags in a commercial construction company:
- Demand for a large down payment
- Bad or no reviews or references
- Inadequately defined contract
- Unverified license and no insurance
- Poor communication
What is a full-service construction company?
A full-service construction company takes responsibility for a project from its conception to completion. Their all-in-one team provides full services from planning and design to construction and site management.
What is the cost to hire a commercial general contractor in the US?
The cost to hire a general contractor varies from company to company, though expect to pay around 20% to 25% of your total construction budget for contracting services in the US.
Relevant Resources:
- 10 Common Mistakes To Avoid When Hiring a Commercial Contractor
- Subcontractor Vs Contractor: What Does A General Contractor Do?
Constructive Solutions, Inc. is a full-service commercial construction company serving San Francisco and Bay Area.
Whatever your vision, we have the resources, experience, and insight to make your concept a reality, and a space where your business can flourish.
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