How to Prepare for the Construction of a New Office Building

Are you looking to build your office building? This is a big endeavour that takes time, money, and proper planning and know-how. There are many steps you need to take, and you must be prepared for any unforeseen problems along the way.

You have determined that it is the best move for your business, and you can’t wait to get started. The thing is, how do you start? Here is how to prepare for the construction of a new office building:

1. Construction Planning and Development

Before you do anything, you need a comprehensive construction plan. This is the first and most important stage for your project, and everything you do going forward is based on this. For big projects, consult with a professional construction company like Baycrest to ensure your planning is feasible.

2. Pick your site location

When planning a new office build, location is key. You want to find the right area to operate your business, and there are several factors to consider.

• Proximity: You may need to be close to a major highway for easy access when transporting goods. It is also smart to be close to suppliers and major clients. Don’t forget that you will be travelling to the office almost every day so being close to your residence is important.
• Cost: Prices vary widely for different commercial areas, and it is a factor to consider. You will need to stick to a budget, so don’t blow it with overpriced land.
• Competition: Healthy competition is good, so you should consider if there are existing businesses in the area that do what you do. This can make you more competitive, increase brand awareness, and dilute opportunities if competitors are in the same region.
• Perception: The location you choose should reflect the type of company you run. You don’t want to operate beside a scrap yard if you have a financial investment firm. Pick an area where your business belongs and is complimentary to your corporate neighbours.

Also, consider zoning, accessibility, existing infrastructure on the site, and building codes specific to the area.

3. Establish a construction budget

You need to know what you are working with because there are many costs, including land, permits, surveys, inspections, and construction. Build-out costs will be project-specific, but there are key expenditures you need to account for. When you follow a budget, you can better avoid cost overruns and maintain timelines.

Your budget will include:

• Conception and design of the office building
• Property costs
• Professional service fees
• Project management
• Building cost for material and labour
• Utilities
• Insurance
• Taxes
• A contingency fund

You also need to know where your money is coming from, and that is through obtaining financing.

4. Get construction financing

You will need to secure money through lenders or investors in your project to fund its build. This is a commercial construction loan. With a regular, personal loan, you get a lump sum and have payments structured to pay back the principal plus interest. A construction loan works differently.

Money will be given based on a draw schedule, and you will receive cash as you complete different project milestones. These can include completion of the foundation, framing and when the building is closed. Other draws are structured accordingly.

Usually, only the interest is paid on the loan until it is completely disbursed, and when the building is completed, either the loan is paid in full or converted to a commercial mortgage.

5. Hire construction professionals

You need an architect, engineer, and general contractor to bring your office to life. You will work with your architect to design your building and produce plans and a structural model. They understand the local building codes and try to bring your vision to life based on your design and budget.

A general contractor is a company you hire to build the project. They will, in turn, use sub-contractors for the various trades needed in the building process. You may also have a project management company overseeing the build and will work with the contractors.

Make sure and get several bids for your project. Seek out professional contractors in your area by speaking to realtors, industry peers, your architect and sub-trades and make sure they give you references. Send your drawings to the contractors on your shortlist and get a proposed budget, breaking down all build costs.

These professionals will establish a project schedule because there needs to be a timeline for constructing your office building. This will set a timeline from breaking ground until occupancy.

Now you are ready to get started on your build. If you let it, it will be a fun process, so roll with the punches and be patient. Before you know it, you will be walking around your new offices, picking out furniture for your corner office suite.