Commercial Real Estate Construction Tips

Commercial real estate construction is significantly different from building a home for yourself. If you are new to the business, it’s important to create a healthy foundation for your business. You will need to learn how to build quality real estate, while staying within budget. If you are feeling overwhelmed by the prospect and don’t quite know where to start, don’t worry. We have compiled a handy list of the most useful trade secrets that will help you stay on top of everything.

Set the project up

To get your project off the ground, the first thing you will need is a building permit. To obtain a building license in Victoria, you must first contact a building surveyor who will guide you through the rest of the process. Once you have the necessary permit, you will need to select and hire an architect. This will be someone with whom you will work closely to bring your vision to life. This is also the right moment to realize that, particularly with bigger projects, you will need to be able to relinquish a part of the responsibilities. Think about which aspects you feel like you have to be directly in charge of, and which you can leave to hired professionals.

Choose your contractors

Along with your architect, your building contractors will be responsible for creating a beautiful and functional building. You should definitely choose someone with experience. Always ask to see the examples of the work they have already done. Once you have a few candidates, do your research. What is their reputation? Check for mentions on online forums. Do they respect their deadlines? What is the quality of the work like? Do they have the necessary equipment? If you are planning on doing the construction work yourself, consider renting out some of the equipment instead of buying it. Opting for powerful crane hire in Melbourne, and renting other expensive pieces of equipment will help you stay well within the budget.

Negotiate the fees

When it comes to other people’s services, don’t always feel compelled to immediately accept the lowest bid. Look for the best quality of service, relying on recommendations and word of mouth. As experience shows, in Australia, smaller companies might be willing to offer low rates, but very often they just can’t handle the amount of work, so you are left with sub-par work or missed deadlines. However, once you have decided on whom you want to hire, it’ll do you good to remember that fees can be negotiated. You will need to hire plenty of people – contractors, architects, lawyers, and accountants – to name just some of them. Sure, they have their rates, but depending on the scope of the work, they might be willing to lower their price. It never hurts to ask. If you develop a lasting working relationship with some of them after your first project, remember to try to renegotiate for your next one. When there is continuing work, and they are satisfied with the collaboration, plenty of people are willing to give you a little discount.

Don’t change direction mid-project

If you are outsourcing the construction part of the project, make sure you hire your contractor early on. He and the architect should work together so that, once building actually starts, everyone is on the same page. Investors often encounter problems when a contractor is hired late in the game. They normally have a lot of input based on practical experience. You find yourself having to pay for revisions of the original project if you want it to be functional. In general, any changes once building is already underway are likely to cost you a pretty penny. Not only that, they will probably cause delays too, and you will risk missing a deadline. So, before you make a decision, think about whether it is really necessary, and whether it will be worth the cost.

Embarking on such a big project, especially if it’s your first can feel like a daunting task. It takes a lot of money, time and effort. However, if you follow our advice, stay vigilant, and don’t rush into decisions without thinking them through, your project is sure to be a success.