Keeping the Construction Industry GoingKeeping the Construction Industry Going


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Keeping the Construction Industry Going

The construction industry has struggled a bit in recent years. This is not because there's not amazing technology out there to make construction easier. There's tons of technology, and it's amazing! Rather, the struggle seems to be that there is a shortage of labor. Many young people are not as interested in working in construction anymore. We hope that we can do our part to change that. In posting on this blog, we hope to reach a wide audience, including young people who may want to work as contractors. There are excellent jobs in the industry, and learning the basics on this blog can set you up for success.

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Three Commercial Construction Terms You Need to Know

Working with a general contractor on a commercial construction project requires a basic knowledge of construction processes and materials. Without this basic understanding, it can be difficult to communicate clearly with your contractor. Here are three important construction terms that can help you better oversee any commercial project you are tasked with managing in the future.

1. Contingency

Cost is always a major concern with any construction project. In order to ensure that your commercial build stays within your planned budget, the contract you sign with your general contractor must include a contingency.

The contingency is essentially the cost of any unforeseen and unexpected expenses, built into the initial budget. There are many ways to address the contingency, but most contractors will include the contingency as a percentage of the total project cost.

By ensuring that an adequate contingency amount is included in your construction contract, you can successfully avoid having unexpected issues or expenses ruin your project budget as the project unfolds.

2. As-Built Drawings

Most commercial construction projects begin with the creation of an architectural design. This design comes in the form of a blueprint that gives explicit instructions to builders. Unfortunately, a blueprint doesn't always take into account the unique topographical or design limitations of the land where construction will take place.

You should always ask your general contractor to provide you with as-built drawings when managing a commercial construction project. The as-built drawings show exactly how the building was constructed.

As-built drawings will clearly indicate any deviations made from the original blueprint and provide you with the exact dimensions, geometry, and location of each element included in the final build.

3. Substantial Completion

Substantial completion is a term used by contractors to identify when a commercial building is fit for occupancy. It's important that you recognize the difference between substantial completion and final completion when managing a commercial construction project.

The owner of the building will typically become responsible for it at the time of substantial completion. This may come before you receive a certificate of occupancy.

You will need to work with your insurance agent to guarantee that any property damage or other issues within the commercial space will be covered by your property insurance policy as soon as a contractor notifies you of substantial completion. The timing of your insurance policy will protect your interests and ensure that you don't incur any unexpected costs as you await the final completion of your building.

If you would like to know more about the world of commercial construction, reach out to a contractor today.