Commercial Contractors

Building in the city is rough on residential contractors, but think how much of a challenge it is for commercial general contractors. They have to build almost every type of structure from large, one-story malls to skyscrapers in a safe and expedient manner. In addition to strictly construction a commercial building contractor performs other services:

• Shop refitting
• Improvements
• Property maintenance
• Office renovation
• Company refurbishing
• Upgrading of Utilities
• Landscaping

Residential contractors, in many cases, have a more difficult process that their commercial cousins.  Homebuilders have the option of changing their minds during the process. That leads to cost overruns and major delays because trades due on a specific date have to be rescheduled. This may knock back the whole series of projects on the home.

Commercial contracts are detailed legal documents. Their clients have already detailed their needs and the architects have everything spelled out in the blueprints. Everything from the concrete deliveries to the mechanical engineering is given a specific date with hefty penalty clauses built-in for lack of performance.

A commercial contracting company is not a one-man or even a five-man operation. There are dozens of support personnel who help with planning, budgeting, on-site management, design and logistics These include project managers, architects, engineers, estimators, lawyers, human resource managers, job coordinators, experienced material buyers and IT people. There is a need for people who can keep with the latest in construction methods, labor practices, materials, architectural concerns and building codes.

Too Big or Too Small

Many people think that commercial mean malls or high-rise apartments but they can be very modest too. Because, size doesn't really matter when a commercial outlet is being planned and built. There are similar codes to follow because each place, large and small, is dealing with the public. Here is a scenario: A person has a thriving sales business that has grown too big for the garage. There is an old building in a section of town that has seen a large resurgence in popularity and the rent is cheap. However, the tenant must renovate. In this case a commercial contractor would be hired because he or she knows the city building codes and can wade through the bureaucracy to attain the proper permits. Many companies even have architects on retainer to make sure all the building will be to code and can set an accurate budget for the client.

The Process of Permits and Reviews

The easy answer to why a commercial contractor would need so much support staff is in the mountain of permits and regulations that have to be addressed, items that may swamp one or two people and take months and even years to get approved. These include: zoning reviews; international building code reviews (if applicable); plumbing, mechanical and electrical reviews; transportation development reviews; environmental health reviews; Fire Marshall review; and hydrology (drainage plan). These are basic policies that must be addressed but there can be more or less depending in what county the structure will be built.

Hiring a Commercial Contractor

The hiring process for a commercial contractor is much different from that of picking a residential contractor or renovator. This is not only because of the amount of money involved but the liability as well:

1. Contractor Assessment - Local Departments: The first place to start is with the local department that takes care of labor and industry. See if there are any outstanding claims against the bond or if there has been any past action against the contractor.
2. Referrals: Just like in residential building a list of referrals is mandatory. Because the projects are commercial there should be some visible businesses within the area that you can go and see first-hand. In addition, ask to see the projects that are in progress and spend a day or two watching the crews work. You can judge a lot about a company by the smoothness of the scheduling, that is, by how many cement trucks are sitting idle with their loads turning, and by the overall process of the build
3. Contractor Information: Every contractor that you are considering for the project should give you a copy of the company's general contractor's license, city license, bonding company, insurance agency and bond number.
4. Subcontractor Lien Releases: Just in case the general contractor does not live up to the obligations made to the subcontractors there is a legal paper called a lien release so that the subcontractors can't come after you or put a lien on your property for moneys owed. This includes vendor deliveries as well.

Hiring a commercial contractor is a careful, tedious process that requires legal help. However, to find the proper company you must first begin with a list of potential prospects. To get this list started you can start with our Contractor Directory or post your project on line and get contact directly from a contracting company.

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