Commercial Development's Holy Grail:
Minimizing Development Risk
From a commercial development's earliest stage, limiting risk must be the holy grail for your project team. Preventing surprises and keeping budgets in line is crucial, and each decision an owner or developer makes will impact the risk level. Now, more than ever, controlling risk is key, with today's stringent Florida Building Code requirements and with the cost of skilled labor continuing to rise.
Teaming with a knowledgeable GC at the concept stage can minimize your exposure to change orders and ensure quality construction documents. Choose a contractor known for working seamlessly with architects and engineers.
From day one, the contractor should provide the insight and information you need to make decisions that enhance quality, reduce costs and streamline schedules. Steps to minimize risk include:
- Pinpoint true costs up front - The Florida Building Code's tough energy requirements can mean higher project costs to achieve lower energy consumption on a square-foot basis. That trend demands more due diligence in choosing building components and mechanical systems. A contractor with deep preconstruction capabilities gives you accurate early estimates - whether comparing costs to improve alternate development sites or pricing new construction and renovations.
- Choose a proven team with advanced technology - Be sure your team members have mastered building information modeling (BIM) and have the expertise to find and solve constructability issues before breaking ground.
- Support your business strategy - Will you build and sell, or hold the asset? A thorough GC will analyze structural and mechanical systems to identify best value, based on a project's initial vs. life-cycle costs.
- Insist on an open-book relationship - Open-book accounting lets you monitor costs in real time. Partner with a GC known for earning trust - one who'll be your advocate with clients, tenants and prospects.
- Standardize TI costs to streamline negotiations - Your GC should standardize your project's tenant improvement cost package and outline optional upgrades, enabling you to streamline negotiations with prospective tenants.