What Is A Build Out In Commercial Construction?

What Is A Build Out In Commercial Construction?

July 1, 2022 5:43 pm Published by

In the construction industry, there is a lot of jargon used. Construction jargon can be confusing to understand at first unless you have been in the industry for a long time. The jargon used is often useful for the contractors and architects when discussing a construction project, but can also confuse others who are uninformed. One of the common terms used in the building industry is the term “build-out”.

A build-out in simple terms describes the construction tasks or the workload that will be accomplished in order for a commercial project to be completed. The tasks in a build-out could be improvements that were recommended by a tenant or any recommended changes from a contractor in order to stay compliant with local building restrictions and codes.

What Is A Build Out In Commercial Construction?

What You Should Know Before A Build-Out Begins

It is never as simple as moving right in after the purchase of commercial real estate space. There are a few steps that need to be taken beforehand. These steps need to be taken for approval before the real construction begins.

The Build-Out Negotiations

The very first step that is taken before the build-out begins is gaining approval from a landlord, property manager, or the owner of the building. There should be a clear understanding amongst everyone on what type of renovations and improvements are going to happen to the building. This negotiation will also determine build-out costs, who will be running the project, and who will be accountable for the payment. All of this information should be stated in the lease to avoid any miscommunication.

Commercial Zoning and Permits

After the agreed-upon lease, the next step is to get the relevant documentation in place before the project can begin. Documentation that is required includes permits and zoning approvals from relevant local authorities. The zoning approval ensures that the company is where it is meant to be without infringement of any local laws such as a business’s building located right next to a residential property.

The Build-Out Expectations

Depending on how many projects a tenant has been a part of, the temptation to overbuild or under-build can be stronger in some cases. Over-building tends to happen when there is a new project and it is exciting, where the ambition arises to get the job done quickly. This can lead to going over budget very easily.

Underbuilds occur on larger projects that are overwhelming for individuals, tenants, or contractors. There is the temptation to constantly cut costs, as build-outs are viewed by some as grudge purposes. However, with this can come consequences for the quality of the work as sometimes corners are cut. For example, using substandard materials. In the long term, it is not worth it as the cheaper materials will degrade quickly.

The Important Elements for a Build-Out Project

Getting the décor and fixtures is the fun and easy part, however, one should not forget the other essential elements, like finish and trim, which need to be included in the build-out plan.

Electrical Elements

Most commercial spaces will have electrical wiring already which can help save money throughout the project. However, electrical components should still be checked to ensure everything is in good working order.

Plumbing Elements

A great way to save money when redoing space such as a bathroom is by working around the existing plumbing instead of tearing down the entire area. Plumbing is an expensive part of any build-out, therefore saving where possible will be a big help financially.

Doors and Hardware

It’s easy to overlook doors and hardware in a corporate headquarters. Nevertheless, they play a critical role in office environments, from aesthetics to functionality. If a door is poorly installed, employees and customers will notice.

What Is The Process For Your Build Out Project?

The number one consultant on a project where you are looking to build out is the architect. The architect is the one who will be able to turn your vision into a tangible result. This is done by the creation of the official documents used for the construction in order to obtain the relevant permits. This process can take up to three months if everyone is happy with the plans. The time it takes before you can officially begin construction is also dependent on the size of the project.

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This post was written by Contour Construction