Is your general contractor capable of progressive construction?
By: Construction DesignWorks, LLC
By Scott Hamele, DBIA President and founder of Construction DesignWorks, LLC and Nationwide Commercial Inspections, LLC
As a building owner, your new investment property may not be feasible to build if you aren't able to construct it in phases. Identifying a general contractor (GC) capable of progressive construction might be your only option. Whether your general contractor specializes in commercial tenant construction (white box construction) or ground-up projects, identifying flexible contractors in Kansas City that will be open to a phased approach is critical.
Lenders are always cautious in loaning money for 100% of the development and construction costs unless there are executed commitments and leases in hand. And even then, the tenants must be financially sound and pass due diligence to establish commercial credit that considers the tenants' balance sheet, prospect of a long-term success, as well as age and history of the company.
In new building construction (ground-up (http://constructiondesignworks.net/
There are no set rules or number of phases progressive construction should include. It's all based on when the approved funds are available. However, there needs to be special consideration to critical milestones that will not be jeopardized as explained in phase 5, building envelope. Not all builders and/or general contractors in Kansas City will accept a multi-phased project as it affects the scheduling of their workforce. So if you formed a phased project due to funding restrictions, interview your builder to see if they are flexible and will consider progressive construction and the practical and financial effects it will have on your particular project.
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Construction DesignWorks uses its hands-on approach and design and construction expertise to create and develop a winning design-build (http://constructiondesignworks.net/
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