If you’re thinking about starting a commercial construction project, it’s essential to understand how this type of work differs from residential construction. Many factors affect the process and cost of a commercial project, including the size and complexity of the building, its location, and its intended use.

In this article, we’ll go over what kinds of commercial projects a company handles, how they differ from residential ones and some important considerations that can help get your project off the right foot.

What Does the Term “Commercial Project” Mean?

What Does the Term "Commercial Project" Mean?

As a general rule of thumb, commercial projects are larger, more complex, and require more planning and preparation than residential projects. You should expect the cost of a commercial project to be higher than that of a similar-sized residential project.

To help you understand what to expect when working on a commercial construction project—and how it differs from working with homeowners—here’s some information that will bring you up to speed:

  • Commercial clients are committed to their business and rely on contractors they trust to deliver quality work within budget and schedule. They want their staff members who work at the site daily to respect safety procedures while caring for their employees or guests as if they were family members.
  • A good contractor understands how important it is for everyone involved in the project to have clear expectations about what needs to be done and when so there’s no guessing about responsibilities or goals without delay or confusion about roles and responsibilities between all parties involved in completing any task necessary such as hiring sub‐contractors (such as roofers), ordering materials needed right away before construction starts, etc., including preparing estimates based off drawings provided by architects/engineers who’ve been hired by client initially which may not be ideal but necessary due lack time constraints caused by a competitive bidding process where companies try to win over clients (many times successfully). 

In contrast, others don’t get any work because they didn’t bid correctly enough!

How Does the Process for a Commercial Project Differ from That of a Residential Project?

How Does the Process for a Commercial Project Differ from That of a Residential Project?

As you might imagine, commercial projects are significantly more complex than residential ones. While buying a home is typically straightforward and predictable (especially if you work with a real estate agent), the same can’t be said for building a new office or restaurant.

Commercial projects involve so many stakeholders that they require more planning and preparation before construction begins. For example, it’s common for commercial property owners to have to obtain permits from multiple government agencies before starting construction. 

In addition, environmental concerns may also be associated with the property that needs to be addressed during this step, such as contamination from previous tenants using hazardous materials in their work area. 

This means that professional assistance from experienced professionals is an absolute must if you want the project to progress smoothly through its various stages toward completion!

The cost involved with commercial development can also add up quickly because of this complexity; just one extra set of approvals can increase costs by tens of thousands of dollars. And don’t forget about financing options: loans aren’t always available for every business venture—so get ready for some serious paperwork!

Things to Consider for Building a Commercial Project

Things to Consider for Building a Commercial Project

When you’re thinking about building a commercial project, there are many things to consider. Commercial projects tend to be larger and more complex than residential projects, requiring more planning, coordination, and resources. 

It’s important to remember that multiple stakeholders could be involved in your project’s decision-making process—potential tenants who will occupy the space; other owners within your building; city officials who regulate your work; utility companies providing water, sewerage, and electricity services; etc. 

And while these groups may have different opinions on certain aspects of your design (e.g., costs), they all want what is best for their interests first and foremost—which can make it challenging for you as an architect!


It’s important to understand that there are many differences between commercial and residential projects. The process is different, the financing options are other, and even the way you get paid will differ. It’s important to find the right commercial construction company that suits you. We can help you navigate these waters so that your commercial project goes smoothly from start to finish.

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