BLOGS

Woman applying for construction loan in Frederick MA

Navigating the process of securing a commercial construction loan in Frederick, MD, can be complex. With Frederick’s booming commercial sector, understanding the local market is crucial for a successful project. The city’s strategic location and expanding infrastructure offer abundant opportunities for commercial development, making local lending knowledge essential.

 

At Contour Construction, our deep industry expertise and strong local connections ensure a seamless loan process, providing tailored solutions for your commercial needs. Our commitment to quality and personalized service makes us a trusted partner in Frederick’s commercial construction market. Discover how Contour Construction can help you achieve your business goals in Frederick, MD.

Understanding Commercial Construction Loans

Acquiring a commercial construction loan with a professional company simplifies the financing process, ensuring all legalities and requirements are met efficiently. This guidance is vital for navigating the complexities of commercial development.

 

Professional lenders manage disbursements, schedules, and budgets, allowing you to focus on the project itself. Their oversight reduces stress and potential delays, enabling smoother execution and adherence to timelines.

 

Studies show that projects with professional loan management are 25% more likely to stay on budget and meet deadlines, reinforcing the value of expert guidance. Choosing a reputable lender ensures industry expertise and robust local knowledge, driving your project’s success.

Banner of Contour Construction Services

Difference Between Commercial Construction Loans and Traditional Mortgages

Commercial construction loans are tailored for developing new commercial properties, offering staged funds aligned with construction milestones. This flexibility ensures liquidity when needed, minimizing financial strain during the project.


In contrast, traditional mortgages are suited for purchasing existing properties, providing long-term stability with lower interest rates. However, they lack the tailored support and flexibility crucial for commercial development. Understanding these distinctions empowers informed decision-making in selecting the right financing for your commercial ventures.

Mortgage vs Construction Loan

Types of Commercial Construction Loans

Navigating the variety of commercial construction loans available is critical for commercial developers seeking tailored financing solutions. Understanding the distinct advantages of each type—whether it’s streamlining the transition from construction to occupancy, providing flexibility during the building phase, or funding renovations—empowers businesses to choose the most suitable option for their specific project needs.

 

  • Construction-to-Permanent Loans: These loans streamline the financing process by combining construction financing and mortgage into a single loan. They are ideal for projects where the intention is to build and occupy the property upon completion. This type of loan eliminates the need for separate approvals and closing costs associated with two loans.
  • Stand-Alone Construction Loans: Stand-alone construction loans provide financing specifically for the construction phase of a project. They are suitable when permanent financing, such as a mortgage, will be obtained separately after the construction is complete. This option offers flexibility during the construction phase, focusing solely on funding the building process.
  • Renovation Loans: Renovation loans are designed for projects involving significant improvements or renovations to existing properties. They provide financing to enhance the property’s value and functionality without the need for a complete rebuild. Renovation loans are beneficial for revitalizing commercial properties while managing costs effectively.

Each type of commercial construction loan serves distinct purposes, offering flexibility and tailored financial solutions to meet the specific needs of commercial development projects. Understanding these options helps in choosing the most suitable financing strategy for your project.

 

Steps to Obtain a Construction Loan

Navigating the process of obtaining a commercial construction loan is key as it provides clarity and guidance in a complex area. Here is a simplified breakdown:

  • Research and Preparation: Understand your project’s scope and budget to determine the financing needed.
  • Choosing a Lender: Select a lender experienced in commercial construction loans to ensure expert guidance.
  • Application Process: Prepare required documents and details accurately for your loan application.
  • Loan Approval: Await approval based on project feasibility and financial review.
  • Begin Construction: Once approved, funds are disbursed in stages as construction progresses.

This structured approach ensures transparency and ease in securing financing for your commercial project.

Research and Preparation

Before applying for a commercial construction loan, thorough research and preparation are essential steps to ensure a smooth process:

  • Assessing your financial situation: Evaluate your project’s financial requirements and determine how much funding you need. This step helps in understanding your borrowing capacity and planning accordingly.
  • Gathering necessary documentation: Collect all required documents such as financial statements, project plans, and contractor details. Having these ready streamlines the application process and facilitates quicker approval.

These steps lay the groundwork for a successful construction loan application, providing clarity and preparation in navigating the financing process.

Choosing a Lender

When selecting a lender for your commercial construction project, consider these options:

  • Local banks and credit unions: These institutions often offer personalized service and local market expertise, which can be beneficial for navigating specific regional regulations and conditions.
  • National lenders with construction loan programs: Larger banks and financial institutions may provide specialized construction loan programs, offering competitive rates and broader financing options suitable for larger projects or multi-state operations.

Choosing the right lender is important for securing the best terms and support throughout your construction loan process.

Application Process

Navigating the application process for a commercial construction loan involves these key steps:

  • Initial consultation with the lender: Schedule a meeting to discuss your project details, financing needs, and the lender’s requirements. This consultation helps establish expectations and clarifies the next steps.
  • Submitting your application: Complete the application form provided by the lender, including all required documentation such as financial statements, project plans, and contractor details. Submitting a thorough and accurate application improves your chances of approval and expedites the review process.

These steps are key in initiating your commercial construction loan application, ensuring all necessary information is provided to facilitate a smooth approval process.

Loan Approval

Securing approval for your commercial construction loan involves these critical stages:

  • Underwriting process: The lender evaluates your application, reviewing financial documents, project feasibility, and other pertinent factors to assess risk and determine loan terms.
  • Conditional approval and final approval: After initial underwriting, you may receive conditional approval pending additional documentation or requirements. Final approval follows once all conditions are met, confirming your loan terms and enabling funding disbursement.

Understanding these stages helps navigate the loan approval process effectively, ensuring clarity and readiness for your construction project.

Working with Builders and Contractors

Cost Breakdown of a typical construction project

During the construction loan process, partnering with experienced builders and contractors is crucial.

  • Selecting a reputable builder or contractor: Choose professionals with a proven track record in commercial construction to ensure quality and reliability.
  • Importance of detailed project plans and cost estimates: Clear plans and accurate cost estimates are essential for budgeting and securing loan approval.
  • Builder’s role in the loan process: Builders provide project oversight and ensure milestones align with loan disbursements.

Partnering with Contour Construction ensures expert guidance and support throughout your project.

Managing Construction Loan Funds

Effective management of construction loan funds is crucial for project success.

  • Draw schedule and disbursement of funds: Establish a clear schedule for fund releases tied to project milestones.
  • Monitoring the construction progress: Regular oversight ensures projects stay on track and within budget.
  • Importance of staying within budget: Adhering to financial plans avoids delays and ensures funds meet project needs.

Contour Construction provides expert oversight and support, ensuring your project progresses smoothly.

Closing The Loan

Finalizing your construction loan involves these key steps:

  • Transition from construction loan to permanent mortgage: Once construction is complete, the loan converts to a long-term mortgage.
  • Final inspection and approval: Ensure the project meets all agreed-upon specifications before finalizing.
  • Closing costs and final documentation: Complete paperwork and settle any closing fees to close the loan officially.

Why you should Build in Frederick – Market Growth

Frederick, MD, has seen remarkable commercial market growth in recent years. The area and line chart below highlight the expansion of the local market, showcasing both the number of new commercial projects and the growth in commercial property values.

  • Number of New Commercial Projects: Represented by the blue shaded area and line, this shows a steady increase from 15 projects in 2018 to 40 projects in 2023.
  • Commercial Property Values: Represented by the green line, this indicates a significant rise in property values from $200,000 in 2018 to $330,000 in 2023.

This visual representation illustrates the robust growth and burgeoning opportunities in Frederick’s commercial market, making it an attractive destination for new developments.

Local Market Growth in Frederick MD

Build Your Destination with Confidence in Frederick, MD With Contour Construction

Ready to elevate your commercial construction project in Frederick, MD? Trust Contour Construction to navigate the loan process with expert advice and personalized support. Contact us today at (240) 405-0123 to learn more about how we can help you achieve your vision. Visit our website for more information on our services and past projects.

How to Get a Commercial Construction Loan in Frederick MD Read More »

Commercial building under construction

Did you know that Frederick, MD, has seen a surge in commercial construction demand, with a growth rate of 10% over the past year? This boom highlights the city’s evolving business landscape and increasing investment opportunities.

 

In this article, we will explore the factors affecting commercial construction costs in Frederick, MD. Understanding these costs is key for business owners and investors to make informed decisions and maximize their return on investment.

Key Factors Affecting Commercial Construction Costs

Economic Factors

  • Market Demand: High demand can drive up prices.
  • Material Costs: Fluctuations in material prices significantly impact costs.
  • Labor Rates: Wages and availability of skilled labor affect the budget.

Location

  • Site Conditions: Soil quality and terrain can add to costs. If you’re renovating, unknown existing conditions should be considered
  • Local Regulations: Zoning laws and building codes influence expenses.
  • Accessibility: Proximity to suppliers and resources can reduce costs.

Project Complexity

  • Design Specifications: Custom designs and high-end finishes increase costs.
  • Technology Integration: Advanced systems and intelligent technology add to the budget.
  • Sustainability Requirements: Eco-friendly materials and practices may cost more.

Timeline

  • Project Duration: Longer projects can incur higher costs.
  • Deadlines: Tight schedules may require overtime pay and expedited shipping.

Construction Type

  • New Construction: New commercial construction involves building a commercial structure from the ground up. This includes everything from site preparation and foundation work to the completion of the building.
  • Interior Tenant Fit-Out: Specifically refers to customizing the interior spaces of a building for a new tenant’s needs.

These factors collectively shape the commercial construction landscape, influencing costs and project feasibility.

Economic Factors

Economic Factors

Higher market demand often leads to increased construction costs as competition for resources and labor intensifies. Fluctuating material prices can significantly impact the overall budget, making it essential to stay updated on market trends. Additionally, the cost and availability of skilled labor play a crucial role in project expenses, with higher wages affecting the total expenditure.

 

Location

Site conditions such as terrain and soil quality can add to construction costs due to the need for specialized equipment or preparation work. Compliance with local regulations, including zoning laws and building codes, is essential and can influence expenses. Furthermore, the proximity to suppliers and resources affects costs, with closer locations typically reducing transportation and logistics expenses.

 

Project Complexity

Unique design requirements and the use of premium materials can increase construction expenses due to the need for specialized skills and higher-priced components. Incorporating advanced technology systems, such as smart building features, raises the project budget. Additionally, sustainability practices and the use of eco-friendly materials, while beneficial for the environment, may also contribute to higher costs.

 

Timeline

Longer projects generally incur higher costs due to extended labor and resource needs over time. Meeting tight deadlines might require additional labor, overtime pay, and expedited materials, further increasing expenses. Efficient project management and scheduling are critical to controlling costs and ensuring timely completion.

 

Each of these factors plays a critical role in determining the final cost of a commercial construction project. Understanding and managing these elements can help business owners and investors make informed decisions and achieve successful project outcomes.

Location-Specific Factors

Cost Variations Based on Different Areas within Frederick, MD

The cost of commercial construction can vary significantly depending on the area within Frederick, MD. Prime locations, such as downtown or highly sought-after business districts, often have higher land prices and development costs. In contrast, areas on the outskirts or less developed zones may offer more affordable options but might require additional infrastructure investments.

 

Impact of Local Real Estate Market Trends

Local real estate market trends greatly influence construction costs. In Frederick, MD, rising property values and increased demand for commercial spaces can drive up construction expenses. Understanding these trends helps in anticipating cost fluctuations and making informed decisions. Market conditions can also affect the availability of labor and materials, further impacting the overall project budget.

Type of Commercial Building

Office Buildings

New Construction: The cost of constructing new office buildings in Frederick, MD, varies based on the building’s height and complexity. For single-story office buildings, the price ranges from $240 to $440 per square foot. Mid-rise buildings cost between $330 and $870 per square foot, while high-rise office buildings are the most expensive, ranging from $430 to $1,000 per square foot.

Interior Tenant Fit-Out:  Fit-outs of existing office spaces costs between $50 and $150 per square foot, depending on the extent of the work and the quality of finishes.​


Retail Spaces

New Construction: New retail construction costs vary by type. Neighborhood strip centers typically cost between $370 and $580 per square foot, while regional malls average about $537 per square foot.

Interior Tenant Fit-Out: Fit-Out costs for retail spaces generally range from $50 to $200 per square foot, influenced by the required updates and tenant improvements.​

 

Adaptive Reuse

Adaptive reuse projects involve converting existing buildings for new uses. These projects can be cost-effective but highly variable in price, ranging from $100 to $300 per square foot for renovations. The costs depend on the building’s condition and the extent of modifications that may be needed​.

 

Mixed-use Developments

New Construction: Mixed-use developments, which combine residential, commercial, and sometimes industrial spaces, have varied costs due to their complexity. New construction costs range from $300 to $600 per square foot, depending on the specific mix and quality of finishes. 

Interior Tenant Fit-Out:  Mixed-use spaces typically cost between $150 and $400 per square foot​ 

 

Food & Beverage

New Construction: Constructing new restaurants and other food and beverage establishments involves costs related to specialized equipment and health regulations, typically ranging from $450 to $700 per square foot.

Interior Tenant Fit-Out: Fit-out costs for these establishments generally fall between $150 and $250 per square foot, depending on the extent of kitchen and dining area updates​.

 

Hospitality

New Construction: The cost of constructing new hospitality buildings, such as hotels, varies widely based on the level of luxury. A three-star hotel costs between $130 and $550 per square foot, while five-star hotels range from $677 to $871 per square foot.

Interior Tenant Fit-Out: Renovating existing hotels typically costs between $200 and $400 per square foot, influenced by the level of luxury and the extent of improvements required. 

 

These costs reflect current trends and average prices for both new construction and interior tenant fit-out projects in Frederick, MD. Factors such as economic conditions, local regulations, and market demand significantly influence these costs​. 

CONSTRUCTION TYPE COMPARISON

ASPECT NEW COMMERCIAL CONSTRUCTION INTERIOR TENANT FIT-OUT
SCOPE
Entirely New Construction
Modifying existing structure to fit customer's needs
TIME FRAME
Generally Longer
Typically Shorter
COST
Typically higher due to site preparation and civil aspect
Generally lower as the basic structure exists
CUSTOMIZATION
Fully customizable from the ground up
Customizable within existing constraints
TECHNICAL INTEGRATION
Can integrate latest technologies from the start
Limited to updates and modifications
DISRUPTION
New site, minimal disruption to existing structures
May involve disruption to existing operations
Chart of cost per square foot on different building types in Frederick MD

Material and Labor Costs

Current Prices for Common Construction Materials

The prices for common construction materials have seen significant fluctuations over the past few years due to supply chain disruptions and increased demand. As of 2024, the average prices for some essential materials are as follows:

  • Lumber: The price of lumber has stabilized somewhat, but it remains higher than pre-pandemic levels, averaging around $500 per thousand board feet.
  • Steel: Structural steel costs approximately $650 per ton, depending on the grade and type.
  • Concrete: Ready-mix concrete costs about $155 per cubic yard.
  • Drywall: Drywall sheets cost between $12 and $20 per sheet, with higher prices for moisture-resistant varieties.

Availability and Cost of Skilled Labor in Frederick, MD

The availability and cost of skilled labor in Frederick, MD, reflect broader regional and national trends. The construction industry faces a significant labor shortage, increasing wages and impacting project timelines.

  • Skilled Labor Shortage: There is a notable shortage of skilled laborers, including electricians, plumbers, and carpenters. This shortage is exacerbated by an aging workforce and fewer young people entering the trades.
  • Wage Rates: Wages for skilled construction workers in Frederick have increased by approximately 5% over the past year. For instance, electricians earn an average of $25 to $35 per hour, while carpenters make between $20 and $30 per hour.
  • Union Influence: Unionized labor can also affect costs, with union workers generally earning higher wages and benefits than their non-union counterparts. Union labor in Frederick is prevalent in specific trades, such as electrical and plumbing, adding to the overall labor cost.
  • Training and Certification: The demand for certified workers has increased, with many employers seeking employees with OSHA 30 certification, Procore certifications and other specialized training, which can command higher wages
Labor costs in different regions of Maryland over time

Design and Architectural Complexity

The architectural design of a building significantly impacts its overall construction costs. Complex architectural designs often require more specialized materials, advanced construction techniques, and longer project timelines. Elements such as intricate facades, unique structural forms, and extensive use of glass or other high-end materials can drive up costs considerably. For instance, buildings with elaborate designs may require custom-fabricated components and specialized labor, both of which add to the overall budget​.

 

Costs Associated with Custom Designs vs. Standard Designs

Custom designs typically incur higher costs compared to standard designs. Custom projects often involve detailed planning, bespoke materials, and specialized labor, all of which contribute to increased expenses. Here are some key differences:

  • Custom Designs: These projects are tailored to specific requirements, involving unique architectural elements and personalized features. Custom designs can cost 10-20% more than standard designs due to the need for unique materials and specialized construction methods. For example, a custom new construction office building may cost between $350 and $600 per square foot, depending on the complexity of the design.
  • Standard Designs: Standard designs use pre-existing plans that somebody can easily replicate. These projects benefit from economies of scale, as materials and labor may be sourced more efficiently. Standard office buildings, for instance, typically cost between $240 and $400 per square foot for new construction. The streamlined nature of standard designs often results in shorter construction timelines and reduced labor costs.​

Overall, while custom designs offer the advantage of uniqueness and can cater to specific needs and aesthetics, they come with a higher price tag and longer construction periods. On the other hand, standard designs provide cost efficiency and faster project completion but may lack the distinctiveness of custom projects. Understanding these differences is crucial for stakeholders to make informed decisions that align with their budget and project goals.​ 

Regulatory Requirements and Permits

Local Building Codes and Regulations

Local building codes and regulations in Frederick, MD, significantly impact the cost and complexity of commercial construction projects. These codes ensure that buildings meet safety, health, and environmental standards, including specifications for structural integrity, electrical systems, plumbing, fire safety, and energy efficiency. Compliance with these regulations often requires additional planning, specialized materials, and skilled labor, which can increase costs.

For example, Maryland’s adoption of the International Building Code (IBC) and International Energy Conservation Code (IECC) imposes stringent requirements on construction projects, such as advanced insulation, energy-efficient windows, and HVAC systems. Builders must also adhere to local zoning laws that govern land use, building height, density, and aesthetics, which can further complicate project planning and execution.​ 

 

Cost of Permits and Inspections

The cost of permits and inspections is a significant component of the overall budget for commercial construction projects. In Frederick, MD, these costs can vary depending on the project’s size, complexity, and location. Standard permits required for commercial construction include building permits, electrical permits, plumbing permits, and mechanical permits. Each permit type involves fees that can add up quickly.

  • Building Permits: Typically based on the project’s value or square footage, building permits can range from a few hundred to several thousand dollars. Currently in Frederick County, Maryland, a Non-Residential New Building permit is $0.26/SF. 
  • Inspections: Regular inspections are mandatory at various stages of construction to ensure compliance with building codes and regulations. These inspections may include foundation, framing, electrical, plumbing, and final inspections. Inspection fees are usually included in the permit costs but can sometimes incur additional charges if re-inspections are required due to non-compliance.

Obtaining permits and passing inspections can also cause delays, impacting the project timeline and increasing labor costs. Builders must account for the time and resources required to navigate the regulatory landscape effectively.

Selecting the Right Contractor

Choosing Contour Construction means partnering with a contractor that brings unparalleled expertise and value to your project. With a deep understanding of local regulations, robust community connections, and a proven track record, Contour Construction ensures that every project is executed with precision and excellence.

  • Knowledge of Local Regulations:
    Contour Construction ensures full compliance with Frederick’s building codes and regulations. This expertise helps avoid delays and ensures smooth project approval and completion.
  • Familiarity with Suppliers:
    Strong relationships with local suppliers ensure timely delivery and cost-effective materials. These connections help maintain project schedules and budget constraints effectively.
  • Understanding of Local Climate and Conditions:
    Expertise in adapting construction plans to local weather conditions minimizes delays.
    This understanding helps in choosing materials and methods suited to the local environment.
  • Community Connections:
    Leveraging strong community ties for smoother project execution and local support. These connections often lead to better collaboration and quicker problem resolution.
  • Responsive Customer Service:
    Dedicated support team offers prompt, personalized assistance to all clients.
    Prioritizing client needs helps build trust and ensures a high level of satisfaction.
  • Proven Track Record:
    Extensive history of successful projects in Frederick, MD, showcasing reliability. A solid portfolio provides assurance of quality and capability in handling various projects.
  • Personalized Approach:
    Tailored construction solutions to meet the unique needs of each client. This approach ensures that every project aligns perfectly with the client’s vision.
  • Easier Communication:
    Local presence ensures clear and effective communication with all project stakeholders. This proximity facilitates timely updates and swift resolution of any issues.
  • Cultural Understanding:
    Deep knowledge of local culture ensures projects align with community values and aesthetics. This sensitivity to cultural nuances helps in creating spaces that resonate with the local community.

Get Expert Advice on Your Commercial Construction Project With Contour Construction!

Understanding the commercial construction costs in Frederick, MD, is crucial for planning a successful project. Ready to start your commercial construction journey? Trust the experts at Contour Construction to guide you every step of the way. Visit Contour Construction or call us at 240.405.0123 for personalized advice and top-notch service.

What is the Commercial Construction Cost in Frederick, MD? Read More »

We are thrilled to announce a significant addition to the Contour Construction LLC family: Joshua Bell has joined us as the new Director of Business Development! With over 13 years of experience in business development, marketing, and sales, Joshua brings a wealth of knowledge and a proven track record of success to our team.

Joshua’s Impressive Background

Joshua comes to us from his previous role as Director of Business Development & Marketing / Chief Growth Officer, where he led a project management team and significantly enhanced the company’s business development and marketing efforts. Under his leadership, the company experienced remarkable revenue growth and substantial increases in digital engagement and client acquisition. His innovative strategies and dedication to client engagement have consistently delivered outstanding results.

CEO’s Exciting Announcement

“We are excited to have Joshua Bell join Contour Construction LLC,” said Christopher Parsell, CEO of Contour Construction LLC. “His extensive experience and impressive achievements in business development and marketing make him an invaluable addition to our team. We are confident that Joshua will drive our business growth and help us achieve our goals.”

Joshua’s Role and Vision

In his new role at Contour Construction LLC, Joshua will be responsible for leading our business development initiatives, cultivating client relationships, and driving revenue growth. His expertise in strategic planning, market expansion, and digital marketing will be instrumental in achieving our company’s objectives.

Joshua holds a Bachelor of Science in Business Administration from the University of Maryland, an Associate of Applied Science in Computer-Aided Design from Howard Community College, and several certifications, including from Harvard Business School, ABC Greater Baltimore, and HubSpot Academy. His comprehensive skill set includes strategic marketing, project management, digital marketing, SEO, and sales performance analysis, among others.

What This Means for Our Customers, Vendors, and Subcontractors

With Joshua Bell joining our team, our customers, vendors, and subcontractors can look forward to even more robust and dynamic partnerships. Joshua’s extensive background in client engagement and strategic growth means that we will be better positioned to understand and meet your needs.

For our customers, this translates to enhanced service offerings, more innovative solutions, and a continued commitment to delivering high-quality projects on time and within budget. Joshua’s experience in digital marketing and SEO will help us to be more accessible and responsive to your needs, ensuring that your projects receive the attention and expertise we provide.

For our vendors and subcontractors, Joshua’s leadership will foster stronger collaboration and communication. His strategic planning and market expansion expertise will open up new opportunities for partnerships and growth, ensuring that we can collectively deliver exceptional results.

Joshua’s Excitement to Join Contour Construction

“I am excited to join Contour Construction LLC and look forward to contributing to the company’s continued success,” said Joshua Bell. “I am eager to work with the talented team at Contour and leverage my experience to drive growth and achieve our strategic goals.”

Join Us in Welcoming Joshua!

Please join us in welcoming Joshua Bell to Contour Construction LLC. For more information, feel free to reach out to Josh yourself!  JBell@contour-gc.com

About Contour Construction

Contour Construction stands as an esteemed and forward-thinking Commercial General Contractor, celebrated for its unwavering commitment to quality, resilience, and client fulfillment. Demonstrating an impressive portfolio of completed projects, our team of experts is dedicated to pushing the boundaries of construction and architectural excellence.

Stay tuned for more updates as Joshua Bell begins his journey with us, and we continue to build and grow together!

Welcoming Joshua Bell: Our New Director of Business Development Read More »

General contractors are professionals who oversee and manage construction projects from start to finish. Their primary role is to coordinate and supervise all aspects of the construction process, ensuring that the project is completed on time, within budget, and according to the desired specifications. Here are some of the key responsibilities and tasks of general contractors:

  1. Cost: General contractors prepare fixed-cost bids and proposals for the entire project, including labor, materials, permits, and other expenses. They work with the client to establish a budget and monitor expenses throughout the construction process.
  2. Scheduling: General contractors collaborate with clients, architects, and engineers to understand the project requirements, objectives, and budget. They help in developing a comprehensive schedule that outlines the overall project timeline, critical path, and
    workflows needed to deliver the project on the stipulated timeframe.
  3. Subcontractor Management: General contractors hire and manage subcontractors such as electricians, plumbers, carpenters, and other specialized tradespeople. They ensure that subcontractors are qualified, properly licensed, and adhere to safety regulations.
  4. Procurement and Material Management: General contractors are responsible for procuring and managing the necessary materials, equipment, and supplies required for the construction project. They coordinate deliveries, track inventory, and ensure that materials meet the required standards.
  5. Construction Supervision: General contractors oversee the construction site, ensuring that work is progressing according to the plan. They manage logistics, resolve issues, and address any changes or challenges that arise during construction. They also monitor quality control and perform inspections to ensure work meets the required standards.
  6. Communication and Documentation: General contractors serve as the main point of contact for clients, architects, subcontractors, and other stakeholders. They facilitate communication, provide regular updates on project progress, and maintain comprehensive documentation, including contracts, change orders, and construction reports.
  7. Risk Management: General contractors identify potential risks and implement strategies to mitigate them. They prioritize safety on the construction site, enforce safety protocols, and ensure compliance with occupational health and safety regulations.
  8. Legal Compliance: General contractors ensure that the construction project complies with all relevant laws, codes, and regulations. They handle permits, inspections, and any necessary approvals to keep the project in legal compliance throughout its duration.

Overall, general contractors play a crucial role in coordinating and managing all aspects of a construction project, ensuring its successful completion while meeting the client’s requirements and expectations.

 

GENERAL CONTRACTING SERVICES IN DC, MARYLAND, AND VIRGINIA

If your project is in need of a General Contractor, Contour Construction has the knowledge and expertise to successfully build your destination. Call now to get started! 240.405.0123

8 Key Responsibilities of a General Contractor Read More »

Let’s face it – if you knew how to design and build your construction project, you probably wouldn’t be reading this right now. Maybe you own a food truck and are looking to open your first brick-and-mortar. Maybe you own five fitness centers, and you are looking to rapidly expand 10 more. Maybe you’re a developer and need a new in-line shopping center shell built. Whatever your situation, you’re not the contractor and that’s why you landed on this page!Construction is our area of expertise and we know the Pre-Construction phase is the most critical yet most overlooked phase of a construction project.

 

What is Pre-Construction?

The pre-construction phase entails developing a project strategy, designing the project or design assisting, obtaining permits, entitlements, and assembling the project team and materials needed for construction. Pre-construction services can give owners a formal method for establishing the budget, scope, and timeline needed to complete the construction on schedule and under budget. Pre-construction is the most critical phase of any construction project. The foundation of the project’s communication and procedure is established during this phase, which also sees the project team become organized and unified in their goal. Without a solid foundation, a construction project can easily sink into chaos, resulting in communication breakdowns, process flaws, and even schedule delays. The most successful construction projects give priority to the pre-construction process.

 

THE 4 ELEMENTS

 

COST
Better clarity can improve the budgeting process significantly. Pre-construction planning services enable you to set an accurate budget and make adjustments prior to the start of the project. Real-time, precise cost estimation will lead to better financial management and will be beneficial when applying for funding from a bank or stakeholders of the project. Budgeting is more important than ever with the vast fluctuation in material costs, volatility in the Consumer Price Index, supply chain disruptions, and material shortages.

 

SCHEDULE
The preliminary schedule primarily acts as a baseline for the client to see when specific phases of the work will start and finish. This will be adjusted as final decisions for the project are made, but it provides the client with a clearer and more realistic idea of the construction schedule. To give a general idea of how long it will take to complete the job, the contractor will estimate the number of days needed to complete each task and attach dependencies to each task so that follow-on is accurately accounted for. There are typically a handful of items or sometimes just one that is identified as “the long pole of the tent,” meaning it is the most important task that many other tasks need to keep the project pressing on.
As with budgeting, the schedule also provides the owner with opportunities to hit their own milestones, whether it be funding, leasing, or re-capitalization in a timely manner to not delay the overall project. This is critical in today’s world where long lead times & design delays have become the norm, not the exception.

 

PREVENTING PROBLEMS FROM ARISING/ELIMINATING PROBLEMS/FINDING BLINDSPOTS
Probably the most beneficial aspect of pre-construction planning is its ability to head off problematic circumstances and blind spots that may exist on the project. Whether it’s how to reconfigure the schedule because of discovered product delivery delays or needing to engineer certain aspects of the project for foundational or structural support, heading these issues off before construction begins is critical. This prevents delays in the schedule and funding, as well as puts the construction team on the same page. Often going through this exercise uncovers risk or potential “showstopper,” issues that were never thought about or recognized during early inception which is a win for all parties involved.

 

PROJECT TEAM / PROJECT COMMUNICATION
Setting up a project team is important to do as early in the project as possible. It’s important to establish the key players based on their experience and expertise. You’ll have Architects, Engineers, Project Executives, Project Managers, Superintendents, and trade partners that all must be brought together to work as a team and make the project a success. You want your team to be invested in the project as early as possible to keep consistent vision, clarity, and communication.

 

PRE-CONSTRUCTION SERVICES IN THE DC METRO AREA

Have a project that you need Pre-Construction services on? Contour Construction has the expertise to kick your project off to the right way. Don’t wait, contact us to day to get your project rolling! #BuildingDestinations

4 Elements of Pre-construction Planning Read More »

You’ve spent years dreaming, researching, learning, drafting business plans, gathering funding, drawing up plans, permitting, interviewing contractors, and making sure everything’s in place for your new construction project. Now, it’s time to sign on the dotted line with that contractor so work can get started.

Before you do, be sure to check the contract you’re signing, so it includes all the important items to protect yourself, your project, and your contractor should anything happen. If any of these items are missing or not favorable, consider renegotiating.

Remember, good contracts make for good projects. Here are the 7 things your contract for commercial contracting services should include, at bare minimum:

The Scope of Work

You can’t have an agreement for work to be done without defining what that work is!

This section outlines exactly what you and your contractors’ responsibilities are for the project, so everyone knows when something is and isn’t within the scope of the contract. This minimizes disputes, delays, confusion and ultimately protects you so you don’t get charged extra for an item that should have been included. Inversely, it protects the contractor from being asked to do extra work for free.

You’d like to think that the initial quote for the work is all that the project will cost, but the reality is you may change your mind on something, want to add an element, or the contractor may uncover a concealed condition after the work starts. Change orders are common on construction projects, and the process should be common as well. Add a clause in the agreement that details how changes are agreed to, as well as the contractor’s hourly personnel rates associated with the project and allowable percentage of markup for overhead, insurance and fee on subcontract costs, equipment, and materials.

A List of Contract Documents

Often referred to as “plans” or “blueprints,” it might seem obvious that your contract documents and specifications are included in your contract. Still, it’s important to record all documents specific to your project. Consider that during the bidding or permitting processes there may have been a few rounds of revisions to plans, addenda, specification clarifications, RFI’s, and more. You want your contract to reflect the most up-to-date data so that everyone involved is working off the correct documentation. Here’s a list of key items you should include:

  • Most recent set of construction drawings
  • Most recent specifications
  • Exhibits – these may include:
    • The final contractor’s bid proposal – with any qualifications, allowances, or unit costs to the bid
    • Insurance or bonding requirements may come from one or a combination of the following: your insurance carrier, financial institution, or landlord if you are leasing the property
    • Payment application
    • Waivers
    • Special Safety Requirements
    • Rules and regulations for construction

A Schedule

No one likes to get all excited to have a project finished only to see the scheduled opening date blown by poorly managed contracting services.

Both you and your contractor have dates that need to be met.

You are relying on your contractor to finish up their portion of the work so you can bring in furniture, merchandisers, staff, and paying customers. Your contractor needs to know the overall deadline by which all this work must be completed and the necessary milestones along the way so they can order supplies, maintain necessary staffing levels, and schedule different phases of your project without delays.

Even if a full bar chart CPM (critical path method) schedule has not yet been developed, a baseline schedule outlining substantial and final completion dates should be included. Your contract should stipulate that the contractor provide a detailed schedule within a specific period of time and must include all the important deadlines for your project, for example:

  • Submittal and materials ordering timelines, including identifying long lead items
  • Mobilization of the physical work
  • Dates different phases of work need to be completed, including critical progress inspections
  • Date for total project completion

The Payment Terms

Along with the payment method, your contract should include due dates for each payment.

Are your invoices due immediately upon receipt, or are they NET 30 from receipt? Does the Architect review the payment applications against the schedule of values to ensure that the cost requested coincides with the work that was completed? What happens if you forget and go past a payment due date? Is there a late fee? Does work stop on your project until your invoice is paid in full or other penalties for loss of financing?

In addition to the numbers, your contract should include how your contractor will be paid, with a standing day of the month that pay apps or invoices are expected to be received. This way, you know how and when your contractor wants to be paid so you can plan accordingly.

Historically, money is the biggest source of contention on a construction project, so this information should be spelled out in your contract in detail so there is no confusion over payments.

Construction Lien Law Protection

In many states, if your contractor doesn’t pay the people they hire. For example, employees, subcontractors, and material vendors – these groups can, within a certain time, put a lien against the property for non-payment.

Liens or even the threat of liens can be costly and difficult to manage. If not properly addressed, liens can result in the property being suspended from refinancing, suspended from a sale, or worse, to satisfy the unpaid debts. This can also cause complexity for future financing.

Your contract should include a stipulation that protects you from liens in exchange for payments. This documentation can reduce or eliminate your risk of being party to lien filings should they arise because of non-payment.

Good contract practice would be to have the contractor provide a list after a set period of all parties providing labor or materials and requiring the contractor to provide lien release affidavits notarized from these parties at each progress and final payment.

License Number

Always work with a licensed contractor to protect yourself.

Your contractor should include their state license number somewhere on the contract, so be sure to look for it. If it isn’t included, find a licensed contractor to do the work, no compromise.

Disputes & Termination

While you don’t want to think about it happening, disputes do sometimes arise during a commercial construction project.

Your contract should include information on how such disputes should be handled, such as whether they should be arbitrated or head straight to court for litigation. If one party doesn’t uphold their end of the contract, such as your contractor refusing to perform contracted work or you failing to pay a bill, the contract can be terminated.

All contracts should contain a section about the process of how disputes should be handled, as well as any information on termination of the contract by one or both parties must be included.

If you have any questions or need assistance drafting your contract, we provide a free initial consultation and expert preconstruction and contracting services to developers, owners, tenants, general contractors, sub-contractors, trades, vendors, and suppliers.

Here are industries best two organizations to obtain information, resources, and standard contract templates for your next project:

Commercial Contracting in Maryland & Beyond

At Contour Construction, we take pride in providing exceptional quality of work paired with above-and-beyond customer service. Whether you need someone to handle one portion of your commercial construction project or the entire process, our team has what you need to get your new venture up and running, on time, and within budget. Contact us today to discuss your project!
#BUILDINGDESTINATIONS

What Should Be Included in Your Commercial Contract? Read More »

Commercial construction is a complex process that even those in the industry oftentimes do not fully grasp. Even if it’s been a year or so since your last major project, we see seasoned developers and local and federal government agencies confused in this time due to increasing regulation, material shortages, inflation, supply change disruptions, and a growing labor crisis. If you’re new to commercial construction, the number of questions you have may feel overwhelming.

Here we have gathered a few of the most frequently asked questions about commercial construction and provided answers from the experts!

What Happens in the Pre-Construction Stage, and Why Is It Important?

Many people have heard of the pre-construction stage and how vital it is to the success of a project. But not as many people understand what this stage entails, or why it is so important.

The pre-construction planning stage is a critical opportunity for the client to work together with the contractor, design, engineering teams, and stakeholders to establish an owner’s program, minimize the owner’s risk, and ultimately set the project up for the best chance of success. This stage figures out all the information required to fully understand the scope of the construction with the end in mind and gives an owner the information needed to make the most informed decisions.

Some examples of Pre-Con tasks may include: 

  • Site selection
  • Existing condition assessments
  • Cost analysis
  • Owner risk management
  • Systems design
  • Sustainability
  • Identification of long lead items
  • Site limitations & constraints
  • Overall project budget
  • Schedule
  • Contingencies

Identifying, discussing, and solving issues such as these on a project before any construction work begins will minimize the chance of mistakes or unforeseen expenses, giving you a better-built project and a shorter duration of the build.

How Long Does a Commercial Construction Project Take?

There is no set timeline for every commercial construction project. Depending on the scope of the project, constraints, phasing, and access to the site, the project can take anywhere from a couple of weeks for some cosmetic finishes to years for larger development and complex historic adaptive reuse.

Renovating an established business site is one of the fastest and lowest costs of entry to your construction project, but more often than not, the design & permitting can take longer than the actual construction work, or an important specialty component may take longer to order, manufacture and deliver to the job site than the overall duration to complete the job.

The key is to identify the items that will drive the schedule, commonly known as the “critical path,” and ensure these items are watched, measured, and accounted for as the project progresses. Many times an owner may be presented with alternate materials and methods from the original components chosen, to eliminate lag in the schedule or workflow.

How Can Commercial Construction Be Environmentally Friendly?

These days, creating space is not just about appealing or functional design. The construction process also needs to be environmentally friendly in order to protect our planet and become a healthy environment in which we spend our time.

Many advancements have come in the way of eco-friendly commercial construction practices. One way contractors can be more green is by recycling any reusable parts from the existing space. Structural elements are often reused due to their stable nature, longevity, and high cost.

Selecting sustainable materials that have recycled content and low VOC’s. Bamboo, hemp, and composites are excellent alternatives to wood that may be sourced through non-sustainable forestry practices. When selecting wood products, following guidelines such as those prescribed by the Forest Stewardship Council, ensures harvesting is done in a sustainable manner to protect the planet’s forests.

Locally-sourced materials and products can also be requested. Not only is this good for the environment by reducing transportation and carbon emissions but it also bolsters local economies in the United States often saving you time and money on the project as well, rather than waiting for things to be delivered from overseas.

How Can I Choose the Best Commercial Construction Company for My Business?

Choosing a commercial construction company can seem difficult. We recommend opting for local businesses which put community and professionalism at the heart of their business and have core values that put your best interests first. Finding companies that have excellent reputations and first-class programs is not difficult. Just ask for references, project portfolios, a written technical approach to projects, and a sample schedule, meet them in person, and trust your instincts.

Commercial Contracting Services in Maryland and the Mid-Atlantic Region

If you’re looking for a commercial contractor in Maryland, Pennsylvania, Virginia, or Washington, DC, Contour Construction is here to help. We offer expert construction services and are here to be your one-stop shop for your entire project. From the pre-planning stages to the final inspection, we can turn your next vision into a reality. Give us a call or drop us a line to see how we can help.

Want to see some of our latest projects? Click here to see what we’ve been up to lately!

4 Frequently Asked Questions About Commercial Construction Read More »

You’ve got big dreams and the financing to back your new project. Whether opening a restaurant or retail store, finding the right property for your business is essential to getting things off on the right foot. Before moving in, you must navigate the commercial leasing process. If you’ve ever purchased a home, you may think you understand the process. However, commercial leases are more complex and involved than residential real estate transactions and require special considerations. Here’s what you need to know about securing a commercial lease before you sign your name on the dotted line. 

Types of Leases

Before you can negotiate a lease, know that there are different types of leases. There are three main types for commercial properties: percentage, net, and gross. A percentage lease means you pay a base rent amount per month or year, then a percentage of your sales over a certain dollar amount. This type of lease is common for retail spaces. Net leases mean paying the per-square-foot base price plus some or all of the property’s expenses. This could be taxes, insurance, and maintenance. What’s included in the lease varies from property to property. A gross lease includes all fees, including any share of utilities, taxes, and maintenance, within the per-square-foot price.

Find an Experienced Real Estate Broker

Because commercial leases are a different beast than residential real estate transactions, a real estate broker or agent experienced in the commercial leasing process is a must. The right real estate broker can help you find properties that meet your needs and walk you through other considerations, like the zoning process. Interview brokers before you select one to work with to ensure they’re experienced in helping tenants secure leases. The landlord, not the tenant, pays the broker’s fees, so there’s no reason not to hire one. Because their commission is based on the overall cost of the lease when signed, some may try to talk you into the most expensive lease possible. Stick to your plan. Don’t go so far over your budget that you’ll find yourself in a difficult financial position.

Read the Lease

The first copy of the lease will be written mainly in favor of the landlord. This is in hopes that you read and sign without considering the effect its terms and conditions may have on you. In some cases, it may be in your best interest to hire an attorney experienced in commercial leases to negotiate the terms on your behalf. By the end of the negotiation process, your lease should balance the landlord’s needs with the tenant’s, with all parties making concessions here and there.

Negotiate the Lease

Once you’ve read the lease and have an idea of things you’d like to negotiate, it’s time to go back to the landlord to hammer out the details.  Some of the things to negotiate in a commercial lease include:
  • The length of the lease – Shorter-term leases are more favorable for tenants. You can break them faster if you close your business, face financial difficulties, or the space no longer suits your needs. However, having a short-term lease also means you risk losing your space if the landlord decides not to renew it.
  • How rent increases are handled – Many landlords try to work annual increases into your lease based on the consumer price index or another measure. Be sure you fully understand any increased structures before you sign off on a lease.
  • Alterations – Find out who’s responsible for making and paying for maintenance and modifications to the space and what you’re allowed to change. Don’t wait until renovation plans are in place to discover that you can’t add extra walls or change the flooring.
  • Signage – Your customers need to see clearly-branded signs directing them toward your space. Be sure your lease outlines what types of signs are allowed and where they can be located.
  • Sublease clause – If you cannot pay your rent––for going out of business or needing to downsize dramatically––it’s best to have a sublease clause that allows you to rent to someone else who can pay.
  • Exit plan clause – You may need to break your lease, for instance, if you have to move and can’t find someone to sublease to. Try to negotiate the lowest early termination fees possible just in case.
  • Assignability: If you sell your business, you may want to assign your lease to the new owner. Try to negotiate this option into your lease.
  • Co-tenancy: Your business may depend on foot traffic from another tenant in the building. If so, negotiate to add a clause allowing you to break your lease if the other tenant leaves.

Commercial Construction Contractors in MD & VA

Now that you’ve successfully negotiated and signed your commercial lease, you need an experienced, detail-oriented commercial construction contractor to handle your remodel. At Contour Construction, we have years of experience working with commercial clients of all types and sizes, giving them the space they need to make their business a success. From initial project managing to full-scale builds, we know the commercial contracting process inside and out. We’ll get your project done on time and under budget. Schedule your consultation today!

Navigating Your Commercial Lease: A Guide Read More »