The building process for a commercial building explained

Planning a new commercial or industrial building can feel complex, particularly if it is your first project or you do not have an internal property or development team.

There are a number of stages to work through, and many of the decisions made early will influence the final cost, programme and performance of the building.

This guide explains the commercial building process from the initial business case through to handover.

Business planning/Development planning

The first stage is to get clear on why the project is happening.

As a business owner or developer, you should define:

• the outcomes you want the new premises to achieve
• the problems the project needs to solve
• the operational gains you are looking for
• how the building needs to support future growth

It is useful to work through these points with your management team and key stakeholders before design begins.

The clearer the business case is at the outset, the easier it is to make later decisions around site, size, layout, budget and design.

Selecting a location

Choosing the right site for your new premises is one of the most important decisions in the project.

In some cases the location will be obvious. In others, a significant amount of due diligence may be required before you can be confident the site is suitable.

Things to consider include:

• Will the location support the long-term needs of the business?
• Is the site likely to benefit from future growth, infrastructure investment or regional development?
• Is the land in the correct planning zone for the intended use?
• Are there covenants, easements, noise limits or other restrictions?
• Could the site shape, topography or access create additional cost?
• What are the ground conditions?
• Are services and utilities available?
• Will the site allow the building to operate efficiently?

A site that appears suitable based on size and price can become significantly less attractive once planning, ground conditions, access and infrastructure are understood.

That is why site due diligence is worth carrying out before committing to the land wherever possible.

Setting a preliminary budget/Capex approval

A commercial development includes far more than the cost of the building itself.

Depending on the project, the total investment may include:

• land acquisition
• earthworks and site development
• utility connections
• consultant fees
• planning and consent costs
• council development contributions
• building construction
• specialist services
• fit-out
• yards, landscaping and external works
• finance and holding costs

A preliminary budget should be established early so the project team understands the commercial parameters the design needs to work within.

It is also important to understand how the project will be funded and whether bank finance, internal capital approval or external investors will be required.

Indicative cost-per-square-metre information can provide an early reference point, but it should not be treated as the final project budget. Site conditions, building use, structural requirements, services and fit-out can all materially affect the total investment.

Conceptual design phase

Once the project objectives, site and preliminary budget are reasonably clear, the concept design phase can begin.

The purpose of this stage is to develop a building concept that works operationally, physically and commercially.

A strong concept process should consider the business operation first.

That includes how goods, staff, customers and vehicles move through the site, what functions need to sit alongside one another, what future growth could look like and where flexibility may be required later.

From there, the project team can begin developing the building size, layout, orientation and site planning.

At this stage, it is important that design, cost and construction thinking happen together.

A concept that looks good on paper still needs to be tested against:

• construction cost
• ground conditions
• planning requirements
• structural implications
• fire requirements
• services
• procurement
• buildability
• programme

At Attika, this work is managed as one integrated design-and-build process, with the commercial, design, engineering and construction teams involved from the outset.

That allows decisions to be tested while there is still room to change them, rather than discovering their cost or construction impact later.

Planning and site checks 

As the concept develops, the project team should complete the necessary checks on the site.

These may include:

• property titles
• covenants
• consent notices
• easements
• planning rules
• height and boundary controls
• access requirements
• utility connections
• stormwater requirements
• geotechnical conditions

These checks help establish whether the proposed building can proceed as intended and whether resource consent or other approvals may be required.

A resource consent or land use consent may be needed where the proposed activity or building does not comply with local planning rules.

Examples can include:

• building activity
• earthworks
• coastal or flood zones
• building envelope infringements
• access or traffic matters

Understanding these requirements early can prevent significant redesign later.

Budget check and project validation 

Once the concept has developed far enough, the project should be checked against the budget again.

This is an important stage because it allows the owner to test whether the proposed design, site works, services and construction requirements are still aligned with the commercial case.

The project team should also identify any remaining unknowns and establish what information is needed to resolve them.

Depending on the project, this may include further geotechnical investigation, specialist engineering, supplier input, subcontractor pricing or council advice.

The purpose is to progressively replace assumptions with real information before major capital is committed.

Developed design 

During developed design, the concept is turned into a coordinated set of technical drawings, specifications and consultant information.

The required consultants will vary depending on the building, but may include:

1. Fire engineer
2. Geotechnical engineer
3. Structural engineer
4. Civil and stormwater engineer
5. Mechanical and electrical consultants
6. Interior designer
7. Accessibility consultant

The architectural, structural, civil, fire and services information needs to be coordinated so the building can be consented and constructed efficiently.

This is also where ongoing cost control becomes particularly important.

As the design develops, changes to structure, materials, services or detailing can materially affect the budget.

Having cost and construction input alongside the design team allows those implications to be understood before decisions become difficult or expensive to reverse.

Building consent 

Once the developed design and supporting documentation are sufficiently complete, the building consent application can be submitted to the relevant council.

The application will usually include:

• architectural drawings
• structural documentation
• specifications
• consultant reports
• producer statements
• fire information
• civil and drainage documentation

Requests for further information, commonly known as RFIs, are a normal part of the building consent process.

The design team will need to respond to these before the council can complete its assessment.

Having one team coordinating the design and consent process helps reduce gaps between consultants and keeps responsibility clear when responses are required.

Procurement and construction pricing 

As the design becomes more resolved, the project moves into detailed procurement and construction pricing.

In an integrated design-and-build process, pricing should not begin for the first time at the end of design.

Cost information should have been developing alongside the project from the earlier stages.

At this point, the team can confirm construction pricing using current subcontractor, supplier and market information.

This may include pricing for:

• structural steel
• concrete
• earthworks
• cladding
• roofing
• services
• fit-out
• specialist equipment
• external works

The aim is to establish a realistic and well-supported construction cost before work begins on site.

Construction 

Once the project is sufficiently resolved, approvals are in place and procurement is underway, construction can begin.

The sequence will vary between projects, but the construction phase commonly includes:

1. 1. 1. 1. Site preparation, such as clearing the site, earthworks, forming the building platform, drainage
            services and temporary site facilities
         2. Foundations
         3. Structural frame
2. Roofing and wall cladding
3. Office and specialist façade construction
4. Building services
5. Internal fit-out
6. External works, yards, landscaping and car parking

Procurement planning is important throughout this phase.

Long-lead materials, specialist products and equipment need to be identified early enough that they do not affect the construction programme.

A coordinated delivery team should be managing both the physical works and the decisions required from the client as the project progresses.

Completion and handover 

As construction nears completion, the contractor will work through defects, finishing items and outstanding works.

This is commonly managed through a practical completion or defects process.

Typical items may include:

• paint finishing
• minor cracking
• damaged finishes
• fittings
• door adjustments
• services commissioning
• final landscaping or external works

Council inspections and final documentation will also need to be completed before the Code Compliance Certificate can be issued.

At handover, the client should receive the relevant project documentation, warranties, producer statements, operating information and other records required for the building.

In conclusion

A commercial building project moves through a number of connected stages, from the original business case and site selection through design, approvals, procurement, construction and handover.

Each stage affects the next.

The projects that move most effectively are generally the ones where the key decisions are understood early, the right information is available when it is needed, and responsibility for coordinating the process is clear.

Attika brings planning, design, engineering, cost and construction together in one integrated process, giving business owners a single team responsible for the development from the early stages through to completion.

If you are planning a new commercial or industrial building and want to understand what the process could look like for your project, talk to the Attika team.