Commercial Builder · 7 min read
What pre-construction really is, and why it decides the project before anyone builds
Most of the decisions that make a build-out on time and on budget, or late and over, are made before construction starts. Pre-construction is where those decisions get made on purpose.
Pre-construction in plain terms
Pre-construction is the work a contractor does before building starts to turn a space and an idea into a reliable budget, a realistic schedule and an approved permit. It typically covers due diligence on the site, estimating as the design develops, value engineering, a constructability review of the drawings, a schedule, subcontractor bidding and qualification, and permitting. On a restaurant, medical office or any project with a fixed opening date, it usually pays for itself by preventing redesign, late orders and surprises in the field.
At Harrison Construction, pre-construction is where I spend a large share of my own attention, because I have seen what happens without it. Projects rarely fail on the day the framing goes up. They fail months earlier, when a lease is signed without checking the electrical service, when drawings go to permit without anyone confirming the hood can reach the roof, or when the kitchen equipment is ordered after the permit instead of before. Here is what each step involves and what you should expect to get from it.
Due diligence: finding out what the space is hiding
Due diligence starts with documents and ends with a flashlight. We read the lease work letter to see what the landlord delivers, what the allowance is and what deadlines apply. We look at the landlord's base building drawings and any information left by the previous tenant. Then we walk the space and compare what is on paper with what is actually there.
On the walk we look at where the utilities enter and how large they are, the condition and age of rooftop equipment, the slab and what may be under it, ceiling heights, the roof structure, access for deliveries and whether existing infrastructure such as a hood or grease interceptor is reusable. We also ask the questions the city will ask: is this use allowed here, does the change trigger extra review, and what approvals are needed before a certificate of occupancy can be issued.
Everything found here goes into a short written summary: what is reusable, what must be replaced or upgraded, what still needs an answer from the landlord or the city, and what it means for budget and schedule. That summary is often the most valuable page an owner receives, because it arrives while the lease and the design can still change.
- Lease work letter, allowance and deadlines
- Base building drawings and prior tenant information
- Utility capacity: power, gas, water and sewer
- Roof, structure and rooftop equipment
- Existing infrastructure that might be reused
- Use, zoning and the approval path with the city
Estimating while the design is still a sketch
A conceptual estimate is a budget built from what is known early: the space, the concept, the equipment list and the results of due diligence. It will not be as precise as a final price, but it answers the question owners most need answered early, which is whether the project they have in mind fits the money they have. If it does not, there is still time to change the design, negotiate with the landlord or choose a different space.
As the drawings develop, the estimate is refined at each stage. Each update should show what changed and why, so the owner can see the effect of their own decisions. I explain the items that move a restaurant budget the most in what actually drives the cost of a restaurant build-out.
Value engineering and constructability review
Value engineering means finding a less expensive way to get the same result. Done early, it is a design conversation, not a cut list. It might mean rearranging a kitchen so the sinks sit near the existing sewer line, choosing a ceiling system that needs less framing, or picking a finish with a shorter lead time. Done late, after drawings are permitted, the same ideas can cost redesign fees and another review.
A constructability review is a builder reading the drawings the way the crews will. We look for conflicts between disciplines, such as ductwork drawn through a beam, plumbing that cannot achieve the slope it needs, or details that look fine on paper and cannot be built in the space available. Each conflict found on paper is a change order and a delay avoided in the field.
A development schedule you can plan a business around
The schedule we build during pre-construction covers the whole project, not just the construction weeks. It includes design milestones, landlord approvals, permit submission and expected review time, ordering and delivery of long-lead equipment, each trade, each inspection and the steps to opening. The point is to give you a date you can use to hire staff, plan marketing and talk to your franchisor with confidence.
The schedule also shows what we need from you and when. Finish selections, equipment approvals and franchisor sign-offs all have deadlines, and a decision that arrives late moves everything behind it. If you are still deciding how to involve your architect and contractor, my guide on whether to hire the architect or the contractor first explains how the choice affects this schedule.
Long-lead items: the orders that make or break the date
Some equipment and materials take far longer to arrive than the construction itself takes to build. Exhaust hoods, rooftop HVAC units, walk-in coolers, electrical switchgear, storefront systems and custom millwork are common examples. If they are ordered only after the permit is issued, the crews can finish everything else and still be waiting on a delivery truck.
During pre-construction we identify each long-lead item, confirm its lead time with suppliers and put an order date on the schedule. Where the design allows, we recommend releasing those orders before the permit is in hand, once the owner has approved the selection. It is one of the simplest ways to protect an opening date, and one of the most often skipped.
- Exhaust hoods and fire suppression
- Rooftop HVAC units
- Walk-in coolers and freezers
- Electrical switchgear and panels
- Storefront glass and doors
- Custom millwork and counters
Bidding the work and qualifying the trades
Most of the work on a commercial project is performed by specialty subcontractors: electricians, plumbers, mechanical contractors, framers, drywall and ceiling crews, painters and flooring installers. Bidding means getting competitive prices from them on a clear scope. Qualification means making sure the low bidder can actually do the job, with the right licenses, insurance, crew size and experience with your type of space.
A careful contractor compares the bids line by line, finds the scope one trade left out and another included, and fills the gaps before the price is set. That work is invisible to most owners, but it is the reason a final price holds. A number built on unqualified or incomplete bids is the most common source of change orders I see.
Permitting: submitting, answering and tracking
Permitting is not a single application. A commercial finish-out usually needs a building permit with electrical, mechanical and plumbing review, and a restaurant adds a health department plan review. Projects with a total estimated cost of $50,000 or more must also go through accessibility review under the Texas Accessibility Standards, according to the Texas Department of Licensing and Regulation, which requires a full set of construction documents to be submitted for that review.
Our part is to submit the applications, track their status, coordinate responses to reviewer comments with the architect and engineers, and keep the owner informed. Comment rounds are normal, and the speed of responses often decides how long a permit takes. I walk through the approvals for a restaurant in detail in the approvals a restaurant build-out needs.
Is pre-construction worth paying for?
For a small, simple project in a clean shell with finished drawings, a contractor can often price the work without much pre-construction, and paying for a full program may not be necessary. For a restaurant, a medical or dental office, a first-generation shell or anything with a hard opening date, I believe it is one of the best-spent dollars in the project. A single avoided redesign, an early equipment order that saves weeks or a shell problem found before the lease is signed can be worth far more than the cost of the service.
Ask any contractor who offers pre-construction what you will receive at each step and what it costs. You should get tangible deliverables: estimates at set milestones, a written schedule, a list of long-lead items with order dates, a constructability review and permit status reports. If all you receive is a single number at the end, it was bidding, not pre-construction.
What you should walk away holding
By the end of pre-construction, you should be able to answer the questions a lender, landlord or franchisor will ask you, and you should know where the remaining risk sits. Open communication runs through every step; we keep owners informed at each stage and expect them to push back when something does not make sense.
If you are looking at a space in Dallas–Fort Worth or planning a unit in one of the other states where we are licensed, the best time to start this work is before the lease is final. Even if the lease is signed, starting pre-construction now will protect whatever time you have left.
- A budget tied to your actual space and equipment
- The allowance shown against your own cost
- A schedule that includes permits, deliveries and inspections
- Long-lead items identified and ordered or ready to order
- Qualified subcontractors with complete, compared scopes
- A permit in hand or a clear status on each review
Questions people ask me
What is included in commercial pre-construction services?
Typically due diligence on the site and lease, conceptual estimating, value engineering, constructability review, a project schedule, subcontractor bidding and qualification, and permitting. The exact scope should be written into a pre-construction agreement with defined deliverables.
When should pre-construction start?
Ideally before the lease is signed or while the design is still being drawn. That is when the findings can still change the space you choose, the design or the deal. Starting later still helps, but there are fewer options left to use what it finds.
Is a conceptual estimate the same as a final price?
No. A conceptual estimate is a budget based on early information, used to test whether the project fits the money available. The final price comes once drawings are complete and subcontractors have bid a defined scope.
Does pre-construction lock me into using that contractor?
Not necessarily. A pre-construction agreement can be separate from the construction contract. Make sure it states what you receive and that you can use the estimates, schedule and site information even if you go another direction.
Sources
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- Hiring the trades yourself on a commercial build-out: when it works and when it backfires
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