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What Is The Meaning Of Commercial Construction

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  • Admin
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  • Project, Budget, Contractors, Costs, Bidding
  • Posted date:
  • 14-09-2022
What Is The Meaning Of Commercial Construction

What is the meaning of commercial construction? We look at the types of commercial construction and the commercial construction process.

What Is The Meaning Of Commercial Construction?

What Is Commercial Construction?

Commercial construction is the designing, renovating, and building of commercial structures. These projects use heavy equipment that is funded by developers. Funding can also come from national and local governments.

Developers and contractors will compete for construction contracts by sending out proposal bids. If the plan is more detailed and more accurate, then they are more likely to win the project. 

In order to determine how much money it will cost to break ground and complete the whole build, you must determine the size, scope, and budget of the project. Value engineering is a valuable tool that can be used to predict the most cost-efficient and accurate project plan.

As of March 2020, the United States Census Bureau relayed that over $88,500 million was spent within the commercial construction sector just in that year. That was a $2,229 million, or 2.6 percent, increase from March of 2019.

This increase in spending means there is a much greater need for the maintenance and building of commercial spaces. Below is a look at the three types of commercial construction, as well as the role that they play in the industry.

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What are the Types of Commercial Construction?

What Is The Meaning Of Commercial Construction?

Commercial construction projects can be made to be small-scale, medium-scale, and large-scale in size. These projects can be smaller projects such as restaurants and single-storey offices, to huge high-rise buildings seen in major cities.

Type 1: Small-scale Construction

Commercial construction, when it takes place on a smaller scale, will usually involve projects that centre around the rebranding or altering the look of a property. 

Most projects that are small-scale will be seen as having a focus on the interior renovations of a structure. This can mean taking a space that is a outdated or older and giving it a new lease on life with a fresh appearance, brand new flooring, and sometimes new technology.

Type 2: Medium-Scale Construction

Medium-scale construction involves the upgrading of structures, expanding spaces, and building projects from the ground up. 

These projects are significantly more complex than small-scale projects, such as adding more stories to an already existing building. This means that the project can take much longer to complete, anywhere from several months to a whole year.

Type 3: Large-Scale Construction

Large-scale construction projects are the kinds that develop buildings such as skyscrapers, hotels, airports, government buildings, and roads. Sometimes known as "megaprojects", they are funded by government agencies and major commercial development companies. 

Huge teams will use heavy equipment to add several stories onto buildings and to develop properties on large masses of land. These projects are considered to be long-term, and very commonly take several years to complete.

Commercial Construction Process

Commercial Construction Process


It is very important to consider what the client is wanting out of the project, versus what the client actually needs. This should give you a rough estimate of how much the total project will cost from start to finish. It can be very difficult to give an accurate estimation of the costs involved at this stage of the construction process, but it is very important in order to secure an initial budget the project.


After you have secured the budget, you need to create either 3D models or drawings that you can show to the client to demonstrate how the structure will look when completed. At this point in the process, if the client is not happy with the design then the project will not move forward. This is exactly why communication is so important for those that work within the commercial construction industry. If the project director and the client do not have ample communication then both sides will be disappointed by the end results of the project.


Once construction has begun, the budget and the scheduling of workers needs to be kept under control. If the client suddenly decides to change some of their ideas for the project then this will result in changes to the scheduling and budget of the entire project. Clients who change their minds need to be made aware of any changes made to the budget and the schedule.

Finished Product

When the project is nearing its completion, or even when it is already done, a walkthrough with you and your client needs to be done so that they can inspect the final finished product. Once the client has confirmed that everything is to their liking and deemed acceptable, then all the logistics can be settled. At this point the project will be officially completed.

Every type of construction requires a huge amount of planning, but what exactly is it about commercial construction that separates it away from all the other different types of construction? The major difference between commercial construction and all the other construction types is communication. 

Communicating with the client is incredibly important for all construction projects, but it is especially vital in the world of commercial construction. 

Commercial construction is all about the client's vision for that project. Contractors need to speak with their clients as much as they possibly can in order to achieve this vision and idea. If the communication is present, then there is very little chance that the client will be disappointed by the final end result.

The construction bidding process works by multiple developers submitting bids in order to win a construction contact. The bids are created through construction bid templates, or sometimes construction bidding software, as a way to create proposals. 

The proposals can include items such as the blueprints for the building, projected time tables, budgets, and material line items. Time and weather are also important considerations, as they are two of the most valuable elements in the budget. 

For example, if a snow storm hits and completely halts production then his will add more time and cost to the project.

A construction bid template includes scope of work documents and line item spreadsheets, These documents will outline project estimates with factors such as budgets, projected material costs, and the time tables.

One example of this would be a plumbing line item sheet that would break down and describe all of the bathrooms, facilities, drains, and materials used.

Bidding software is a way to streamline the whole bid development process in a way that is much easier than using templates. The software can keep elements such as inspection costs, payment tracking, build schedules, and job costs all in one location. This helps the contractors create their bids at a much faster rate.

For example, features such as automatic updates will report the daily market costs for required local materials. 

As both bidding processes have the exact same end goal, it is completely down to each individual general contractor which method they would rather use. 

In most cases, it depends on which process they are most comfortable with. Once a contractor has completed the bidding process, the next step is to fund the project.

Are you looking for commercial building contractors in Glasgow and the surrounding areas? Follow the link below to find out more about Commercial Builders in Glasgow.

Commercial Building Refurbishment in Scotland