After working on commercial, industrial, and institutional construction projects for years, we’ve come to believe that most project challenges don’t begin during construction.

They begin months earlier.

Long before equipment arrives on site. Long before foundations are poured. Long before the first subcontractor mobilizes.

More often than not, the issues that impact cost, schedule, and project success can be traced back to decisions made during planning, site selection, budgeting, and design.

A utility requirement wasn’t fully understood.

Site conditions weren’t thoroughly investigated.

Infrastructure improvements weren’t accounted for.

Permitting timelines took longer than expected.

Individually, none of these challenges are unusual. The problem is that by the time they surface, significant time and money have often already been invested.

As builders, we’re frequently brought into projects after many of the major development decisions have already been made. That perspective has given us a front-row seat to the factors that most often influence project outcomes.

The good news is that many of these challenges can be identified much earlier.

That’s one of the reasons we created McRae’s Developer Feasibility Package—to help owners, developers, investors, and project teams evaluate projects through the lens of construction before major commitments are made.

The goal isn’t to eliminate risk. Every development project carries risk.

The goal is to identify potential challenges early enough to make informed decisions while there is still flexibility to adjust.

Here are ten of the most common issues we’ve seen influence projects long before construction ever begins.

1. Falling in Love With a Property Before Understanding It

Every developer has encountered a property that looks great on paper.

The location is attractive. Traffic counts are strong. Demographics align with the business plan. Everything appears to make sense.

What often remains unknown is what it will actually take to develop the site.

Utilities, grading, access, stormwater management, environmental requirements, and infrastructure improvements can significantly impact both cost and schedule.

A great location doesn’t automatically translate into a great development opportunity.

2. Focusing on Purchase Price Instead of Total Development Cost

The acquisition cost is usually the first number everyone sees.

It’s also one of the least important numbers when evaluating overall project feasibility.

We’ve seen inexpensive properties require substantial utility extensions, road improvements, and site work that dramatically increased development costs. We’ve also seen higher-priced sites become excellent investments because much of the necessary infrastructure was already in place.

The real question isn’t what the land costs.

The real question is what it costs to deliver the finished project.

3. Moving Into Design Too Quickly

Everyone enjoys seeing floor plans, renderings, and conceptual layouts.

The challenge is that design often begins before enough information is available about the site itself.

The most successful projects allow site realities to influence the design process. When the design drives everything else, teams often find themselves redesigning portions of the project later as site constraints become clearer.

Early evaluation often prevents expensive redesigns down the road.

4. Underestimating Utility Requirements

Utility availability can have a significant impact on project feasibility.

Water capacity, sewer availability, electric service, gas service, and telecommunications infrastructure all deserve careful evaluation early in the process.

Many projects discover utility limitations later than they should.

Unfortunately, utility upgrades and extensions rarely become less expensive over time.

5. Assuming Existing Infrastructure Can Support the Development

The property itself is only part of the equation.

Road improvements, turn lanes, sidewalks, stormwater systems, detention requirements, and traffic considerations frequently influence both cost and schedule.

A site may appear ready for development while still requiring substantial off-site improvements before approvals can be obtained.

Those costs often surprise teams that focus solely on the property boundaries.

6. Ignoring What Lies Below Ground

Some of the largest project surprises are hidden beneath the surface.

Soil conditions, groundwater, rock formations, undocumented fill material, and existing underground infrastructure can dramatically affect construction costs.

By the time these conditions are discovered during construction, options become limited and costs tend to increase.

Understanding subsurface conditions early provides a clearer picture of project risk.

7. Waiting Too Long to Evaluate Constructability

A project may work perfectly on paper while presenting significant challenges during construction.

Site logistics, access constraints, staging areas, utility conflicts, scheduling concerns, and sequencing requirements all affect how efficiently a project can be built.

Constructability reviews often uncover issues that don’t appear during traditional planning and design discussions.

The earlier those conversations occur, the more opportunities exist to improve outcomes.

8. Assuming Permitting Will Be Straightforward

Every project team hopes for a smooth approval process.

Reality we find is often more complicated.

Municipal reviews, agency approvals, utility coordination, zoning requirements, environmental reviews, and permitting timelines frequently influence project schedules more than anticipated.

Ignoring those realities doesn’t make them disappear.

Understanding them early allows teams to build more realistic expectations and schedules.

9. Building Budgets Around Assumptions

Every project begins with assumptions.

The challenge is knowing which assumptions are reasonable and which ones need validation.

The more uncertainty built into a budget, the greater the likelihood of future surprises.

Good budgeting isn’t about predicting the future perfectly.

It’s about reducing unknowns before they become problems.

10. Treating Due Diligence as a Checklist

The most successful projects don’t approach due diligence as a box-checking exercise.

At McRae we use it as an opportunity to challenge assumptions.

To ask difficult questions.

To investigate potential risks.

To uncover issues while there is still time to respond.

In many cases, the value of due diligence isn’t what it confirms—it’s what it reveals.

Why We Created the Developer Feasibility Package

After years of watching projects succeed, struggle, pivot, and evolve, we’ve learned that many of the most expensive surprises in construction aren’t truly surprises at all.

They’re simply challenges that weren’t discovered early enough.

That’s why we created McRae’s Developer Feasibility Package.

The package is designed to help project teams evaluate development opportunities through the lens of construction before major commitments are made.

By reviewing site conditions, utilities, infrastructure requirements, constructability concerns, permitting considerations, and potential cost drivers, we help clients gain a clearer understanding of what it may take to successfully move a project from concept to completion.

The objective isn’t to eliminate risk.

The objective is to replace assumptions with information.

Because in our experience, the best projects are built long before construction begins.

They’re built through thoughtful planning, informed decision-making, and a willingness to ask difficult questions before the stakes get higher.