Commercial Construction Planning: Get Your Project Ready to Build

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Commercial construction planning should give you four clear answers: the space your business needs, the work the property requires, the full cost, and a workable path to opening. We call this early work preconstruction. Settle those points before you approve a final design or building contract.

McRae Enterprises serves business owners from New Albany, Indiana, across Southern Indiana and the Louisville area. Our commercial construction services include new buildings, renovations, and tenant improvements. Each starts with a different property, but the owner needs the same thing: enough detail to make the next decision with confidence. 

Use this planning guide to move from a business idea to a scope that a designer can draw and a builder can price. The goal is a useful plan, with one person in charge of each open task.

Start your construction plan with the way your business works

“We need 8,000 square feet” leaves many design questions open. A service business also needs to explain its truck fleet, parts storage, staff count, and daily deliveries. A medical practice needs to map patient flow and list equipment. The team can then place rooms and utilities.

We suggest a one-page project brief. Give the designer and contractor the same version. Both should price the same business need.

Put this in the briefMake it specific enough to use
PurposeAdd two exam rooms, combine two locations, or create indoor storage
Daily useStaff and visitor counts, hours, deliveries, and equipment
SpaceRequired rooms, clear height, parking, loading, and future additions
MoneyTotal funding limit, owner purchases, and lender deadlines
DatesLease end, access date, and target opening, with the reason for each
DecisionsOne budget approver and one daily contact

Separate opening-day needs from later improvements. If a future machine will need more power, the design team can weigh the cost of preparing for it now. That choice has more value than cutting space at random after the first estimate comes back.

Test the property before you settle on renovation or a new build

A good address still needs to support the work inside. For a warehouse, truck access and clear height may settle the choice. For an office, room layout, parking, and accessible entry may matter more.

Compare commercial renovation and new construction against the same brief. Include an addition or leased-space build-out if either could meet your needs. A low sale price does not settle the full project cost.

For vacant land, check the work outside the building

A site review should address use approval, access, soils, drainage, utilities, parking, and room for trucks to turn. A nearby utility line does not prove that service will fit. Check the capacity and service date.

Tie each open issue to an action. A soil concern calls for a soil engineer to review the site. A power question calls for load information and a utility response. Put the fee and time for those checks in the planning budget.

At the CRS headquarters in Jeffersonville, McRae Enterprises used 45 deep micropiles to address challenging soil conditions. The practical lesson starts before construction: price the ground work as part of the building decision.

For an existing building, check the parts you plan to keep

Have the right experts check the roof, structure, heating and cooling, electrical service, plumbing, and fire protection. Match each system to your proposed use. A building that served the last tenant may need changes for your business.

For leased space, create a landlord task list. It should assign roof work, service upgrades, repairs, signs, and access dates. Your lease adviser should also check the rent start date and any tenant improvement allowance. Keep those dates and duties beside the construction plan.

Build a project budget that includes opening the doors

The builder’s contract covers its written scope. Your funding plan may also need design fees, surveys, permits, utility charges, furniture, business equipment, moving, and financing. Give each expense one place in the budget.

We recommend three separate totals: the current building price, the full project budget, and the funds available. That makes a funding gap visible before you approve more design work.

Use the commercial construction cost worksheet to separate contract work from owner costs. Keep a reserve for open risks. Hidden damage or an open utility question may need one. Choose that reserve from the actual risks and contract terms.

Each estimate should identify the drawing date, floor area, finish level, pricing date, and exclusions. As the plans take shape, replace assumptions with measured quantities and trade pricing. Keep the prior estimate so the team can explain each change.

Price choices while they can still change the design

Suppose private offices push the budget beyond your limit. The team can compare fewer offices, different wall systems, or a smaller first phase. Each option should show the cost change, sound control, future use, and schedule effect.

Record the choice and update the drawings. A savings list does little good if the pricing team and field crew still work from the old plan.

Choose the construction team and assign the handoffs

In a common general contracting arrangement, the owner hires the designer and builder through separate agreements. With design-build, one contracted team handles the agreed design and construction work. The scope of each agreement still matters.

Our design-build construction service brings those discussions into one team. Owners who already have plans can discuss the remaining design work and construction scope with us.

Use a task list to settle the handoffs that cross company lines:

HandoffAssign the work before it becomes a field task
Business equipmentOwner selects it; named parties supply, connect, and start it
Utility serviceDesigner defines demand; provider confirms service; contract assigns site work
Permit commentsNamed designer answers; project lead tracks cost and schedule effects
Landlord workLease and construction scope show the same access and completion dates
Internet and securityVendor and builder agree on pathways, cabling, power, and testing

Select the team using relevant work. An active clinic renovation calls for different planning than a vacant warehouse shell. Review a matching case, the proposed field lead, and references the client permits you to contact.

Turn the construction proposal into a clear scope agreement

A useful proposal names the documents behind the price, included work, exclusions, allowances, payment terms, and schedule assumptions. The total means little until those items line up with your brief.

During your commercial construction proposal review, assign every required exclusion to someone. An excluded utility connection still needs a price and a person responsible for it.

For allowances, check material, labor, freight, tax, and fees. For optional work, record whether you accept or reject each item. Carry the final choices into the contract set. Have your legal adviser review the binding terms, including changes, payment, delays, and dispute procedures.

Plan the opening date from the last task backward

Public opening may follow field completion by several tasks: inspections, approval to occupy, internet setup, furniture, staff training, and stocking. Name those tasks before you announce a date.

Build the commercial construction timeline around the work that controls completion. Electrical gear may need an early order. A utility connection may need a separate service request. A finish choice may matter less than either one.

For each owner decision, record a due date and the work it releases. “Approve equipment data by June 3 so electrical design can finish” gives your team a reason to act. A general request to make selections does not.

Keep the permit path tied to the property address

For New Albany work, use the city’s Building Department as a local starting point. The design team should identify the other reviews your use and site require. Indiana state plan review may also apply.

The Indiana Department of Homeland Security changed its plan review policy effective July 1, 2026. Have the design professional check the current filing route. State review and local permits remain separate planning tasks. Louisville-area projects need the checks for their own Kentucky address.

Keep an occupied renovation workable for staff and customers

An operating plan should show entrances, work zones, delivery paths, emergency access, and agreed shutdown times. Assign the staff contact who will share each change.

McRae Enterprises’ New Albany Housing Authority renovation involved multiple phases in an active facility. Phased work can keep useful areas open, but the budget and schedule must cover repeat setup, temporary protection, and moves between zones.

Compare that plan with a short closure or temporary move. Keep your business costs separate from the builder’s labor costs so you can judge the full choice. Include your own vendors in the access plan.

Track construction changes and closeout in the same project file

During the build, keep a change log with the scope, reason, cost, time effect, and approval status. Follow the contract’s process for routine changes and urgent work. Keep pending requests visible without treating them as approved spending.

Start the handoff list early. Your staff may need equipment manuals, warranty contacts, keys, access codes, training, and drawings that record the completed work. Assign punch-list items to a person and a target date.

Our construction process lists an 18-month warranty. Review its coverage, exclusions, and start date in your agreement. Keep any separate product warranties with the equipment records.

Bring a useful starting point to your planning meeting

You can start before every detail is final. Send McRae Enterprises the property address or shortlist, planned use, rough area, funding range, and target opening. Add available plans, surveys, equipment lists, and lease dates.

Tell us the next decision you need to make: choose a property, test a budget, review a scope, or set a schedule. That gives the first conversation a clear purpose.