As many of you may know, Englewood Construction recently completed Zara’s largest store in the United States at 700 N. Michigan Ave. in Chicago. For those familiar with Chicago, you may also know this store offers a prime corner location on the city’s famed Magnificent Mile. But what I want to do is tell you […]
About Chuck Taylor
Posts by Chuck Taylor:
I’ve got to ask, are you still competitively bidding the bulk of your commercial construction projects? Really, you are? Interesting….
Sure, I know there will always be developers who competitively bid all their projects, but from a construction cost and timeline perspective, it pays to negotiate with a designated general contractor versus requesting multiple bids on a construction project. And here’s why:
For a number of reasons – usually cost, location or a lease agreement – commercial real estate owners are opting to refresh or remodel their retail stores, restaurants and hotels instead of building new-construction projects.
In fact, just recently Disney announced plans to completely transform its 340 stores in the United States and Europe from Disney Stores to Imagination Park, http://bit.ly/14YNxn.
Regardless for your reason to remodel, you need to realize that a renovation is a completely different animal than building new construction.
For example, during a new restaurant construction project, owners are responsible for providing the majority of the supplies and drawings while the general contractor executes the work.
Is Your Vertical Retail Construction Project a Mess or a Success?
Some may disagree, but we at Englewood Construction think the challenges commercial developers face in opening a store in a vertical mall are more complex than any other type of retail store construction.
Why? Because a vertical shopping center can be made of many floors within a tight city block foot print that has only one opening (and if best two elevators) where all goods, materials, and debris can enter and exit. Coordinating traffic and usage between retailers, building operators and construction personnel can make or break the project.
Key Steps Commercial Developers Can Take to Ensure Their Contractors are Financially Stable
In today’s market there’s no such thing as too much due diligence – especially when it comes to checking the financial stability of your contractors. Whether you’re hiring a general contractor, architect, engineer or some other consultant, their ability to pay their subs directly and on time affects the success of your commercial construction project.
For example, if your general contractor falls behind on paying their sub contractors, or they don’t pay them at all, then those subs have lien rights that you as the developer or your tenant will have to pay the sub contractor or defend your rights as a property owner.