Every commercial real estate project, no matter the size, is a complex endeavor. With numerous moving parts and stakeholders, it’s easy for certain missteps to derail your plans. However, many of these pitfalls are entirely avoidable with the right preparation, experience, and guidance.
Here are some of the most common issues, and how you can steer clear of them to ensure your project remains seamless and on schedule.
Missed or Misunderstood Requirements: Properly defining and communicating project requirements is essential. The first step is to know exactly what you want and being prepared to effectively communicate the requirements. Misunderstanding the level of detail that the vendors need from you and when, can lead to costly changes and delays. Ensure all stakeholders are on the same page from the outset by holding comprehensive planning sessions and maintaining clear, consistent communication throughout the project.
Insufficient Budget Planning: Assuming costs will be minimized or received at a reduced rate because either the project is “not that big” or you believe you will receive a discount based on an existing relationship, will halt progress and compromise quality at some point during the project life cycle. Be meticulous in your budgeting process and consider all potential costs, including unexpected contingencies. Regularly review your budget against actual expenditures to stay on top of budget management.
Industry Standard Lead-Time Awareness Rarely, if ever, will your procurements be readily available on demand. Being unaware of industry-standard lead times can result in unrealistic expectations for project completion. Engage your vendors early on to understand these lead times and plan your procurement schedule accordingly. Having a buffer in your timeline for unexpected delays will help mitigate risks.
Improper Vendor Task Sequencing: These commercial real estate projects involve multiple vendors that are dependent on one another to start and finish their task responsibilities on time and in order. Improper sequencing can lead to inefficiencies and oftentimes, rework. Develop a detailed project schedule that outlines each task, its dependencies, and deadlines to ensure smooth coordination and execution.
Misunderstanding Site Readiness: Site readiness is more than just having completed construction of the new space. It involves ensuring the site meets all regulatory, safety, and business use requirements. Misunderstandings here can lead to delays. Additionally, Quality Control (QC) plans need to be executed to bring the technology networks back online and production lines into compliance with client Service Level Agreements (SLA’s).
By being proactive and addressing these common missteps, you can significantly improve the efficiency and success of your projects.