CHECKLIST FOR YOUR TENANT BUILD-OUT CONSTRUCTION QUOTE
So, you have a new lease for your business, and it’s time for the build-out. Whether it’s the first real estate commitment or a location change for your business, a new tenant lease is a milestone moment. Now it’s time for construction!
Whether you’re a landlord who is overseeing a tenant build-out or a business with a tenant improvement allowance, commercial space renovations don’t have to be a daunting task. To eliminate stress, you need to make sure your tenant build-out construction quote has everything you need.
12-Point Tenant Build-Out Construction Quote Checklist
Here is a quick 12-Point Tenant Build-Out Construction Quote Checklist to help ensure you have everything to compare apples to apples and make a sound decision with your construction and roofing quote:
Ensure that the quote clearly defines the scope of work. It should outline what will be included in the construction, such as demolition, framing, electrical, plumbing, HVAC, flooring, finishes, and any special requirements.
Look for a detailed breakdown of costs. The quote should include the cost of materials, labor, equipment, permits, and any other expenses so you understand where the money is going.
Are the labor and material costs included? Are labor rates fair and reasonable? Do the material and finishes meet your quality standards?
Permits and required inspections are one of the top challenges in construction projects today. This can be a significant cost, depending on the project’s complexity and location. Does your contractor have the expertise in the type of project you are completing and your locale?
Time is money, so timelines are a critical component of a quote. Business owners want to get into their space, and landlords typically don’t get paid until a space is occupied, so this is critical for everyone involved. Major milestones should be outlined.
One word helps with the unexpected: contingencies. There is always – always – something unexpected that comes up. A common contingency is around 5-10% of the total project cost. Be sure that you are set up for it.
Did we mention that something always comes up? Your quote should include information about Change Orders. Whether it is a need or a want, all parties should understand the process of changing the scope of the project and the costs associated.
Payment schedules should go without saying, but we had to mention it. In construction, payment is usually made in installments as work progresses and tied to milestones.
All reputable, licensed contractors should carry insurance. If you are a tenant overseeing your own project, ensure you understand the landlord’s insurance requirements before you contract the job.
To help with peace of mind in the event issues arise after the project is completed, be sure your contract includes language regarding warranties.
Contractors need to comply with local building codes and regulations. The construction quote should be responsible and have language regarding obtaining the necessary permits and adhering to all relevant laws.
This is a big expense. You don’t want to be surprised later. Verify the materials specifications in your quote meet your expectations for quality and durability. Cheap materials may lead to problems down the road.
CONSIDER THESE ADDITIONAL POINTS
Additional points for your Tenant Build Out Construction quote: You should also discuss potential risks with the contractor. Understand the retention policy – which is a portion of the payment held back until the project is completed to your satisfaction. Ask for references and review the contractor’s past projects to gauge their experience and quality of work.
Do you need a quote for your upcoming commercial build-out? R&D Construction and Roofing is here for you!
R&D Construction and Roofing is a licensed and insured commercial construction company serving Miami-Dade, Broward, Palm Beach and Monroe Counties and the Tampa Bay area, specializing in complete commercial roofing, build-outs and tenant improvements. We provide an all-in-one construction solution for our customers from start to finish, including: