Factors that Could Increase Commercial Construction Cost

A commercial construction

Commercial construction projects vary greatly from other construction projects and ventures. They are often considered mega-projects that require a large workforce, hefty equipment, and extensive planning. In addition, commercial construction projects take more time to complete than a regular size building. They could take months, even years depending on their size, site requirements, and needs.

The one thing that no owner or contractor would want to happen is a delay. A slight delay in the construction process could cost you in terms of money and time. That’s why you must have prior knowledge about the factors that could affect the cost of your commercial construction project.

Major Cost Affecting Factors on Commercial Sites

There are various factors that could influence a delay and raise the construction cost. Some of these are obvious like land possession or acquisition of legal permits. As an owner, you must talk about these factors while hiring a Commercial Construction company or contractor.

These factors aren’t the same for every project and could vary from site to site and project to project. 

Factors that Could Increase Commercial Construction Cost

We’ve enlisted some of the major cost affecting factors that could affect your project budget. You can curtail these factors in advance, with better management and efficient teamwork.

1. Accessing the Construction Site

If your site doesn’t have proper route access, the construction cost will probably go up. It would delay the delivery process of equipment, materials, and workforce. This would eat up time and you would require more labor to complete the project.

One other way is the construction of temporary rods for easy access. In this manner, you could ensure the fast transport of equipment, materials, and workforce to the site. However, building temporary roads will raise construction costs as well. So, you must consider the difficulty of access while starting a commercial construction project.

2. Remote Construction Site

The distance of a construction site from the city is also an important factor. You could face a shortage of labor if you are constructing a building in a remote area. You may have to commute the workforce which intron would increase the overall project cost. Similarly, the transportation of materials and equipment would also cost you additional money.

3. Traffic Problems

Building a commercial project in an urban area also has demerits that could cause a delay. Extensive traffic could disturb the transportation of materials and equipment to the site. This could increase construction costs as you have to deal with the traffic problems.

4. Noise restriction in Residential Areas

You may have to deal with the noise restriction issue if your site is in a residential area. In such cases, contractors are required to use construction equipment that generates limited noise. This simply means that you would have to acquire selective equipment which could be expensive to get.

For example, you may not be allowed to use diesel pumps to dewater the excavation. Subsequently, you would need expensive pumps and equipment to carry out the process.

5. Working Hours Limitation

In residential areas, there is usually a limitation on working hours. As a result, this restriction would increase the number of working days and could prolong the construction process. In addition, if there’s a restriction on daylight working hours, the construction cost would increase more.

6. Site Development Limitations

Sometimes, contractors have to face limitations on how the site should be built in a residential area. Such restrictions not only reduce the construction rate but also influence the selection of equipment. Site development limitations could be a major factor that may affect your commercial construction cost.

7. Excavation Near High Level of Groundwater

If your construction site is near high-level groundwater, the excavation cost would be higher. A higher groundwater level makes the excavation process difficult and hence costs more. For example, excavation near a lake, stream, or river is always a difficult process.

8. Borrow Pit Permit Requirements

Borrow pit requirements usually take time and often cost much. Plus, you would also have to consider and comply with various environmental laws as borrowing construction material could influence the environment.

9. Short Contract Period

A short construction period could result in higher construction costs because of increased equipment and workforce. Labour would also be working for longer hours and night shifts, whereas, you would also have to maintain and hire the equipment for them.

10. Weather Conditions

Bad weather is among the major factors that could affect the construction process. Continuous precipitation or rain would result in a short construction season which will increase the overall construction cost.


We hope you have found this commercial construction article interesting and informative. The above-mentioned factors could cause a delay in the construction process and cost you money. However, you can make a feasible strategy to curtail these factors and ensure a smooth construction process.