What’s the Difference Between Commercial Construction and Residential Construction?

Commercial construction requires a different approach than a residential project, including different materials, equipment, and project scope.
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What’s the Difference Between Commercial Construction and Residential Construction?

Professional organizations need additional services that residential construction contractors simply don’t provide. But what makes commercial construction so different from residential construction? Here are the most important differences, which may shed light on why your business needs the expert touch of a commercial contractor.

Clients: Business vs. Homeowners

The main difference between commercial and residential construction is the clients themselves.

Residential contractors work on single-family homes or small apartment buildings with only a few units. Commercial construction companies, on the other hand, oversee larger projects for commercial buildings and facilities, such as office buildings, medical centers, or retail spaces.

Size and Scope

While businesses come in all shapes and sizes, commercial construction projects tend to be larger and more complex than residential construction.

For example, replacing the roof of a house is a much simpler job than redoing a hospital room. Because of this, the scope of a commercial construction project is quite different, with a longer timeline and more workers involved.

This also means that business owners must carefully evaluate the project and gather important details about it and the specific kind of work it entails. A commercial construction company may also need to solicit bids from subcontractors for certain tasks or even assemble detailed estimates before winning a bid of their own.

Materials

A commercial construction project will typically use different materials than a residential one.

For instance, most homes are framed with wood and use steel-slope roofing materials. By contrast, commercial buildings rely on a combination of materials, such as wood, steel, concrete, and even certain synthetic materials.

Furthermore, the very design of a commercial building lends itself to different materials. A house may use glass in its windows and doors, whereas a commercial building might use glass to create large display windows and even some interior structural features.

Equipment

A commercial construction contractor usually relies on specialized equipment to complete a project. This is mainly due to the large scope of commercial building construction, which may require cranes, lifts, loaders, and similar machinery that isn’t necessary for working on houses and other residential structures.

And because many commercial facilities also extend to the grounds, commercial constructors must use pavers and other machines to construct sidewalks, parking areas, and other crucial exterior features.

Cost and Payment Schedule

Taken together, the factors mentioned above translate into a higher cost for commercial construction. However, the payment schedule is a bit different for a commercial contractor. While residential contractors receive payment once the project is completed, commercial projects can take as long as 30 days to receive payment.

Additionally, commercial contractors tend to take on fewer projects than residential contractors. Although these projects are more lucrative, commercial construction companies must be mindful of their cash flow.

Find a Commercial Construction Contractor in Colorado

As a family-owned business, Hammers Construction understands the needs of the business community in Denver, Colorado Springs, and surrounding areas. We proudly serve various commercial enterprises, including retail businesses, offices, and hospitals.

Contact us today to discuss the details of your next project.

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About Hammers Construction

Over 60 years ago, Steve and Dave Hammers’ father began a commercial construction company in Northern Minnesota. Steve and Dave are carrying on the family tradition and passion for design-build construction. In 1986, the business bearing the family name, expanded to the Rocky Mountains. In 1991, Hammers Construction, Inc. (HCI) became an independent entity in Colorado Springs, CO. Over the years, HCI has earned a reputation for honesty, integrity, and professionalism in the very unique design-build construction industry.

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