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Industry FundamentalsLast reviewed May 2026

The commercial construction project lifecycle (the phases)

1. Feasibility / programming. Define what's being built, where, how big, and roughly what it costs. Decisions here (footprint, structural system, target square footage) lock in 60–80% of total project

  1. Feasibility / programming. Define what's being built, where, how big, and roughly what it costs. Decisions here (footprint, structural system, target square footage) lock in 60–80% of total project cost — this is why early budget validation matters more than anything later.
  2. Pre-construction (preconstruction / "precon"). Detailed budgeting, value engineering, scheduling, subcontractor selection, constructability review, and permitting strategy — before ground breaks. Strong precon is where good GCs save owners money and time.
  3. Design. Schematic Design (SD) → Design Development (DD) → Construction Documents (CDs). The drawings get progressively more detailed and biddable.
  4. Permitting & entitlements. Zoning, site plan approval, and building permits from the city. (See 03-timelines-permitting.md.)
  5. Construction. Sitework/foundation → structure/shell → MEP rough-in (mechanical, electrical, plumbing) → finishes → FF&E. Managed via a schedule, draw requests, submittals, RFIs, and change orders.
  6. Closeout. Final inspections, Certificate of Occupancy (CO), punch list (the final fix-it list), commissioning of systems, as-builts, warranties, and owner training.
  7. Post-occupancy / warranty. Typically a 1-year warranty period on workmanship.

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