The Top Mistakes Business Owners Make When Planning a New Build (And How to Avoid Them)

Building a new commercial space—whether it’s an office, retail store, medical facility, industrial site, or multi-use development—is an exciting but complex process. Business owners often enter construction projects with big ideas but little experience in the challenges of planning, budgeting, and execution.

At Construction, Design, and Management (CDM), we’ve seen firsthand how common mistakes can lead to cost overruns, project delays, and design regrets. If you're thinking about constructing a new commercial building, here are the top mistakes to avoid—and how to ensure a smooth, successful project.

1. Choosing the Wrong Location

A great building in a bad location can spell trouble for your business. Before purchasing land or signing a lease for new construction, carefully evaluate:
✅ Zoning & Permits – Will the site allow for the type of business or structure you want to build?
✅ Accessibility & Visibility – Is the location convenient for customers, employees, and deliveries?
✅ Utilities & Infrastructure – Does the site have proper sewer, water, electrical, and internet connections?
✅ Future Growth Potential – Will your business outgrow the space in five years?

📌 Solution: Work with real estate professionals and contractors early in the process to ensure your site selection aligns with your business’s long-term needs. CDM collaborates with a network of experienced real estate professionals and is happy to facilitate and participate in site walkthroughs to provide construction insights, feasibility assessments, and expert advice on potential build challenges before a site is selected.

2. Underestimating the Budget (and Not Accounting for Contingencies)

One of the biggest mistakes business owners make is setting a budget based on best-case scenarios. Unexpected costs always arise in construction, including:
❌ Material Price Fluctuations – Lumber, steel, and concrete costs can vary significantly.
❌ Site Preparation Issues – Poor soil conditions, underground utilities, or drainage problems can drive up costs.
❌ Permit & Regulatory Fees – Many owners fail to include zoning, environmental, and compliance costs.

📌 Solution: Create a realistic budget with a 10-20% contingency fund to cover unexpected costs. CDM helps clients develop accurate cost estimates before construction begins, preventing financial surprises.

3. Not Consulting a Contractor Early in the Design Phase

Many business owners work with an architect first and only bring in a contractor later—leading to unrealistic designs, budget overruns, and constructability issues.

🔹 Why This Is a Problem:

• Architects may design features that are expensive or difficult to build.

• Without contractor input, materials and labor costs may not align with budget goals.

• Contractors help identify cost-saving alternatives and constructability concerns early on.

📌 Solution: Use a design-build approach where architects and contractors collaborate from the start to ensure the project is designed efficiently and affordably. CDM provides pre-construction consulting to help businesses get on the right track.

4. Ignoring Future Growth & Scalability

A common mistake is designing a building for today’s needs without considering future expansion.

🔹 Potential Issues:
❌ Office space may become too small as the business grows.
❌ Warehouses and manufacturing facilities may need higher ceilings, additional loading docks, or extra storage in the future.
❌ Medical or retail spaces may need room for new equipment or extra service areas as demand increases.

📌 Solution: Design your building with expansion in mind—whether it’s extra land for future construction, flexible interior layouts, or modular infrastructure that allows for scaling.

5. Rushing the Permitting Process (or Overlooking Local Regulations)

Business owners often underestimate how long it takes to secure permits and approvals. Delays in permitting can push construction timelines back by months and result in unexpected costs or redesigns.

🔹 Common Regulatory Issues:
❌ Zoning restrictions that prevent certain types of businesses.
❌ Environmental impact studies required for stormwater management.
❌ Fire code and ADA compliance that requires additional modifications.

📌 Solution: Work with a contractor like CDM who understands local permitting requirements and can navigate the approval process efficiently.

6. Not Accounting for Energy Efficiency & Operating Costs

A business owner may focus entirely on upfront construction costs without considering how energy efficiency affects long-term operating expenses.

🔹 Why It Matters:
❌ An inefficient HVAC system can lead to high energy bills.
❌ Poor insulation and outdated windows can increase heating/cooling costs.
❌ Skipping LED lighting or smart systems reduces sustainability and long-term cost savings.

📌 Solution: Invest in energy-efficient designs that reduce utility costs and improve sustainability. CDM helps businesses integrate cost-saving green building solutions during the construction process.

7. Not Vetting Contractors Properly

Choosing the cheapest contractor or failing to check credentials can result in poor workmanship, delays, and budget overruns.

🔹 Red Flags to Watch For:
❌ No references or portfolio of past commercial projects.
❌ Incomplete or unclear contract terms.
❌ No insurance or improper licensing.

📌 Solution: Work with a trusted, experienced contractor with a strong reputation in commercial construction. CDM provides transparent pricing, clear contracts, and a track record of delivering high-quality projects.

8. Failing to Communicate with Stakeholders

Business owners often focus on contractors and architects but forget to involve employees, customers, and partners in the planning process.

🔹 Why This Matters:
❌ Employees may need specific workspace layouts for efficiency.
❌ Customers may expect parking, accessibility, and signage.
❌ Investors or landlords may have input on budget and design decisions.

📌 Solution: Hold regular meetings with all stakeholders to ensure alignment and avoid last-minute changes that can increase costs and delay timelines.

How CDM Helps Business Owners Avoid Costly Mistakes

At CDM, we specialize in guiding business owners through the new construction process from concept to completion.

✔ Pre-Construction Planning & Budgeting – Prevent cost overruns with accurate financial planning.
✔ Design-Build Collaboration – Ensure architectural plans align with budget and construction feasibility.
✔ Regulatory & Permitting Assistance – Avoid legal headaches with expert permit navigation.
✔ Future-Proofing & Expansion Planning – Build for growth, efficiency, and long-term success.

Building a new facility is a major investment—don’t let avoidable mistakes derail your project.

Final Thoughts: Get It Right the First Time

The best way to avoid budget blowouts, construction delays, and design regrets is to work with an experienced commercial contractor from the start. At CDM, we help business owners make smart, informed decisions that keep projects on track, on budget, and built for the future.

📞 Thinking about a new build? Contact CDM today for a consultation and expert project planning!