8 Commercial Tips for Your First Construction Project

8 Commercial Tips for Your First Construction Project

Taking on your first construction project is an exciting step—whether you’re building your dream home or revitalising an existing estate. However, with construction often being one of the largest investments you’ll make, protecting yourself commercially is crucial.

At Cove Consulting, we specialise in guiding first-time clients through the construction process, helping them avoid costly mistakes and safeguard their interests. Here are 8 essential strategies to ensure your project is a success:

1. Choose the Right Contractor

A reliable contractor can make or break your project. Meet potential contractors, get feedback from past clients, and if possible, visit completed projects to see their work firsthand. Don’t rush the process—conduct detailed interviews to ensure their experience aligns with your project's needs. At Cove, we follow a structured onboarding process to assess contractors thoroughly, ensuring they are the right fit for the project’s specific requirements and their area of expertise.

2. Ensure a Coordinated Set of Drawings

Starting construction without fully coordinated drawings is a common and costly mistake. At Cove, we ensure all design and construction documents are aligned before work begins. This not only avoids confusion but also helps prevent budget and timeline overruns.

3. Protect Cash Flow—But Don’t Stifle Your Contractor

Under standard construction contracts, contractors might not receive payment for up to 8 weeks after starting on-site, which can create financial strain. Rather than paying upfront, ensure payments are structured fairly based on progress, maintaining a balance that keeps the project moving without exposing yourself to financial risk. At Cove, we specialise in striking that balance, whether through bi-monthly valuations, vesting certificates, or client-supplied items, tailoring the payment structure to safeguard both the client and the contractor.

4. Be Aware of Potential Red Flags

Financial stability is critical. Issues such as a shortage of labour on-site, requests for early payments, or subcontractors voicing concerns could be signs of financial trouble. Act early if you see these signals to avoid potential disruptions.

5. Have Contracts & Warranties in Place—Before You Need Them

Alongside the main contract, it's crucial to have all administrative elements in order including—contractor’s insurance, professional indemnity (PI) insurance, warranties, and build warranties. These details might seem tedious, but they are essential in protecting your investment if issues arise. At Cove, we proactively address these requirements before contract execution, ensuring all parties understand their obligations and timelines from the outset.

6. Don’t Accept the Lowest Price Without Careful Consideration

A low bid can often mean hidden costs or a strategy to recover costs later through claims. Review all bids thoroughly and avoid choosing based on price alone.

7. Account for Statutory Fees Early

Early Statutory services such as water, power, and data connections can add significant costs. Obtain accurate estimates early and include them in your budget to avoid unwelcome surprises.

8. Make as Many Changes as You Want—Just Have a Process

This is your dream project, and if you want to make changes as the build progresses, you absolutely can. In fact, you should if it means getting exactly what you want.

The key is having a process in place. Without one, changes can lead to cost overruns, delays, and last-minute surprises. By making sure every change is properly reviewed, costed, and agreed upon, you can adapt your project as needed while keeping control of your budget and timeline.

By keeping these strategies in mind, you’ll protect both yourself and your contractor from potential pitfalls.

If you’re new to construction or need expert advice, contact us—our team is here to guide you every step of the way.