Blog
Why predevelopment services matter for commercial construction
Posted in: Building Dimensions Blog, Financing, General Commercial
By: Chris Walters, President & CEO
A successful construction project depends on decisions made long before construction begins. Is the proposed site right for the project? Will zoning allow the intended use? Are utilities available to support the project? Does the concept plan fit the budget? What approvals will be required, and how long could they take? Is the site free of unsuitable soils or an environmental condition?
Predevelopment services help owners answer those questions while they still have time and flexibility to adjust the plan.
At DBS Group, predevelopment services bring planning, architectural design, estimating, project management, field operations, and outside experts together early. That integrated approach helps owners evaluate a project from multiple perspectives, understand the tradeoffs involved, and make informed decisions before committing significant resources to design and construction.
Start with the site
A property may look like a good fit until you examine what it will take to develop it.
Site evaluations can include evaluating location, size and shape, topography, ingress and egress, and utility availability. Zoning and code reviews can determine whether the proposed use is permitted and which municipal, agency, and other approvals may be required.
These issues can affect far more than the site plan. Limited utility capacity, for example, could require additional improvements that affect the budget and schedule. An entitlement requirement could influence financing or the timing of a land purchase.
Identifying those considerations early gives owners better information for deciding whether to proceed, adjust the concept, or consider an alternative site.
Test the concept against the budget
Once a potential site is identified, schematic design can begin testing how the project might actually work there.
Preliminary floor plans and site plans help determine building placement, parking, circulation, access, potential expansion, and other fundamentals. At the same time, early cost guidance can begin connecting those design decisions to the budget.
DBS Group uses information such as actual cost data from similar regional projects, quantity takeoffs, historical unit rates, and, when appropriate, input from key vendors to develop early cost guidance. That information can also support pro forma development and financing discussions.
Bringing design and estimating together early is important because seemingly small decisions can affect several parts of a project. Increasing the building footprint may affect parking requirements. Moving the building location may impact sitework costs. One structural system may cost more initially but provide advantages elsewhere.
Predevelopment services allow you to test those options before it’s too late to change course.
Evaluate feasibility and financing
A workable design and preliminary budget don’t necessarily mean a project is feasible.
Market demand, financing, operating requirements, and expected financial performance also need to support the concept. Depending on the project, that may involve market assessments, demand analyses, feasibility studies, financial modeling, lender discussions, or exploration of grants, tax incremental financing, and other financing resources.
DBS Group can help owners identify the appropriate outside professionals, solicit proposals, and provide the design, budget, and schedule information those experts need. We can then work with the owner and retained professionals to understand how their findings affect the project.
Complete due diligence
Before proceeding with land acquisition, design and engineering, and subsequent construction, owners need to complete site due diligence, including geotechnical surveys, environmental site assessments, appraisals, and other due diligence.
DBS Group can help owners identify the appropriate outside professionals, solicit proposals, and provide the design, budget, and schedule information those experts need. We can then work with the owner and retained professionals to understand how their findings affect the project.
Plan for approvals
Every project has different requirements for project approvals and permits (entitlements) to proceed with improvements. DBS Group confirms the project approvals and permits required for your project and coordinates the activities required to secure the project approvals and permits.
Entitlements and approvals can involve municipalities, counties, state agencies, utilities, and other authorities depending on the project and location. Understanding those requirements — and their potential cost and timing — is an important part of building a realistic project plan.
Make the decisions while options are still open
Predevelopment isn’t one isolated step. Site conditions affect design. Design affects cost. Cost affects financing. Parking, utilities, approvals, operations, and future expansion can affect all of them.
DBS Group’s integrated design-build services bring those considerations together early. From site evaluation and schematic design to cost guidance, feasibility support, due diligence, and entitlements, our team helps owners understand what they’re dealing with, evaluate their options, and make informed decisions before design and construction are fully underway.
The objective is straightforward: identify issues early, make better-informed decisions, and establish a practical path from concept to completion.