Undertaking a new construction project, with its intricate process, is a significant endeavor that surpasses the complexity of a renovation or addition. The initial and crucial step in a new build is Pre-planning, or Preconstruction, which is indispensable for both short- and long-term success. Here, we present an overview at the three pivotal phases to be considered before the actual construction commences.
Location
The first phase of a construction project, the location selection. It involves a careful consideration of several factors, such as proper zoning, taxes, property size, infrastructure, adjacent utilities, setbacks, easements, contamination and reclamation, and future expansion. Each of these factors carries significant weight in determining the success of your project.
Permitting
The second phase, acquiring the necessary permits, is a critical step in ensuring compliance with all local and state zoning regulations. These permits, which cover a wide range of areas including DOT or County driveways, utility extensions, stormwater, well or drain fields, wetlands, and signage, are not just a formality but a necessity for the smooth progression of your project.
Financing
The third phase, financing, is divided into two separate loan periods: a construction loan and a permanent loan after construction. The construction loan covers up-front costs. When construction is finished, your facility is normally worth more than the initial cost of construction and reaches stabilization. Certain types of property may not achieve stabilization until they reach a level of occupancy or rental income. There are many types of financing available for new construction, including private financing sources like banks and credit unions, public sources of financing such as government grants and loans, federal programs for specialized projects, and state opportunities like tax incentives and low-interest loans.
No matter your type of new build project, Gundlach Champion has extensive experience helping clients across the Upper Peninsula of Michigan through the Pre-planning phases of a construction project. To discuss your next project, contact us at gcfirst.com.