Residential vs. Commercial Contracting: How These Construction Projects Differ

At first glance, commercial and residential construction projects may seem very similar. Both types of projects involve building a structure from the ground up until it is fit for occupation. However, beyond these surface-level similarities, the work of a residential and commercial general contractor differs considerably in purpose, scope, financing, and more. Continue reading if you’d like to learn more about the distinctions between residential and commercial contracting services in the Twin Cities metro.

Differences Between Commercial & Residential Construction

The most simple distinction between residential and commercial contracting is what type of building is being constructed. Residential construction aims to create homes, both single-family and multi-family. Commercial construction aims to create business spaces such as retail stores, offices, healthcare facilities, and manufacturing facilities. Beyond the purpose of the projects, other major differences include:

• Scope of Project

One of the biggest distinctions between commercial and residential contracting in the Twin Cities is their respective scopes. In general, commercial construction projects are much larger in scope than residential construction projects. This is largely because commercial contracting often involves collaboration between numerous different entities, while residential contracting may be as simple as collaboration between a property owner and a general contractor. The result of this difference in scope is that commercial construction work usually takes significantly longer to complete than residential construction does. Commercial construction will almost always take several months at minimum to complete, while residential construction projects may be completed in just a few weeks if there are no setbacks.

• Cost of Project

Given that commercial construction projects are so much larger in scope than residential construction projects, it should come as little surprise that commercial projects also tend to be substantially more expensive. Any traditional ground-up construction project is likely to cost hundreds of thousand dollars. However, commercial construction projects are far likelier to have a final cost of millions. Commercial contracting involves working with hundreds of construction workers, as well as multiple material and equipment suppliers, with thousands of hours of labor involved. The larger and more complex the structure being built, the higher the final cost for the finished project will be.

• Equipment Used

Construction projects always require the use of heavy equipment like cranes, excavators, and loaders to complete. However, since commercial construction is larger in scope, it also tends to require larger equipment than residential construction – and more of it. While building a home with a single crane may be possible, building a hospital or a warehouse may require a whole fleet of cranes. As such, expect equipment costs to run substantially higher on a commercial contracting project.

• Materials Used

The actual building materials can differ substantially between a commercial and residential construction project in the Twin Cities metro. Although many materials are shared between residential and commercial construction, heavy-duty materials like steel are more likely to be used in a commercial building. The amounts and sizes of materials used also vary significantly, with the average commercial structure requiring substantially more building materials than the average residential home. Because of this, material costs for commercial construction can be exponentially higher than material costs for residential construction.

• Construction Site Location

Residential and commercial general contractors often work in very different locations. Residential construction is commonly completed in neighborhood settings, with tighter spaces to work in and other homes – which may already be occupied – in close proximity. This means that residential construction projects may require more strategic planning to avoid a substantial negative impact on nearby homedwellers. Working hours will also probably be more limited due to noise concerns. Meanwhile, commercial construction projects can take place in a wider variety of locations, ranging from cramped urban streets to wide-open and remote rural areas. Although commercial construction work often comes with less limitations, there are also heightened security concerns that commercial contractors will need to take into account.

Experienced General Contractor for Commercial & Residential Construction in the Twin Cities

Successful completion of any residential or commercial construction project will require working with an experienced general contractor who can be relied upon from project start to final delivery. Get in touch with Heritage Construction today if you’re interested in our high-quality construction services in the greater Twin Cities area!