Due diligence — before lease or purchase
- 1. Zoning verification: is your use permitted by right, or does it need a CUP (months + hearings)?
- 2. Occupancy classification: changing use (retail→restaurant, office→assembly) can trigger sprinklers, exiting, and structural upgrades
- 3. Electrical capacity: amperage at the panel vs. your load — service upgrades run $20K–$70K
- 4. HVAC condition and tonnage: the most common five-figure surprise in older buildings
- 5. Plumbing and sewer capacity: especially for food service, medical, or anything adding fixtures
- 6. ADA condition: parking, path of travel, restrooms — your permit will trigger upgrades; price them now
Budget and contract discipline
- 7. Line-item fixed bid — never a single-number quote; you can't manage what isn't itemized
- 8. Named allowances with realistic figures (lighting, finishes, hardware) — lowball allowances are hidden change orders
- 9. Contingency: 10% on second-gen space, 15%+ on older buildings and conversions
- 10. Long-lead schedule: HVAC units, switchgear, storefront glass, custom millwork — order dates in the contract
- 11. Insurance and licensing verified: GC license, liability, workers' comp certificates in hand
- 12. Payment schedule tied to milestones, with lien releases at each draw
Permits and approvals
- 13. All required permits listed before design freeze: building, MEP, fire, health (food), signage, encroachment
- 14. Parallel submittal plan — sequential permitting is self-inflicted delay
- 15. Landlord approval workflow: work-letter compliance, building rules, insurance riders
- 16. Utility coordination: meter upgrades and service changes lead-time with PG&E or municipal utilities (start early — these queues are long)
Execution readiness
- 17. Single accountable project manager with weekly written reporting
- 18. Inspection calendar mapped to construction milestones
- 19. Phasing plan if operating during construction (after-hours work, temporary barriers, life-safety continuity)
- 20. Closeout package defined upfront: as-builts, warranties, O&M manuals, C of O — the documents your lease, lender, and future sale will demand
Get these numbers for your project
Estimates, feasibility checks, and consultations — answered within one business day by a licensed Bay Area team.
Frequently Asked Questions
What's the most-skipped item on this list?+
Item 3 — electrical capacity. It's invisible, it's expensive ($20K–$70K), and it's discovered in week six instead of day one. Ten minutes at the panel with someone who knows what they're reading prevents the classic commercial budget disaster.
How much contingency is really necessary?+
Second-generation space with good documentation: 10%. Pre-1980 buildings, conversions, or anything with unknown as-builts: 15%+. Contingency you don't spend returns to you; contingency you didn't carry becomes a mid-project financing crisis.
Can BARC run this checklist for us?+
It's literally our pre-construction service: a pre-lease space evaluation, then a documented due-diligence and budget package you can take to your lease negotiation, lender, or board. The checklist is free to read and cheaper to delegate than to learn experientially.
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