Retail construction revolves around tight deadlines and seamless transitions, magnifying traditional project management challenges of budget, quality and scope. This pressure demands strict schedules, efficient decision-making and a focus on the customer experience from day one, not just the ribbon-cutting date.
When you’re accountable for a high-stakes retail build, knowing the pitfalls can help protect margins, reduce risk and keep crews aligned. This article outlines five of the most common mistakes when building a retail store and solutions for avoiding them.
1. Underinvesting in Preconstruction Planning
The success of a retail store build hinges on precise planning at every stage — especially before construction begins. If preconstruction planning falls short, you’ll face increased risks of inaccurate cost estimates, unexpected site conditions and scope creep. These issues often trigger schedule delays and disruptions, and can push budgets over target.
Solution: Execute a Comprehensive Preconstruction Strategy
Commit to a robust preconstruction phase, which includes the following key components:
- Site feasibility studies: Analyze technical, economic, financial and environmental factors to determine your project’s technical and financial viability before investing significant resources. These studies should involve evaluating risks and benefits, confirming alignment with codes and zoning, and confirming that the build can be executed within schedule and budget constraints.
- Constructability reviews: Examine the store’s proposed design for potential problems associated with construction methods, scheduling and sequencing. Review the design’s efficiency and practicality to surface issues early.
- Value engineering: Compare materials, methods and systems to find the most cost-effective options. This review can help you achieve significant cost savings and stay on budget without sacrificing performance, quality or function.
The work that happens during the preconstruction phase is absolutely vital to your retail project as a whole, allowing stakeholders to determine whether the build is a go or a no-go. It also lays a solid foundation for execution if the project proceeds. Time invested up front can protect the budget, reduce surprises and prevent costly changes down the line.
2. Overlooking Buildability in the Design
When designing a retail store, it’s best practice to map a thoughtful customer journey and create clear paths with a logical architectural layout. But one of the most common retail design mistakes is neglecting buildability, also known as constructability. Building on the point above, buildability assesses a design from the perspective of those who will carry out the construction and installation.
Beyond aesthetics and the functionality of a space, architectural choices impact everything from mechanical, electrical and plumbing (MEP) systems to budgets and schedules. For example, intricate building designs can make it challenging to route wiring, pipes and ducts, increasing the likelihood of system clashes. Additionally, poor integration between MEP and architectural design can result in unforeseen clashes during execution, leading to expensive reworks and delays.
Solution: Foster Early Collaboration Between Design and Construction
To avoid this retail store design mistake, involve your general contractor (GC) early in the architectural design process. You may also need to work with specialty contractors — like plumbing, electrical, HVAC — for input on specific aspects of your project, especially if there are unique design components. Hold joint sessions and regular check-ins with design and construction teams to surface issues before they escalate, aligning on everything from cost and quality to schedule goals.
Such collaboration can offer the following benefits:
- Better schedule adherence: With shared objectives and foresight, you can minimize delays.
- Fewer errors and rework: Early coordination resolves buildability issues early, limiting costly changes.
- Improved quality: A collaborative process from the start can result in a higher-quality final product that aligns with both the realities of construction and the architectural vision.
3. Selecting a Contractor on Price Alone
Building a retail store is costly, so it might be tempting to choose the GC with the lowest bid. However, selecting a GC based solely on price — without considering relevant experience — is among the biggest mistakes in retail store construction.
An unseasoned contractor may overlook the nuances of lighting, high-end finishes and brand standards, resulting in subpar outcomes. Inexperience with retail schedules, fast turnarounds and custom fixture lead times can also result in delays.
Another concern is that the cheapest bid may come from an uninsured or unlicensed firm, which could expose you to liability if anything goes wrong. Compliance lapses and safety incidents can damage your business’s reputation — especially in high-end retail, where trust is paramount and image and quality are nonnegotiables.
Solution: Vet GCs Based on Relevant Experience and Reliability
Researching a GC’s past performance and verifying the relevant credentials are crucial to delivering a successful and safe retail build. Get at least three bids and use this checklist to assess each contractor’s experience and reliability:
- Portfolio and experience: Review their portfolio to confirm experience with retail clients and ask for contact references if possible. Your GC’s expertise should also align with the size and complexity of your project.
- Financial and legal: Verify that they hold the required licensing, such as local and state permits. You should also ensure that they have adequate insurance, including liability and workers’ compensation, and the financial stability to complete the build.
- Safety and compliance: Request their safety documents, including lost-time rates and incident history. They should also adhere to the necessary environmental and safety regulations from the Environmental Protection Agency (EPA) and the Occupational Safety and Health Administration (OSHA).
- Project management and communication: Inquire about who your point of contact will be, and how often you can expect to communicate. You should also confirm the qualifications of the project manager (PM) and the superintendent who will be on-site.
- Quality assurance (QA): Request the GC’s QA plan, and inquire about how they maintain it from start to finish.
4. Managing On-Site Projects Inefficiently
While planning sets the stage for success, execution turns these plans into results — strong on-site management is vital to keep your retail build on track. Without it, you’re at risk of running into cost overruns, delays and even safety incidents.
The root of poor management is often weak communication. Ineffective leadership and broken communication channels block the flow of vital information among stakeholders, creating confusion that leads to bottlenecks. When objectives are unclear, it’s also tough to anticipate risks and allocate resources effectively.
Solution: Demand Proactive and Transparent Management
Having a dedicated PM adds measurable value to your project as they are responsible for ensuring everything is delivered on time, on budget and to spec. To make project management easier and more efficient, the right software is essential — especially in the fast-paced world of retail construction.
Software that enables real-time visibility and collaboration keeps PMs, GCs and other stakeholders aligned so they can make decisions and resolve issues quickly. The right project management software allows you to:
- Increase productivity: Tracking jobsite progress helps you stay organized, maintain accountability, and stay on budget and on schedule.
- Improve communication: Share information across teams to keep everyone informed and clarify details for a seamless workflow.
- Expand cost savings: With everyone on the same page, you can optimize resources and reduce mistakes.
5. Mishandling Project Closeout and Turnover
Project closeout is critical — however, the last stage in the construction life cycle tends to be overlooked. As the launch date of the retail store nears, teams often focus on completing remaining punch lists and activities, pushing aside closeout steps.
A mishandled closeout can delay the grand opening and create operational headaches by leaving crucial tasks unfinished, such as unapproved changes and incomplete documentation. This can result in delays in receiving the necessary permits and other issues that disrupt handover and retail operations from the opening day.
Solution: Develop a Detailed Plan for a Smooth Handover
A well-executed handover enables a seamless transition from construction to operations to ensure the store opens on schedule. It formalizes the transfer of responsibilities to the relevant stakeholders, delivering everything from complete documentation and project information to keys.
Your plan should include:
- Submitting the necessary turnover documents, like operation and maintenance manuals, as-built drawings, and compliance records.
- Conducting final inspections and walk-throughs with your GC and project team.
- Resolving punch lists and outstanding issues, with clear deadlines for correction.
- Transferring all manufacturer and subcontractor warranties for equipment and materials.
- Providing training for store staff and management.
You should also receive keys and access details for every entrance, storage area, and back room. And of course, confirm that final payments have been settled.
Build Your Next Retail Project With Confidence
Avoiding these common pitfalls of retail construction requires deep industry expertise and a collaborative partnership with a qualified GC. Alta Construction is ready to work with you to bring your project to life, on time and to budget.
Primarily focused on high-end retail projects, we are a full-service construction firm that supports projects from preconstruction through general contracting and subcontractor selection to the final handover. Plus, we use cutting-edge tools like Procore and Raken to meet the demanding needs of retail construction.
View our work or contact our team to discuss your upcoming project today!
