by Connie R. Edwards, Georgia SBDC If you build it ... will it pass inspection? If you build it ... what it will it cost? If you build it ... how long will it take? Aspiring and current small business owners have a lot of issues to deal with when considering building a new facility for their business. This situation is true whether the project involves a new business, expanding an existing business, or just major building renovations. It is critical that the small business owner be aware of and follow the various regulations. The owner must also realize that there are many government entities that have input into where, why, and how the building is constructed. The following are aspects of building construction that, if not handled properly, can become serious stumbling blocks to the project or even stop the project altogether.  Drawings/Plans
The owner should secure the services of a reputable, reliable architect who is familiar with the type of business the owner is starting/expanding and has experience designing buildings for that type of business. Drawings must be accurate and thorough so that the resulting estimate of costs is as accurate as possible.
Construction Estimates
It is very important that the owner acquire two to three solid quotes from reliable, reputable construction contractors. These quotes should have at least a 10% contingency built into them. Many times there are overruns in construction costs resulting from unforeseen problems or unexpected increases in material costs. Environmental Reports
The lender involved in the project usually requires a Phase I or Phase II environmental report concerning the land on which the building is to be constructed to ensure there is no environmental contamination that must be cleaned up prior to construction. Utilities
Local Metropolitan Planning Commissions (MPC's) usually require that a survey be conducted to determine where existing sewer, water, and power lines are located, where tie-ins will be made, and where new lines will be located. ADA
Small businesses may be affected by the Americans with Disabilities Act (ADA). There could be special regulations concerning the construction of the building, including regulations on restroom facilities, accessibility of entrances, elevators, parking, and other issues. Environmental Impact
There may be environmental impact fees charged by local government entities concerning use of local resources. For example, a new restaurant may be assessed a significant fee because of the additional water that will be used at the location of the new building. There may also be special regulations concerning grease traps for restaurants or waste handling for a dry cleaner. Special Regulations
There may be regulations specific to the type of business involved. An example would be state daycare licensing regulations requiring sprinkler systems, a specific square footage of space per child, and special construction materials. Another example is special ventilation and drainage requirements for a restaurant. If the small business owner is seeking a loan for the project, the banker and/or other lenders will want to see these issues covered in the loan proposal. Lisa Morgan of the Small Business Assistance Corporation, a nonprofit Small Business Administration (SBA) lender in Savannah, recommends that the services of a construction inspector be used. Construction inspectors are consultants that ensure that the construction work is done properly and according to specifications throughout the project. When the contractor requests a draw (periodic payment for work already completed), the construction inspector receives the request and inspects the work that has been done. If the work is as specified, the construction inspector authorizes the bank to release the funds. Construction inspectors can be expensive, but the added expense can be built into the loan, and the cost overruns avoided are in most cases more than the cost of the inspector. This discussion is not intended to cover all aspects of construction that should concern the small business owner. Rather, it is intended to encourage proper planning and early interaction with the necessary business and government entities so that unpleasant surprises and cost overruns can be minimized. For further information concerning this process, contact your local Small Business Development Center. To obtain small business assistance contact a consultant at a Small Business DevelopmentCenter.
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