Commercial Construction vs Residential Construction

[@mauroburgio5313]

Good video, Daniel. In addition to all these very good points, I would add one more key difference between Commercial and Residential, and it is the impact of TIME. You see, every client wants their job to be completed on time, but for residential clients typically the consequences of a delay might mean that they don't get to use the part of the house you're working on for some time, or they need to extend a temporary rental for another month or two. On the other hand, in Commercial the stakes are much higher, and the pressure you will feel as a Commercial contractor to deliver on time will be higher as a result. A typical commercial contract may even include liquidated damages for delays, meaning you may actually be on the hook for a daily monetary penalty for each day a project is delayed beyond an established date. Liquidated Damages, or "LD"''s as they are called in the business, are not frequently enforced, but a late delivery is always an uncomfortable situation for a GG to be in. Why the difference? It's not because Commercial clients are mean, it's because typically rely on whatever you're building for them to MAKE MONEY, so every day they don't have their new store, new restaurant, or new office that you're building, they are likely losing money or opportunities as a result. Make sure you set realistic expectations with a commercial client during contract negotiations when it comes to completion dates! Never agree to an overly optimistic schedule that you don't think you can actually meet.

[@iambuilders]

Very true! If there are liquidate damages in your contract, document everything.

[@xrayded5037]

I still prefer residential. I pick and choose who I work with and get paid for my services and don’t have to borrow any money from the bank.

[@khalidbaacha]

Agreed, I agree with your findings

[@benboyko6782]

Brilliant videos mate.

[@iambuilders]

Glad you like them!

[@Techpodshed]

Residential is jr varsity Commercial is varsity

[@iambuilders]

👍 Are you in commercial or residential?

[@Techpodshed]

What state are you from?

[@iambuilders]

I’m from Florida