Most business owners underestimate how much of the timeline sits outside the build phase. Understanding the different commercial construction process phases is key to proper project planning. The assumption is that once the design is done and a contractor is selected, the project moves at the speed of labor. In reality, the commercial construction process is governed by plan-check cycles, inspection gates, and agency approvals that follow fixed sequences. A delayed fire review, a deferred submittal that’s not ready, or a failed rough inspection can halt progress for weeks, regardless of crew availability.
Many guides treat commercial construction as a scaled-up version of residential work. That framing misses what actually drives outcomes: ADA/path-of-travel requirements, fire/life-safety sign-offs, submittal dependencies, and the resubmittal loops that extend permitting. This guide maps the real process, the feasibility constraints to validate before lease signing, the scope-lock discipline before permit submittal, the inspection sequence that dictates when trades can proceed, and the procurement decisions that determine whether equipment is procured when the space is ready for it.
We walk through each phase in order: due diligence, design lock, permitting, mobilization, inspection gates, sequencing, submittals, risk protocols, and closeout. This is for business owners, developers, and tenants managing commercial tenant improvements or ground-up projects in North County San Diego who want to understand the schedule controls and where delays originate.
Missy’s Field Note
Expert Tip from Missy Barbera, General Contractor
“Commercial projects don’t fail because crews “work slow.” They fail because the job hits a gate it wasn’t ready for: fire review not coordinated, deferred submittals late, equipment not specified early enough, or an accessibility/path-of-travel requirement discovered after the layout is already priced. If you want the schedule to hold, treat permitting, inspections, and submittals like production work, not paperwork.”
Phase 0: Feasibility and Due Diligence
Phase 1: Design and Scope Lock
Phase 2: Permit Pathway and Plan Check
Phase 3: Pre-Construction and Mobilization
Phase 0: Feasibility and Due Diligence
Zoning, use, and occupancy constraints
Before you sign a lease or close on a property, confirm that your intended use is allowed and that the occupancy classification aligns with your program. The fastest way to lose months is to discover after lease signing that your use triggers a conditional use permit, additional fire requirements, or a parking ratio you can’t meet.
Site/building capacity checks: parking, utilities, fire suppression
Verify parking ratios by use type, confirm electrical and gas capacity, and identify whether fire sprinkler coverage exists, and whether it’s adequate for your suite and your use. If your project requires a service upgrade or sprinkler expansion, those aren’t “nice-to-haves.” They become scheduled governors.
Existing conditions and compliance gaps: ADA/path-of-travel, base building constraints
Older buildings frequently have compliance gaps that surface during plan check, including restrooms, routes, door hardware, exits, and panel capacity. Some items live outside your suite but can still become your obligation depending on jurisdiction and lease terms. Identify these early so the budget and schedule reflect reality.
TI lease diligence: work letter, allowance, demising walls, and responsibilities
Your work letter determines what the landlord provides and what the tenant funds. TI allowances are often insufficient for medical/vet/, or specialty build-outs with higher MEP demands. Clarify responsibilities for demising walls, HVAC distribution, sprinkler modifications, and ADA/path-of-travel items. Ambiguity here becomes a source of cost disputes that stall the job.
Phase 1: Design and Scope Lock
Concept through layout, including accessibility from Day 1
Layout drives compliance. Accessible routes, restroom geometry, clearances, and egress can’t be “adjusted later” without rework. Treat accessibility and life-safety as design inputs, not late-stage checkboxes.
MEP and structural coordination
MEP and structural need to be coordinated before permit drawings are finalized, especially when you’re dealing with roof penetrations, equipment loads, slab trenching, or seismic bracing. Coordination errors discovered in plan check or field rough create resubmittals or change orders that you pay for twice: once in money, once in time.
Specialty equipment planning: medical/vet, imaging, shielding, dedicated exhaust
If the space requires specialized equipment, plan early. Imaging/shielding requirements, equipment loads, ventilation/exhaust needs, and mounting details affect framing, electrical, and permitting. Delaying this forces redesign or field rework right when the schedule is least forgiving.
Scope lock and budget reconciliation before permitting
Scope lock is the decision gate that prevents resubmittal loops and downstream overruns. You don’t need every finish selected, but you do need the operational layout, compliance strategy, and building systems defined well enough that permitting doesn’t become a redesign cycle.
Phase 2: Permit Pathway and Plan Check
Plan check is a loop, not a moment
Submittal → review → corrections → resubmittal. Most commercial projects experience at least one correction cycle. Each cycle can add weeks, especially when corrections require engineering changes or cross-agency coordination.
Multi-agency reviews: building, structural, accessibility, fire, health (when applicable)
Commercial approvals often involve multiple reviewers with independent correction sheets. Fire review and health-related requirements (depending on use) can proceed independently. A correction from one reviewer can force updates that trigger a re-review elsewhere.
Deferred submittals: trusses, equipment, shielding
Deferred submittals don’t always delay permit issuance, but they can absolutely stop the job later if they’re not approved when the field hits that dependency (often at framing/rough stages).
Timeline expectations and the cost of correction cycles
Delays cost more than time. They also increase design fees, extend general conditions, and can push lease commencement or opening dates.
Phase 3: Pre-Construction and Mobilization
Contracting and risk setup: allowances, insurance, builder’s risk
Lock change-order protocols, selection deadlines, and allowance behavior in writing. Ensure insurance requirements are satisfied (including builder’s risk where required). Commercial risk documentation is heavy for a reason: it protects the project from disputes that can stall progress.
Jobsite logistics: staging, temp utilities, access rules
Occupied buildings require property management coordination for deliveries, loading zones, elevator access, shutdown windows, noise constraints, and dust-control expectations. Logistics mistakes don’t show up as “errors”; they show up as schedule drift.
Business continuity planning (when the site is occupied)
If other tenants or operations remain live, plan for phased work, after-hours shutdowns, and protection protocols. Medical and veterinary environments, in particular, require a higher bar for dust control and predictable utility planning.
Coordination and schedule baseline
A credible baseline schedule includes inspection gates, long-lead procurement deadlines, deferred submittal due dates, and decision milestones, not just “demo / rough / finish.”
Inspection Gates That Control Forward Progress
Inspections are hard stop/go gates. If rough doesn’t pass, close-in can’t start. If fire/life-safety isn’t ready, finals don’t happen. You can’t “work around” many of these gates.
Typical inspection map
Pre-demo verification (as needed) → foundation (when applicable) → framing/shear (as applicable) → rough MEP → sprinkler rough → insulation/energy (as applicable) → waterproofing (as applicable) → finals → Certificate of Occupancy.
Common failure points and reinspection delays
Missing firestopping, incorrect venting, incomplete electrical labeling, sprinkler head spacing, unapproved penetrations, or hardware not matching plans. The correction work may be fast; the reinspection window is often the real delay.
Why work can’t advance
Drywall can’t close walls until the rough inspections are cleared. Ceiling close-in can’t proceed until sprinkler rough clears. CO can’t issue until finals and agency sign-offs are complete.
Certificate of Occupancy as the final gate
CO is the legal permission to operate. Many contracts and lease milestones effectively depend on it, so it needs to be treated as a schedule-critical deliverable, not a formality.
Construction Sequencing: Demo Through Commissioning
Commercial sequencing is coordination logic, not a checklist.
Demo and structural sequence
Selective demo, protection of base-building systems, structural modifications, seismic/bracing as applicable, then framing readiness for rough.
Rough MEP + fire systems coordination
Ductwork often dictates routing first. Electrical, plumbing, and fire systems route around it. Specialty systems increase coordination complexity and inspection risk.
Close-in through finishes
Rated assemblies and detailing matter. Finish sequencing must account for equipment delivery, protection, cure times (epoxy, coatings), and inspection access.
Startup, balancing, and commissioning
System startup/testing happens late, but can uncover issues that block finals. Fire alarm testing, HVAC balancing, and specialty system certifications often determine whether finals pass the first time.
The Submittal and Procurement Calendar
Submittals and lead times often control the finish schedule more than labor does.
Submittals and shop drawings
Approvals take time. Rejections reset the clock. Complex casework and specialty installs often require multiple review cycles.
Long-lead equipment
Specialty equipment, HVAC units, and regulated components can run long lead times. Missing an approval window can push delivery past the installation readiness date.
Finishes and enclosure lead times
Millwork, doors/hardware, flooring systems, and lighting packages have real lead times and dependencies (shop drawings, field dimensions, compliance specs).
How late approvals create schedule slip
Late submittals delay delivery → delivery delays installation → installation delays commissioning → commissioning delays finals → finals delay CO. That chain is why early submittals matter.
Managing Risk: Allowances, Change Orders, and Concealed Conditions
Allowances
Allowances are placeholders, not contingency. Overages become change orders. Selection deadlines should be explicit to avoid schedule-driven premium costs.
Change orders
Written scope + cost + schedule impact + approval before work proceeds. Verbal approvals create disputes and closeout delays.
Concealed conditions
Document → price → approve → proceed. Decision speed matters because trade demobilization creates delays that cost more than the fix itself.
Budget protection and lien releases
Track commitments, pending changes, and remaining contingency. Collect lien releases with each pay app and at final closeout.
Closeout and Certificate of Occupancy
Substantial completion and punch
Punch items should be minor. Anything that affects life-safety, system operation, or compliance can prevent CO.
Final inspections and agency sign-offs
Building, fire, and any applicable agency sign-offs must all clear. Scheduling and readiness matter.
CO: What it represents
Legal authorization to operate the space for that use and occupancy classification.
Closeout deliverables
As-builts, warranties, O&M manuals, testing reports, and final lien releases.
Planning Your Project
Skyhorse Construction is a North County San Diego general contractor for commercial tenant improvements and ground-up projects.