Emerging Trends in Cannabis Design-Build Projects: Why Experienced Owner’s Reps Are Saving Operators Millions
As the legal cannabis industry continues to expand, design-build delivery models are rapidly evolving to meet unique technical and regulatory demands. From cultivation to extraction lab to retail dispensary build-outs, success hinges on precise coordination between design teams and construction partners.
One of the strongest emerging trends is the use of Owner’s Representatives (Owner’s Reps) or Construction Managers (CMs) with cannabis-specific experience. These professionals act as the operator’s advocate — bridging the gap between cannabis facility design intent and construction execution — helping owners avoid major cost and schedule overruns.
The Cannabis Construction Challenge
Cannabis-facility construction differs significantly from a typical commercial build. Projects often require:
Advanced HVAC and environmental control systems
Odor mitigation and filtration systems
Fertigation and hydroponic integration
High-security electrical and lighting systems
Compliance-driven perimeter and access control
When a design team lacks direct cannabis facility experience, the risk of missed scope items and under-coordinated systems skyrockets. Many of these oversights only become visible once construction begins — by which point change orders, redesigns and delays are inevitable.
How Owner’s Reps Bridge the Gap
An Owner’s Rep with cannabis expertise (or a CM who specializes in cannabis) acts on behalf of the owner from concept through completion. Their role includes:
Validating the design scope against regulatory requirements and operational needs
Ensuring constructability and coordination between architects, engineers, and the GC
Identifying incomplete or conflicting scope items during the design phase — before bidding
Managing value-engineering and cost modelling to optimize budget and schedule
Streamlining communication across the team so the drawings, pricing and construction sequence align
By aligning the design intent with buildable execution, using integrated project management software such as Procore, Owner’s Reps and CMs reduce costly rework, change orders and permitting delays — issues that have plagued many cannabis projects.
Case Study 1: Cultivation Facility Cost Overrun
In 2024, 45,000-square-foot indoor cultivation facility in Maryland proceeded into construction without a dedicated cannabis-experienced CM. The design team underestimated the future electrical capacity required for a planned second flowering room phase. Mid-project the owner discovered the utility service needed an upgrade, new switchgear and panel enlargement — adding $750,000 in unbudgeted cost and delaying opening by four months.
If a cannabis-savvy Owner’s Rep had been on board during design, they would have flagged the expansion load, utility coordination and future-proofing during design—and avoided both cost and delay.
Case Study 2: Extraction Lab Permit Rejection
In 2019, a Colorado extraction lab retrofit ran into major delays when the designer failed to include all of the required C1D1 components mandated by the NFPA & local fire authority. After the IMP install had been scheduled, the permit was rejected, forcing redesign and resubmission. The schedule slipped by three months, and the project owner lost over $400,000 in redesign costs plus revenue losses from delayed production.
A specialized Owner’s Rep familiar with extraction-lab builds would have ensured the system was included in the early drawings — avoiding the cost and schedule impact.
Case Study 3: Dispensary Roll-out Rework
A multi-location retail dispensary operator in California attempted to scale five stores simultaneously using the same retail architect but without a centralized CM. Each location’s design evolved independently, resulting in inconsistent specifications, incompatible security layouts and repeated build-out changes during permitting. By project end, the operator had expended an additional $1.2 million on redesign and rework. A single Owner’s Rep managing design standards, vendor coordination and value-engineering across all five sites could have delivered consistent execution at a fraction of the cost.
Quantifying the Savings
In our experience at Terrapin Construction Group, cannabis-facility owners frequently lose 5 %–15 % of the total project budget to coordination gaps between design and construction. On a $10 million facility, that’s up to $1.5 million in avoidable cost — not including lost revenue due to delayed openings. When you engage an Owner’s Rep or CM early, budget cross-checks, constructability reviews and milestone QA/QC occur before pricing and construction, turning uncertainty into deliverable predictability.
The Bottom Line: Experience Pays
As the cannabis sector matures, so too must the delivery approach. The trend is clear: facility owners are shifting toward integrated delivery models that feature experienced cannabis-specific Owner’s Representatives or CMs. This shift reflects the industry’s recognition that front-end coordination prevents back-end chaos. By engaging cannabis-specific professionals early, owners can streamline delivery, maintain regulatory compliance, and safeguard millions in potential cost overruns.
At Terrapin Construction Group we specialize in design-build and construction management for highly complex, compliance-driven industries — including cannabis cultivation, processing and retail. Our team offers technical expertise, proactive coordination and transparent budgeting to help owners deliver faster and smarter. Visit our Services page or contact us now to discuss your next cannabis build.
