Preconstruction
Certainty Before Concrete

Preconstruction is the planning phase of a commercial project that happens before construction begins. It covers programming, cost estimating, schedule development, value engineering, constructability review, permitting strategy, and early procurement of long lead equipment. It runs in parallel with design from schematic design through 100 percent construction documents, and it is the single most leveraged window to control budget and schedule.

Commercial preconstruction fees in 2026 typically run 0.5 to 2 percent of total construction cost. Simple projects like warehouses and retail prototypes trend toward 0.3 to 0.8 percent. Mid complexity projects trend toward 0.8 to 1.5 percent. Highly complex projects such as hospitals, data centers, and cleanrooms trend toward 1.5 to 2.5 percent. In many cases the fee is credited back against the construction contract when TCG is awarded the full build.

Decisions made in the first 20 percent of a project timeline determine roughly 80 percent of total project cost. Owners who engage a general contractor early through preconstruction typically see 8 to 15 percent less hard cost growth than owners who skip the phase or run it informally. It is the highest leverage cost decision an owner can make.

The best time is initial feasibility, before an architect is fully engaged and ideally before a site is under contract. The latest meaningful window is design development. Engaging after 100 percent construction documents limits preconstruction to estimating only and forfeits most value engineering opportunity.

Fees vary by project complexity and engagement scope. In many cases preconstruction costs are credited back against the construction contract when TCG is awarded the full build. For precon only engagements, fees are billed directly under lump sum, hourly, or percentage of construction cost structures.

Preconstruction happens before construction begins and focuses on planning, estimating, scheduling, and risk identification. Construction management is active oversight once the project is underway, including subcontractor coordination, RFI management, schedule control, and quality assurance. The TCG preconstruction team transitions directly into construction management on the same project, so nothing is lost in the handoff.

Progressive cost opinions at SD, DD, 85 percent CD, and 100 percent CD in CSI division format, a critical path schedule with long lead procurement strategy, vendor agnostic value engineering with cost benefit analysis, a constructability review, a full soft cost tracker, and a GMP or cost plus budget structure aligned to your financing.

Accuracy tightens as design advances. TCG cost opinions run within plus or minus 20 percent at schematic design, plus or minus 15 percent at design development, plus or minus 10 percent at 85 percent construction documents, and plus or minus 3 percent at 100 percent construction documents, where the budget is buyout ready and supported by subcontractor proposals.

All major divisions: 02 Sitework, 03 Concrete, 04 Masonry, 05 Metals, 06 Wood and Plastics, 07 Thermal and Moisture Protection including IMP and roofing, 08 Openings, 09 Finishes, 10 Specialties, 11 Equipment, 12 Furnishings, 13 Specialty Construction, 14 Conveying, and Divisions 21 to 28 covering fire protection, plumbing, HVAC, electrical, communications, and security.

Value engineering is a structured process of identifying alternative materials, systems, or methods that cut cost or improve performance without sacrificing function. TCG recommendations are vendor agnostic and backed by cost benefit analysis, covering wall assemblies, HVAC right sizing, lighting substitutions, structural framing alternatives, and modular versus conventional delivery.

A small tenant improvement completes preconstruction in 2 to 4 weeks. A mid size commercial building runs 6 to 12 weeks overlapped with design development. Complex projects like hospitals, data centers, and food processing facilities run 16 to 26 weeks across multiple design milestones. Preconstruction always runs in parallel with design, so it does not extend the overall project timeline.

Architectural and engineering fees at 5 to 15 percent of construction cost, civil and survey at $5K to $50K, geotechnical at $5K to $25K, environmental studies, permits and impact fees at 0.5 to 2 percent, legal and financing at 1 to 3 percent, owner representative fees at 2 to 5 percent, insurance and bonding, and FF&E coordination. Total soft costs typically run 15 to 25 percent of construction cost.

Yes. TCG structures budgets to satisfy lender draw schedules, contingency requirements, and third party review. Deliverables map cleanly to loan draw schedules and clarify controllable versus uncontrollable cost, which shortens underwriting and reduces requisition friction.

Yes. TCG delivers preconstruction in all 50 states, with offices in Denver, Houston, Albany, and Sheridan. Regional labor rates, local subcontractor pricing, and jurisdiction specific permitting realities are built into every cost opinion.

Run the AI estimator on this page, schedule an intro call on Calendly, or email info@terrapincg.com with project details. TCG typically returns a preconstruction proposal within 3 business days, including scope, fee structure, deliverable schedule, and crediting terms if TCG is awarded the construction contract.