Development Tip: Choosing a Site Work Contractor

Tip: If have negotiated a lease with an end user which calls for completion of all site work then ask the tenant for a list of preferred general contractors and get an estimate from them, along with a list of other reputable site contracts that work in that area.

Example: we are working a ground lease deal with national gas station/convenience store in Florida. As the developer/landlord, we are required to prepare the site so our tenant can build their store i.e., go vertical. Among other, our work entails:

  • Clearing and stripping the site of all vegetation and associated root systems and topsoil;
  • Grading and compacting the site;
  • Extending roads and providing access points within public right of way;
  • Provide master stormwater retention/infrastructure and collection system;
  • Bringing utilities 1′ inside of the lease property.

It is important to start with the end user’s preferred GCs, because:

  1. Landlord’s site work costs may be less since the GC will be getting the package deal assuming the tenant also selects them;
  2. The GC will be constructing the actual building, so if there are any errors made during the site work stage, that same GC will be better able to address those discrepancies;
  3. It is the path of least resistance that can be completed in less time.

Image: Credit