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Residential vs. Commercial Construction: Key Differences

7/14/2023

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Residential and commercial buildings may involve similar input and construction materials but are different in many other ways. In fact, most home building companies Sydney admit that commercial construction processes and stages are far more different than their residential counterparts.
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To understand the differences between residential and commercial construction, we first need to clarify and classify buildings that fall under residential construction and those that qualify as commercial construction.

Residential Buildings

In the construction industry, residential buildings refer to buildings designed to be used as primary residences for individuals, groups, and families. Some of the structures that qualify as residential buildings include;
  • Single-family, detached homes
  • Townhouses
  • Condominiums
  • Duplex, Triplex, and Fourplexes
  • Some housing co-operatives
It is important to note that apartment complexes are seen as commercial constructions because, although they are designed for residential purposes, they are also commercial in nature. Apartment complexes are designed generally to accommodate larger individuals, groups, or families, with each space rented out on a lease basis.

Commercial Buildings

Having understood what residential buildings are, commercial buildings are much more dynamic and flexible than residential properties. They include major service buildings like malls and supermarkets, hospitals, storage warehouses, office spaces, shopping centers, etc. They are designed for business purposes and usually to handle a lot of traffic and hard-wearing use.
Some of the popular types of commercial properties include;
  • Office buildings,
  • Land investments
  • Retail spaces
  • Large-scale multifamily housing
  • Storage units
  • Large-scale apartment complexes
  • Industrial buildings, and more.
 Asides from the structure, dynamism, and use, other important differences between residential and commercial construction can be seen in the project cost, building materials, construction codes, construction equipment, and project timeline.
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All these important differences are carefully explored below.

Building Materials Used

One of the major differences between residential and commercial construction is the materials used for the project. Most residential buildings rely on timber frames during the buildup and construction phases. The choice of building material is due to the cost-effectiveness of timbers compared to concrete blocks or other materials.
​

On the other hand, commercial constructions require a lot more structural strength, making it impossible to leverage the same timber frames for their construction needs. Companies specializing in commercial construction often have to consider the type of commercial property they’re designing and building and choose the most appropriate frame material. The commonest material is a steel frame which offers more structural integrity and can cater to larger traffic.

For the foundation, an average residential property (a single-family home) could use about 200 tons of concrete, but a commercial property (a skyscraper) may require 200,000 tons of concrete or more for its foundation.

In addition to this, commercial construction projects are often larger with more complex design requirements. This means that the materials must be adequately fashioned to meet the design and resilience planned for, as against residential properties with less strict and less complex construction demands.

Codes and Permits

Residential and commercial buildings have different codes and permits required throughout the project. Based on the size and purpose, commercial buildings have stricter regulations and are required to follow those regulations to the letter.
​

With a commercial building, commercial contractors need to pay attention to the codes and permits for the building materials to be used, the design, commercial building size, construction techniques, plumbing, and electrical systems to be installed.

The various permits and codes required to be met make commercial constructions a lot more technical, thereby requiring the services of experienced professionals.

It is also important to understand that the safety concerns during commercial property construction are often higher than residential buildings. Construction contractors and ad-hoc professionals are required to consider all aspects, from the IT concerns to elevators, construction staff, disability and accessibility features, garages and parking lots, and other important additions.

All of the additions are also required to meet specific building codes before the building is approved for use.

Cost Differences

Project cost is perhaps the most notable difference between a commercial and residential building project. With commercial projects costing much more than residential constructions, it can be distilled down to the expertise required for the project, materials used, compliance standards, project scope, and size, as well as the equipment and additions required to make the commercial building operational.

The cost difference between residential and commercial constructions can also be traced to the labor and equipment required for the project. Residential buildings are much smaller and can be completed with a few pieces of equipment and labor, while commercial projects are much wider and may often require hundreds or thousands of labor workers and equipment to get the job done.

In terms of funding sources, residential buildings can be spearheaded by individuals, businesses, or conglomerates based on the size of the proposed structure. Some individuals may also secure financial backing from banks for their custom home builds.

On the other hand, commercial builds are mostly funded by corporations with access to large bank financing, government agencies, and wealthy developers or owners.

Project Timeline and Deadlines

The time required to start and complete residential and commercial constructions is different. Residential constructions are often small-scale, allowing developers and construction contractors to complete them as quickly as possible. In some instances, developers can complete an entire single-family home build in weeks or a couple of months.
​

On the other hand, large commercial construction projects often require a lengthy timeline. The timeline may further be delayed by the different permit requests, inspection, and approval needs, material sourcing and availability, equipment breakdown, and other logistic problems.

With all factors considered, large commercial construction projects can often last for a year or more, depending on the different factors involved in the project.

Location and Property Owners

Residential and commercial constructions are often in different locations and sites. In most cases, commercial constructions are classed based on use before they can be situated close to residential properties.
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For example, commercial constructions like shopping centers, large supermarkets, hospitals, and more can be located close to residential areas. However, others like recycling centers and large industrial complexes are required to be far away from residential areas to reduce the risk of pollution.

Based on the location, residential properties are more likely to be bundled together compared to commercial properties that may be situated far out from residential areas.

In terms of property owners, most commercial constructions are often owned by the government, large enterprises, or businesses. They are rarely owned by an individual as compared to residential structures, which have a relatively high percentage of sole owners.

With the above factors considered, it is easy to understand the many differences between commercial and residential construction and why it’s important to hire the right company for each of those needs. You can hire the right company for your residential build needs by visiting https://www.konnectbuilding.com.au/new-home-build.html

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