The construction process starts far earlier than when the first shovel hits the ground. That critical early phase of planning known as preconstruction is where strategies turn into plans, risks are calculated and reduced, and project teams dive into the roadmap.
Understanding the preconstruction process is essential for a successful project. When done correctly, the preconstruction phase helps save time, control costs, and mitigates issues later on.
In this guide, we’re covering:
- What the preconstruction process entails
- Who is involved
- Expected costs
- How you can use construction technology to manage it effectively
What is preconstruction?
Preconstruction is the strategic planning stage of a construction project that happens before any physical construction begins. The preconstruction phase turns a concept or idea into a fully scoped and compliant construction plan ready for execution.
Preconstruction services often involve:
- Feasibility studies and site analysis
Assessing site conditions, zoning regulations, environmental factors, and potential project constraints. - Design and scope development
Collaborating with architects and engineers to create conceptual and schematic designs that adhere to local codes and meet clients’ expectations. - Preconstruction estimating and budgeting
Building detailed cost models that include materials, labor, equipment, and permitting fees, while exploring value-engineering opportunities. - Scheduling and procurement planning
Establishing project timelines, identifying long-lead materials, and aligning procurement with permit approvals. - Permitting and regulatory coordination
Researching, preparing, and submitting required permit applications, and tracking approval timelines across jurisdictions. - Risk assessment and mitigation planning
Identifying potential project, financial, or compliance risks early and creating strategies to minimize them. - Stakeholder coordination and preconstruction meetings
Aligning owners, contractors, subcontractors, and inspectors before construction begins to finalize scope, costs, and documentation. - Technology and documentation setup
Implementing project management and permit tracking software to centralize communication, document sharing, and real-time updates.
For example: Before a roofer replaces or installs a new roof, first they’re going to verify local building codes, confirm load and wind-resistance requirements, and pull the proper permits. Similarly, a residential builder would verify site access, soil conditions, and environmental restrictions early on to avoid any delays in the process.
The preconstruction stage answers key questions before any building begins:
- Is the project financially viable?
- Are all regulatory requirements met?
- Is the design practical and buildable within the desired budget and timeline?
- Does the design meet all of the client’s expectations?
During this phase, construction technology like permit management software comes into play. Instead of juggling emails and paper forms, teams can track every submission, approval, and revisions digitally in one place. This then helps streamline the preconstruction process and reduce the administrative workload throughout the project.
Key steps in the preconstruction agreement process
While every construction project is unique, there are a few general steps that all projects take in the preconstruction phase.
1. Initial concept and feasibility assessment
From the very beginning, the project team should define the goals, scope, and basic feasibility of your project.
This includes:
- Assessing the current project site
- Evaluating local zoning regulations
- Identifying potential project constraints
- Estimating initial budget targets
This will look different depending on the type of construction and scope of work.
For instance, a commercial builder might have a feasibility study conducted to assess the parking requirements and utility connections needed for their new build. A home services contractor might focus more on code and permit compliance.
Regardless, tools like permit management software can help flag any zoning requirements or environmental review triggers based on the project type and location, which helps your team identify any barriers before the design process even begins.
2. Design and scope development
Once project feasibility is confirmed, architects and engineers will step in to develop schematics and conceptual designs. During this stage, the team defines materials, systems, and performance criteria.
Every design decision comes with cost and compliance implications, which makes collaboration during the preconstruction phase crucial. Real-time document sharing and software-based code verification helps to keep the design with local regulations. Construction project management software is a great way to ensure everyone is on the same page from preconstruction to completion.
3. Budgeting and cost estimation
With a design in place, estimators now build detailed cost models.
Preconstruction estimating involves evaluating:
- Materials
- Labor
- Equipment
- Permit fees
Teams may also look for cost-effective alternatives to their project, which is also referred to as value engineering.
Underestimating permitting costs and timelines is a common mistake during the preconstruction phase. Fees, plan checks, and inspection costs can quickly add up, especially if a project spans across multiple jurisdictions. Permit management software can help to integrate fee schedules and jurisdictional data into your process, allowing teams to build a more accurate preconstruction budget.
4. Scheduling and procurement planning
At this stage, the construction project manager develops a comprehensive project schedule, identifies any long-lead materials, and begins procurement planning.
Coordinating permitting with procurement is an important step: If a crucial permit lags behind, it can delay material orders or subcontractor scheduling.
Syncing permit approval timelines into the project schedule via permit management tools can help teams anticipate bottlenecks and adjust resource planning proactively.
5. Permitting and regulatory review
Depending on the jurisdiction, a project may require multiple permits. Commercial builders might face complex local zoning and environmental approvals, while EV or solar installers might have to navigate utility interconnectivity and electrical inspections.
Permit management software can help to automate form submissions, track review progress, and provide real-time updates on permit approvals. When paired with construction project management software, this can help the entire team stay on the same page without ever having to call or email AHJs about a permit’s status.
6. Preconstruction meeting and final sign-off
Before breaking ground, all stakeholders meet to review the plan, confirm budgets, finalize permits, and sign off on documentation.
This alignment phase ensures that all participants — including owners, contractors, subcontractors, inspectors, and clients — are ready to start construction.
Who is involved in the preconstruction process?
Preconstruction services bring together several professionals, each contributing their unique expertise to the project.
These individuals include:
- Project owner or client: Defines goals, budget, and success criteria.
- General contractor or construction manager: Oversees coordination, cost estimating, and scheduling.
- Architects and engineers: Creates and refines designs, ensures code compliance and constructability.
- Subcontractors and trades: offers practical insights on materials, labor, and installation feasibility.
- Permitting specialists or permit expediters: Navigate local building departments, ensuring timely submittals and approvals.
How much does preconstruction cost?
The cost of the preconstruction process is usually a small portion of the total cost of the build. While there is no set number for preconstruction costs, best practices state to set aside 1-5% of the total project budget specifically for preconstruction.
Common preconstruction costs include:
- Feasibility studies: Site analysis, soil testing, and code research
- Design fees: Architectural and engineering services
- Estimating and project management: Labor for planning, budgeting, and coordination
- Permitting costs: Application fees, plan checks, and inspection costs
- Technology costs: Software tools for document management and communication
Tips to manage the preconstruction process effectively
Just like all construction projects, the preconstruction process can come with unexpected roadbumps. It may be almost impossible to account for every single setback, but there are a few strategies you can implement to keep the process organized and efficient.
1. Start the permitting process early
Engage local building departments as soon as project parameters are defined. Early permit research can help your team identify major red flags such as zoning conflicts or environment reviews that can majorly disrupt the construction schedule.
Try using permitting software that automatically identifies all required permits based on project type and location.
2. Centralize communication and documentation
Instead of relying on emails where key team members may be missed, or spreadsheets with versioning issues, try consolidating all of your important information in one place.
Key documents such as drawings, budgets, submittals, and permits can all be compiled into one digital hub to be used as a central source of truth. This ensures that all stakeholders are referencing the latest files and prevents any miscommunication between your team members.
3. Leverage data-driven estimating
The base cost of a project is often modeled on real data from past projects. Software integrations, such as estimating or bidding software, can help automatically pull historical permitting costs and approval times to build more accurate project estimates.
4. Coordinate with subcontractors early
Involve specialized trade contractors early in the process to identify potential constructability or coordination issues. Tools like subcontractor management software can help with this process.
5. Build flexibility and buffers into your schedule
There are many aspects of the construction process that unfortunately are out of the builder’s control, which means delays can happen. Build in extra buffer time both in the preconstruction phase and the actual build process to account for unexpected setbacks.
Turning preconstruction planning into a competitive advantage
Strong preconstruction processes can make for a strategic differentiator in a crowded and competitive industry. Builders, contractors, and installers who master this part of the process can deliver projects faster, more predictably, and with greater client satisfaction.
Integrating tools like permit management software into preconstruction workflows can help teams eliminate common friction points like:
- Inconsistent communication
- Missing documents
- Unpredictable approval delays
Instead, they gain real-time visibility, centralized documentation, and smoother collaboration across every stakeholder.
Learn more about how permit management software can streamline the preconstruction process. Talk to one of our permitting experts today.
