10 Renovation Surprises & Commercial Construction Risks

Not every construction project needs to start from the ground up. Many business owners and organizations simply want to breathe new life into their existing building or may want to purchase a commercial structure that needs to be adapted to their needs.

Renovating is a great option for some, but it’s important to remember an important lesson: Renovations are like a box of chocolates – you never know what you’re going to find inside.

Unlike new construction projects that clearly outline the scope of work, renovations — even seemingly small projects — can come with unpredictable risks and costly surprises that lead to scope creep

The following are just a few examples of unforeseen site conditions your contractor may discover during construction.

  1. Asbestos and Lead Paint Remediation
  2. Structural Issues
  3. HVAC Deficiencies
  4. Outdated Electrical Systems
  5. Inadequate Plumbing 
  6. Code Violations
  7. Environmental Regulations
  8. Pest Infestations
  9. Hidden Water Damage
  10. Defective Workmanship

RELATED: To Build or Not to Build? Commercial Construction Checklist

1. Asbestos & Lead Paint Remediation

If your building was built before the 1980s and hasn’t had much remodeling since, there’s a chance it may contain hazardous materials like asbestos and lead-based paint. Specialized testing will need to be conducted to ensure the safety of workers and your employees. Trained professionals will test flooring, insulation, glazing, caulking, and VCT adhesives. If remediation is required, costs can add up quickly, and it could cause significant delays.

2. Structural Issues

You’d be surprised how often our construction teams remove drywall, plaster, brick, or other surfaces to discover hidden structural concerns. Support beams might have been cut to make way for air vents, basement foundations may be crumbling, or steel may be corroded. Sometimes there’s no way to know that these issues exist until the construction demolition process begins. If the damage is extensive, it will require major repairs. Though costly, sometimes these types of discoveries are a blessing in disguise because they expose critical safety risks that can be addressed before they lead to structural failure.

3. HVAC Deficiencies

Heating, ventilation and cooling (HVAC) technology has advanced significantly in recent years. Many older HVAC systems aren’t properly sized for most buildings and are woefully inefficient. Beyond upgrading to smarter HVAC technology, property owners also need to consider whether existing ductwork, wiring, and insulation will support a new system. 

Some portions of the building may need to be brought up to code and will have associated costs. A construction team that’s done numerous other renovation projects will be more equipped to anticipate such roadblocks based on past experiences, so be sure to have a conversation about potential budget implications of HVAC and other mechanicals with your contractor.

RELATED: Considerations for Healthcare Facility HVAC Systems

4. Outdated Electrical Systems

The walls of older buildings can hide a lot of secrets. Outdated electrical systems are among the most common issues that our team encounters on the job site. Faulty or corroded wiring, in particular, poses extreme fire risks that need to be mitigated. 

The older the building, the more likely it is that it will need to be upgraded to meet modern electrical codes. There are times when an entire system needs to be replaced. An experienced contractor will know what signs to look for to give some indication of what needs to be done, but the extent of those upgrades is sometimes unknown until construction and/or demolition begins.  

5. Inadequate Plumbing

Galvanized or cast-iron pipes, corroded sewer lines, inefficient fixtures—these are just a few of the common plumbing problems discovered during renovation projects. It’s not just older buildings that are susceptible; newer facilities sometimes experience plumbing problems resulting from clogs, harsh cleaning chemicals, or inexperienced maintenance teams who make inadequate repairs. Bad, leaky plumbing can cause significant damage, and repairs and upgrades will need to be made.

RELATED: Pros & Cons of New Construction vs. Renovations

6. Code Violations

Building codes continue to evolve over time. The older your building, the more likely it is to have some code violations. In addition to electrical and plumbing codes, your facility might need to comply with several other types of regulations. Is your facility ADA-compliant with accessibility features? Does your type of building structure require a sprinkler system or other type of fire suppression solution? 

Specialty industries like healthcare and corrections will have additional building code requirements for infection control, security, and more. Ask your construction manager to help determine potential issues and scenarios so you’re not left guessing about necessary upgrades.

7. Environmental Regulations

The Upper Midwest is known for its strict environmental regulations, particularly when it comes to waste disposal and air quality. Project owners may not anticipate ancillary costs for disposal of old building materials or complying with environmental laws. 

If you’re adding on to an existing structure, you may also discover unsuitable soils, high water tables, or even a significant historical site. Some of these situations should not come as a surprise, however. Working with a construction company that conducts thorough site assessments can help identify these potential risks ahead of time. 

RELATED: Go Green! Sustainable Commercial Building Design Tips

8. Pest Infestations

Rodents, termites, wasps, and other pests often like to make their homes in older buildings. Discovering such an infestation can be unsettling for both the project owner and the contractor, and even pose health risks. Specialists are often required to remove pests either through fumigation or exclusion, which can be costly. 

Some types of pests have additional considerations. Bats, for example, are a protected species in Wisconsin and Iowa, and a nuisance animal control operator will need to be hired to safely evict them from the building without harming them.

9. Hidden Water Damage

A frequent issue that’s discovered when removing old walls or ceilings is pre-existing water damage from a leaky roof, cracked seals around vent pipes, improperly installed moisture barriers and insulation, or leaky plumbing. 

If water damage is detected, a contractor will need to assess whether the structure has been compromised as a result and go to extra lengths to fix it. Sometimes damage caused by water isn’t as big of a concern as mold growth, which can pose serious health risks and requires special remediation. 

10. Defective Workmanship

Some of the aforementioned renovation problems could be the result of normal wear and tear over time. Sometimes, however, your construction team may discover defective or faulty workmanship from a previous contractor that needs to be corrected. It might be something as simple as inadequate insulation or something major like improper pilings or a weak foundation.

Some of these issues can be identified before a renovation starts by having your construction team conduct a thorough facility assessment. Overall, such an assessment is one of the best ways to mitigate the risks associated with unforeseen conditions. 

Our team at Samuels Group has extensive experience evaluating and assessing commercial structures and sites for all kinds of industries, from manufacturing to healthcare, government to general commercial, and everything in between. We’ve developed a Commercial Building Checklist that can help you assess major construction considerations for various industries, so be sure to check it out.

In the end, renovations can be a cost-effective way to upgrade a facility and improve its appearance, functionality, and property value. Working with the right construction professionals is one of the best ways to anticipate issues and stay within budget. Contact us to get started.

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