Commercial Construction Schedule Phases (Houston)
Ask a Houston business owner when their new space will be ready and you will usually hear a single date. Ask the contractor and you will hear a sequence: design, permits, long-lead orders, demolition, rough-in, inspections, finishes, testing and the certificate of occupancy. Most schedule problems come from treating the project as one block of time instead of a chain of phases where each link depends on the one before it.
This guide walks through the phases of a typical commercial construction or tenant improvement schedule in Houston and what tends to slow each one down. It is general information, not a schedule for your project. Every building, scope and permit path is different.
Phase 1: Due diligence and programming
Before design starts, the team gathers facts:
- What will the space be used for, and how many people will occupy it?
- What existing drawings, permits and certificates are on file?
- What condition are the roof, HVAC, electrical service and plumbing in?
- Is an asbestos survey needed?
- What does the lease say about landlord and tenant work?
This phase feels slow, but skipping it pushes discoveries into construction, where they cost more. Our guide to what drives tenant improvement costs in Houston covers many of the items worth checking.
Phase 2: Design and pricing
Architects and engineers turn the program into drawings. On a design-bid-build project, pricing follows the finished drawings. On design-build or negotiated work, the contractor prices as the design develops. Our comparison of design-build vs design-bid-build for Houston commercial projects explains how that choice affects the calendar.
Decisions made here, such as finish selections, equipment models and lighting layouts, should be locked in before permit submittal. Late changes often send drawings back through review.
Phase 3: Permitting and plan review
Inside Houston city limits, most commercial buildouts need plan review and permits before construction. The Houston Permitting Center's Buildout Permit page (HPWCODE1148) lists plan review and inspection as required, a processing time of 15 business days and a valid period of 6 months. Comments from reviewers add rounds of revisions, so the real time depends on how complete the first submittal is.
The city's Commercial Prerequisite Checklist (CE-1105) lists items the submittal may need, such as mechanical and electrical plans, an energy code report and an asbestos survey for existing buildings, and notes that fire sprinkler and fire alarm work must be permitted separately. Projects with a total estimated cost of $50,000 or more also go through state accessibility registration and review, according to TDLR's Architectural Barriers FAQ. Our guide to the buildout permit process in Houston covers the steps in detail.
Phase 4: Procurement and long-lead items
While permits are in review, smart teams order what takes longest to arrive. Common long-lead items in commercial work include rooftop HVAC units, electrical switchgear and panels, storefront and specialty glass, custom millwork, and some plumbing fixtures and doors. Waiting for the permit before ordering can leave a crew ready to work with nothing to install. Owners can help by approving submittals and selections quickly.
Phase 5: Mobilization and demolition
Once the permit is issued, the contractor sets up the site: protection for common areas, dumpsters, temporary power and access rules. If asbestos must be abated or a building demolished, Texas requires advance notice. The Texas Department of State Health Services says on its asbestos notifications page that notification must be made no less than 10 working days before demolition or abatement starts.
Phase 6: Framing and rough-in
New walls go up, and the trades run what will be hidden: ductwork, electrical conduit and wire, plumbing supply and drain lines, data cabling and fire sprinkler piping. Rough-in work is heavily sequenced. The HVAC crew needs the framing; the electrician needs the ductwork routes; the sprinkler fitter needs the ceiling heights.
Phase 7: Rough inspections and close-in
Before walls and ceilings are closed, the city inspects the hidden work. Building, electrical, plumbing, mechanical and fire inspections each have to pass. A failed inspection means corrections and a re-inspection, which can hold up the trades waiting to close walls. Clean, organized rough-in work is one of the best ways to protect the schedule.
Phase 8: Finishes
Drywall, ceiling grid, paint, flooring, doors and hardware, millwork, lighting fixtures, plumbing fixtures and signage go in. This is the phase owners see, and it is also where late selections or back-ordered materials cause the most visible delays.
Phase 9: Fire alarm and sprinkler testing
Fire protection systems must be completed, tested and accepted. The city's fire protection systems application (Form CE-1047) covers plan review, permits and inspections for fire alarm and sprinkler work, which run on their own track. Building in time for testing and any corrections avoids a last-minute scramble.
Phase 10: Final inspections and certificate of occupancy
When all trade finals pass, the city issues the certificate of occupancy. The Houston Permitting Center's Certificate of Occupancy page (HPWCODE1106) says a certificate must be obtained before a commercial building or lease space is occupied, and lists a fee of $94.00 to $537.12. It also notes there can be no active or inactive permits from other sections, so open permits must be resolved first.
Phase 11: Punch list and closeout
The team walks the space, lists items to fix or finish and works through them. Closeout also includes as-built drawings, operation manuals, warranties, final lien waivers and training on new equipment. Move-in, furniture and IT setup often overlap with this phase.
What usually causes schedule slips
- Incomplete drawings that draw multiple rounds of plan review comments
- Late owner decisions on finishes or equipment
- Long-lead items ordered too late
- Unexpected existing conditions, such as asbestos or undersized electrical service
- Failed inspections
- Open permits from prior tenants that block the certificate of occupancy
How owners can keep things moving
1. Settle the program and finish level before design is complete. 2. Approve submittals and selections promptly. 3. Ask for a schedule that shows permit time, long-lead items and inspections, not just a finish date. 4. Agree on who is responsible for permits and the certificate of occupancy. 5. Hold regular, short progress meetings with written notes.
FAQ
What is the longest phase of a commercial buildout?
It varies. On many projects, design and permitting take as long as or longer than construction itself.
Can construction start before the permit is issued?
Generally no, for work that requires a permit. Some early steps, like ordering equipment, can happen during review.
When should long-lead items be ordered?
As soon as selections are final, often while the permit is still in review.
Does the certificate of occupancy come automatically?
No. It requires final inspections and a clean permit record for the space.
Planning a commercial project schedule in Houston? BPC Development LLC provides free on-site estimates in Houston, TX. Call (281) 301-4737.