- PlanHub
Executive Summary
- During the preconstruction phase, consider factors like the feasibility of the project, project scope, material costs, budget, permitting, and final plans.
- Planning during preconstruction is key to bypassing risks like inaccurate cost estimation, poor scope definition, subcontractor risk, regulatory risk, and more.
- Using tools like bid management tools and takeoff and estimation tools can significantly simplify the preconstruction phase and the lead-in to construction, saving time, managing risk, and ensuring accuracy in your project budgeting.
- Consider risk management in preconstruction by identifying and planning for project-specific financial, operational, and regulatory risks.
Importance of Preconstruction Planning
In the world of construction, there are so many variables to every job that going with the flow won’t be good enough—a successful project requires detailed planning. Challenges like fluctuating material costs and labor shortages mean that the preconstruction planning must be taken seriously so you are not caught off guard and stuck in the weeds later on.
The preconstruction phase is the chance to hash out all the details and iron out any potential knots your project may face, from solidifying the project design to estimating your budget and staffing needs. Planning now saves time, money, and headaches later. Proper preconstruction planning can save up to 15-20% of project costs by identifying potential issues and addressing them before breaking ground.
Understanding some of the most common risks that contractors might face and then planning diligently is key to a successful preconstruction process that you can carry across all your projects. Our preconstruction checklist outlines the most crucial steps to help you stay ahead of the most common construction project pitfalls and achieve successful implementation.
Key Phases of Preconstruction
Preconstruction is a comprehensive process that involves multiple layers of planning to set the pace for successful and efficient construction. Below are all the critical preconstruction process steps.
Initial Concept Development
Take this time to clearly understand the owner’s vision for the project, outline their goals, and define the steps necessary to implement them. It’s important that you have a clear picture of what is requested so that you can be sure you’re running in the right direction and have a strong vision for what resources you’ll need to complete the project.
This phase sets the foundation for understanding the project scope guidelines later on down the road. First, you’ll need to compare the owner’s goals with the realities of what is possible in the current market. Then, you can start mapping out the tangible steps needed to turn the vision into reality, while considering which tasks you will own and which are outside your area of expertise and better left to another party.
Feasibility Assessment
With the owner’s vision in mind, your first task is to determine whether executing the job is reasonable and realistic. Consider the feasibility of executing the project and any of the factors that could alter your ability to meet the owner’s expectations, such as zoning, site conditions, and access to utilities. Think about the practicality of the job as well as whether the job site conditions will allow you to fulfill all the demands the project would require.
You might ask some of these questions:
- Is the ground stable?
- Are there environmental concerns?
- Is the site easy to access for all the necessary equipment?
- Will there be access to utilities like electricity?
- Are the materials available to meet the owner’s vision?
Catching a fatal flaw at this step is crucial to saving thousands of dollars later. A detailed assessment means adapting early and planning the right materials in advance so there are no do-overs needed.
Design and Scope Development
With the main ideas down, you can begin to mold the design and project scope, putting what you have on paper into more formal plans. Turn the owner’s concept into tangible designs, drawings, and specifications to set the stage for material planning, estimation, and ordering.
Collaboration between the owner, architect, engineers, and general contractor will be key during this phase, as they bounce ideas between each other and make refinements to ensure a successful finished product that checks all necessary boxes.
Budgeting and Cost Estimation
Estimating costs and preparing an accurate budget is fundamental to avoiding cost challenges later in the project. Winning estimates are more than just a ballpark number. Have detailed line items for material, labor, subcontractor costs, and other related aspects of the project. Establish a guaranteed maximum price or initial estimates to set the owner’s expectations and avoid sticker shock later.
Don’t just make an educated guess, but use tools to support you in the process. Creating detailed estimates has never been easier. For example, PlanHub empowers users to develop detailed and accurate estimates in no time. The tool offers the ability to calculate real-time pricing for material costs and taxes with a 92,000-item cost library, streamlining your financial planning.
Permitting and Approvals
Permitting and approval can be a significant cause of headaches and often cause bottlenecks if you are not careful and proactive. It’s crucial that you assess local laws and regulations surrounding the type of project and do your research well in advance of the project start date so you are prepared to begin.
Permit applications should be submitted early on in the preconstruction phase so there are no roadblocks once you’re ready to get started. Determine what permits you may need to apply for, the forms you might need to complete, and what qualifications and certifications you may need to lead the project.
Be aware of the changing landscape—in 2026, regulations may be changing in multiple areas. Some states, like California and New York, are implementing higher standards for energy efficiency, while others are making these regulations more lax. Closely consult with your compliance manager so you can navigate all legal requirements early in the preconstruction process.
Finalizing Project Plans
Finally, take everything you’ve gathered so far and compile it into the final project planning and drawing to be used for construction. These plans will be the single source of truth for implementing and managing the rest of the project. Ensure all stakeholders have a chance to review these and sign off on them so they can be confidently treated as the standard for guiding all workflows. Then, follow these plans religiously throughout the project.
Assembling the Project Team
Now that you have the “what” of the project sorted out, you will need to clarify the “who”. Identify the key members of your team who will be necessary to complete all the important aspects of the job.
Roles and Responsibilities
List out the roles that you will need to fulfill the job and the responsibilities each role will have, both during preconstruction and actual construction. For example, a general contractor will be responsible for overseeing the necessary aspects of the project, while the construction manager will advocate for the owner’s interests through oversight and planning recommendations.
Consider these roles:
- General contractor
- Construction manager
- Site supervisor
- Compliance manager
- Architect
- Engineers
Make sure you understand who is responsible for what and have key tasks mapped out with the party responsible for ensuring each one is completed, as this will be key to maintaining accountability and alignment going forward.
Selecting Qualified Professionals
Implementing a successful, risk-free project requires working with a team of experienced, vetted professionals, from your direct team to any specialized subcontractors and suppliers you engage. Finding quality construction labor has been a persistent challenge; one that is expected to continue into 2026, with a need for as many as 499,000 workers in the industry to keep up with demand.
For aspects of the project you won’t be able to perform, you’ll need to engage the support of other experts and subcontractors. Have a process for soliciting and managing bids, and then a rigorous vetting process as you choose the best candidates.
A subcontractor bidding platform like PlanHub enables general contractors to find qualified, reliable subcontractors by soliciting bids and keeping everything organized in one place. Not only does the platform cast a wider net into a network of thousands of contractors, but it also matches you with those that are the best fit for the job, eliminating the tedious prequalification process.
Find Qualified Subcontractors with Less Effort
PlanHub matches you with skilled subcontractors that will do the job right with less work on your part. Simply submit ITBs and automatically match with prequalified professionals.
Utilizing Advanced Technologies
Tools from subcontractor bidding platforms to 3D modeling systems can help you manage all of the important aspects of preconstruction to make processes more efficient and save you time better spent on other critical areas of the project.
Benefits of Building Information Modeling (BIM)
Building information modeling is a technology that uses 3D models to represent buildings and surrounding infrastructure on a construction site so you can visualize the project. These models allow you to better plan for material needs, set expectations for site preparation, and understand how different stages of the project will flow together, such as making sure plumbing and electrical systems won’t collide.
With the availability of this technology increasing, this tool is no longer reserved for big mega-projects and is instead becoming a standard for more routine mid-sized commercial jobs. As much as 73% of construction professionals now use BIM in their workflows. The pictures built from BIM tools help provide a clearer blueprint for the project, catch risks of clashing, and prevent rework.
Cloud-Based Bidding Software
A cloud-based bid management software is an excellent resource for both submitting and soliciting bids. With the right tools, you can reach a wide audience of experienced potential subcontractors and work with your team to stay organized on outstanding tasks. Then, once you start accepting bids, you can easily sift through a centralized view of all bids submitted and received, compare bids side-by-side, and follow up when needed.
PlanHub allows collaborative capabilities to collectively develop strong bids and then transition directly into the project planning phase in public and private planrooms, all in one platform. All the while, you and your team are able to work directly from the same plans in real-time, rather than bouncing edited versions back and forth. As a result, you keep everyone on the same page, amplifying communication and streamlining the overall drafting process.
Takeoff and Estimation Tools
Digital takeoff and estimation tools have completely changed the subcontractor bidding landscape, paving the way for more detailed and precise bids. The best tools allow contractors to visualize the worksite and how it translates into material quantity needs. Digitizing your takeoff and estimation tools saves up to 75% of time compared to manual methods.
These tools allow you to plan and reduce risk with a minimal margin for error. For example, PlanHub’s takeoff and estimation tool streamlines the planning and estimation process, offering the following benefits:
- All-in-one tools: Smooth integrations allow organizations to move seamlessly between bids, takeoffs, and estimations, improving efficiency and accuracy.
- Real-time collaboration: Complete bids across the team in one location, without losing track of document version or team progress.
- Unique customization: Work with pre-built templates or adjust your takeoff process to best fit the demands of your project.
Accurate material pricing: Our tool features a robust item cost library that accounts for real-time market pricing, sales taxes, and material needs as they relate directly to your project plans.
Other Emerging Technologies
Continuous technological advancements mean that there are more tools than ever before and more on the horizon. Construction managers and contractors are only gaining more options for implementing technology into their workflows and preconstruction planning.
Emerging technologies include:
- Artificial intelligence: Artificial intelligence is an overarching technology that is being applied to many tools to improve personalization and automate tasks, ranging from construction data analytics to optimizing decision-making.
- Drones: Drone technology has simplified the ability to conduct site reviews with minimal work involved, allowing you to scope out important aspects of a job site, like nailing down access points and assessing any barriers to the work.
- Virtual and augmented reality: These tools provide an immersive opportunity to visualize project renderings and conduct virtual walkthroughs, allowing stakeholders to catch design and development conflicts early and adjust.
While not every organization will use or need all of the absolute latest technology, it’s important to stay on top of the trends to understand your options and explore what areas you can optimize and automate for more efficient preconstruction.
Top Five Risks That General Contractors Face
General contractors must consistently navigate risk throughout a project in order to drive it toward success. Below are some of the most common risks general contractors face in the preconstruction phase that can materially impact profitability, liability, timelines, and project outcomes.
1. Inaccurate Cost Estimation and Budgeting
Budget inaccuracies bring complications later on during the project, including budget overruns, cash flow strain, and critical delays. Miscalculations, underestimated costs, failure to account for product volatility, and a lack of contingency budget buffers all set unrealistic expectations, erode profit margins, and break down client relationships.
Fluctuating prices have made initial estimates more difficult to rely on. Material costs have already jumped as much as 9% in commercial real estate alone in the past year. These fluctuations are likely to be the norm, with continued uncertainty into 2026 and beyond as tariffs and inflation drive costs higher.
Industry professionals who fail to adapt will position themselves for reduced profitability, funding shortfalls, unsuccessful projects, and even a negative reputation.
2. Poor Scope Definition and Design Risk
A lack of clarity or errors in design and project scope during preconstruction creates disputes, rework, and overall inefficiency downstream. Confusion in project scope, deliverables, inclusions, and exclusions can lead to issues such as expensive change orders, strained stakeholder relationships, and schedule disruptions. It’s always better to address these aspects upfront to align on expectations among all stakeholders.
3. Subcontractor and Vendor Risk
Choosing the wrong subcontractor or supply vendor introduces execution risk before the first shovel hits dirt and can quickly snowball into a botched project. General contractors must be wary of failing to secure reliable bids and must appropriately qualify subcontractors as a crucial first step.
A lack of competitive and diverse subcontractor bids can extend preconstruction or result in choosing the wrong fit for the job, causing project delays, quality issues, and even exposure to liability. General contractors must have a rigorous process for finding and vetting subcontractors while taking the time to review bids from a diverse field of candidates.
4. Regulatory and Compliance Risk
Compliance concerns like incomplete permitting, environmental constraints, and code violations can result in not only project delays but also fines and litigation risks. Regulatory and compliance is one of the categories that often feels like it’s far down the priority list—until you have no choice but to prioritize it. Take compliance seriously to avoid team safety concerns and financial or legal consequences. Always perform an in-depth risk assessment and legal research early on in preconstruction to prevent delays later.
5. Supply Chain and Market Volatility
Unpredictability is a defining theme for construction contractors in 2026. Not only are materials getting more expensive, but they are also getting harder to find, throwing a wrench in preconstruction planning. A staggering 96% of contractors report supply chain challenges as having a moderate to high impact on their operations.
Long lead times or shortages for materials and equipment in preconstruction can distort both scheduling and budgeting. The current market landscape may leave professionals at the mercy of extended timelines, higher material costs, and uncompetitive bids.
Preconstruction Risk Types and Their Impacts
| Risk Category | Profitability | Liability | Time | Money |
| Inaccurate Estimates | High | Medium | High | High |
| Scope & Design Risk | Medium | High | High | High |
| Subcontractor Risk | Medium | Medium | Medium | Medium |
| Compliance & Permitting | Low | High | High | Medium |
| Supply Chain Volatility | High | Low | High | High |
Risk Management Strategies
After identifying the most likely risks you may face as a general contractor, you should follow these steps to stay ahead of them.
Identifying Potential Risks
In addition to the top five risks general contractors face above, contractors should consider the many other contingencies they may encounter during the project. Take time at the start of your project to brainstorm risks and a plan for adapting—this may be considered the “What If?” session. Think about all the things that could go awry, exacerbate the five risks above, and disrupt your timeline.
Common risks to consider include:
- Scheduling inefficiencies: A lack of buffer in the schedule leads to the risk of weather delays or extended material lead times, throwing key milestones and deadlines off track.
- Site safety hazards and poor risk assessment: Failing to consider and identify site safety or environmental hazards could lead to unforeseen risk, added liability, and reactive rather than proactive planning.
- Inefficient internal processes: Processes like manual data entry, a lack of standardization, and siloed teams cause communication challenges, affect the work quality, and pose the risk of dragging projects out longer than necessary.
- Contractual and insurance exposure: Gaps in liability coverage or poorly drafted contracting language can elevate legal risk and stop a project right in its tracks.
By identifying risks at the beginning of the project, you’ll be better equipped to navigate them with your front foot forward.
Mitigating Financial Risks
Common financial risks include cost overruns, payment delays to subcontractors and general contractors, material pricing volatility, and, in cross-border projects, currency fluctuation. Detailed budgeting with accurate construction cost estimation and contingency planning are key to minimizing risk and protecting profit margin.
Financial risks should be planned for and factored into the overall project budget. Understanding potential risks and having contingency funds planned helps you stay ahead. Consider building a buffer into your budget to protect your margins, especially given the volatility expected in the industry for 2026. It’s recommended for this buffer to be about 5 to 10% of the overall project.
Addressing Operational Risks
Operational risks are those that affect your ability to complete the work and include events like equipment failure, labor disruptions due to skilled worker shortages, inefficient internal processes, work defects, and scope creep. With 45% of construction professionals citing delays as a result of labor shortages in one industry survey and an 88% increase in project abandonment in 2025, operational risk must be at the top of mind for contractors.
Thinking about even the little details during preconstruction will go a long way toward preventing traffic jams later and ensuring smooth implementation. For example, consider questions like “How will trucks enter and exit? Where is the laydown area for materials? What is a backup plan if a part of the project is delayed? Is there sufficient schedule buffer to allow a project to continue despite disruptions elsewhere?
Map out the risks that can arise and what you plan to do to prevent them from derailing your progress. Build contingency plans into your budget and your schedule to avoid critical delays if one thing goes wrong.
Compliance and Regulatory Risks
Between new OSHA implementations, evolving local building codes, and the increasing concern for green building standards, general contractors have several factors to consider as they plan for and execute on projects. These are in addition to the already required insurance, safety certifications, and local permits.
Changing federal and state regulations require even more diligence in 2026 and beyond, as worker protection standards continue to be enhanced and more value is placed on green building.
Just a few additional standards to consider for 2026 include:
- Stricter OSHA silica exposure enforcement requirements
- More rigid green building and energy efficiency standards in states
- Clearer requirements for beginning construction under the Clean Air Act
Do a diligent review of all potential regulations and standards to ensure compliance between you and the full team. Be sure to have your team check changes to both local codes and federal guidance.
Preconstruction Risks and How PlanHub Mitigates Risk
| Preconstruction Risk | Best-Practice Solution | How PlanHub Mitigates the Risk (Fully or Partially) |
| Inaccurate Cost Estimates & Budget Overruns |
| PlanHub expands bid coverage and pricing accuracy by giving GCs access to a large, active subcontractor network across trades and regions. More bids → better price validation → reduced estimating risk. Faster bid turnaround helps estimates stay aligned with real-time market conditions. |
| Poor Scope Definition & Design Gaps |
| PlanHub centralizes plans, specs, and addenda so all bidders are working from the same information. Built-in communication tools allow subcontractors to ask questions early, helping surface scope gaps before contracts are awarded—reducing downstream change orders. |
| Subcontractor Availability & Qualification Risk |
| PlanHub significantly lowers subcontractor risk by expanding access beyond existing contact lists. GCs can discover new, relevant subs by trade, location, and project type—improving bid coverage and reducing last-minute scrambling when subs decline or drop out, and providing prequalification |
| Schedule Delays from Slow or Fragmented Bidding |
| PlanHub streamlines the bidding workflow by automating invitations, reminders, and bid tracking in one platform. This reduces wasted admin time, shortens preconstruction timelines, and improves schedule predictability—without adding operational overhead. |
| Market Volatility & Supply Chain Uncertainty |
| PlanHub helps GCs stay resilient in volatile markets by increasing bidder optionality and connecting both GCs and SCs to SPs. |
Encouraging Stakeholder Collaboration
Stakeholder collaboration and communication are monumental components of ensuring client satisfaction and avoiding misalignment at any point in the project.
Effective Communication Practices
Poor communication is one of the most significant causes of project rework and unnecessary construction delays. Establish clear communication preferences and expectations between all stakeholders to ensure smooth project progress.
Centralized and collaborative project management platforms can help encourage smooth communication without a jumbled backlog of email threads. Consider the use of a project management tool to house communication and make your internal progress monitoring more efficient.
Involving Key Stakeholders Early
Engage subcontractors early on during preconstruction so that there are no hiccups and fewer needs to pivot later. Having subcontractors chosen early allows their work and project guidelines to be built smoothly into the overall project timeline.
Subcontractors are often engaged for their niche expertise. Engaging them early allows them to contribute their unique insights to the project, offering potential value engineering to suggest alternative ways to do something while preventing wasted time or costs from rework on design timelines or material deliveries.
Finding the most reliable subcontractors and suppliers is often easier said than done. A general contractor bid management software can be used to reach a network of potential contractors and navigate the bids to find the right fit for each job.
Preconstruction Best Practices
Placing the deserved value on the preconstruction process makes the actual construction process sooner. Consider these preconstruction best practices to ensure efficiency and simplicity in your project.
Thorough Planning and Analysis
Time spent during planning and analysis may feel tedious, and you may prefer to just figure things out as you go. However, the time you put in at the beginning is an investment in the rest of the project. Frontloading the work here is key to saving stress later.
Perform a deep analysis of the site, the owner’s expectations, and the resources you’ll need to complete the project so that you have all your bases covered before ground is broken. Use a preconstruction meeting with key stakeholders, like construction managers, subcontractors, and supervisors, to get on the same page.
During the meeting, discuss all the elements you may need to plan for:
- The owner/developer’s goals
- Who is responsible for executing key responsibilities
- Who signs off on what aspects of the project
- Important milestones and project checkpoints
- Potential risks with the full team
- Necessary clarification points and requests for information, submissions, and permits
- Site access, safety expectations, and potential neighbor constraints
After engaging key project stakeholders, set the standard for routine follow-ups and maintain consistent communication throughout the rest of the project.
Real-Time Monitoring and Reporting
Consistent monitoring and reporting are crucial for ensuring deadlines are met and preventing bottlenecks between dependent tasks. Use qualitative data to track key milestones in preconstruction progress. How many bids have been solicited for suppliers? Are you hitting design milestones on time? Have permit applications been submitted? Approved?
Questions like these feed into the rest of your project. Have a system for mapping out key tasks and timelines, measuring real-time progress, following up with responsible parties, and marking off tasks as they are completed.
Adaptability and Flexibility
Construction is dynamic—even with the most detailed and well-thought-out preconstruction plan, you may still run into challenges, so it’s crucial to be prepared to adapt and move as the project progresses. Having a contingency budget, contingency plans, and appropriate lead time in between varying phases of a project will allow you to keep your roadmap intact but leave room for detours where needed. Be sure to maintain communication with the owner and have a process for change orders when necessary to pivot.
Comprehensive Risk Assessment
The difficult reality of construction is that a risk-free project is impossible, but the key to effectively standing out as a successful business is to prepare for risk and manage it responsibly. Make risk assessment an inherent part of every project bid and proposal—the best contractors are those who have effectively planned for risk and built a firm foundation to work off of to adapt and respond to it.
Scale Up Your Projects With Our 2026 Preconstruction Checklist
While risk can be near impossible to eliminate, you do have the power to make substantial progress toward reducing it. A detailed preconstruction planning guide keeps you on track and on pace for your project and sets the foundation for successful implementation and completion.
Our 2026 Preconstruction Checklist provides you with a detailed resource to follow as you track the many moving parts of the planning and design phases so you can avoid hiccups and delays. Explore our preconstruction planning guide below to keep you and your team on track in the preconstruction phase so the rest of the project has a clear path ahead.
We also provide a full suite of tools and resources that can help you prepare to complete your project with confidence and peace of mind. For more in-depth support as you plan for your project through seeking out subcontractors, managing bids in a collaborative platform, and estimating costs with precision, turn to PlanHub and our general contractor bid management software tool today.
Book a demo today and start optimizing your projects.
The 2026 Preconstruction Checklist (The 12 Steps)
- Strategic Definition & Goals
- [ ] Define project scope, budget limits, and timeline constraints.
- [ ] Establish the “Owner’s Project Requirements” (OPR).
- Site Feasibility Analysis
- [ ] Conduct soil testing (geotechnical report).
- [ ] Review zoning laws and environmental impact.
- [ ] Verify utility availability and access.
- Initial Design & Constructability Review
- [ ] Review schematic designs for potential structural conflicts.
- [ ] Identify long-lead items (materials that take months to ship).
- The Budget Baseline
- [ ] Create a preliminary cost estimate based on schematic designs.
- [ ] Establish a contingency fund (recommended 5-10%).
- Team Assembly & Prequalification
- [ ] Select the General Contractor (if not already selected).
- [ ] Use PlanHub to post the project and solicit bids from qualified subcontractors.
- [ ] Vet subcontractors for insurance, safety records, and financial stability.
- Regulatory Permitting
- [ ] Submit plans to the local municipality.
- [ ] Address plan check comments and secure building permits.
- BIM & Clash Detection
- [ ] Run BIM models to identify interference between MEP (Mechanical, Electrical, Plumbing) and structural elements.
- [ ] Resolve clashes digitally before ordering materials.
- Value Engineering (VE)
- [ ] Review material specs to identify cost-saving alternatives without sacrificing quality.
- [ ] Consult with key trades for efficiency suggestions.
- Detailed Scheduling
- [ ] Create the Master Construction Schedule (CPM).
- [ ] Define the Critical Path and milestones.
- Final Budget & Procurement
- [ ] Finalize the Guaranteed Maximum Price (GMP).
- [ ] Issue Purchase Orders (POs) for long-lead materials immediately.
- Risk Management Plan
- [ ] Create a site-specific safety plan.
- [ ] Develop a logistics plan (crane placement, site access, debris removal).
- The “For Construction” Handoff
- [ ] Ensure the field team has the most current, stamped set of plans.
- [ ] Hold the Preconstruction Kickoff Meeting with all stakeholders.
