Top 5 Mistakes to Avoid During Your Tenant Finish-Out

July 2, 2025

Moving into a new commercial space is an exciting chapter for any business. The tenant finish-out process is your opportunity to transform a blank canvas into a functional, branded environment that fuels growth and reflects your company's culture. However, this exciting journey can quickly become a source of stress, delays, and unexpected costs if not managed carefully.


At Five Mile Construction, we’ve guided countless businesses in San Marcos and across Central Texas through their tenant improvement projects. We’ve seen what separates a smooth, successful build-out from a frustrating one. To help you navigate the process like a pro, here is our cautionary guide to the top five mistakes to avoid during your tenant finish-out.

 

Mistake #1: Not Fully Understanding Your Lease Agreement


The single most critical document in your finish-out is your lease. Tucked away in the legal jargon are crucial details about the Tenant Improvement Allowance (TIA), the landlord's and tenant's responsibilities, and the building's specific rules and regulations for construction. Many business owners make the costly mistake of only skimming this document.


The Pitfall: Misunderstanding your TIA can leave you with a significant funding gap. Not knowing the building's rules—like required union labor, specific material standards, or restricted work hours—can lead to project delays and costly rework.


How to Avoid It: Before you sign, have your general contractor review the lease's work letter and construction clauses. An experienced partner can help you understand the TIA, identify potential red flags, and clarify the division of responsibilities between you and your landlord, ensuring there are no expensive surprises down the road.


Mistake #2: Inadequate Planning and Vague Design


Excitement can often lead to a rush to get started. However, jumping into construction without a detailed, well-documented plan is a recipe for disaster. Vague ideas like "an open-concept office" or "a modern retail feel" are great starting points, but they aren't enough to build from.


The Pitfall: A lack of detailed architectural plans and specifications leads to constant changes mid-project. Every change order, no matter how small it seems, can have a ripple effect, causing significant delays and blowing your budget. What happens when the electrical outlets are in the wrong place for your new floor plan? Or when the wall you wanted removed turns out to be load-bearing? These on-the-fly decisions are where costs spiral.


How to Avoid It: Invest time in the design and planning phase. Work with your contractor to create a comprehensive set of construction documents that specifies everything—from the floor plan and lighting design to the exact paint colors and materials. At Five Mile, our design-build approach ensures that the design is not only visionary but also practical, code-compliant, and, most importantly, aligned with your budget from day one.


Mistake #3: Underestimating the Permitting Process


In a rapidly growing area like Central Texas, navigating the municipal permitting process can be complex and time-consuming. Each city and county has its own set of codes, submission requirements, and inspection schedules. Thinking you can simply submit plans and start building the next week is a critical error.


The Pitfall: Failure to submit the correct documents or underestimating the review timeline can leave your project in limbo for weeks or even months before a single hammer is swung. This not only delays your grand opening but can also mean paying rent on a space you can't yet occupy.


How to Avoid It: Partner with a local general contractor who has a deep understanding of the jurisdictions you're building in. An experienced team knows the specific requirements for cities like San Marcos, Austin, and the surrounding areas. They can manage the entire submittal and inspection process, ensuring everything is filed correctly the first time to keep your project on track.


Mistake #4: Choosing a Contractor Based on Price Alone


It's tempting to select the contractor who provides the lowest bid. But in construction, the cheapest option upfront often becomes the most expensive one in the long run. An unusually low bid can be a red flag for cutting corners, using subpar materials, or a lack of understanding of the project's full scope.


The Pitfall: A contractor who cuts corners can leave you with poor workmanship that requires costly repairs down the line. They might use materials that don't stand up to commercial use or create delays by not having the right team or resources. Communication might be poor, leaving you in the dark about progress and problems.


How to Avoid It: Look for a partner, not just a contractor. Evaluate potential builders on their experience, portfolio of similar projects, client testimonials, and communication style. A reputable firm like Five Mile Construction will provide a transparent, detailed bid that accounts for high-quality, sustainable materials and the expert team needed to deliver a space that is built to last.


Mistake #5: Lack of Communication and On-Site Supervision


Once construction begins, you can't just set it and forget it. A lack of regular communication and site supervision—from both your team and your contractor's—can lead to small mistakes snowballing into major issues.


The Pitfall: Without clear, consistent communication, what you envisioned may not be what gets built. Minor deviations from the plan can occur and, if not caught early, can be expensive and time-consuming to correct.


How to Avoid It: Establish a regular communication schedule with your project manager from the start. This should include weekly meetings, progress reports, and a clear process for asking questions and raising concerns. Ensure your contractor provides dedicated on-site supervision to oversee the quality of work and ensure adherence to the plans. This proactive communication and oversight are key to ensuring your vision is executed flawlessly.

 

Build Your Future with Confidence


Your tenant finish-out is a significant investment in your business's future. By avoiding these common mistakes, you can protect that investment and ensure a smooth, predictable, and even enjoyable process.


The key takeaway is to build the right team. An experienced, communicative, and trustworthy general contractor is your single greatest asset in navigating the complexities of a commercial build-out.


Ready to turn your vision into a reality without the headaches? Contact the expert team at Five Mile Construction today. Let's discuss your project and build a space where your business can thrive.

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Don't Sign on the Dotted Line! 7 Critical Questions to Ask a General Contractor

September 24, 2025
Choosing a general contractor is the most important decision you'll make for your tenant finish-out . This is the partner who will be responsible for your budget, your timeline, and the ultimate quality of your new space. Making the right choice leads to a smooth, successful project. Making the wrong one can lead to a nightmare of delays, cost overruns, and stress. To make an informed decision, you need to do your homework and ask the right questions. A trustworthy and professional contractor will welcome this due diligence and answer transparently. Here are seven critical questions you should ask every potential contractor before you sign a contract: "Are you licensed and fully insured in Texas?" Why it's important: This is a non-negotiable starting point. A valid license proves they meet state requirements. Ask for proof of their general liability and worker's compensation insurance. This protects you from liability in case of an accident or property damage on your job site. "Can you share a portfolio of similar tenant finish-out projects and a list of recent client references?" Why it's important: You want a contractor with specific experience in your type of project (e.g., retail, restaurant, office). A portfolio shows their quality of work. Speaking to references gives you firsthand insight into their communication, reliability, and how they handled challenges. "Who will be my main point of contact, and how will we communicate?" Why it's important: Clear, consistent communication is the bedrock of a successful project. You should know who your dedicated project manager is and expect a clear plan for regular updates, such as weekly meetings or progress reports. "How do you ensure the project stays on schedule and on budget?" Why it's important: This question reveals their project management process. A professional contractor will use scheduling software, provide a detailed budget, and have a clear system for tracking progress and expenses. "What is your process for handling change orders?" Why it's important: Changes are common in construction projects. You need to know how they will be handled. A reputable contractor will have a formal change order process that clearly documents the scope of the change and its impact on the cost and schedule before the work is done. "How do you ensure job site safety and cleanliness?" Why it's important: A commitment to safety reflects the contractor's professionalism and care for their team and your property. A clean and organized job site is an efficient and safe job site. "What makes you different from other contractors?" Why it's important: This open-ended question allows the contractor to talk about their values, their team's expertise, and their unique approach. At Five Mile Construction, we'd tell you about our commitment to transparency, quality materials, and our role as a true partner in our clients' success. We Welcome Your Questions We believe that trust is built through transparency. We invite you to ask us these questions and any others you may have. Ready to partner with a contractor you can count on? Contact Five Mile Construction today to start the conversation.
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Don't Get Stuck in Red Tape: Navigating Permits and Inspections in Central Texas

September 17, 2025
So, you’re ready to build out your new commercial space in Central Texas. It’s an exciting time, but between your business plan and your grand opening lies a crucial, often underestimated hurdle: the permitting and inspection process. In a booming region like the Austin-San Marcos corridor, navigating the specific requirements of each municipality can feel like trying to solve a complex maze. Failing to manage this process correctly is the number one reason for project delays. It can leave you paying rent on a space you can’t occupy while your plans sit in a review queue. But it doesn’t have to be this way. Understanding the Process While every city has its nuances, the journey from plan to approved construction generally follows these key steps: Plan Submission: Your detailed architectural and engineering plans must be submitted to the local building department. This isn't just a formality; reviewers meticulously check your plans for compliance with building codes, fire safety regulations, zoning laws, and accessibility standards like the ADA . Review and Revisions: It is common for a city reviewer to return plans with comments or required revisions. An experienced contractor anticipates these and can address them quickly. A novice can get stuck in a frustrating back-and-forth cycle. Permit Issuance: Once the plans are approved, the city issues the building permit. Only now can construction officially begin. Scheduled Inspections: The permit is not a free pass to the finish line. Throughout the construction process, city inspectors must be called out to approve critical stages of the work. This can include inspections for your foundation, framing, plumbing, electrical, and mechanical systems before they are covered up by drywall. Final Inspection: After the last coat of paint is dry, a final inspection is required to verify that the entire project was completed according to the approved plans and is safe for occupancy. Only after passing this inspection will you receive your Certificate of Occupancy—the key to officially opening your doors. The Five Mile Advantage: Your Local Guide Having a deep understanding of local jurisdictions is non-negotiable. Our team at Five Mile Construction has spent years building relationships and navigating the specific processes of cities throughout Central Texas. We know what San Marcos requires versus what Austin demands. We anticipate the common sticking points, prepare a thorough and professional submission package to minimize revisions, and manage the entire inspection schedule. We handle the red tape so you can focus on what you do best: running your business. We see managing permits and inspections not as a burden, but as a critical part of our service to ensure your project moves forward smoothly, on schedule, and without costly surprises. Ready to start your tenant finish-out with a team that knows the way? Contact Five Mile Construction today and let’s clear the path to your grand opening.