What is Pre-Construction Project Readiness?
Pre-construction project readiness is a scored assessment of whether a building project has the five foundational pieces in place to break ground without stop-work orders, change-order escalation, or timeline overruns. It covers all required permits and approvals, complete construction documents with finish selections, fully secured financing with documented contingency, contractor under contract with subcontractors and suppliers committed, and site preparation plus documented project schedule.
The Formula
Readiness = (Permits and Approvals) + (Final Design and Plans) + (Financing Secured) + (Contractor and Team) + (Site Prep and Schedule)
AGC of America Project Delivery Survey research consistently shows that projects breaking ground without these five foundations routinely face stop-work orders, change-order escalation, and timeline overruns that exceed the cost of waiting for proper readiness.
Worked Example
A homeowner has primary building permit obtained but electrical and plumbing pending, construction documents complete with finish selections made, financing fully secured with 10% contingency, contractor under contract but subcontractors not yet committed, site prep underway with documented schedule but no key-decision deadlines.
- Permits and Approvals: primary obtained, trade permits pending (medium)
- Final Design and Plans: complete with selections (high)
- Financing Secured: fully secured with 10% contingency (medium to high, contingency could be higher)
- Contractor and Team: under contract, subcontractors not committed (medium)
- Site Prep and Schedule: underway, schedule documented but no key-decision deadlines (medium)
📌 Composite readiness lands in the upper-middle range with trade permits, contingency, and subcontractor commitments as the outstanding items. Highest-leverage final pre-build work: confirm trade permits before mobilization to prevent stop-work, push contingency from 10% to 15-20% if possible, confirm subcontractor and supplier commitments through scheduled mobilization, and add key-decision deadlines to the project schedule. With these the project lands in the strong band for groundbreaking.
Why This Matters
Pre-construction readiness is the foundation of on-schedule on-budget builds
AGC of America Project Delivery Survey research consistently shows that the projects with the strongest pre-construction readiness produce the strongest in-construction outcomes. The discipline of completing all five foundations before breaking ground is materially cheaper than the rework, stop-work, and overruns that follow when foundations are skipped.
The contingency reserve matters more than its size
Industry research and contractor consensus consistently identify having any documented contingency reserve (not just the size) as the single most important financial-health practice in construction. Projects with even modest contingency commonly handle surprises without compromise; projects with no contingency commonly face decision-by-cash-pressure that produces lasting regret.
Supplier lead times directly affect construction schedules
Dodge Construction Network data shows that specialty materials (custom windows, engineered lumber, specialty fixtures, imported stone) commonly carry 8-16 week lead times. Projects that order long-lead materials before mobilization avoid the mid-build idle time that occurs when framing is complete but windows or mechanical equipment have not arrived. Early procurement is a scheduling discipline, not just a purchasing one.
Common Mistakes
❌ Breaking ground with partial permits
Partial permits (building permit yes, electrical or plumbing pending) routinely produce stop-work orders that delay the project by weeks. All required permits obtained before mobilization is the operational baseline; the cost of waiting is materially smaller than the cost of stopping mid-build.
❌ Locking the contractor into a fixed schedule before subcontractors commit
General contractors who commit to schedules before subcontractor and supplier commitments routinely produce mid-build coordination crises when subs are unavailable. Confirm subcontractor and supplier commitments through the scheduled mobilization window before contracting the general contractor to specific dates.
❌ Treating finish selections as something to decide during construction
Deferred finish selections (tile, countertops, fixtures, paint colors, hardware) are one of the most common causes of construction delays. Selections made during construction force the contractor to wait, resequence trades, or install provisional items. Completing all finish selections before groundbreaking keeps the build on schedule and prevents the rush decisions that produce regret.
Industry Benchmarks
| Category | Good | Average | Poor |
|---|---|---|---|
| Pre-construction readiness foundation count | All five foundations in place | Four of five with one outstanding item | Multiple foundations incomplete at mobilization |
| Permit obtained percentage at mobilization | 100% of required permits including specialty trades | Primary permit only | Permits pending at mobilization |
| Documented project schedule with key-decision deadlines | Schedule plus deadlines plus owner-action items | Schedule without deadlines | No documented schedule |
Source: AGC of America 2024 Project Delivery Survey, Dodge Construction Network 2025 Construction Outlook, and NAHB 2025 Cost of Constructing a Home Survey
Benchmark data sourced from AGC of America 2024 Project Delivery Survey, Dodge Construction Network 2025 Construction Outlook, and NAHB 2025 Cost of Constructing a Home Survey.