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This sector of the industry primarily addresses the needs of commerce, trade, and government and makes up about a third of the total construction market. This is the category that includes banks, schools, office buildings, hotels, shopping malls, religious facilities, baseball stadiums, theaters, universities, amusement parks, hospitals, courthouses, government buildings, and other facilities where people gather. These projects may range in size from a small medical office to large high-rise office buildings to state-of-the-art biotechnology facilities. The building costs are significantly higher than with residential construction, and the project duration is much longer. It is not uncommon for a commercial project to last three years or more.

Funding for these types of building projects may be private, public, or combined in a special private-public partnership. Commercial construction companies are usually categorized by their dollar volume per year. For example, a company that does less than $10 million per year might be classified as a small commercial contractor, whereas a large commercial contractor completes more than $250 million of work annually. Of course, everything is relative to a given market. What might be considered a large company in Nebraska could easily be classified as a small company in California.

Commercial projects are very wide-ranging in scope, and it's difficult to develop expertise in all areas. For example, hospitals and clean rooms, which have very specialized systems, require contractors who possess the special knowledge needed to successfully perform the construction. Therefore, it is not unusual for a commercial contractor to focus their attention on only a few building types.

Commercial projects are typically designed by architects. The building systems can be complex, and various specialty engineers are engaged to support the architect with the electrical, mechanical, and structural design. Additional consultants may also be brought in for unique requirements of the project. For example, a sound and acoustics engineer is a likely participant on a concert hall project but would not be called in for a retail facility. And given the interest in sustainability, a LEED consultant would be a “must-have” member on the construction team. (LEED is discussed in more detail later in the chapter; see the “Sustainability” section.)