Shell and Finish-Out in One Contract: Building Your Own Practice Building
By Structures and Interiors.
A new building has two parts. The shell is the structure, roof, exterior walls, storefront, site, and utilities brought to the building. The finish-out is everything inside: walls, doors, ceilings, plumbing to each sink, lighting, cabinets, and finishes. In a leased building, a landlord builds the shell and each tenant hires its own contractor for the inside. When you build your own practice building, you can put both in one contract with one builder. This guide covers when that makes sense, how the work is sequenced, and how to plan for the practice you expect to grow into.
Single-tenant or multi-tenant
The first decision is who will occupy the building. A single-tenant building is designed around one practice. The structure, the roof units, the plumbing under the slab, and the electrical service can all be laid out for your floor plan, because your floor plan is the only one. That is where one contract for shell and interior pays off most: the shell is drawn for the interior instead of guessing at it.
A multi-tenant building has your practice plus space you lease to others. Your suite can be designed and built with the shell. The lease spaces are usually left as shell space (sometimes called "warm shell" or "cold shell" depending on how much is included) until a tenant signs. Plan each lease space so a future tenant can use it: a storefront and entry of its own, a sewer line and water stub reaching the space, room for a separate electric meter and roof units, and a demising wall (the wall between suites) where it makes sense. At the Celina Medical Office Building Shell, a single-story medical office building we built, each storefront has its own canopy and tenant sign light. Decisions like that are part of the shell, and they make each suite easier to lease.
Design-assist or design-bid-build
Under design-bid-build, your architect finishes the drawings, contractors bid them, and you sign with the one you choose. You get competing bids on one complete set of drawings. The trade-off is that pricing feedback arrives late, after most design decisions are made, and the contractor has no voice in the design.
Under design-assist, you hire the architect and bring the builder in early. The builder works with the architect and engineers from the start and prices the project as it is designed, so the budget and the drawings stay in step. We work both ways. You can call us first, and we can recommend an architect and civil engineer. On a project that combines a new shell with a medical interior, early pricing tends to matter most, because the interior drives so much of the shell: roof unit sizes, plumbing under the slab, electrical service, and ceiling heights for equipment.
Sequencing the shell and the interior
With one contract, the interior does not have to wait for the shell to be finished. The order is roughly this:
- Site work and underground utilities, then plumbing under the slab, placed for your exam rooms, operatories, sinks, and restrooms.
- Foundation, structure, and roof. Once the roof is on and the building is closed in, interior framing can start.
- Rough-in inside the walls (plumbing, electrical, data, medical gas or vacuum where needed) while exterior masonry and storefront finish outside.
- Inspections above the ceiling, then drywall, ceilings, cabinets, flooring, and finishes, while paving and landscaping finish outside.
One builder carries one schedule and one set of inspections. Under-slab plumbing shows why this matters. If the shell is built before the floor plan is fixed, the slab may have to be cut later to reach each sink. In a building drawn for one practice, those lines go in once, in the right place.
Equipment planning
Medical, dental, and veterinary equipment decides more of the building than most owners expect. Imaging needs shielding, floor loading, and sometimes a dedicated electrical feed. Dental chairs need water, air, vacuum, and drains in the slab at each operatory, plus space for a compressor and vacuum pump. Sterilization, lab, and kennel areas need their own plumbing and ventilation. Get the equipment vendor's installation drawings early and put them in front of the architect and engineers before the shell drawings are final. Decide which items you buy and which the contractor installs, and write that down. Equipment lead times can be long, so order on a date tied to the construction schedule.
Phasing for a future expansion
A practice that grows may need more room in a few years. Planning for that now is cheaper than solving it later. Options include sizing the lot and the detention for a future addition, leaving one end wall ready to extend, oversizing the utility service, or holding part of a multi-tenant building as lease space you can take back when your lease tenant's term ends. At a plastic surgery center we built from the ground up in Grapevine, the site includes infrastructure for future expansion: a prepared pad site, additional parking, and a detention pond for site drainage. At Argyle Pediatrics, the medical office was designed by Corgan with clinical space that can be adapted as the practice changes.
Make sure the future phase is shown on the zoning, plat, and civil drawings now, so the city has already seen it when you come back. Our guide to site approvals in DFW cities covers those steps.
Learn more about how we build new buildings from the ground up. Structures and Interiors also finishes out and renovates existing space, including suites in buildings like the one you may build.
Common questions
Can the shell and the finish-out be in one contract?
Yes, when you own the building. One builder carries the shell and the interior on one schedule, and the shell can be drawn for your floor plan instead of a generic one.
Should I build lease space for other tenants?
It depends on your plans and your lender. Lease space can offset building costs and give your practice room to grow later. Plan each suite with its own entry, utilities, and roof units so it is easy to lease.
Is design-assist or design-bid-build better for a practice building?
Both work. Design-bid-build gives you competing bids on finished drawings. Design-assist brings the builder in during design, so the budget and the drawings stay in step while the building is designed.
Planning a new building, a finish-out, or a renovation? Tell us about it.