Why Utility Coordination Is One of the Highest-Risk Items on Any Project

Utility coordination rarely gets the attention it deserves early in design. Power, gas, water, and communications are often assumed to be solvable details — items that will fall into place once the building design is further along.

In reality, utility coordination is one of the most common sources of schedule delays, redesign, and unexpected cost, even on well-run projects.

What makes utilities risky isn’t complexity alone. It’s the combination of long lead times, external dependencies, and decisions that are often locked in earlier than teams realize.

Why Utility Issues Are So Disruptive

Unlike most building systems, utilities don’t exist solely within the project team’s control. They depend on:

• Utility providers

• Municipal requirements

• Site conditions

• Long-lead equipment

Once a utility strategy is set — intentionally or not — changing it later can be difficult, expensive, or both.

When utility coordination lags behind design, projects are often forced to react rather than plan.

Where Utility Coordination Commonly Breaks Down

Service Size Assumptions

Early assumptions about electrical or gas demand are sometimes based on placeholder loads. If those assumptions grow later, service upgrades may be required — often after layouts, equipment rooms, or site work have already been established.

Upsizing service late can trigger cascading impacts across the project.

Equipment Location and Space Planning

Transformers, switchgear, meters, and gas regulators all require specific clearances and access. When these elements aren’t accounted for early, they can conflict with:

• Building layouts

• Fire access requirements

• Architectural site features

Late relocation is rarely simple and often affects both design and schedule.

Utility Provider Requirements and Timelines

Utility providers operate on their own schedules. Equipment procurement, approvals, and service installation can take months — sometimes longer than the building construction itself.

When coordination with providers starts late, projects risk being physically complete but unable to receive permanent service.

Site Constraints and Routing

Utility routing is influenced by existing infrastructure, easements, soil conditions, and adjacent properties. Early site assumptions don’t always survive detailed investigation.

Late discovery of routing conflicts can drive redesign, added civil scope, or costly workarounds.

How This Plays Out by Project Type

Multifamily

Multifamily projects often have significant electrical and gas demand concentrated into a single service strategy. Small changes in unit mix or amenities can meaningfully affect utility sizing.

Early coordination helps avoid late service upgrades that impact both cost and schedule.

Commercial and Office

Commercial projects frequently require flexibility for future tenants. Utility strategies that don’t account for realistic future demand can limit adaptability or force disruptive upgrades later.

Balancing present needs with future capability is key.

Tenant Improvement Projects

Tenant improvement projects are particularly vulnerable to utility surprises. Existing services may appear adequate on paper but fall short once tenant equipment and usage are defined.

Early verification of available capacity helps teams determine what can be reused — and what cannot — before construction begins.

Utility Coordination as a Schedule Issue

Utility coordination is often thought of as a technical issue, but it’s just as much a schedule risk.

Common scenarios include:

• Long-lead transformers arriving after building completion

• Temporary power extended longer than planned

• Delays in final inspections due to incomplete utility work

Projects that feel “stuck at the finish line” often trace the problem back to utility coordination that started too late.

Reducing Utility Risk Through Early Alignment

Projects that manage utility risk well tend to:

• Establish a preliminary utility strategy early

• Validate service capacity before finalizing layouts

• Coordinate equipment locations with site and architectural planning

• Engage utility providers early enough to understand timelines

These steps don’t require over-design — they require intentional coordination while options still exist.

Predictability Over Assumptions

Utilities are one of the few project elements where assumptions can be especially costly. When teams replace assumptions with early verification, outcomes become far more predictable.

The goal isn’t to eliminate uncertainty entirely — it’s to reduce it to a manageable level before it affects cost, schedule, or occupancy.

When utility coordination is treated as a core project risk instead of a background task, projects move forward with far fewer surprises.