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Construction Bidding for Senior Living and Care Facilities

December 19, 2025
10 min read
CBConstructionBids.ai Team
Construction Bidding for Senior Living and Care Facilities

Senior living construction represents a growing market driven by demographic trends. From independent living communities to skilled nursing facilities, these projects combine hospitality design with healthcare functionality, creating unique bidding challenges for contractors unfamiliar with the sector.

Understanding Senior Living Project Types

The senior living spectrum includes various care levels.

Continuum of Care

Care level categories:

  • Independent Living (IL): Apartment-style, minimal services
  • Assisted Living (AL): Personal care assistance, daily living support
  • Memory Care (MC): Specialized dementia/Alzheimer's care
  • Skilled Nursing (SNF): 24-hour medical care, rehabilitation
  • Continuing Care Retirement Communities (CCRC): Multiple levels on one campus

Project Configurations

Development types:

  • New construction campuses
  • Additions to existing communities
  • Renovations and repositioning
  • Standalone buildings
  • Mixed-use with senior housing

Market Segments

Ownership models:

  • For-profit operators
  • Non-profit/faith-based organizations
  • REITs and institutional investors
  • Hospital-affiliated facilities
  • Government/public facilities

Regulatory Framework

Senior living projects operate under extensive regulations.

State Licensing Requirements

State-specific regulations:

  • Licensure categories and definitions
  • Physical plant requirements
  • Life safety standards
  • Staffing requirements
  • Operational standards

Variations by state:

  • Different care level definitions
  • Varying room size minimums
  • Distinct life safety codes
  • Different approval processes

Federal Requirements

Medicare/Medicaid participation:

  • CMS Conditions of Participation
  • Physical environment standards
  • Life Safety Code compliance
  • Survey and certification process

Skilled nursing specific:

  • 42 CFR Part 483 requirements
  • Fire safety requirements
  • Detailed space standards
  • Equipment specifications

Building Codes

Applicable codes:

  • IBC occupancy classifications
  • NFPA 101 Life Safety Code
  • ADA Accessibility Guidelines
  • FGI Guidelines (healthcare portions)
  • State-specific amendments

Design Characteristics

Senior living design requirements affect construction.

Common Area Programming

Typical spaces:

  • Dining rooms (multiple venues)
  • Activity and programming rooms
  • Fitness and wellness centers
  • Spas and salons
  • Libraries and business centers
  • Outdoor living spaces

Residential Units

Unit characteristics: | Care Level | Typical Size | Features | |------------|--------------|----------| | Independent Living | 800-1,500 SF | Full kitchen, washer/dryer | | Assisted Living | 350-550 SF | Kitchenette, accessible bath | | Memory Care | 300-450 SF | Modified, secured | | Skilled Nursing | 200-350 SF | Private or semi-private |

Specialized Areas

Memory care requirements:

  • Secured perimeters
  • Wandering paths
  • Sensory gardens
  • Continuous oversight capability
  • Special finishes and hardware

Skilled nursing requirements:

  • Nurse stations
  • Medication rooms
  • Treatment rooms
  • Therapy spaces
  • Clean/soiled utility

Estimating Senior Living Projects

Accurate estimates require understanding senior-specific needs.

Cost Drivers

Factors increasing costs:

  • Higher finish levels than typical multifamily
  • Extensive common areas
  • Specialized systems (nurse call, etc.)
  • Accessibility features
  • Regulatory compliance
  • Kitchen and dining requirements

Typical Cost Ranges

Construction cost benchmarks (2025): | Product Type | $/SF Range | |--------------|------------| | Independent Living | $200-300 | | Assisted Living | $250-375 | | Memory Care | $275-400 | | Skilled Nursing | $350-500+ |

Varies significantly by market and finish level

MEP Systems

Specialized systems:

  • Nurse call and emergency response
  • Wandering management (memory care)
  • Medical gases (SNF)
  • Commercial kitchen equipment
  • Enhanced HVAC (infection control)
  • Emergency power (extended duration)

Subcontractor Considerations

Senior living requires specialized trade experience.

Key Specialty Trades

Healthcare-experienced subs for:

  • Nurse call and alarm systems
  • Medical gas piping
  • Commercial food service
  • Healthcare casework
  • Specialized flooring
  • Fire protection (quick response)

Subcontractor Evaluation

Beyond standard criteria:

  • Healthcare/senior living experience
  • Understanding of regulatory requirements
  • Ability to work in occupied facilities
  • Background check willingness
  • Infection control knowledge

Working in Occupied Facilities

Many senior living projects involve occupied buildings.

Infection Control

ICRA requirements:

  • Risk assessment
  • Barrier construction
  • Negative air pressure
  • HEPA filtration
  • Traffic control
  • Debris management

Resident Safety

Protect vulnerable populations:

  • Noise limitations
  • Dust control
  • Access restrictions
  • Emergency egress maintenance
  • Fall hazard prevention
  • Clear communication

Operational Coordination

Work around operations:

  • Meal times
  • Activity schedules
  • Medical appointments
  • Family visiting hours
  • Staff shift changes

Compliance and Approvals

Navigate the approval process successfully.

State Licensing Agency

Pre-construction involvement:

  • Plan review and approval
  • Construction inspections
  • Certificate of occupancy
  • Licensing survey coordination

Local AHJ

Standard approvals:

  • Building permits
  • Fire department review
  • Health department (food service)
  • Elevator inspections
  • Final occupancy

CMS Certification (SNF)

For skilled nursing:

  • Life Safety Code survey
  • Health survey
  • Provider agreement
  • Ongoing compliance

Schedule Considerations

Senior living schedules have unique drivers.

Operator Timeline Needs

Business drivers:

  • Market timing for lease-up
  • Staff hiring and training
  • Licensing approval timing
  • Move-in coordination
  • Operating budget start

Critical Path Items

Long-lead concerns:

  • Commercial kitchen equipment
  • Specialty casework
  • Nurse call systems
  • Furniture and fixtures
  • Specialty finishes

Phased Occupancy

Coordinating partial openings:

  • Life safety separation
  • Utility segregation
  • Staff access
  • Resident safety
  • Inspection sequencing

Value Engineering Opportunities

Identify cost savings while maintaining quality.

Common VE Targets

Areas to consider:

  • Finish material alternatives
  • Casework specifications
  • Site development scope
  • Common area sizing
  • Back-of-house finishes

Maintaining Quality

Protect value in:

  • Resident-facing finishes
  • Accessibility features
  • Life safety systems
  • Durable materials
  • Energy efficiency

Owner Priorities

What operators value:

  • Durability (reduce maintenance)
  • Cleanability
  • Flexibility for future changes
  • Energy efficiency
  • Aesthetic appeal for marketing

Risk Management

Senior living projects carry specific risks.

Regulatory Risks

Compliance concerns:

  • Code interpretation changes
  • Licensing requirement updates
  • Inspection delays
  • Survey timing

Operational Risks

Working around operations:

  • Resident complaints
  • Family concerns
  • Regulatory visits during construction
  • Staff interference

Market Risks

Developer/operator concerns:

  • Project financing contingencies
  • Market absorption rates
  • Competition timing
  • Operator changes

Building Market Presence

Position your company for senior living success.

Developing Expertise

Build knowledge in:

  • Senior living terminology
  • Regulatory framework
  • Design trends
  • Operator requirements
  • Resident needs

Key Relationships

Build connections with:

  • Senior living developers
  • Operators and management companies
  • Healthcare architects
  • Specialty consultants
  • Equipment vendors

Portfolio Development

Demonstrate experience:

  • Start with simpler projects
  • Build toward complexity
  • Document thoroughly
  • Collect references
  • Showcase completed work

ConstructionBids.ai tracks senior living construction opportunities from initial planning through bidding. Get alerts for assisted living, memory care, and skilled nursing projects in your target markets.

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