New construction projects can feel overwhelming, but breaking the process down into clear phases helps keep everything organized and on track. Unlike rehabs, which typically follow three main construction phases, new construction is best broken down into four construction phases—still including an essential planning phase at the start and a punch list & turnover phase at the end.

This breakdown isn’t about scheduling but rather about understanding the key goals of each stage. When you see the big picture, you can navigate challenges, manage subcontractors, and keep your project moving smoothly.

Why Breaking a Project into Phases is Critical

Thinking of a project in phases simplifies the entire process by dividing it into structured, easy-to-understand steps. Instead of getting lost in the details, you can stay focused on the overall goal and nature of the work required at each stage.

Each phase:
✅ Provides a clear focus—allowing you to understand the main goals and purpose of each step.
✅ Highlights milestones—helping you manage your critical path and ensure proper sequencing.
✅ Improves efficiency—because each phase has unique requirements and needs to be approached with the right mindset.

Whether you're a builder, investor, or project manager, breaking construction into phases gives you the clarity and control needed to complete projects smoothly and efficiently.

Rehab vs. New Construction: Key Differences

In rehabbing, the construction process is best condensed into three main phases. However, with new construction, there’s an entire additional phase at the beginning of the project that includes everything necessary to build the foundation and frame of the home.

It’s also important to note that Phases 2 & 3 in rehabbing align with Phases 3 & 4 in new construction. Essentially, new construction requires more upfront work, but it eliminates many of the unknowns that come with a rehab project.

How We Break Down Construction Phases

In this blog, we’re going to walk through the way we recommend breaking down the construction process into phases. Before we dive into the details, here are a few important points to keep in mind:

✅ This is not a schedule. These phases are not tied to a specific timeline but instead serve as an organizational structure for construction activities.
✅ The focus is on goals, mindset, and scope. Each phase has specific objectives, and understanding them will help you approach each stage with the right mindset.
✅ Subphases may exist. Some phases naturally break down into smaller steps, but keeping the bigger picture in mind is key.
✅ This is our recommended approach. While we have found this structure effective, what’s most important is that you define clear phases for your own projects to stay on track.

Now, let’s walk through each phase of new construction so you can see how all the moving pieces come together.

The Six Phases of New Construction

Planning & Pre Construction Phase

Before you can break ground, you need to handle all of the permits, approvals, and essential planning. While this phase is much more involved than in a typical rehab, it’s also where you eliminate a lot of uncertainties—so taking the time to do it right will pay off.

📌 Key Tasks:

• Finalize building plans
• Complete engineering requirements
• Submit for permitting
• Develop a clear scope of work
• Establish a budget
• Make key selections & design decisions

The goal here is simple: get everything in order so that when you start, you can move fast without unnecessary delays.

Construction Phase 1

The goal of this phase is to get the house dried-in, meaning it’s protected from the elements. This is a commonly focused-on milestone for builders, where the house has a complete frame, roof, exterior doors, and windows—essentially making it weatherproof. 

📌 Key Tasks:

• Site preparation (clearing, grading, utilities)
• Footing & foundation work
• Framing, windows & doors installation
• Roofing (at least an underlayment/initial covering)

Construction Phase 2

This phase is all about running and coordinating mechanical, electrical, and plumbing (MEP) systems while also encapsulating the home with siding. The major milestone at the end of this phase is getting the “OK to close-in” after passing rough-in and other building inspections.

📌 Key Tasks:

• Plumbing rough-in
• HVAC rough-in
• Electrical rough-in
• Siding installation
• Insulation

This phase requires tight coordination between subcontractors and careful planning to ensure no mistakes are made when running mechanical systems.

Construction Phase 3

This is one of the most exciting phases because your project starts to look like a real house. By the end of this stage, every framing element will be covered up—your floors, walls, and even door frames will be finished.

📌 Key Tasks:

• Drywall installation
• Painting (interior and exterior)
• Flooring & tile work
• Interior doors & trim

Once this phase is complete, it’s time to start adding all the finishing details that make a house feel like a home.

Construction Phase 4

This phase is where the final pieces of the home come together. It requires strong coordination since many different trades are working at the same time to wrap things up.

📌 Key Tasks:

• Cabinets, vanities, & countertops
• Plumbing & electrical fixtures, & appliances
• Hardscapes & concrete work
• Fencing & landscaping

This phase requires patience and resilience because delays and last-minute adjustments are common. Good communication with subcontractors is key!

Punch List & Turnover

Some builders don’t consider this a formal phase, but it’s an important final step that takes longer than most people expect. At this stage, you’re shifting focus from big construction tasks to small details that need to be corrected or completed before the project is truly finished.

📌 Key Tasks:

• Final walkthrough & inspections
• Punch list completion
• Last-minute touch-ups
• Final cleaning & turnover

The key here is not to rush—finishing strong will leave a lasting impression on clients and buyers.

Conclusion

Breaking new construction into phases helps simplify the process and keep your project moving efficiently. Each phase has clear goals and milestones, which makes it easier to manage your timeline, budget, and subcontractors.

But this is just the 10,000-foot view—there’s a lot more to learn if you want to master the new construction process. Inside The Rehabber’s Playbook, we break down each phase in detail, covering budgeting, scheduling, and best practices to keep your projects running smoothly.

👉 Want to learn more? Join TRP today for expert training, real-world case studies, and a community of experienced builders who can help you turn blueprints into reality.