For construction projects, general contractors are the primary contact points between property owners and their subcontractors. GCs have several important responsibilities before, during, and after construction that helps projects run smoothly.
During the construction phase, GCs oversee project progress, ensuring timelines are adhered to, and quality standards are met. They also manage the flow of materials and personnel throughout the site. Contact General Contractor Lexington KY now!
Project planning is the initial phase of a construction project that determines its scope and feasibility. It involves identifying stakeholders and determining their expectations, assessing risk factors, and establishing a timeframe and budget for the project. It also includes evaluating and selecting materials, equipment, and sub-contractors. A general contractor works with architects and engineers to assess the constructability of the design, obtain essential permits, and secure necessary approvals.
During the planning stage, the contractor addresses any changes that may affect the project timeline and budget. This can be due to unexpected occurrences or design modifications. Keeping open lines of communication allows the team to communicate with the client about these issues and find suitable solutions in a timely manner.
The GC also prepares a work breakdown structure (WBS), which breaks the project into smaller, more manageable tasks or “work packages.” This allows the construction team to better understand and prioritize each task and its interconnections. The GC is also responsible for determining how much of the work will be performed by the onsite workers and how the remaining work will be performed offsite by sub-contractors. This information is crucial to managing the onsite team and coordinating the delivery of materials and equipment.
Another aspect of the planning process is developing a schedule for completing the work, including milestones and key deliverables. The GC also evaluates the resources needed to complete each task and determines whether the project is within budget. This can include analyzing historical data and assessing the risk of overruns and cost overruns. Using a project-focused software is essential to ensuring that projects stay on track.
The GC selects contractors to perform the work by evaluating bid proposals and engaging in negotiations. The GC often uses a selective bidding process, wherein the number of selected bidders is limited to ensure competitive pricing. This method is more common for specialized projects such as industrial buildings, which require expertise and a higher level of skill than speculative housing. This approach also mitigates financial exposure and limits the GC’s liability. In addition, a GC may choose to use a guaranteed maximum price contract, which limits an owner’s financial exposure to the sum of all cost overruns.
Project Execution
A general contractor has to be able to manage people and projects. This includes ensuring that everyone is doing their work correctly and addressing any issues that may arise. A good GC will be able to resolve these issues quickly and effectively and will also make sure that all deadlines are met.
Project planning is a major part of the job as it ensures that the construction project can be completed within the stipulated time frame. This involves dividing the large project into smaller tasks and identifying timelines for each task. A GC can also assist with the design phase and provide cost projections for the project.
Once the project plan has been finalized, the construction process can begin. This includes site preparation, framing and building, plumbing and electrical, and landscaping. It is the GC’s responsibility to arrange for any necessary permits and inspection requests to be made. This also includes arranging for subcontractors to come in and perform their specialized jobs.
During the construction phase, the GC must monitor the quality of work to ensure that it meets specifications and is up to code. They also have to keep an eye on the budget and ensure that all costs are managed properly.
In design-build projects, a GC must be able to collaborate with the architect and engineer to develop the design and to establish a timeline for the ensuing construction. They also need to be able to meet with clients and discuss their needs and preferences, which can help them determine the best design for a particular project.
Another important aspect of the role is negotiating and purchasing materials. A GC can often negotiate with vendors and suppliers to get better pricing on materials, which is particularly useful for larger commercial projects. Having these connections can save both time and money for the project.
The most important job function is ensuring safety on the construction site. GCs must be familiar with all the applicable construction codes and regulations. This includes providing proper training to employees, implementing and updating safety procedures and protocols, and ensuring that all workers are following safety guidelines at all times.
Sub-Contractors Management
The success of a construction project hinges on the subcontractors’ ability to carry out the work to client specifications and meet quality standards. During the planning and contract negotiation phases, GCs establish clear benchmarks to systematically evaluate the quality of each subcontractor’s work. This ensures that the work meets both the overall project goals and the vision of the client.
When the quality of one subcontractor’s work deteriorates, it impacts the entire project. A quality issue in one trade may delay the completion of another trade’s work and increase project costs. Furthermore, if the work isn’t of acceptable quality, it could necessitate tearing out other areas of the build to access and repair the shoddy work.
Managing trade subcontractors requires a team of professionals who work together to address challenges quickly and effectively. GCs, project managers, general counsel, risk managers, CFO/controllers and site superintendents all play important roles in the management of project risks and issues related to subcontractors.
To mitigate potential problems, GCs set clear expectations and responsibilities in the contract negotiation process, which sets the tone for a productive relationship throughout project execution. They also define and agree upon the scope of work, payment terms, project milestones, dispute resolution mechanisms and other key business terms. This helps avoid misunderstandings, reduce the likelihood of scope creep and ensures that the subcontractors are committed to meeting their part of the project objectives.
Additionally, a GC monitors sub-contractors’ budgets and expenses throughout the construction process to identify and address variances early on. This prevents unwarranted cost overruns, which can significantly impact the project’s profitability and timelines.
A GC also encourages collaboration between subcontractors by organizing regular meetings, or daily jobsite huddles, that bring all relevant subcontractors together to discuss project progress and updates, discuss concerns and promote communication and teamwork. This streamlined approach increases coordination, eliminates bottlenecks and reduces the time it takes to resolve issues. It also helps to maintain a safe work environment and avoids conflicts that can lead to legal disputes, claims and other costly problems.
Dispute Resolution
General Contractors need to work with legal counsel to craft dispute resolution strategies that are in line with the project’s contract and industry standards. These dispute resolution strategies are often included in the contract documents (AIA Contract Documents) and help to preserve relationships and maintain progress on projects. This approach is particularly beneficial to GCs because it can save time, money, and potentially relationships in the case of disputes or litigation.
There are many different methods of dispute resolution, which can vary from consensual to adjudicative processes. Consensual processes involve direct dialogue between the parties involved in the dispute. It’s a process that is similar to how people sort out their differences in everyday life, such as when they argue over who should have the car keys and when they should return home.
Dispute resolution also includes mediation, which involves the facilitation of discussions between disputing parties in a neutral environment. Mediation is a less formal and more cost-effective alternative to litigation, as it can resolve disputes within a few weeks or months. It can also be more effective in terms of preserving relationships and improving satisfaction levels on projects.
Arbitration is another method of dispute resolution that is more formal and legally binding than mediation. It involves the submission of evidence from all parties, and the judge will then make a final decision that is enforceable in court. However, if both parties are not satisfied with the outcome of the arbitration, they may be able to appeal it to a higher court.
Litigation is the most formal and expensive form of dispute resolution, and it involves a trial where a judge will rule on the case. If a judgment is issued, it will outline the legal rights and obligations of the successful party, and will be enforceable by the courts.
For most people, the best way to resolve a dispute is by using negotiation. Whether it’s about who should get the car keys or when to return home, most people can find an agreement by talking it over together. This is a great way to avoid costly arbitration and litigation, and it will also keep the project moving forward.