General Contractor Lexington KY oversees day-to-day operations and quality control at a building site. They’re responsible for turning the renderings and visions of architects, engineers, interior designers, and other professionals into reality.
Highly skilled in achieving goals for project efficiency and cost-effectiveness. Excels at finding practical solutions to construction obstacles and challenges.
Whether working with architects on design-build projects or overseeing subcontractors in bid-and-build settings, general contractors take an active role in planning and preparation. They create budgets, develop work schedules, source materials and equipment, hire workers, sequence work, and oversee construction to complete projects on time and within budget.
The GC may be involved in project planning from the beginning of construction, collaborating with the architect and owner on the design. In other cases, the GC is hired at the close of the design phase and takes on the full management of the construction process. The GC will develop estimates of the project cost, prepare work specifications and construction documents, select the contractor team, and obtain all required permits and approvals.
On large, complex projects, a GC may also participate in the design phase as part of the team, helping to create and finalize the design and develop the contract documents. This is more common in design-build projects than in bid-and-build environments.
Once the project has been designed, a GC will begin developing a construction budget for the project, based on inputs from the design team and other information available at this stage. Typically, this involves conducting quantity and material takeoffs, which are the foundation for detailed cost estimates. The GC will also consider indirect costs such as office space, insurance expenses, worker’s compensation, equipment rental and labor.
As a result of their extensive experience, GCs are masterful at creating realistic and measurable objectives for the construction process. They are constantly thinking about how to meet these goals despite weather and other conditions that may impact progress on the jobsite. Their attention to detail and adherence to best practices ensures that the work is completed in accordance with the construction project plan and meets the client’s expectations.
In addition to planning the project, a GC is the dispenser of cash, taking advances from the developer’s construction lender and dispersing those funds to the various subcontractors and suppliers who are completing work on the jobsite. This requires significant oversight and a high level of communication to ensure that payments are made as they should be.
Contract Negotiation
It’s important to stay focused on the goals of the project and not a specific party when negotiating contract terms. Everyone wants a fair agreement that meets the schedule, budget, and quality needs of the project. It’s also essential to negotiate contracts that allow for flexibility when it comes to changes. This ensures that the project stays on target and doesn’t derail into a dispute over unforeseen conditions or miscommunication.
A general contractor’s negotiating skills are vital to the success of a construction project. While it’s not possible to negotiate a perfect contract before work begins, it is possible to get as close as possible through compromise and creativity.
In addition to addressing scope of work, payment terms and insurance provisions are often the focus of contract negotiations. Fylstra says many projects have vague payment terms, which cause disputes between parties and ultimately lead to litigation. Adding specific language to the contract can help prevent these conflicts and protect the contractor’s financial interests.
When negotiating contract terms, it’s important to be aware of state laws that govern construction contracts. Including language that doesn’t jive with these requirements can open the door for a renegotiation, according to Scott Grier, an 11-year attorney practicing with Rouse, Frets, White, Goss, Gentile, Rhodes, PC in Kansas, Missouri and Oklahoma.
During the bidding process, it’s important for general contractors to have a thorough understanding of the owner’s expectations and any issues that could become contract points. It’s also important to keep a cool head and avoid getting angry or frustrated at the other party.
It’s wise to keep the cost of materials a secret, as this can affect the contractor’s willingness to negotiate on price. It’s also helpful to get quotes from multiple companies at different times of year, as prices may vary depending on the season.
A common point of contention is risk shift. While owners prefer to shift as much risk onto the GC, it’s not always beneficial for the GC or subcontractors. Addressing this issue beforehand can save time and money, as neither the owner nor GC want to bear the entire burden of project risks.
Subcontractor Management
In construction, subcontracting is a standard practice. It allows a general contractor to immediately compensate for a lack of in-house manpower. It also saves time, money, and resources. However, there are many risks involved in a subcontracting process, including ensuring that all aspects of it are handled correctly. This is why subcontractor management must be meticulously planned and implemented, from selecting the right partners to overseeing their work.
The first step in subcontractor management is to curate a list of pre-qualified specialty contractors and then select the best fit based on their qualifications, experience, references, and financial stability. This process ensures that the GC and the subcontractor will be able to work effectively together.
Next, the GC will determine whether the scope of work provided by the subcontractor meets the project needs and if there are any gaps. The GC will also assess the subcontractor’s previous project experiences and performance metrics to determine their capacity to deliver on the contract details.
Once the GC selects the best fit, they will negotiate contract details and requirements with the subcontractor. This is an essential part of the process, as a mismatched agreement can lead to costly disputes down the line. For example, if the master contract indicates payment details that do not align with those of the subcontractor’s contract, this can cause serious problems.
During the course of the project, the GC will monitor and manage the subcontractors’ work to ensure that they adhere to their contractual agreements and deliver quality results. They will also address any issues or conflicts that arise between them. For example, if the subcontractor is late on a delivery or has an issue with the project schedule, the GC will resolve it promptly and may even hire an outside firm to do so if necessary.
Managing the overall construction project also involves keeping the cost within budget and managing any changes to the original plan. Fostering a collaborative environment with subcontractors can help with this, as they often provide trade-specific creative solutions and potential value engineering options to reduce costs without compromising quality. The GC will then update the project budget and schedule accordingly.
Project Management
Project management is a set of skills, tools, and techniques used to achieve specific goals and time-bound objectives within a construction project. It includes planning, scheduling, controlling, and overseeing construction activities to ensure that all projects are completed on time and within budget. The discipline of project management is applied to a wide range of industries including construction.
Once the design is finalized, the owner begins a process of selecting and awarding a contract to a general contractor or construction manager (CM). The bidding process may vary depending on the project delivery method and type of contract. The GC or CM then initiates the preconstruction phase of the project, laying the groundwork for the physical construction work to begin.
The CM or GC is typically responsible for hiring subcontractors, procuring materials, and ensuring that the job meets all regulatory requirements. They are also responsible for the onsite management of construction, monitoring progress, and addressing issues as they arise.
During the construction phase, project management tasks include coordinating labor, adhering to schedules, and managing costs. The project manager closely monitors and compares actual expenses against the budget to prevent cost overruns. They also communicate with all project stakeholders regarding changes and developments.
Other project management duties include attending kick-off meetings, progress meetings, and administrative meetings with the owner, preparing weekly reports for the GC or CM, and delivering a punch list upon completion of the project. The project manager is also responsible for meeting with all governmental entities involved in the project to make sure that all necessary permits are obtained.
The responsibilities of the construction manager and the general contractor overlap in some areas, especially during the preconstruction phase. The CM or GC typically selects and hires subcontractors for key construction activities, such as concrete pouring, framing, and plumbing. This can involve a lengthy process, and the GC must consider factors such as prevailing wage rates, local regulations, and availability of skilled workers. They must also coordinate with design engineers to ensure that all work is consistent with the approved plans and designs.