Many jurisdictions require General Contractors to hold a license before performing construction work. They may also need to obtain a builder’s risk insurance policy.
General Contractors Tacoma, WA, enters a primary contract with the property owner and serves as the project manager. They manage all build aspects, including planning, distributing, and executing tasks.
Subcontractors are critical in the construction process. They take on the execution of specialized scopes of work while acting under a GC’s overall project management and coordination responsibilities. In doing so, their performance impacts project timelines, quality, and outcomes. Having the right subcontractor partner lays a strong foundation for success. GCs typically curate a list of pre-qualified specialty contractors, evaluating them based on their specialized expertise, safety record, references, and financial stability. During this selection stage, GCs should also establish clear communication requirements to ensure their preferred subcontractors are aligned with the broader project objectives.
A GC’s responsibility to their client extends beyond the initial bidding process, and includes overseeing the entire project through to its successful completion. To do so, they must maintain a level of transparency and visibility that allows them to address issues in real-time with all parties. This can include everything from monitoring site progress to providing accurate budget and schedule updates. It’s vital that these responsibilities are managed effectively to avoid disruptions to the project that can impact everyone’s bottom line.
One of the most pressing concerns in any construction project is safety. GCs should ensure that their subcontractors are trained and compliant with the required onsite safety standards. While every onsite employee is responsible for their own safety, it’s typically the site superintendent who drives overall project and team safety. In addition, GCs should ensure that their preferred subcontractors have adequate insurance coverage to cover unforeseen incidents on the jobsite and meet the requisite minimum liability requirement.
Contract disputes can be costly to a GC in terms of both time and money. They can also have a negative impact on the project’s outcome and reputation. Oftentimes, they stem from insufficient or unclear business terms such as payment arrangements, liability and indemnification and scopes of work. Clearly defined business terms can mitigate problems and prevent disputes from arising.
The most common cause of contract disputes on a construction project is miscommunication. GCs can manage this by ensuring that their preferred subcontractors are well-informed of the project’s timelines and requirements from the beginning of the bidding process and during the preconstruction phase. They can further reduce risk by establishing regular meetings, or daily jobsite huddles, to bring all trade partners together and promote collaboration.
Project Planning
Project planning is a key part of managing a construction project and is the process of creating a detailed plan that guides work from start to finish. It involves identifying objectives, setting timelines, allocating resources, and identifying potential risks.
In addition to establishing the scope of a project, the planning phase typically includes a detailed cost assessment and budgeting for materials, labor, and contingencies. The contractor will also begin to assess and select subcontractor partners, negotiating contract terms with those chosen. This phase will also involve programming and feasibility studies, and may result in the development of a project initiation document (PID).
Once an agreement on project responsibilities has been reached, preconstruction starts. The GC or CM will lay the groundwork for the physical construction work by ordering materials and services, working with design professionals to evaluate constructability, and securing all required permits. It is at this stage that most GCs and CMs will begin to round out their teams by engaging the necessary help.
The project manager will monitor progress against the scheduled timeline and re-evaluate as needed. They will also monitor the overall project budget, and keep all parties updated on changes. In many instances, the GC or CM will take on the risk of a cost overrun, and sign off on a guaranteed maximum price (GMP) contract that establishes a ceiling price at which the contractor agrees to complete the construction project.
During project planning, it’s important to identify all the deliverables a team must produce for the project to be successful. Clearly defining these objectives will prevent scope creep and keep everyone on the same page. These deliverables will directly support the project’s objectives, and should be specific, measurable, achievable, relevant, and time-bound. Involving the team during this phase will also be helpful, as they can provide valuable insights into how tasks are performed and how long it will take to complete them. Moreover, they will be more likely to be receptive to any suggestions or ideas on how the task can be improved. This will ultimately contribute to a more cohesive and effective team.
Vendor Management
Vendor management is an important part of General Contractors’ operations. It includes enlisting vendors to perform tasks on behalf of the company and evaluating their performance and compliance with project requirements. Streamlined vendor management processes can help contractors save money, improve business efficiency, and reduce risk.
The process begins with identifying potential vendors through market research and industry networks. Once a list is compiled, they are evaluated on criteria such as experience, reliability, and cost-effectiveness. This helps the company weed out vendors that aren’t a good fit for their needs. It also ensures that the company is working with vendors who are qualified, capable, and financially stable. Once the vendor has been selected, a contract is negotiated to clearly define the scope of work, expectations, deliverables, timelines, and terms of collaboration. Clear contracts mitigate risks and provide a foundation for a successful partnership.
After the contract is signed, it’s important to set up a regular communication schedule with each vendor. Regular meetings help keep projects on track and motivate the vendor to meet their performance goals. It’s also crucial to establish a system for tracking compliance. This can be done through a document management system, which allows the company to easily retrieve important documents such as insurance coverage and licensing information. Inefficient methods of monitoring compliance can lead to missed deadlines and unnecessary expenses.
A well-established communication schedule and a clear system for monitoring performance can help the company determine if they need to make changes to their processes or if it’s time to consider finding a new partner. For example, if a vendor isn’t meeting their agreed-upon delivery dates it might be time to renegotiate the price or seek out a new vendor.
In today’s fast-paced construction environment, the use of a streamlined vendor management process is essential to ensuring project success. Using a platform that enables centralized communication, compliance monitoring, and document management can improve collaboration, enhance oversight, and reduce costs. Built offers an innovative software solution that leverages digital workstreams to automate vendor management processes, reduce risk, and streamline the way contractors manage trade partners.
Communication
The chain of command for communication on construction projects is often spelled out in the contract documents. GCs communicate with the project architect and their consultants, then to subcontractors, suppliers, and other stakeholders. A clear line of communication is critical to the success of any project.
A GC is responsible for ensuring that the building process is on schedule and within budget. This is done by planning and coordinating the various activities of all the project stakeholders. The GC also works with the architect and their team to ensure that the design meets all of the building codes and requirements.
If the GC has connections with vendors and subcontractors that are reliable, then they can help make sure the best materials and workers are used for the project. This helps avoid costly delays and rework on the project.
GCs also work with the design team to provide pre-design services such as cost estimates, scheduling requirements, and construction methods that will meet the program requirements. In addition, a GC can also provide value engineering suggestions for the design that will improve the project’s economy.
For larger builds, a GC will hire specialized sub-contractors for managing specific tasks such as electrical wiring, concrete, plumbing, painting, and flooring. These contractors will supply the actual manual labor on the site and may have more workers on-site than the GC themselves.
When a general contractor has been selected for the project, they will submit their bid or proposal to the owner. This includes a pricing structure that reflects the scope of work and will be reviewed for compliance with all of the building codes. If the contractor is awarded the project, then they will begin planning and preparing the site for construction.
During the construction process, a GC is responsible for coordinating all of the different activities and overseeing all of the subcontractors to make sure that the build is going according to plan. This requires attention to detail and the ability to monitor project progress closely for any problems that could delay the schedule or increase costs.
