GCs work with architects to realize their client’s vision and ensure that the construction complies with plans, specifications, and local codes. They also manage schedules to coordinate the work of subcontractors. This includes making sure electricians finish electrical wiring before drywallers arrive.
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Project management involves a set of processes, tools, and techniques to guide a construction project from start to finish. General contractors provide construction management services to help a project meet its objectives within its defined constraints of time, cost, and scope. The GC is responsible for the day-to-day management of the construction job site and the coordination of subcontractors, workforce scheduling, and procurement activities. They also communicate with the owner, architect, and design team about potential construction challenges or changes to the work.
A GC will often provide preconstruction services that include design review, constructability reviews, and preliminary budgeting. These services can help a customer understand their project requirements and allow them to make an informed decision on the best way to proceed with a building project. It’s important for a GC to be able to communicate clearly with the customer and other members of the construction team so that there are no misunderstandings during the construction process.
When a GC is awarded a contract for a building project, they will submit a proposal with estimated costs and a projected completion timeline. This allows the owner to evaluate a range of proposals, and select the most competitive one. Once the contract is signed, the GC will be responsible for adhering to their proposal and striving to complete the construction project efficiently within the agreed upon budget in order to generate profit.
While both construction managers and general contractors play a vital role in the construction project, they differ in their responsibilities, relationships with the project owner, hiring processes, and compensation methods. Project managers focus on project oversight and advisory roles, while general contractors are more directly involved with the physical construction of the project.
Construction management (CM) is a project delivery method that combines elements of both design-build and traditional general contracting. The CM/GC method is appropriate for projects where legal and institutional frameworks allow negotiated project procurement and when it would benefit the owner to have a contractor with construction expertise provide input during design and have continuing influence during the construction process.
Contract Negotiation
A successful contract negotiation process requires careful attention to detail and a thorough understanding of the project’s scope and requirements. Moreover, it also requires an inquisitive mindset that removes ambiguity from the equation and reveals crucial insights about your counterpart’s requirements, goals, priorities, and approach to contract negotiations.
Regardless of your industry, there are likely to be certain issues that are regularly discussed during contract negotiations. Common examples include payment terms and conditions, insurance coverage, project completion schedules, change order processes, and dispute resolution methods.
While it’s important to understand the other party’s perspective, it is equally critical that you stay focused on your objectives and limitations. The goal of contract negotiation is not to win an argument, but to craft mutually beneficial terms that support both parties’ interests and minimize risk.
During the negotiation process, it’s essential to divide the contract into manageable parts and work through each one in turn. This strategy not only reduces the amount of time spent on unproductive conversations, but it also makes it easier to reach agreement on individual pieces. Furthermore, it is crucial to use a tool that enables you to track and manage the progress of each negotiation session.
It is also helpful to consider the entire contract as a jigsaw puzzle, and each piece of the puzzle must fit together in order to see the complete picture. This is the same approach that many successful contractors take to their contract negotiations. By preparing well in advance and taking the time to assemble a strong team, they can connect each piece of the contract and ensure that they are working toward a clear, common goal. In addition, adopting a curious mindset and engaging in regular reviews and regrouping helps them keep on track. It also allows them to identify and address any remaining issues before they become a significant obstacle in the process.
Subcontractor Management
The completion of most construction projects depends on the expertise of a myriad of subcontractors, each handling specific specialized tasks. The successful coordination of these various subcontractors is what ensures that a project will be completed on time and within budget. This is a significant task, especially for large projects that require many subcontractors working in tandem. Delays from one trade can easily affect the entire timeline and lead to cost overruns.
Subcontractor management services offered by GCs often involve creating schedules and coordinating work flow. This is especially important for home renovations, where there are numerous moving parts. A good GC will make sure that needed materials are on site at the right time and that the project progresses in an efficient way. They will also communicate any changes to the project timeline with subcontractors and ensure that the subcontractor’s specialized tasks are executed in the most effective manner.
When a GC is managing a larger-scale build, they may need to collaborate with the project architect to make sure the construction plans meet the client’s specifications. They will also coordinate with the project engineer, and they will ensure that all aspects of the construction are in accordance with local building codes. GCs will review and verify all blueprints, drawings, and other documents that are related to the construction process before they are passed on to the subcontractors.
One of the most critical subcontractor management services is providing safe and healthy working conditions on job sites. This involves ensuring that all subcontractors have access to adequate equipment and supplies, and that the working environment meets occupational health and safety standards. This can reduce workplace injuries and improve the overall quality of the work.
Managing subcontractors on the job site is an ongoing effort for a GC, as they will need to continuously communicate with them to update them on project details and timelines. This can be done through phone calls, emails, or in-person meetings. Ideally, a GC will be able to keep in contact with subcontractors at least weekly to keep them updated on project progress and to answer any questions that may arise.
Contract Administration
Contract administration is the key to a successful project. It defines expectations, outlines legal obligations, and establishes how disputes will be handled. The right contract sets the stage for smooth collaboration and minimizes risk, preventing misunderstandings that lead to costly disputes. Our team can help select a contract type that best suits your needs, and then customize it with supplementary conditions to reflect your specific project’s needs. For example, a dispute resolution section specifies how disagreements will be handled, avoiding lengthy and expensive legal battles.
We also assist public agencies in their use of non-traditional procurement methods, such as Design/Build and Construction Manager/General Contractor (CM/GC). Using these methods requires careful preparation to ensure a successful project execution. We have experience managing all aspects of these projects, including contract administration.