A general contractor oversees construction projects from start to finish. They may be responsible for buying materials, obtaining permits, and complying with local building codes.

A general contractor must be able to manage client expectations and changes in project scope. This requires strong negotiation and problem-solving skills. Click here to Learn More.

The planning services offered by a general contractor are critical to the success of any construction project. They help to prevent cost overruns by dividing the large construction process into manageable parts and establishing deadlines for each part of the plan. They are also responsible for preparing and providing the team with all the materials and supplies needed to implement the plans. This requires good knowledge of the material and equipment used in construction. A good general contractor can also find qualified subcontractors capable of carrying out the tasks within the set time.

GC are also responsible for creating and managing the budget for the entire construction project. They will work with the owner and architect to develop a realistic construction timeline and a detailed estimate for all the costs involved, including building permit fees, labor costs, and construction materials. They will then use their years of experience to help customers understand what is and isn’t possible for their budget.

In addition to establishing the timeline and budget, a GC will provide the customer with a comprehensive breakdown of all the construction phases. This will help the customer better visualize how the building will come together and make any necessary changes to the design or layout. The GC will also be able to explain the different options available for construction materials and how they will impact the final project.

A general contractor can also handle any issues that arise during the building process. They will resolve any conflicts among construction team members and maintain discipline on the construction site. They will also ensure that all work is performed according to the contract specifications. This is important to avoid problems that can lead to delays in payments for all parties involved in the construction project.

Scheduling

Contractor scheduling translates the project planning strategies laid out during the planning phase into an actionable plan for specific timelines and resource allocations. It also includes identifying potential risks and developing helpful mitigation strategies.

A well-planned construction schedule will help ensure that the right personnel are available when they are needed, and that each task is completed in a timely manner. It will also allow subcontractors and suppliers to plan delivery times and arrange deliveries accordingly. In addition, a construction schedule will prevent delays by clearly defining the work required and identifying critical paths, or a set of activities that must be completed before the project can move forward.

To develop a construction schedule, the general contractor will review past projects and conduct interviews with other project stakeholders. They will then collect detailed data on the cost, availability, and lead time of every item needed for the project. It is important to get these quotes as soon as possible, as the price and availability of materials can change rapidly during the construction process.

One of the most effective construction scheduling techniques is called “critical path method” (CPM). This approach determines the minimum amount of time needed to complete a project by connecting all of its tasks in a sequence based on their predecessors and successors. For example, drywall installation must precede insulation and priming in order to complete the wall assembly.

CPM is a common technique in project management, and it helps to reduce risk by clearly establishing a minimum completion time for the entire project. However, it is not foolproof, as it can be influenced by factors outside the control of the project team.

Budgeting

General contractors work with clients to craft a project budget, including both material and labor costs. A well-crafted budget will help prevent unforeseen expenses and ensure that the final product meets or exceeds expectations. Typically, clients will pay contractors in a series of disbursements, usually on a monthly or incremental basis as the project progresses.

To manage costs effectively, a general contractor should track each cost and compare them to actual costs to ensure that they are within the budget. Additionally, they should identify any costs that are significantly higher than expected and communicate them to the client so that they can seek alternatives.

It’s also important for a general contractor to communicate openly and honestly with the client throughout the process. This ensures that the contractor is aware of any challenges and is able to make informed decisions about how to address them. For example, if the contractor is building a home in an urban area with strict city regulations and limited space, they should clearly convey this to the client so that they can find creative solutions.

The general contractor should also provide an accurate estimate of the total cost of the project. This helps clients understand what they can expect from the contractor and makes it easier for them to determine whether the proposal is worth the investment. A general contractor’s fee is usually either a flat rate or a percentage of the total project cost, which is generally negotiated with the client before the start of construction.

It’s essential to review each contractor’s bid thoroughly, ensuring that the proposed costs are consistent and accurate. This will help you determine the most qualified candidate for your project and avoid costly mistakes. During your search, remember to consider your project’s location, service needs, and timeline when choosing a general contractor.

Supervision

GCs oversee teams of subcontractors who handle the many specialized aspects of construction projects. This involves managing schedules, procuring materials, ensuring permits and obtaining necessary insurance. They work closely with clients and architects to ensure that a project is completed as planned. And they always respect the cleanliness and safety of clients’ homes and personal belongings during the construction process.

A reputable general contractor will also have a team of professionals to handle financial management, accounting and bookkeeping. They’ll make sure all payments are made on time and that the project stays within budget. In fact, most GCs have teams dedicated to just this part of their business because the ability to manage cash flow and track expenses is one of the core skills that sets them apart from all other companies in the construction industry.

Depending on the delivery method for the project, the GC will either work with an architect or design team to create and finalize designs, or take on a design-build role. They’ll then build the structure as outlined in the contract documents. For negotiated contracts, the GC will determine a bid value, and within that, factor in overhead and profit to turn a profit.

GCs spend hundreds of hours on site each week, supervising all aspects of construction and working with other project team members to complete a project on time and on budget. Their supervisory skills are crucial to the success of every project.

Contract Negotiation

In construction, contract negotiation is a key service offered by general contractors to their subcontractors. Negotiating a fair contract can save time and money, prevent disputes and delays, and protect the integrity of the project. It is also an opportunity for contractors to showcase their skills and abilities. A well-planned contract can help a contractor win the bid and maintain its profitability on the job.

For example, it is important for contractors to negotiate clear and concise language that defines the scope of work. This ensures that both parties are on the same page and reduces confusion and misunderstandings. It is also beneficial to include a glossary of terms if the contract uses construction jargon. This way, the client can avoid costly legal action due to an ambiguous agreement.

Another important issue that needs to be addressed during contract negotiations is risk allocation. Most projects involve risks, and it is important to negotiate an acceptable level of risk for each party. It is also a good idea to incorporate insurance clauses in the contract to protect workers and insurable items. Not all contracts automatically include these clauses.

Finally, it is a good idea for subcontractors to negotiate clear and comprehensive payment provisions. This includes a “pay when paid” clause rather than a “pay if/when paid” clause. It is also helpful for subcontractors to request access to the AIA A101 Standard Form of Agreement Between Owner and Contractor so they can review the payment terms.

Additionally, subcontractors should ask their GCs to negotiate very clear and specific language regarding force majeure delay compensation. Many contracts provide only vague language for these situations, and the case law and statutes regarding this issue vary greatly from jurisdiction to jurisdiction.