General Contractors Lexington KY take architects and engineers’ designs and make them a physical reality. They manage day-to-day construction activities and hire subcontractors for specialized work.
While remodelers specialize in specific tasks like plumbing or framing, GCs have a broad knowledge of every aspect of construction. This allows them to work as a central communication hub and streamline workflows.
The project planning phase involves determining the scope of work and identifying measurable goals. This stage requires careful analysis of architectural designs and blueprints to determine the primary purpose of a project and its desired outcomes. It’s important to make a clear list of all the resources needed to complete a project, including labor, materials, permits, equipment and contingency funds. This will help you manage your resources effectively and stay within budget.
Construction estimators are responsible for analyzing plans and material requirements to create an accurate estimate, helping set the project’s budget. GCs also manage the day-to-day operations on the job site, overseeing subcontractors and ensuring that the project meets all regulatory requirements.
Once the project has been conceptualized and approved, the GC begins the pre-construction planning process. This begins with a meeting that provides the opportunity for both parties to share more project information and ask questions. This step is critical to avoiding misunderstandings that could lead to costly changes during the project’s implementation.
Project planning stages often overlap, so it’s essential to communicate well with all stakeholders throughout the entire process. This ensures all parties are on the same page and can anticipate challenges. For example, if an office build-out requires a permit, the GC should be prepared to face delays such as long wait times for approval or insufficient space at local authorities.
CM2 & Associates prepares pricing analyses for potential general contractors that highlight bid pricing and scope change risks to avoid cost overruns. These are presented in a user-friendly format for side-by-side comparisons, helping board members select the right contractor for their projects. CM2 also conducts pre-construction meetings and interviews with contractors to help them understand the project and address any questions or concerns.
Scheduling
When scheduling construction projects, it’s important to identify and manage dependencies. Dependencies occur when a work task can’t start until another has finished. For example, in roofing, underlayment installation precedes shingle installation to ensure proper roof protection and moisture control. It’s also crucial to properly allocate resources to work tasks. Incorrect resource allocation can lead to costly delays on projects. This includes assigning the correct amount of labor, equipment and materials to each task.
For example, if you’re looking for a general contractor to remodel your home after an insurance claim, you should make sure they have the proper licenses and insurance. You should also check their payment schedule to ensure it’s clear and reasonable. Finally, look for a warranty and guarantee on their work and materials.
It’s also a good idea to have a general contractor with experience in a particular trade. This ensures they can create an accurate project schedule and manage work progress. Additionally, they can provide more accurate quotes and ensure that all work adheres to building codes.
For larger projects, a general contractor can handle many of the details for you. They can negotiate contracts, hire subcontractors and purchase supplies. They can even arrange for building permits and inspections. Without a general contractor, completing large-scale projects would be very difficult.
Budgeting
General contractors are responsible for a wide range of project costs, both hard and soft. They can impact and budget for hard construction costs such as materials, labor, equipment, utilities and building site development expenses. However, they have less control over site costs, and may have to pay for things like land clearing, site balance and a variety of onsite contractor expenses that are not directly related to their scope of work.
Budgeting is essential to the success of a construction project. It allows GCs to accurately estimate the total cost of a project at various levels of detail, allowing them to maintain their profitability and make the best decisions when bidding for new contracts.
In order to accurately budget a construction project, it is important for the GC to go through a comprehensive process that includes reviewing the design drawings and scope narrative. This allows the GC to ask the project architect and design team detailed construction questions to better understand the scope of work. The GC should also engage a professional cost estimator to provide an accurate cost model of the project.
The resulting budget should include direct bare costs plus a markup allowance for the general contractor. The markup allowance will vary from project to project and is typically stated as a percentage of the direct bare cost. A good starting point is 5% of the Total Project Cost (TPC) for new construction projects and 15% of TPC for larger renovation projects.
Another important aspect of budgeting is cash flow management. Delays in client payments, discrepancies between progress billing and actual work performed and other financial setbacks can cause a significant halt to construction activities. Managing the influx of funds is essential to keeping project schedules on track and ensuring the workers and subcontractors are paid on time.
Contract Negotiation
GCs act as a central point of contact for construction projects, fostering alignment between the construction owner, architects and designers, and specialty contractors (also known as subcontractors). As a result, they take on significant financial liability for project delays and cost overruns. They also oversee the safety of the construction site and are responsible for vetting and selecting experienced specialists, such as plumbers and electricians, to handle the specific aspects of the construction project.
The role of a general contractor can be challenging because it involves being exposed to a variety of potential challenges on construction sites. These include design changes, labor shortages, construction material price fluctuations and disputes with subcontractors. Managing these risks requires a strong relationship building skillset, good communication and an understanding of the construction industry.
Contract negotiation is a complex process that involves both parties working together to craft terms that align with each other’s interests and minimize risk. It’s not a battle of wits where one party wins and the other loses, as that type of situation can lead to resentment and noncompliance, undermining the purpose of the contract itself.
General contractors have a wealth of experience in negotiating with vendors and subcontractors to get the best prices on construction materials. They also have a wide network of connections that they can use to find qualified and skilled workers for your commercial renovation project. In addition, they can negotiate with local governments to secure the necessary permits for your construction project. This can save time and money on the project by ensuring that your construction work is done correctly. It can also help you avoid fines or penalties for not having the required permits.
Project Management
Project management in general contractor offices focuses on the planning and execution of construction projects. These professionals are involved from a project’s inception and help keep it on track throughout the entire process, from design to build and beyond. For example, a PM or CM might work with the design architect to make sure that the project is constructable and that the budget stays on track, while a GC handles the actual brick-and-mortar tasks. All of these roles prioritize risk management as well, whether it’s a high-level PM identifying potential risks in the pre-construction phase, or a GC ensuring that everyone follows safety protocols on site.
While a general contractor may not be the expert in every aspect of your project, they have more experience than most other construction professionals and can handle any unforeseen issues that arise. This often helps keep projects on schedule and on budget.
Generally speaking, a general contractor is chosen through a bidding process and hired to complete the physical construction of a project as specified in the design. They’ll hire subcontractors to do specialized work, such as plumbers or carpenters, and they’ll manage the day-to-day operations on the jobsite.
A GC will usually conduct a pre-construction meeting with all contractors, architects and designers to ensure effective communication during the building process and to address any questions or concerns that might arise. They’ll also review the final plans and specifications before construction begins, as well as the project’s scope of work and cost breakdowns. Some GCs also offer clients the option to choose a fixed-price contract, which limits total cost to the customer and allows for greater transparency in pricing.