General Contractor Lexington KY is the person who manages a construction project. They take on a managerial role while hiring subcontractors to complete the actual labor.
To be a successful general contractor, you need to have the right combination of experience, education and skills. Having a well-constructed resume is the first step to landing that job!
One of the most important aspects of being a general contractor is planning. Whether it’s creating project budgets, scheduling tasks or hiring subcontractors, the GC’s job is to ensure that all work is executed according to plan. In addition, a GC will also manage any unforeseen events that may occur during construction. This is why experience is key, as it will allow them to anticipate issues and find ways around them.
The GC will work with the design team to create and finalize a blueprint. Whether it’s remodeling your home or building an office, the design process is a huge step in the overall project and requires the involvement of multiple teams. The GC will also act as an intermediary between the client and the design team. They will ensure that the client’s needs and preferences are met.
Once the design is completed, the GC will plan the work schedule. This includes determining how many workers and contractors will be involved in the project, when they will start working and their responsibilities. They will also coordinate with the subcontractors and vendors to ensure that they have the required materials for their work. In addition, a GC will arrange all the necessary permits for the project and ensure that all inspection requests are submitted on time.
It’s also the GC’s responsibility to ensure that all projects are completed with high quality standards. This means that the GC will select materials that are durable and safe to use in the construction. Moreover, they will resolve any disputes that may arise on the site. They will also ensure that all subcontractors are aware of the required safety rules and standards.
During the planning phase, the GC will create a work breakdown structure that breaks down large tasks into smaller, interdependent ones. This will help them to manage the project better and prevent cost overruns. The GC will also plan the schedule of tasks and set deadlines for each.
GCs will also evaluate the risk inherent in the project and decide on how much mark-up they need to earn a profit. This is crucial because it helps them keep their businesses running and avoid financial crises. Streamlining paperwork and ensuring clear communication will also help reduce payment delays.
Contract Negotiation
There are a number of key contract provisions that pose risks to general contractors that require negotiation. One of the most important is the scope of work. This is because scope changes become contentious as projects move forward, so it’s best to focus on this early on. Other areas that need to be negotiated include warranties. For example, GCs should ask for an express warranty that the design and construction documents are complete and accurate. Similarly, they should avoid indemnification clauses that don’t provide the level of protection they are seeking.
Another area of importance is the payment chain. This is the way money moves from the owner to various tiers of contractors and suppliers. Problems with this process are common and can result in delayed payments for all parties. GCs typically manage this process on behalf of everyone involved in the project and should seek ways to streamline it, such as increasing visibility, streamlining paperwork and keeping open lines of communication.
GCs should also negotiate how they will be paid for their work. They may receive a lump sum or stipulated sum for the entire project, or they might be hired on a fee-for-service basis and charged an hourly rate. Regardless, they should ensure that this arrangement is documented in writing and agreed upon at the start of the project.
In addition to negotiating their own contracts, GCs are responsible for managing the contracts of subcontractors. This requires an understanding of the different forms of contract used in the industry and how to properly interpret them. For instance, GCs should know that the American Institute of Architects has a set of standard contract forms for use in most projects. They should also be familiar with the Engineers Joint Contract Documents Committee (EJCDC) contract documents that are commonly used for water and wastewater projects.
During the contract negotiations, GCs must maintain their professional image while remaining firm on the issues they are attempting to address. They should not be confrontational or aggressive, as this could hurt their ability to build positive business relationships.
Contract Execution
Contract execution is a critical juncture in the project lifecycle, ensuring that contractual agreements are binding. It also helps streamline operations, foster trust between parties, and optimize overall contract management practices.
The process of contract execution includes all the tasks that take place after negotiations and prior to the start of construction on a project. It can include a variety of things, from obtaining all necessary building permits to arranging all subsequent city inspections. It is also the responsibility of the GC to ensure that all materials and equipment are delivered on time and that there is a robust communication channel among different project units.
Once all contract terms and conditions are agreed upon, they can be signed and formally executed. Once that occurs, the contract’s effective date will usually coincide with the beginning of all construction obligations — although some provisions may not begin until specific requirements are met.
During the actual construction of the project, the GC oversees all aspects of the on-site work. This can include coordinating with vendors, managing subcontractors, and handling all other activities associated with the construction site. They must also make sure that all workers are appropriately trained and certified to perform their jobs.
Another key aspect of the contract execution process is establishing a clear procedure for future amendments. For example, if there are any changes to the project scope, then a specific mechanism for making those modifications must be established. This could involve a power of attorney or a resolution at a board meeting.
A GC should also have a plan in place for managing risks and resolving disputes. For instance, they should make sure that a dispute is resolved in accordance with the contract and that any necessary changes are made before the dispute escalates into a costly legal battle.
For all of these reasons, it is essential for a general contractor to have a robust and effective process in place for contract execution. This will help them avoid common mistakes that could be costly in the long run. A specialized construction lawyer can provide additional guidance on this topic and help you streamline your process for executing contracts.
Project Management
Project management is the process of planning, organizing, and controlling resources to achieve specific goals and objectives. It’s important for general contractors because it helps them balance the needs of their clients, employees, and other stakeholders. For example, it allows them to meet deadlines and deliver projects within budget. It also ensures that all parties involved in a construction project are aware of their expectations and are working together to achieve them.
The first step of project management is creating a detailed plan that details how a construction project will be executed. This includes establishing timelines, milestones and critical paths, as well as developing cost assessments and identifying potential risks. It also involves assessing potential subcontractor and supplier partners, as well as engaging in contract negotiations.
Once a project scope is established and contract terms are settled, the GC or CM starts preconstruction work. This involves collaborating with the design team to evaluate constructability, preparing cost estimates and securing any necessary permits or regulatory approvals. During this phase, the GC also prepares construction drawings and specifications for review by the client.
During construction, the project manager oversees the onsite activities of the GC and subcontractors. This includes monitoring the progress of the work and ensuring that the GC, owner, and other contractors are adhering to schedules and meeting specifications. It also involves reviewing invoices and managing budgets by continuously comparing actual expenses against the estimated costs of the project.
The final part of the project management process is evaluating the results. This can be done through a variety of ways, including conducting surveys with project stakeholders and comparing the original estimates of cost, time, quality and other factors against the actual results achieved. It can also be done through a series of meetings with key players.
Ultimately, the results that are produced will determine whether or not a project is successful. If a general contractor is meeting deadlines, solving problems in the field, taking owners’ and building occupants’ needs into consideration and communicating effectively, then it’s likely that the project will be successful.
