General contractors play a vital role in project success, acting as a central communication hub between owners, designers, and specialty contractors. GCs must have the right education and practical field expertise to thrive in their roles.
Most states require a license to perform general contracting services. This typically requires a comprehensive application, proof of insurance, and passing a specialized exam. Contact General Contractor Lexington KY now!
A GC’s design services can be as limited or extensive as the project requires. In some cases, the contractor takes on the role of implementing an architect’s design and then hires specialty contractors to bring that design to life. This model is often more cost-effective than hiring an architect and paying for independent design and construction services separately. It also provides more flexibility to the project team as design changes and budgetary constraints come into play.
In other instances, a GC will take on the role of a design-build firm and provide both the design and building services. In this scenario, the contractor works closely with the project’s architect to create and finalize a design that meets the contract owner’s requirements. The GC then develops a project budget, plans the work schedule, sources materials and equipment, and hires all of the subcontractors that will bring that design to life on the jobsite. They will also ensure that the design and construction meets all local codes and zoning requirements.
During the preconstruction phase, a GC will be responsible for coordinating with the project architect and any other stakeholders involved in the build. This is a time when a GC will be establishing the construction schedule and managing any change orders that may arise during the design phase.
General contractors are often required to have a license, which helps them manage their responsibilities as well as ensures that they follow industry standards for insurance, taxes, and safety. This licensing is typically overseen by a state’s department of labor. The licensing process can also be helpful for ensuring that a GC is properly qualified to perform a certain task and has the necessary experience and skills.
Permits
Many construction projects require permits or official approvals from local government in order to move forward. It’s the general contractor’s job to coordinate these requests and ensure that all work is done correctly. They also arrange all city inspections that are required to maintain a property’s value and ensure that construction meets the proper codes and standards.
GCs are also responsible for procuring materials and equipment, as well as managing subcontractors and overseeing quality control. Because of this, it’s important for GCs to have experience and be well-versed in the industry. They also have a wider network and can more easily find high-quality subcontractors to perform specific tasks. This makes them an invaluable resource in ensuring that a project stays on track and on budget.
In some states, such as New York, a GC is required to get licensed before starting work. In addition to demonstrating experience, a contractor must pass a trade exam and have liability and workers’ compensation insurance. They also have to register their business and pay a license fee. In some cases, contractors are required to pay a sales and use tax, income tax withholding, and/or unemployment insurance taxes.
Unlike many other industries, the construction industry has unique licensing requirements. For example, in New York, a general contractor must obtain a permit from the Department of Buildings before beginning work on any project. This is a good opportunity to showcase your credentials and show that you’re serious about working in the construction industry. It can also help you build trust with your clients, as they’ll know that you’re licensed by state industry experts. You can also add your verified license to your Houzz profile, which will increase your credibility as a professional in the field.
Scheduling
Construction scheduling is a critical part of the pre-construction phase and involves a detailed plan for how each stage will unfold. This can be a written narrative or a visual representation, such as a bar chart schedule. General contractors can provide this service, and our project manager, Seyar Azadani, has 18+ years of Oracle Primavera P6 CPM scheduling experience for government agencies (USACE, DOT, VA) and private companies (Meta, QTS, Turner).
Effective construction scheduling includes five activities that are crucial to the timely completion of projects: Work breakdown structure (WBS), critical path, resource allocation, risk assessment, and project calendars. Each of these processes is essential to ensuring that your construction projects will be completed on time and within budget. This is why construction scheduling is considered a strategic process.
Budgeting
In a design-build project setting, the general contractor will work alongside an architect (operating under a separate contract). They will create, finalize and approve a design with the architect, then develop a project budget, source materials, hire subcontractors, and obtain necessary permits.
Once construction begins, a GC will monitor project progress and resolve issues as they arise. They will also review daily reports and adjust schedules to meet critical milestones. Additionally, they’ll monitor safety and quality to ensure that everyone on site is following procedure. Once the project is completed, a GC will manage the project turnover to the owner and tie up loose ends. They’ll also make sure all bills have been paid and organize project documentation for future reference.
GCs must be able to work well with architects and additional contractors on the jobsite. They also need to have strong leadership skills and a solid understanding of the construction process. Moreover, they should be able to keep the cost of the project within its allotted budget while ensuring that high-quality work is being performed.
The responsibilities of a General Contractor vary depending on the size and type of project. Some GCs are licensed to complete all types of building projects while others specialize in certain areas, such as concrete, plumbing, electrical wiring, and more. Some are also involved in the design phase, while others work with a client during the build-out process to make sure everything meets their needs.
In addition to their specialized skills, General Contractors are also familiar with the latest technology and best practices in the industry. They use these insights to help their clients make the most of their construction investment. For example, they can provide advice on how to save money by sourcing materials from local wholesalers or bespoke manufacturers. They can also help their clients save on energy costs by using efficient appliances and insulation.
Contract Negotiation
Contract negotiations are the key to successfully completing construction projects. They provide clear outlines of obligations that need to be met, skin in the game for both parties, and guidelines for dispute resolution. While navigating contract negotiations can feel like climbing Mount Everest, careful preparation can help you reach a mutually beneficial agreement.
Before entering contract discussions, identify your non-negotiables. Clearly define what aspects of the project are critical to you, such as adhering to your budget or requiring specific insurance clauses. This will empower you to stand firm on these terms while allowing room for constructive compromise.
Consider negotiating during a less busy time, such as winter or summer. This can give you more leverage when discussing prices for supplies. Keeping your cost estimates confidential will also increase the power of your position. It may also allow you to negotiate with different companies for pricing, rather than one main contractor who has their preferred supplier.
Often times, project risks are shifted between the general contractor and subcontractors. Addressing these responsibilities beforehand is a crucial contract negotiation tactic that can prevent delays and increase the value of your work.
Another common pitfall during contract negotiations is ambiguous language. For example, an owner or GC may include terms that don’t jive with state requirements. A seasoned attorney can be your best asset when it comes to avoiding these missteps. For instance, Scott Grier, an 11-year lawyer with Rouse, Frets, White, Goss, Gentile, Rhodes PC in Kansas, Missouri, and Oklahoma, explains that if you notice your GC or owner is including terms that don’t align with state regulations, it might be time to bring up the issue.