If you want to renovate your kitchen, or add an addition onto your home, a general contractor will need to be involved. They’re licensed professionals with years of experience that can help you avoid pitfalls like snags in your project or building code violations.
They have teams of specialists to handle all aspects of finance, accounting, bookkeeping and financial management. They also manage the supply chain to ensure all materials and equipment are available on site as needed. Visit the General Contractors Lexington KY for more information.
Planning
A general contractor is responsible for a wide range of tasks in a construction project. They must be able to anticipate and react to issues that may impact the completion time or quality of work. This includes planning for and executing a schedule, communicating with subcontractors and clients, and managing the budget. GCs are involved with both complex commercial construction and basic residential projects, such as home remodels and additions.
Regardless of the type of project, the first step for a GC is to assess the project-specific documents (also known as bid, proposal or tender documents). This will include any drawings, specifications, cost estimates and a site visit. Once the GC has reviewed these documents, they can provide an estimate to the client. The estimate will take into consideration any company overhead, general conditions, materials and equipment costs and labor, as well as their profit margin.
Once the GC has agreed to the scope of work, a contract is written. This is an important part of the process, as it provides a solid foundation for a successful project. A well-written contract will prevent disputes and ensure that all parties are held accountable for their work.
Before you start working with a general contractor, it is critical to ask them about their scheduling methods and how they will supervise the construction on site. This is important because a conflicting schedule can significantly impact the progress of your project. You should also look for a contractor who embraces open communication between all parties and invests in digital tools that enable real-time communication.
While it is true that construction projects rarely go according to plan, it is also true that they can be managed in a way that minimizes risks and delays and meets project goals. However, this requires a level of experience that most property owners do not have, so it is often necessary to hire a reputable general contractor.
A GC is responsible for coordinating all aspects of a construction project, including budgeting, scheduling and dynamically responding to roadblocks. This is how a GC can bring a project to completion on time and within budget.
Budgeting
Whether building an apartment complex or remodeling a kitchen, there are many moving parts that go into a construction project. A general contractor manages these tasks, working as a manager while subcontractors complete the labor. GCs oversee the fine details and major concerns of construction projects, such as securing permits, overseeing work, ensuring workers are licensed, and providing insurance for everyone on the job site.
During the planning phase of a construction project, a GC helps the property owner develop a budget and schedule for the project. They often provide estimates based on past jobs and intel from vendors and suppliers. They also perform cost analyses to determine the most economical options for materials, equipment, and labor for each step of the construction process. This process is known as project estimating, and it is an essential component of the construction industry.
After the design phase is complete, the GC works with the architect and engineering team to build the project within the scope of the budget. They may even participate in the design process by assisting with scheduling, costs, and establishing building systems. In addition, a GC may hire subcontractors to supply specialized labor for the project. These contractors are usually independent entities that specialize in a trade, such as carpentry, plumbing, or masonry.
For every individual construction project, a separate project budget is created. Besides the direct construction costs, this budget will include design fees for architects, engineers, interior designers, surveyors, and any consultants needed to create the blueprints. This will also include any fees that are associated with financing the project, such as loan interest, draw administration, closing costs, and inspections.
During construction, a GC ensures that the property owner receives payment from the tier of subcontractors, vendors, and suppliers down to the GC itself. This ensures that payments are made on time and that the GC is properly reimbursed for their services. It is crucial that a GC can manage the financial flow of payments, as it will directly impact the progress and profitability of the project. This is why many GCs have earned licenses from their state or municipality and are required to maintain a certain amount of liability insurance for each project they work on.
Supply Chain Management
As a contractor, you’ll need to manage the flow of materials for your work. This is a huge task, especially in construction. This is why GCs work closely with suppliers, subcontractors, and trade partners to ensure that everyone on the job site has what they need when they need it.
Supply chain management is a vital skill for general contractors, but it’s not something that you can learn in a classroom. Instead, you’ll need to gain hands-on experience working as a general contractor. This will help you build a portfolio of projects that demonstrate your skills and abilities, and it will give you the opportunity to network with professionals in the industry.
GCs need to be familiar with construction techniques so they can manage teams of subcontractors and other specialists who perform the actual labor. For example, a GC might oversee teams of electricians, plumbers, carpenters, masons, and drywall workers who are in charge of performing various tasks for a project.
Another part of a GC’s responsibilities is handling the money flow. In a traditional construction project, an architect or designer handles the plan and then GCs bid on how much it will cost to complete the work. The GC with the lowest bid is usually awarded the contract.
This process can get complicated because of the number of people involved in a construction project. GCs must factor in the costs of materials, personnel, and company overhead, then choose how much to mark up their bid value to make a profit.
While many GCs are employed by larger construction companies, some operate their own businesses. These independent GCs often specialize in a specific type of construction or renovation project, such as commercial, retail, or public/government projects. The GC will then hire subcontractors to perform the specific labor on a project.
In addition to being licensed, a GC should also carry worker’s compensation and liability insurance for all employees. Getting a license isn’t necessary in every state, but it’s a good idea to protect yourself and your project from liability issues. You should also only hire a licensed GC.
Communication
In a construction project, communication is the key to putting all the pieces together. Often, frank and transparent communication can prevent conflict and misunderstandings between team members. This is particularly important when it comes to a GC and subcontractors. For example, if a general contractor makes an error in the bidding process or fails to adhere to a schedule, it’s crucial that all team members are aware of the issue.
In addition to fostering communication, a GC also oversees the overall progress of a construction project. They manage the budget, work with the building designer and act as a liaison between the property owner and contractors. They must also ensure that all work meets specifications and that payments are disbursed to the right people.
The responsibilities of a GC can vary based on the type of project. For instance, a commercial general contractor is responsible for the construction of a hotel or grocery store, while a residential GC handles projects like home renovations or remodeling an existing house.
Before construction starts, the GC must assess the project-specific documents, also known as bids, proposals or tender documents. They then consider the cost of labor, materials, and equipment to provide the property owner with a price for the work. They may use a fixed-price contract, a cost-plus price, or an estimate for the project.
Once construction begins, a GC will review daily logs to track progress and make sure all work is completed on schedule. They will also coordinate with architects and engineers to ensure that all necessary materials are delivered on site. The GC will then perform inspections to verify that all work is completed to specification.
Generally, the property owner will pay the GC directly. However, this can become complicated due to the various tiers of contractors involved in a construction project. This can lead to payment delays for everyone in the construction chain. To avoid this, GCs must ensure that all paperwork is in order and that the proper procedures are followed to secure lien waivers.