General Contractors are responsible for coordinating the construction of a project while overseeing all subcontractors and vendors. They also manage the project by obtaining building permits and city inspections.
The best GCs are able to provide realistic timelines and budgets while keeping everyone on track. Their experience allows them to navigate unforeseen circumstances that might cause delays.
As the name suggests, a commercial general contractor builds and remodels commercial buildings such as corporate offices, schools, retail buildings and others. They oversee all aspects of construction, from design and sourcing of materials to building code adherence and zoning regulations. In addition, they work with clients, architects and engineers to deliver projects on time and within budget.
A residential general contractor works on remodels or new home builds, including single-family houses, townhouses and condos. They also renovate or construct apartments, duplexes and triplexes. Responsibilities may include working with clients, architects and engineers to design a project that meets all specifications. In addition, they are responsible for obtaining permits, sourcing and procuring materials, hiring and supervising subcontractors and managing the construction schedule.
Licensed general contractors have insurance and other coverage that protects them in case something goes wrong on the job. They can also provide a list of references from previous homeowners so you can feel confident that they will perform quality work.
While a general contractor can take on any type of remodeling project, they specialize in certain types of construction. They will use their experience and expertise to make sure that the job is done correctly and that the project is completed on time. They also have the necessary tools to make changes and improvements that may arise during the course of a remodel.
A general contractor can handle all of the details of a remodeling project with little input from you. They will pitch ideas, give suggestions and offer advice, but they will ultimately follow your direction. In contrast, a project manager is more like your life coach. They will follow your day-to-day instructions, but they will advocate for you when it comes to negotiating subcontractor prices and rates. Additionally, they will keep you updated on both major and minor developments.
Contract Management
Contract management is a process that involves coordinating, monitoring, and evaluating contracts to ensure compliance with terms. It involves many different departments, including legal, operations, procurement and accounting, which often work with a variety of documents, such as Non-Disclosure Agreements (NDAs), vendor agreements, Master Service Agreements (MSAs), Statement of Works (SOWs) and more. When these documents are not centralized and managed in a way that promotes efficiency, they can slow down the organization and put it at risk.
A contract management plan provides the framework for achieving a consistent, streamlined approach to contracts. It typically outlines the roles and departments responsible for contract-related activities, how contract management performance is measured, and any tools or systems that should be used. It also identifies any key areas of concern and lays out the steps needed to address them.
As a part of the contract management plan, it’s important to define what is and isn’t included in the project scope so that everyone understands their responsibilities. This helps reduce the likelihood of scope creep, which can be a significant roadblock to the completion of any project. It’s also vital to lay out the timeline for delivering project milestones, which will help everyone stay on track.
Unlike an owner, a GC will need to issue individual subcontracts for the many specialty contractors hired for a project. The GC’s contract administrator will need to review each of these and approve them, ensuring that they adhere to the prime contract, before incorporating them into the project’s legal agreement.
A well-written contract management plan can prevent misunderstandings, miscommunication and delays that may derail a project’s schedule or budget. Having a clear set of expectations in place can also allow the GC to respond quickly and appropriately to any unexpected issues that may arise.
A good contract management strategy is a critical component to any business’ success, and it requires a combination of best practices, technology and expertise. By implementing a system that streamlines adherence to contract terms, safeguards compliance and creates opportunities for relationship building, businesses can build trust with their vendors and improve operational efficiency.
Vendor Management
One of the most important aspects of a general contractor’s job is managing vendor relationships and prequalification. When it comes to construction projects, working with quality vendors is essential to ensure that work is completed correctly and on time. However, improperly vetting and managing vendors can lead to project delays and increased costs.
Vendor management includes establishing a clear understanding of the project goals and ensuring that all parties are on the same page. It also involves providing regular communication and checking in on the status of the work being performed. By communicating and establishing relationships with vendors, you can keep them motivated to deliver on their promises. This helps to reduce downtime, delays, and inefficiencies.
Developing a formal vendor contract management process can help a business save money, improve service quality, and mitigate risks with their suppliers (also called vendors). The benefits of this include streamlined procurement processes, more effective negotiating, increased control over expenditures, and better procurement relationship outcomes.
A well-thought-out and organized system for managing contracts will streamline the entire process of identifying vendors, reviewing proposals, and negotiating terms. It will also help to create a central repository of contracts and invoices that can be easily accessible by all departments throughout the organization. This can help prevent “rogue spending,” which occurs when employees purchase products and services without first looking through procurement policies or contract requirements.
Finance teams are also crucial for vendor management, as they are often responsible for negotiating and processing contract payments. This can include establishing payment schedules, evaluating performance, and negotiating risk mitigation clauses.
Finally, the process of managing vendor contracts should include a meeting with the vendor to review their performance and identify any areas for improvement. It’s important to evaluate how well a vendor is performing so that you can decide whether or not to renew their contract, renegotiate the terms, or terminate their agreement altogether.
Managing vendor relationships is an ongoing process, and it can be difficult to do effectively without the right tools. Luckily, Built offers a single, centralized solution for vetting trade partners, monitoring compliance, and managing payments. With our innovative Trade Partner Management platform, you can get the most out of your vendors and ensure that your projects stay on track from start to finish.
Communication Management
Communication management is the backbone of successful construction projects. It requires clear communication between the general contractor and the homeowner, as well as the rest of the project team. This ensures everyone is on the same page and can respond quickly to any unforeseen issues. It also enables coordination and transparency throughout the entire process.
Poor communication can have devastating effects on a construction workflow. Miscommunication is a major cause of misunderstandings, delays, and errors in the construction process. It also impacts morale and employee turnover, as well as increased compensation costs and liability insurance premiums. Having clear, consistent communication processes in place reduces the risks associated with miscommunication and increases project efficiency.
To improve communication, establish standards for preferred methods of communication with each team member and make sure to have backups in case the primary methods become unavailable or inaccessible. It is also helpful to encourage active listening, whereby the person receiving the message takes time to fully understand what has been said. Using descriptive, simple language and avoiding jargon will help to achieve clarity as well. Additionally, it is helpful to paraphrase messages to confirm understanding.
One common way to avoid misunderstandings and communication mishaps is to implement clear communication protocols during the planning and estimation phases of the project. This includes sharing unit rates with the team, requesting feedback on these rates and opening up channels of communication. This will help to build a strong, trusting relationship with the contractors and can add a lot of value to the project ahead of starting.
On site communication can be in the form of signals, signs, drawings, photos, emails and scheduled meetings. Often times advice that is given to improve communications on the job site is focused on altering behaviour rather than fixing the processes. However, this is a mistake because the best way to prevent communication problems is by improving the processes, as this will have a greater impact on the overall results of the project. For example, simply changing the way meetings are run will help to make them more effective and efficient.