General Contractor Lexington KY is the key point of contact for construction projects. They work with project owners, architects, and specialty contractors (or subcontractors).
Most states require general contractors to obtain a license before beginning any work. This typically involves demonstrating years of experience and passing an exam. Many GCs also establish their businesses as LLCs to protect personal assets from liability and avoid double taxation.
Managing a project requires an extensive range of skills. Whether you’re planning a new office, warehouse or construction site, there are countless moving parts to consider. It’s important to have a team of professionals who can keep track of all the details and ensure your project stays on target. Project management services include budgeting, scheduling, and communication. It’s also the job of the project manager to monitor and assess potential risks.
Many general contractors use project management software to help with their day-to-day tasks. They’re able to create an online portal where the entire team can access project documents, communicate with one another and stay on task. Using tools like Gantt charts, they can create a visual timeline of tasks and milestones. They can also set up a work breakdown structure (WBS) to divide tasks into smaller manageable components. Other tools like progress reports, risk tracking and escalation procedures allow for consistent reporting and monitoring.
It’s not uncommon for a general contractor to have a dedicated team of project managers for a single project. This can help them to avoid costly mistakes and deliver projects on time and within budget. A project manager is responsible for overseeing the physical construction of a project, as well as dealing with the project’s legal aspects. They’re also required to review the contract documents, schedules and scope of work for accuracy and completeness.
Project management software is a great tool for any GC, but it’s even more beneficial for larger firms with a diverse portfolio of jobs. There are many options available on the market, including Sage 100 Contractor and RedTeam Go. RedTeam Go is a cloud-based construction project management solution that’s designed for small- to midsize general contractors. It’s a less expensive option than the company’s flagship product, RedTeam Flex.
When choosing a general contractor project management software, it’s essential to consider your annual construction volume, the type of projects you complete and your tech-savvy. It’s best to find a software solution that will be a good fit for your specific needs, rather than a freemium horizontal solution.
Contract Negotiation
As a contractor, your contract negotiations skills determine the success or failure of your projects. A successful negotiation brings both parties to an agreement that satisfies both parties, but only after addressing the needs and concerns of each. This includes discussing the cost of materials, defining the scope of work, and setting deadlines for project completion. It also includes negotiating changes in the work, the process for managing those changes, and the guidelines for dispute resolution.
A skilled negotiator has excellent communication skills, is able to read the other party’s intentions, and understands the legal and regulatory constraints that may impact each situation. They know when to ask questions and are able to identify the best solution for everyone involved in the negotiations. They also have an understanding of what types of terms are most important to each party and how those terms can be negotiated in order to create mutually acceptable solutions.
Trade contractors form the backbone of construction projects, providing the specialized labor and expert knowledge required to bring jobs across the finish line. They are a key component of every job’s team, and a well-drafted contract is essential to their success. It sets out the scope of their responsibilities, establishes their relationship with the project owner and General Contractor, and outlines payment terms.
Common contract provisions that pose risks to subcontractors include ambiguous payment terms, insurance requirements, and indemnification clauses. For example, many contracts provide “pay when paid” language – which favors subcontractors – over “pay if not paid” language – which typically benefits project owners.
Another issue is the inclusion of insurance requirements in contracts that are inconsistent with the project’s insurance program, creating a conflict. Finally, contract language describing warranties and punch list responsibilities can significantly affect lien claims. By carefully drafting and negotiating these provisions, you can ensure that your company is protected. For example, by negotiating for a clear beginning and end date for warranties and careful labeling of repairs (e.g., as warranty work versus as punch list), you can prevent disputes down the road.
Contract Administration
Contract administration services get all the little details right from the start, preventing disputes and other costly problems down the road. This is where a GC’s expertise shines through, ensuring that all parties involved are clear on project goals, deliverables and timeframes.
The administration portion of a construction project includes processing, reviewing and generating documents used during the construction process such as change orders, shop drawings, submittals and substitution requests. Often, these require more than just simple communication skills to negotiate effectively. Successful contract administrators must be able to read between the lines of ambiguous clauses, find loopholes and other contentious terms that could later prove problematic for both parties.
It’s also important for contract administrators to have a strong understanding of all construction-related contracts, including general and subcontractor agreements. This includes knowing which contracts are applicable, when and how they’re to be negotiated, and how to manage changes throughout the course of the project.
As the project progresses, unforeseen issues can arise that threaten to delay or derail schedules and budgets. Whether it’s an error in the original contract document, exigent circumstances or owner-directed scope increases, it is the responsibility of the contract administrator to properly apply for and administer change orders for these occurrences.
In addition, a contract administrator should be prepared to communicate regularly with suppliers and contractors on contractual issues that arise. This can include providing a contract issue log and escalation mechanisms to ensure that all parties are aware of their contractual obligations.
Another crucial aspect of contract administration involves reviewing and preparing all necessary documents for auditing purposes, including procurement and contract documentation. This is particularly important for government projects, where compliance with strict regulations is a critical aspect of success.
Finally, a good contract administrator should be able to archive and store all contracts in a central repository for easy retrieval when needed for reference or auditing purposes. This helps to prevent misplaced paperwork and reduces the risk of lost documents, which can cause significant delays in the contracting process. Having clear checklists for administration and management helps delineate responsibilities and ensures that processes run smoothly.
Subcontractor Management
Subcontractor management is one of the most critical services GCs offer, and it’s important to ensure all parties are on the same page throughout the construction process. If a subcontractor misses a task deadline or fails to meet quality standards, it could impact the entire project and set back all parties involved.
Effective subcontractor management starts during the bidding stage, where GCs assess each potential subcontractor’s capabilities and experience to determine if they’re right for the project. In addition, they work with the design team to develop a clear scope of work and corresponding schedule, ensuring all tasks and deliverables are clearly defined. This helps avoid scope-related problems later on, such as overlapping work or unaccounted for scope changes.
Once they’ve selected the most qualified bidders for each trade, GCs will review their proposals to ensure they align with the overall project goals and requirements. They will also identify any risks and negotiate favorable contract terms to mitigate those challenges and ensure the project remains within budget.
After a contract is awarded, GCs will monitor progress to make sure all subcontractors are working efficiently and meeting expectations. They’ll also address any issues that arise to resolve them quickly and keep the project moving forward. This may include coordinating material deliveries, communicating change orders and other requests to the appropriate parties, and preparing final documents for client approval.
Another key aspect of subcontractor management is fostering a collaborative environment where GCs and their trade partners are open to sharing feedback and suggestions for problem-solving. Using pull planning, a collaborative scheduling technique, can help GCs harness the power of subcontractors’ onsite insights to develop more realistic project plans and schedules.
When issues come up, GCs will communicate with the affected subcontractors and design teams to identify solutions. They’ll also encourage all parties to remain calm and focus on collective problem-solving, rather than finger-pointing. Additionally, they’ll maintain thorough documentation and record-keeping to track interactions, contracts and other project-related communications. Dedicated programs like Bridgit Bench can help GCs manage their subcontractors’ assignments, labor requests and data in a single, centralized location.
