A licensed general contractor oversees the many moving parts of a construction project. Whether they manage projects as a sole proprietorship or a corporation, they often employ a team to handle office and field duties.
The primary way that a GC makes money is through cost-plus contracts. In this contract structure, the owner pays labor/material costs plus a GC markup. Click here https://www.gkconstructionsolutions.com/ to get started with your project.
Planning
If you’re doing a full home remodel or new construction, your best bet is to hire a General Contractor. GCs coordinate and oversee the entire project to make sure it’s completed on time, in the correct order, to city specs and all other relevant codes and specifications. GCs will usually perform some of the work in-house (demo and carpentry) and subcontract specialty trades like plumbing, electrical, and roofing, etc. This allows for a much faster and more transparent experience while also guaranteeing quality craftsmanship.
Before the GC starts building anything, they must round out the team by identifying and bringing in specialists to handle the different aspects of the construction. This can be a complex process as each trade requires licensed and insured professionals who are also qualified in their field. In this phase, the GC will also start to build the budget by using precise cost estimation tools and construction project management software.
Once they have the full scope of work defined, a GC will submit a bid to the property owner and secure the contract. In this phase, the GC will also decide on their fee structure and who shoulders financial risk should material prices go up, or the project take longer than expected.
During the construction phase, GCs are responsible for managing the flow of money from the property owner to the various tiers of contractors and suppliers. This can be a complex process as visibility is limited and payment terms may be contingent. GCs are also responsible for ensuring all required lien waivers are in place and that the work is meeting all relevant construction code requirements.
Construction is a very dynamic and communication-heavy process. GCs will translate the owner and architect’s vision into detailed instructions for the subcontractors, and they will also communicate site progress and challenges back to the client. This is a vital role as it minimizes liability risks, ensures permits are pulled in a timely manner, and that the project meets all local zoning and building code requirements. In addition to the above, GCs will monitor progress daily and troubleshoot any issues that arise.
Design
Before construction begins, the GC works with an architect and other members of the design team to review building plans. They help determine the best use of the space, and if necessary, make changes to meet the client’s vision. GCs also assist in developing budgets and scheduling requirements for the project to improve efficiency and ensure cost control.
Once the final plans are set, the GC hires subcontractors to start executing on them. This requires an intricate understanding of all the various components and their relationships to one another. For example, a contractor may need to install the foundation before installing electrical wiring or plumbing systems. A GC will also work with suppliers to get the best deals on materials. They often offer discounts to clients or to other contractors working on their projects.
On-site management is another key component of the job. A GC is typically on-site daily to manage all day-to-day site operations. They supervise subcontractors, track progress and timelines, and manage any issues that arise. This is an extremely stressful and important role that requires a high level of skill.
The GC must also keep up with compliance requirements. Depending on where the project is located, they may be required to have a license, insurance, or both. This will vary from state to state, but typically requires passing a trade exam and proving experience and knowledge of local building codes.
Most GCs perform at least some of the work in-house. This allows them to maintain their quality and provide transparency to the client. They will then subcontract the “mechanical” trades (plumbing, electricity, tile) and cabinetry and counterwork. Most standard contract structures have the GC pay the subcontractors directly, and then add their markup (typically 1.5% to 5%) for their profit.
GCs need a unique combination of hard and soft skills to succeed. They must be able to read blueprints and navigate local building codes, but they also need strong leadership and communication skills to negotiate and resolve issues on the jobsite. For example, if a client decides to change the kitchen layout mid-project or a supplier runs out of the right paint color, a GC must adjust quickly and find solutions without sacrificing quality. Digital tools that streamline communications between project managers, subcontractors, and clients are essential to this never-ending flow of information.
Construction
Once the design phase is completed, construction begins. Buildings built for commercial or industrial purposes are often larger than homes and need materials that are durable, energy efficient, and safe to use. Typically, these projects are managed by a general contractor who is responsible for overall project execution and assumes financial risk. A general contractor may hire subcontractors to perform specialized tasks, such as plumbing, electrical work, or painting. The general contractor and subcontractors communicate with clients to review project status, manage budgets, schedules, and quality control.
As work progresses, construction teams must continually adjust plans to account for unforeseen issues and meet deadlines. This is where effective communication and collaboration are critical to ensuring the final result matches the original vision. For example, if it becomes clear that certain materials will not be available in time, the team can rework the entire build or select alternatives quickly to keep the project on track.
It’s also essential to monitor the team’s availability, including PTO, holidays, and other unplanned events. Otherwise, the team may become over-extended, and morale can suffer. This can lead to a drop in productivity, increasing the amount of time needed to complete a project and even impacting the cost of construction. To minimize these risks, a construction management solution provides live dashboards that show all project details, progress, and data.
Whether you’re planning to build an office, warehouse, or apartment complex in the state, it’s important to work with professionals who understand the local regulations and construction standards. The right partner can help you make sure your project is completed on time, within budget, and to the highest quality standards.
Handover
The handover phase is when the contractor hands over the project to the client. It includes demonstrating that the project meets specified standards, delivering essential documents, and settling final payments.
A smooth construction handover process is good for the construction team and also benefits the client in the long run. It can help build trusting relationships between the parties, as well as ensure that all project details are correctly transferred to the client and their maintenance teams.
During the handover process, the GC often spends much of their time answering questions and addressing concerns from the client. This may be followed by a thorough training session to ensure the facilities management team has access to all necessary documentation and understands how to operate and maintain the new space.
To avoid any confusion, it’s crucial for the construction team to clearly communicate all requirements to the subcontractors and other trade partners. For example, if there are any last-minute changes to the project, it’s vital that these are communicated effectively so they can be implemented in time for the handover phase.
Thorough inspections can help uncover any issues that need to be addressed before the handover process begins. This can be done throughout the construction process or at specific milestones such as when plumbing is installed or when concrete is poured. Identifying and resolving defects early on can prevent delays and costly rework later on in the project.
A streamlined construction handover process helps to reduce the time it takes to complete the process and ultimately minimizes cost and risk. The key is establishing clear lines of communication from the very beginning and ensuring that all team members have the right tools, equipment, and software to collaborate efficiently and effectively.
For the GC, an efficient handover process can also help speed up payment. Many contracts have hourly rates, and the GC is responsible for paying the subcontractors, so they need to keep their books in order and track hours spent on each task. By streamlining paperwork and improving coordination with their trade partners, the GC can ensure that everyone is paid on time, which helps prevent any disputes.
