General Contractor Lexington KY oversees construction projects and coordinates with various tradespeople that work on them. They are responsible for bidding, planning, permit approvals, personnel management and site inspections.
The best contractors have an eye for detail and are not afraid to call out shoddy workmanship. They also clearly spell out their terms of service and pricing in their estimates & contracts.
Job Duties
Licensed general contractors are skilled at handling construction projects from start to finish, including planning and budgeting for each stage. They typically take on a larger role in a project than the subcontractors who actually perform work. GCs are responsible for sourcing materials and providing timely delivery to ensure all necessary parts of a project are in place at the right time. This helps to maintain building pace and avoid overruns.
The GC may have his own carpenters or laborers who self-perform some part of the construction work, but they will also often use a variety of specialty subcontractors to complete 80-90% of all the actual work. The GC serves as the project manager coordinating the work of these subcontractors, and the main point of contact for communicating with the client or architect about all the project activities.
One of the primary responsibilities is managing the overall project budget, ensuring it stays within the constraints set by the owner and architect. The GC is also responsible for sourcing and purchasing all materials needed to complete the work, as well as all other equipment and tools. A GC will frequently have a team of professional financial management experts to help with all aspects of money management, including creating payment schedules and addressing any issues that might arise with regard to getting paid.
A good GC will be intimately familiar with their locality’s code regulations and permitting process/bureaucracy, helping to prevent delays that might otherwise derail the project. They will be able to advise on best practices and help the client navigate all of the required steps, which can often be quite complex, in order to get the project started on time and to completion.
Generally speaking, a GC will receive between 10 and 20 percent of the total construction cost as their fee for services, although this is not paid all at once. It is generally paid at different stages throughout the construction process based on a payment structure that is jointly agreed upon and put in writing. This helps to reduce financial risks for all involved, as it ensures that a GC can continue to manage the project, while also making sure that they get paid and that the contractor’s subcontractors are paid on time.
Contract Negotiation
The work of a general contractor is to bring the vision of a project owner to life. This is done through contract negotiations, where the general contractor establishes the relationships, responsibilities, and rights of all parties to the job. Typically, the A201 document sets forth these terms and provides the framework for negotiations. It also identifies the specific duties and responsibilities of the subcontractor.
It is important for contractors to be able to negotiate and communicate effectively. This includes listening to the concerns of the other party, understanding their motivations, and seeking a win-win solution. While the ability to negotiate is often considered a trait of good leaders, the truth is that it requires a high level of skill to be successful.
During contract negotiations, it’s necessary to be prepared and knowledgeable of all the possible issues that could arise on a construction project. This includes risks, budgets, scheduling, and insurance requirements. It is also crucial to understand how a project will be bid on and what the bidding process involves. By addressing these issues, potential conflicts can be resolved before they become costly lawsuits.
When negotiating costs, it’s vital to remain calm and not become confrontational. Both parties need to leave room for negotiation and not reveal their bottom line until all options have been explored. This allows both parties to see how they can make a deal while remaining within their budgets and schedules.
One of the most critical parts of a construction project is moving men and materials from place to place. The movement of materials is usually done through supply chain management and requires a coordinated effort between the GC, subcontractors, and material suppliers. This must be carefully managed to ensure the right items are in the right place at the right time, while still keeping within the project’s budget.
A general contractor needs to have experience working on a variety of projects and a wide network of subcontractors to help meet the demands of the job. This is especially true of larger projects that may take years to complete. They are also responsible for coordinating all the various activities to ensure that workers and materials are on site when needed.
Project Management
A general contractor is responsible for day-to-day operations and quality control at the construction site. They also turn the renderings, designs and blueprints from architects, engineers and interior designers into reality. In addition to being well organized, GCs keep track of the schedule to ensure that all necessary stages are completed on time and within budget. This requires an excellent amount of attention to detail as changes can easily derail the timeline and cost expectations.
Another critical skill is human resource management. GCs must work closely with the subcontractors and employees on a project. They are often the ones who resolve disputes among workers and answer questions from staff members about how to perform a task. This is especially important if a job has many different phases that must be completed in the correct order and to exact specifications.
If you are considering hiring a general contractor for a home remodel or new commercial construction, it is essential to take the time to find one who is a good fit. While being fully licensed with a high level of experience and having dozens of glowing references are necessary checkboxes, you also need to make sure you get along with them and that they will be a good fit for the project. Remember, you and your chosen contractor will be working side by side for several months.
Once a GC is selected and contracts are signed, the preconstruction process begins. During this phase, the GC lays the groundwork to prepare for physical construction, such as ordering materials and scheduling labor. This may involve selective bidding, in which case contractors are invited based on their existing relationship with the owner or their expertise in a certain type of construction project. It may also include negotiated bidding in which case the GC engages in direct negotiations with a bidder to establish the ultimate price and contract terms and conditions.
Larger projects often use a project manager in addition to a GC. This additional layer of oversight helps to mitigate risks and ensure that the job is progressing according to plan. In these instances, the GC and the CM work together to complete the project as described in the design documents.
Subcontractor Management
Large construction projects depend on a multitude of suppliers to provide raw materials, building components and services. General contractors manage these subcontractors on behalf of their clients to ensure that they are operating efficiently and in accordance with quality and safety standards. This entails reviewing bids, negotiating contracts and establishing communication channels.
When selecting potential subcontractors, GCs must review their experience, track record and capabilities. They also look at factors like financial stability, tax compliance and insurance coverage. They then select the most qualified candidates and negotiate contract details. GCs may also be responsible for managing subcontractors during the bidding process, helping them prepare proposals that align with project goals and requirements.
Once the subcontractors are selected, a GC must establish clear expectations for their work and communicate these to the project team. This is a vital part of subcontractor management and can avoid costly miscommunications. GCs also keep subcontractors updated on project developments and changes, and encourage collaborative problem-solving rather than finger-pointing when issues arise. GCs can use tools such as pull planning, a project scheduling method that involves all onsite trade partners, to promote this collaboration.
In the pre-award phase, GCs typically run tenders to solicit a variety of bids for each task or subcontractor role. This helps to foster a competitive environment and encourages the submission of cost-effective proposals. It also gives GCs the opportunity to evaluate each candidate’s approach, costs and timelines. During the bidding process, a GC must also check each candidate’s references, past project performance and certifications. They must also assess their risk profile and determine whether they are capable of meeting the project’s requirements.
During the post-award phase, GCs must oversee and monitor subcontractors’ progress to ensure that they are delivering on their promises. They must also keep the client abreast of any major developments and liaise with the client’s representative to resolve disputes.
Finally, GCs must perform regular inspections of each subcontractor’s work and enforce adherence to safety and quality requirements. This may involve submitting requests for information, addressing change orders and monitoring schedules. In some cases, a GC may need to take action against a subcontractor for non-compliance.