General Contractor Lexington KY are vital construction team member. They help steer projects within budget, timelines, and dream visions.
GCs work with suppliers to procure building materials at competitive prices. They also conduct regular inspections to maintain high-quality standards. They use quality control apps like iAuditor for documentation purposes.
During the project planning phase, the GC or CM works with their clients to develop an overall project plan and establish timelines, milestones, budget, and resources. They also work with the architecture and engineering teams to assess constructability and begin securing any essential permits and regulatory approvals. This is also when the contractor determines their approach to pricing and construction management based on project scope, complexity and goals.
The GC will then use this information to create a bid package, either using a competitive bidding process or negotiated contract. The latter is often used on specialized projects where the GC and client have a predetermined relationship or expertise. They can then engage in direct negotiations with a selected bidder to establish final price and contractual terms. This can also be known as a guaranteed maximum price (GMP) contract.
Once the GC has established their bid and successfully won the project, they will then move into the preconstruction phase. This is where the GC or CM prepares for the physical construction of the project. This includes working with the architect and engineers to complete a full quantity take-off to identify all materials, volumes and areas required for completion, establishing project schedules and procurement strategies.
During this time, the GC will also evaluate potential risks and develop risk mitigation plans to help ensure the project stays on schedule, on budget and within its established parameters. They will also manage and reallocate resources, including labor, materials and equipment, depending on any changes to the project plan.
Scheduling
Whether working on a home remodel or a new construction project, a general contractor will work with architects and design teams to create a scope of work. They’ll also create a budget for the work, source materials, and obtain permits. They’ll also hire specialized subcontractors to perform the actual building and construction work on site.
Once the construction phase of the project begins, GC’s will work with subcontractors to manage work in progress and react to any challenges that arise. They will ensure that the work is done on time and to specifications, and will then work with the property owner to process payments.
When a GC is invited to bid on a project, they will review the drawings and scope of work, then gather quotes from qualified specialized subcontractors for each of the required tasks. They will then add in their own company overhead and profit, and then submit a quote for the overall project. This is the “Lump Sum” or “Stipulated Sum” contract method.
While some GC’s may have employees who perform some of the carpentry and labor work, they usually utilize a variety of specialty subcontractors to complete 80-90% of the total project work. This allows the GC to focus on project management, ensuring that all activities are occurring as planned, and coordinating with the subcontractors to resolve any issues.
A GC will often use their industry experience to help the project team determine what materials and equipment are best, and will coordinate with vendors to obtain them at the most competitive price. They will also be responsible for scheduling the delivery and installation of these items, to ensure that the schedule is met.
GC’s must be licensed by their state or municipality to operate in construction, and must meet requirements such as insurance, taxes, and workers’ compensation. Having this license is important for GCs, as it proves that they are reputable and trustworthy, and have followed regulations to ensure the safety of everyone on their projects. Property owners also benefit from working with licensed contractors, since they can trust that the GC will honor their lien waivers and provide timely payment for all services rendered.
Vendor Management
Vendor management encompasses a broad range of activities and tools that enable enterprises to select the right vendors for their needs, manage contracts, track performance, and more. These processes are vital to ensure that projects get off to a smooth start, and that the vendor is able to deliver as promised.
For example, an effective vendor management system may include ways to evaluate a potential partner’s financial stability and compliance with regulations, as well as developing contingency plans in case of disruptions like natural disasters or cyberattacks. It should also encourage a certain amount of diversity among vendors, as this helps reduce the risk of becoming overly reliant on one vendor in the event that they can’t meet your business’s needs for any reason.
Many general contractors rely on a wide range of suppliers and vendors to complete their work. The best way to manage these relationships and maintain a streamlined procurement process is to use a vendor management system. This tool will enable you to create custom approval workflows, a centralized contract repository, and detailed analytics to help you monitor timelines and quality.
Getting the most out of your vendor management system requires a strong partnership between procurement and finance professionals, requesters (employees), and your team. A well-functioning system will keep everyone happy and working together to support your organization’s goals.
The top 10 general contracting companies in the US generate between $8 billion and $12 billion in annual revenue, with some of them specializing in specific areas like aviation, power, civil construction, data centers, or higher education facilities. For instance, the Walsh Group is known for its focus on infrastructure and industrial power, with past projects including the Ohio River Bridges and I-540 Western Wake freeway in North Carolina. The family-owned and operated Mortenson Company is another top contender, with a portfolio that includes aviation, power, commercial buildings, healthcare facilities, and even performative art projects. The company has over 2,700 employees and is based in Denver, CO. Their current project list includes the Eagle Mountain Data Center and the Charles Schwab Campus.
Communication
A good general contractor has strong connections to subcontractors, vendors, and specialty contractors. Having these connections can help them get high-quality products and experienced labor for the project. They also know how to best negotiate with these vendors and contractors to ensure that the project stays within budget and is done right.
A GC will oversee construction and work with the architect to make sure that all of the project’s requirements are met. They will also be a point of contact for any questions, concerns, or issues that may arise throughout the course of the build.
Effective communication is vital to a successful renovation project. By preparing a detailed project brief, utilizing visual aids, sharing examples and references, being clear and specific, and maintaining open dialogue, you can effectively convey your vision to the contractor. Additionally, by establishing clear communication channels, documenting agreements, and scheduling periodic reviews, you can further ensure that your expectations are being met.
During the construction phase, a GC will handle all of the scheduling and coordination of additional contractors working on site. This will include the subcontractors and specialists who will be performing the detailed work and providing the manual labor for the renovation. Often times, a GC will have a set list of preferred vendors and contractors that they work with frequently and can recommend to you. This can save time in securing specialty contractors and streamline the payment process by only having to write one check to pay all of the associated costs for the project.
Another important role that a GC will take on during the construction phase is ensuring that all required permits and inspections are obtained for the project. This is crucial for ensuring that construction is progressing according to plan and that all necessary safety standards are being followed. GCs will also be the main point of contact when it comes to payments, and they will help facilitate the flow of funds from the property owner to all of the tiers of additional contractors and suppliers. This is where a GC’s visibility and transparency can be critical in avoiding payment delays.