General Contractor transforms construction visions into realities and serves as the orchestrator of complex projects. They hire excavation contractors, plumbers, electricians, dry-wallers, and drywall workers to bring their project plans to life.
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A general contractor is a key professional who helps ensure construction projects are completed on time and within budget. Their job involves several activities, including project planning, budgeting and cost estimate, and subcontractor management. Additionally, they are responsible for ensuring that all construction activities comply with local and state regulations.
They typically don’t design the building or create the plans, but they are responsible for carrying out the set plans and designs created by architects and designers. This can be done using open or negotiated bidding, with the former inviting a range of general contractors to bid on the work and the latter allowing the owner to select a single contractor.
The design process can be quite complex, and a GC must collaborate effectively with architects, engineers, and other professionals. They need to understand the design concepts and work out any issues early on in order to avoid costly mistakes and delays later in the process.
Once the construction process begins, a GC oversees and monitors progress on-site to ensure all work is completed according to the agreed-upon schedule. They are also responsible for ensuring that all required waivers are collected and that all workers receive their payment, as well as resolving any issues arising during the construction phase.
General contractors often use the latest tools and software to track progress, communicate with clients, and manage risk. They can also provide valuable insights from the project that may help improve efficiency and reduce rework rates in future projects. For example, a general contractor may recommend using a more efficient material or installing an electrical system that is more effective than the original one.
Planning
In this stage, the general contractor collaborates with architects, engineers and other stakeholders to develop a comprehensive plan for the construction project. This includes developing a timeline, establishing a budget, and creating a schedule of work. They also determine the required materials, equipment and labor needed to complete each phase of the project. This information is used to create a cost estimate, which is then factored into the final bid value for the project.
Most localities require that construction projects obtain building permits before construction can begin. General contractors are often responsible for obtaining these permits and ensuring that all construction activities meet city specifications. They also work on securing subcontractors to handle specialty aspects of the construction project, such as plumbing or electrical work.
One of the most important tasks for a general contractor is to coordinate all the people and materials involved in a construction project. This requires careful planning and a strong team of managers and coordinators. A skilled general contractor can quickly recognize what needs to be done when and can help the project stay within its budget.
Top-tier contractors excel at transparent communication and realistic expectations, recognizing the challenges that come with construction in urban settings. They are also flexible and adaptive, enabling them to adjust the scope of work to fit the unique requirements of each project. This enables them to maintain a construction pace that meets or exceeds the client’s vision while staying on schedule and on budget. Finally, they are skilled at performing closeout tasks after the construction is completed. This is when they gather the necessary data and documentation to assess the success of the project.
Contracts
A licensed general contractor schedules and directs all day-to-day activities on a construction site. This person can either be a single individual for small-scale projects or a specialized company for large-scale constructions. GC’s work with the architect to ensure that construction takes place as per the project design and blueprint. They also oversee the procurement process to manage vendors. This includes sourcing, evaluating estimates, capacities, quality of work, turnaround times, invoicing and payment. In addition, they ensure that communication is smooth and glitch-free during the entire construction period.
They will also arrange for building permits and city inspections to make sure that all construction is up to code. This is important because it can save the project a lot of time and money. They can do this because they have intimate knowledge of local codes and the permitting process, which saves everyone involved a lot of hassle.
GC’s must maintain a high level of professionalism and integrity throughout the construction process to protect their reputation. They must also keep their license current by taking continuing education classes and keeping up to date on licensing requirements in their area. In some areas, this is required by law. Continuing education courses can be taken online or at universities and offer credits toward the required training for licensing.
The contract is a legal document that establishes the parties’ expectations, responsibilities and duties. It also specifies how and when payments are to be made. Ideally, this agreement will be drafted in such a way as to elevate the interests of both parties. It is also helpful if both parties read the contract carefully to avoid any misunderstandings or miscommunication.
Subcontractors
A construction general contractor relies on subcontractors to execute the different types of work needed to complete a project. While it’s possible that a single construction contractor could handle every aspect of a building project, it would be impossible to bring it to completion without the expertise offered by subcontractors. A GC typically oversees the subcontractors that they hire and creates contracts to ensure a clear line of communication between the two parties.
GCs typically require that subcontractors submit pricing or bids in a certain format, which may include information about their safety record, finances, bonding capabilities, insurance coverage, and litigation history. This process is designed to protect the GC from liability, and it’s important for subcontractors to follow these guidelines if they want to get hired.
It’s also important for subcontractors to read and understand the contracts they sign with a GC. If a contract has provisions or clauses that a subcontractor doesn’t feel comfortable with, they should not agree to the terms of the agreement and seek other opportunities.
General contractors need to know their client’s expectations and work with subcontractors to develop realistic scopes of work that align with budgets and timelines. During construction, the GC oversees subcontractor work to make sure that it is consistent with the project requirements and client specifications.
A GC also manages the financial aspects of subcontractor relationships, verifying invoices and ensuring that payment for completed work is made on time. They may even have to take steps to terminate the relationship of a subcontractor who doesn’t meet financial requirements or isn’t meeting contractual obligations. In some cases, a GC will work with hundreds or thousands of subcontractors in a year.
Payment
GCs are often at the top of the payment chain, so it’s crucial for them to manage payments well. This includes getting their own work and making sure they have the funds to pay their subcontractors, suppliers and other vendors. It’s also their responsibility to apply for building permits and arrange city inspections to ensure construction is up to code and that the project complies with local regulations.
However, this is not always easy. For example, commercial contracts rarely include deposits for general contractors, so they need to float their own cash or credit and wait until their projects are finished to get paid. Subcontractors, on the other hand, need to float their own manpower and materials while they are working. This is why GCs often negotiate pay-when-paid clauses into their subs’ contracts.
For smaller residential construction, a GC may require a deposit or down payment from the property owner to cover materials and permit costs. This is usually followed by a series of draws or progress payments that correlate with the project’s development or schedule of values. The GC will then use these payments to pay subcontractors, suppliers and other vendors.
Having an experienced GC on your side can help you navigate your local building codes and zoning laws. They can also speed up the process by coordinating with your architect or designer and NYC condo or coop board, as needed. They can also help you stay within your budget by estimating the cost of materials and avoiding overspending. Finally, a good GC will be familiar with the local permitting process and bureaucracy, so they can take care of all the paperwork on your behalf.