General Contractors in Nashville TN manage the day-to-day workflows of dynamic construction projects. This includes project planning, negotiating contracts, scheduling, monitoring progress, and handling construction inspections.
GCs may perform portions of the build in-house, such as carpentry or demolition, and subcontract specialty trades like plumbing or concrete. They also determine the bid value for a project and factor in overhead to make a profit.
Planning
During this phase, a GC lays the groundwork to ensure that the project is viable and legal before physical construction begins. Typically, this starts with analyzing digital blueprints and using estimating software to quantify materials and total costs. Then, the GC will submit a bid to the owner.
Once a contract is signed, the GC focuses on ensuring that the building project stays on schedule and within budget. This often includes renegotiating supplier terms and revising timelines, but also involves overseeing construction, managing subcontractors, and coordinating with local officials to ensure that the building meets code requirements.
Keeping track of actual versus planned expenses is a major challenge for GCs. It’s easy for a construction project to go over budget without a clear picture of current costs. That’s where modern tools like Linarc come in: they empower GCs to predict and adapt to real-time challenges, so projects remain on track and profitable. Detailed cost breakdowns make forensic analysis possible, and accurate forecasting turns financial planning into a strategic process. In addition, streamlined payment processes and lien waivers make it easier to avoid disputes and pay everyone on time. Ultimately, these efforts reduce delays and keep the project running smoothly.
Contract Negotiations
A project’s scope, specifications and schedule must all be clearly defined and communicated to ensure that every part of the job fits into place. Misunderstandings and out-of-date information can quickly snowball into rework, cost overruns or safety risks. Keeping all parties apprised of changing deadlines, material availability and project milestones keeps everyone on track.
A construction project requires many materials and services, ranging from drywall to excavation. General contractors have industry relationships that enable them to secure supplies at competitive prices. They also track inventory carefully, ensuring that materials arrive just in time for installation. Minimizing waste is another way that general contractors keep projects on budget.
A GC can act as a design-build contractor or under the CMc and Conventional Family of AIA contracts, filling a full role as project manager during the design phase. They can then take on a limited construction management role during the construction phase, or fully assume responsibility as a general contractor under the CM at Risk model. A GC chooses the design-build or CMc/CM at Risk construction delivery method based on their client’s priorities, such as cost predictability and streamlined coordination. Then, they manage a team of subcontractors and consultants to deliver on their promises.
Scheduling
Getting construction projects on budget and schedule is essential for a project’s success. Delays can increase labor costs, escalate material prices and impact financial planning and future investment. General contractors bring experience, insight and structured management to every phase of a project, mitigating these risks.
Developing a comprehensive project schedule begins with a Work Breakdown Structure (WBS) to identify all the activities necessary for the completion of the project. The WBS is then broken down into specific tasks that require a start and end date along with the estimated duration for each activity. These tasks are then linked together with dependencies to determine the logical order in which they need to occur, such as painting walls before drywall installation.
Creating a clear construction activity schedule is important for communicating expectations to the project team, clients and stakeholders. It also provides a baseline that can be used to measure progress and track actual performance, helping identify deviations and take corrective action. For example, if it is determined that a subcontractor’s schedule won’t meet an expected delivery deadline, a general contractor can develop a temporary workaround to ensure the project stays on schedule without incurring additional costs.
Budgeting
Construction project budgeting begins well before the first brick is laid. It requires detailed estimates of labor, materials and equipment. These estimations are based on project experience and industry standards. They are then adjusted based on actual expenditures throughout the project life cycle. This helps ensure that the project stays within its financial constraints.
Once the estimate is finalized, a team must determine how to allocate resources and timelines. This includes assigning tasks to subcontractors based on their availability, skill set and workload capacity. Gantt charts help visualize task assignments and prevent scheduling conflicts. Procurement planning is also essential. This involves establishing clear scopes of work with suppliers and negotiating fixed prices. Lastly, coordinating with local authorities to understand permit timelines and code-specific restrictions helps avoid delays.
A good construction budget should include contingency funds to cover unforeseen circumstances. For example, unpredictable material costs can result in cost overruns if you aren’t prepared for them. Including a percentage of the total estimated cost in a contingency fund is a best practice. This can help you manage unexpected changes without compromising your project’s financial goals. Other aspects of a good construction budget include earned value management metrics and a change management process.
Managing Subcontractors
Subcontractors are the “boots on the ground” that bring a project to life. From plumbers and electricians to drywall contractors and fire suppression specialists, they are often the linchpin of successful commercial construction projects. Subcontracting allows general contractors, facility managers and property owners to leverage specialized expertise while minimizing the risks of project disruptions and schedule delays. However, hiring subcontractors introduces a whole host of contractual risks that must be managed carefully to maximize project outcomes and ensure success.
A Thorough Prequalification Process: Performing thorough due diligence (including checking references, reviewing past project experience and financial stability, verifying licensing and certifications, and assessing safety compliance) helps to select the most reliable and trustworthy subcontractors. Structured Subcontract Agreements: Draft comprehensive agreements that clearly define each party’s responsibilities, performance standards and compensation terms while ensuring appropriate risk allocation. Progress Payment Coordination: Establish payment milestones that accurately reflect work completion and provide incentives for performance.
Managing Change Orders: Unexpected discoveries, last-minute client requests or shifting regulations can require adjustments in the scope of work. By implementing effective change order management processes, general contractors can prevent a loss of momentum and keep their projects on track. Streamline payments to subcontractors: Eliminate costly manual processes and save time and energy with online, transparent payment solutions like Truss that help to streamline the flow of funds.
Managing Change Orders
It’s a reality of any construction project that unexpected circumstances can arise, resulting in changes to the original scope. This is a normal part of the construction process and often caused by design revisions, weather, material availability and more. Evaluating the impact of these changes is a major responsibility for general contractors, who must consider both short-term and long-term implications to make wise decisions that align with overall project goals.
Change orders can be costly for projects, especially when they’re not well managed. For example, a poor system for tracking and monitoring change order status can result in inefficient scheduling of trades (excavators, framers, electricians) that creates delays, safety hazards and waste.
Another key aspect of managing change orders is ensuring transparent communication with project stakeholders. To do this, GCs set up meetings with all parties to discuss potential changes and their impact. This can help prevent friction, as it allows for open dialogue about expectations, which promotes a healthy project environment.
Finally, a good GC can manage the quality of a project by conducting frequent on-site inspections to ensure plan adherence and the overall quality of workmanship. They also ensure subcontractors have the proper permits and complete necessary inspections, such as final building codes and fire safety testing, before releasing work for use by the property owner.
Managing Safety
Ultimately, it’s the GC’s responsibility to ensure that subcontractors adhere to safety protocols and follow OSHA regulations. This includes implementing safety training, conducting site inspections and addressing any violations promptly. Human error remains a significant contributor to construction accidents, and effective hazard management is critical to maintaining a productive and safe job site.
Conducting thorough due diligence of subcontractors’ financial stability, track record and qualifications is a must. The difference in safety performance between an “A” and a “C” level subcontractor can be dramatic, so it’s essential to work with contractors who prioritize safety.
Establishing clear escalation protocols for resolving disputes is also vital to ensuring that any issues that arise don’t disrupt project timelines or expose the GC to unexpected costs. Contractual tools like force majeure, indemnity and liquidated damages clauses offer further protection against unforeseen circumstances.
Finally, establishing regular safety meetings and toolbox talks for employees is an effective way to keep everyone on-site informed about relevant hazards and safety measures. This helps to foster a culture of vigilance and reduce the likelihood of safety incidents, regulatory violations and costly fines. It also prevents any lapses in protective equipment usage or compliance with safety protocols that can lead to injuries.