General Contractors in Nashville TN oversee everything from a simple home remodel to building an entire senior living community. Regardless of the project size, a rock-solid contract is essential for setting expectations and acting as a plan B when things shift.
A GC can help you navigate common roadblocks like communication hiccups, schedule snafus, construction material price volatility, and subcontractor disputes.
Project management encompasses a number of key aspects that help shape construction projects from conception to completion. From planning and budgeting to client communication, GCs serve as the bridge between property owners and the diverse collection of contractors and subcontractors that bring building projects to life.
During the construction phase, a good GC manages all day-to-day operations while ensuring that all work adheres to plans and specifications. They also perform final inspections, compile documentation (warranty docs, manuals, etc.), and coordinate with other project teams to ensure a successful handover.
A great GC is not only skilled at managing the physical construction process but also has a deep understanding of project accounting, scheduling, and cost estimation. They are able to anticipate and overcome challenges, and they can build trust with the team and clients by communicating clearly and establishing expectations.
A GC is also responsible for the procurement of all materials and services required to carry out construction. They often hire subcontractors, who are specialized professionals with expertise in specific areas of a construction job such as plumbing, electrical work, or HVAC installation. Subcontractors are paid for their labor and materials plus a markup for overhead and profit. A GC oversees these processes and makes sure that payment amounts are aligned with the achievement of tangible milestones to reduce risks for disputes over progress payments. They also maintain compliance with all regulatory and environmental requirements and provide risk management strategies to prevent costly delays or disruptions.
Scheduling
One of the primary jobs of a general contractor is scheduling. This includes identifying the milestones and critical paths for the project, as well as assessing any possible obstacles to ensure that construction progresses on schedule. It’s important for GCs to be able to evaluate how changes to the plans will affect material deliveries, construction labor and equipment, and overall project budgets.
GCs also use advanced scheduling tools to communicate project progress to all stakeholders. This ensures everyone is on the same page and that all work efforts are aligned. For example, a GC firm like Miller-Davis recently rolled out Pype AutoSpecs to give 80 team members access to construction project management software. This reduced submittal log processing times from weeks to two days, and improved communication between the GC, design teams, and subcontractors.
Another essential component of a GC’s job is planning and coordinating day-to-day operations on the jobsite. This involves ensuring that all required materials arrive on site at the correct time, that subcontractors have enough manpower to complete their work, and that each task is completed in the most efficient manner.
For example, when a GC takes on a home remodel, they will make sure all required building supplies are delivered in time to meet the project deadline. They will also take care of any unforeseen roadblocks and keep their clients updated so that the work is done right and on time.
Budgeting
Costing is one of the most critical pillars of construction budget management, yet it’s also a frequent source of project failure. Whether due to unforeseen material price increases or environmental setbacks, these cost elements can go undetected if they’re not properly tracked and forecasted, leading to delays and financial strain.
GCs must carefully consider both scope and design as they budget for projects, helping to ensure that final costs don’t exceed expectations. They can use their expertise to find cost-effective materials and alternative design solutions that meet project objectives without blowing the budget. They can also help to reduce schedule risks by analyzing lead times for equipment and other materials, and by working with designers to optimize the build.
A general contractor’s bid is an estimate of their potential cost to complete a construction project, or a specific component of it. This is based on the SD drawings and scope narrative, and may include a profit margin and contingencies. During the bidding process, GCs compete against other contractors to win the contract.
Throughout the project, a GC monitors expenses and compares them to the original budget. When changes occur, they track them in the system through change orders and allowances to prevent surprises down the line. They also ensure that material procurement and usage aligns with industry wastage standards, helping to reduce operating costs. Managing these costs requires clear communication with everyone involved in the project.
Contract Negotiation
General contractors are the captains on a construction project, coordinating and resolving issues to bring projects home on time. They often do not personally handle the hand-on labor themselves, but rather assemble teams of skilled tradespeople to work on each aspect of the build.
GCs typically get their project by either quoting for work or bidding with others on the same job. They develop a budget that includes pricing for subcontracting work and materials, then evaluate risk and decide what mark-up to add for profit.
If they win the bid, a contract is then drawn up with the client. This sets the scope of work, payment terms, change management processes and dispute resolution guidelines. Both parties must fully understand the contract to avoid miscommunications and costly mistakes.
The most contentious issues in contract negotiations are the scope of work and price. GCs and owners must agree on what is included and excluded from the overall bid price, identify quality expectations and whether a price is guaranteed, pay-if-paid or cost plus time and materials.
Successful contract negotiation requires the right mindset, preparing for challenges and taking calculated risks. Clearly stating your non-negotiables empowers you to stand firm, but also leave room for constructive compromise. Using a respectful, collaborative tone helps reduce misinterpretations and promotes transparent communication. Start by acknowledging the contractor’s expertise and value, listening actively and asking open-ended questions.
Contract Administration
Contract administration is the process of managing a construction contract post-signing to ensure that what was agreed upon — including schedules, cost, and quality standards — is carried out. This involves monitoring compliance, handling changes, addressing disputes, and managing project documentation.
Contract administrators work with all project stakeholders to address issues and concerns in a timely manner, ensuring that everyone has a clear understanding of expectations. They also help resolve any problems or misunderstandings before they escalate into major problems and disputes that threaten the success of the project. This requires strong communication skills, especially when mediating between parties.
They also assess change order requests, ensuring that any proposed changes align with the overall project scope and budget. Additionally, they regularly inspect and verify the quality of completed work. They also monitor progress against the project schedule and prepare formal documents like payment certificates, certificates of substantial performance, and completion confirmations based on site progress.
Finally, contract administrators manage the contract repository and archive all project-related documents to ensure that contracts, submittals, RFIs, field reports, and communications are always available. They also organize these documents by category, making it easy to find the information you need when you need it. In addition, they provide a single source of truth for all contracts and related documents across the organization to optimize contract lifecycle management. They are also responsible for ensuring that contracts are updated, maintained, and accessible to all stakeholders.
Subcontractor Management
Managing subcontractor relationships is critical to a project’s success. General contractors foster productive relationships by providing clear and consistent payment terms in contracts, establishing transparent communication channels, and conducting regular performance evaluations and lessons learned sessions. This approach ensures a fair and equitable process that minimizes friction, resolves any payment-related issues promptly, and improves overall performance and project outcomes.
Subcontractors have valuable expertise and trade-specific perspectives that can contribute to the successful completion of a construction project. In addition, they possess specialized skills in the areas that are not part of a GC/CM’s core capabilities, which reduces risk by helping to get the job done right the first time. Consequently, it is important that they are open to feedback and collaborative problem-solving, rather than trying to assign blame when challenges arise.
General Contractors should also implement comprehensive quality management strategies to ensure high-quality workmanship from steel fabricators and concrete suppliers. This involves establishing clear quality standards during planning and contract negotiation phases, followed by joint inspections to confirm that work meets these benchmarks. This “trust but verify” approach helps to align with project objectives and client expectations, while reducing costs and schedule impacts from rework.
Lastly, GCs should use software solutions to centralize compliance documentation for all of their contractors. This eliminates delays in obtaining insurance certificates, permits, and licenses by automating workflows, and it alerts when documents are due for renewal or are no longer valid.
