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How Commercial General Contractors Help Keep Your Project on Time and on Budget

In the construction industry, staying on time and within budget is crucial to the success of any project.  Delays and cost overruns may lead to a huge loss of money, disappointed clients, and in the worst-case scenario; a loss of reputation in the business world. Commercial general contractors play a vital role in preventing these issues by effectively managing resources, coordinating multiple teams, and addressing challenges as they arise. Their specialization helps to keep the projects on course and cost-effective. 

In this article, we’ll dive into how commercial general contractors keep projects running smoothly on time and on budget, focusing on the essential strategies they use to maintain efficiency, mitigate risks, and deliver successful results.

1. Realistic Project Scheduling

One of the primary responsibilities of a commercial general contractor is developing a realistic project schedule. This means coordination of all activities on the construction site, right from the construction initiation phase to the construction completion phase. The schedule has to include all sorts of tasks that may take time, not only construction activities, but also procurement of materials, and obtaining permissions from authorities.

Importance of Setting Realistic Deadlines

Getting the time frame right from the beginning saves everyone the time and energy of having to set the expectations right for the owner, investors, and subcontractors. Like other project delivery models, GCs have to get in touch with project owners to manage expectations and get a workable schedule to complete projects. 

Stakeholders may put forward unreasonable timeframes that ultimately result in poor productivity, increased expenditure, or lower quality. General contractors do this, however by closely evaluating the project scope and risks that are likely to be encountered to ensure that the set project deadlines are realistic and well defined.

2. Concurrent Task Management

An individual must be able to plan his time to meet the due dates for his projects. General contractors can arrange tasks that can be performed simultaneously, which enhances the flow of time without compromising on timeliness.

Breaking Down Critical and Non-Critical Tasks

In construction, some tasks depend on others, giving rise to what is termed the critical path of the construction process. These are activities they need to complete to ensure that the project keeps on running with the right schedule. 

GCs recognize which activities are critical and which are not in terms of program flow. There are always those other operations that do not necessarily contribute to the total time taken for a particular operation and should ideally be able to be set alongside another to reduce time. The overlapping of tasks ensures that there is little dead time throughout the project and this is made possible by the GCs.

3. Cash Flow Management

In any construction form of construction, money is a crucial factor, and it should be in a constant flow. Lack of funds management is among the main causes of project delay and even failure. General contractors must come up with strategies that will help in the flow of cash in their projects throughout the lifecycle.

Managing Payments and Expenses

Commercial GCs may enter into payment arrangements with the owners of projects to correspond to the progress of work on the project. This comprises ensuring that payments are made periodically under the prescribed stages in the project such as once the formation of a building or the laying down of critical systems. When to pay can also be controlled by the GC hence maintain the availability of funds at the appropriate times without putting much pressure on the subcontractors and suppliers which they will rely on.

GCs also take control of their cash flow and often pay out for labor and materials and then wait to be reimbursed by the owner. This necessitates proper financial management where issuance of funds to workers and various suppliers is done on time, failure to which the project is brought to a standstill.

4. Efficient Resource Allocation

It is a fact that the resource requirements in a project especially concerning manpower, materials, and equipment are critical success factors. General contractors are always able to make sure that these resources are on hand and used properly so that there are no delays to construction.

Coordinating Subcontractors and Suppliers

GCs manage several subcontractors and suppliers that are all vital to the project. They make sure that the involved party is aware of the time he/ she is required to deliver his/her service or materials. This entails managing the delivery of materials, and assignments between teams, and having the capacity to fix problems when materials arrive late or when contractors are slow in their work.

Preventing Resource Waste

General contractors also make sure that there are no wastages of the resources that are used. This entails proper planning to avoid buying unnecessary materials and organizing the workers such that there are few on-site during unnecessary times. This helps avoid cases of spending a lot of time with little activity, which will increase the cost of labor, hence going against the project budget.

5. Monitoring and Managing Changes

It is highly unlikely that any construction project will proceed as has been planned from the onset. Inflection of design, alteration of site conditions, or delays in delivery of materials can all have a way of affecting a project and leading to additional costs. Commercial general contractors are essential in managing these changes to minimize their impact.

Dealing with Change Orders

In general, when changes are needed, general contractors manage them through what is known as change orders which modify the project’s scope, schedule, and cost. Any experienced GC will have plans that can be implemented to counter this problem, for example, accelerating the priority work, or using resources to ensure that the plan does not slow down. They also update the project owners frequently so that all the concerned parties can be informed of the change and the possible implications of the project.

Adjusting the Schedule and Budget

They are also proficient in managing field and schedule changes that affect plans and costs while still honoring the general project. In this way, by closely tracking the project and its development they can proactively mitigate any problems, and if needed modify the time or costs of the project.

6. Risk Management and Conflict Solving

Almost all construction projects involve risk in that they are uncertain projects with many possibilities of problems that could occur ranging from safety problems to problems in procurement. Commercial general contractors are experts in identifying and mitigating these risks to keep projects running smoothly.

Proactive Risk Management

In the planning phase, general contractors typically consider various risks that may affect the building projects such as weather, availability of workforce, and /or material prices. Since most of these risks are foreseen, GCs can come up with a mitigation plan that would help to minimize the effect of such risks on the project. This might include sourcing other suppliers, factoring in additional days lost to weather into the project plan, or getting agreements on prices for specific materials.

On-the-Spot Problem Solving

Though the problems mentioned above are rare they are solved with efficiency by the general contractors. It helps them to overcome obstacles without compromising their success. GCs are quick in responding whether it is in identifying the right material, changing the flow of activities, or hiring extra help to ensure that the project stays on schedule and cost.

7. Communication and Coordination

The main process is to make sure all the people involved in the project are informed and on the same page about the project’s progress. The general contractor communicates on behalf of the owner and interfaces with the various subcontractors suppliers and other players in the project.

Keeping Everyone Informed

The project owner receives updates status reports, and sometimes other information from the GC frequently. This makes it possible for the owner of the project to make the right decisions on the project and make the right correctives if need be. The suppliers and subcontractors also gain from some of their projects by availing themselves of the fact that there is a clear comprehension of the schedules and other related aspects.

Avoiding Miscommunication

It has negative consequences such as expensive time loss, confusion, and additional work. General contractors keep everyone informed and in touch throughout the project, thus preventing misunderstandings that may interfere with the project.

Final Words

Commercial general contractors are vital to the successful completion of construction projects, ensuring everything stays on schedule and within budget. Blackstone Corporation is a good example of this role in as much as it has placed a lot of emphasis on excellence in the completion of projects. 

Accredited for its realistic scheduling, proficient use of resources, and perfect communication, Blackstone provides its clients with the best projects. It speaks to their ability to be aggressive in managing risk, money, and issues in a way that provides great integration between owners, subcontractors, and suppliers. That is why Blackstone Corporation has learned to involve all the stakeholders and make sure that certain projects are accomplished on time hence saving costs to their clients.

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