Working with General Contractors
5 Tips for Success
Whose Project is it, anyway?
A new project often creates memorable and productive experiences for a company and its team.
Unfortunately, I hear a lot of stories from clients about builders that storm into jobs as the “expert,” huffing and puffing about efficiency. Their processes and proprietary language can distance the client from the project. This outdated approach to construction and project management presumes that by getting the client out of the way, the builder will achieve the best results.
Thankfully, those days are ending. Today’s savvy general contractor understands that client satisfaction and engagement is a core part of their business strategy. And with a little foresight you, the client, can regain your ownership of the project, without diminishing the contractor’s competence or efficiency.
5 Tips for Working with General Contractors
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The hand-off from the Estimating Team to the Execution Team
The selling is done. The job has been designed, scoped, and priced.
The next step is often a surprise to clients. The group you’ve been working with through the design and implementation phases is going to pass you off to the project management team.
It is a natural response for the client to let the project slip out of their hands. As mentioned above, some construction companies may even prefer it.
Don’t let it happen!
Invest in the relationship. Insist on extensive pre-construction interviews with the incoming team to develop a shared vision for the project. By embracing these early meetings, you can build a path to productive one-on-one relationships with the project manager, foreman, and site supervisor. It’s worth cash in the bank.
The #1 way to achieve success in meetings is to set standards for notice. Insist on a week’s notice for meetings, and once construction begins, never deviate from regular weekly meeting time and location (weekly meetings during construction is an industry norm).
Accountability is a two-way street. Both the builder and the client are dependent on the other for a successful result. The openness and accountability in these meetings will broadcast throughout the entire project. This discipline also breeds respect between companies, and within teams.
Client Tip:
From the outset, plan on always having a representative at pre-construction and progress meetings. Remember, you want to own this project. Your absence can easily lead to confusion or delays.
Lastly, ask the contractor to promptly create and share minutes for every meeting. Transparency and accountability are the cornerstones of this budding new relationship.
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Project Schedule
If time is money, then schedule is king – so let’s keep the king happy! That’s why I always say “Create the Schedule. Work the Schedule.” It’s a clear path toward cost-savings and maximum value from a project. Developing a detailed schedule is also a great way to build rapport. See #1.
And don’t be afraid to drill down on seemingly small items. Nothing is too small to consider.
Your master schedule should include your production schedule and other uses of the facility during the construction period. Make sure your builder partner understands how you use your space, and when deviations from normal operations can be expected.
Similarly, inquire regarding the obligations of your general contractor. Do they have concurrent projects that may pull resources from yours?
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Documentation
There are three regular communications you should receive when working with general contractors. These regularly scheduled documents will give you confidence that your project is on-track in terms of labor, expenses, and project details.
Schedule of Values: The Schedule of Values ensures all parties are in sync with billing terms and values. Insist on a break-out of labor, materials, and taxes. Use the data to confirm monthly billings.
Buy-out Log: The Buy-out Log allows you to monitor cost estimates versus actual purchases. This report captures all procurement items.
Submittal Log: The Submittal Log tracks submissions of structural and architectural designs, colors, shapes, and styles from the builder, as well as lead times for all project needs.
More about the Submittal Log: this document is a conversation. It creates opportunities for the GC to confirm that the client is getting what they want. Don’t let the contractor’s ideas about their own schedule keep you from getting everything that you want out of the project.
These are key interactional items that require the client’s approval. Lack of client engagement, or delayed responses, can adversely affect the project and relationships.
SilMan Tip:
We always look for strong client engagement around submissions. That’s why SilMan has invested in a real-time, cloud-based project management platform called ProCore. Documentation and conversation are a crucial aspects of a project’s success. With this tool, we are able to literally keep the entire team “up to the minute.”
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Change Orders
Change is inevitable.
Clients have every reason to expect that their engineer and owner rep will hear about changes as soon as they are known. This report should also include accurate costing of the solution, as well as effects on progress.
In turn, it is crucial that the client responds with equal speed, in written or email form.
However, it is always wise to pause for a moment and ask “Is this right?” Drill down on the issue. Maybe the solution is not needed, or there is another way forward with unseen benefits.
This is a moment to cash in on the relationship with your contractor. You need to be able to trust that they are protecting your interests.
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Closeout Management
As construction activity winds down, there are a number of important actions needed to finalize the project and set the course for your team’s success.
You will receive a package of documents that summarize the work and demonstrate the veracity of the project:
- As-Built, or “Redline” Drawings
- OEM Warranties
- Final Inspection Certifications
If your project includes specialized equipment, you will also receive training and user documentation. Take time to confirm that your leadership and team members are confident with the new gear.
Also, make sure you have clear agreements regarding future support, updates, upgrades, and training.
And finally, expect a request for a referral or testimonial. The construction business lives and dies on client satisfaction. This is your chance to make your new partner is healthy and strong for your next project! Consider it an investment in your future shared success.
Take the Relationship to the Next Level
Completing a new project should be a rewarding professional and personal experience. Feeling confident and productive working with general contractors is a central element in achieving all of these results.
Lean into the relationship with your general contractor and embrace the nuts and bolts of classic project management.
While the complexities of industrial construction can be daunting, with a little preparation and initiative, you can be a valuable contributor to the project.
And furthermore, the value-added benefit will be a new, productive relationship with an experienced professional.
But best of all, you will enjoy the experience and the success you helped to achieve.
I hope these 5 tips will help you get the most value from working with your general contractor on your next improvement or expansion.
Looking for more in-depth answers? This is my favorite topic, and I would love to have that conversation with you.
Thanks for tuning in!
Tom
- Tom Mangin draws from his extensive experience managing both sides of industrial projects.
About SilMan
SilMan Industries (previously SilMan Construction) is based in San Leandro, Calif., with Engineering and Field Operations offices in Tupelo, Miss. The firm provides integrated turnkey solutions in the Industrial, Manufacturing, Distribution, and Public Works sectors.
Notably, in 2010 SilMan Industries was contracted to dismantle and remove the NUMMI assembly line in Fremont, Calif., transport the equipment, and reinstall the system in Blue Spring, Miss., establishing Toyota Motor Manufacturing Mississippi (TMMMS). This high-visibility project ignited the company’s meteoric growth, laying the foundation for SilMan’s national service area.
For more information, please visit www.silmanindustries.com/about.
