Welcome to Part 1 of this series!

I will discuss a Project Manager’s process for finding, qualifying, and hiring a General Contractor.

I would like to start off by sharing a brief history of my experience as a Project Manager with you:

Working for one of the top Construction Management firms across Canada I climbed up the ranks during my 6 year stint. I was leading projects valued in the tens of millions of dollars. These were highly complex and highly demanding projects in the commercial office, retail, hospitality, and building repositioning sectors. During my tenure I was involved in all aspects of a construction project; preconstruction, budgeting, scheduling, subcontractor qualification, scope of work development, tendering, contract administration, risk management, project execution, change order management and project close out. Construction is a subject I am very passionate about. I’m very excited to share what I’ve learned with you all. Perhaps one day we can talk about some of the most challenging and rewarding projects I’ve worked on during my career.

The method I will be sharing is a culmination of my years spent performing these process driven tasks. I am at a point now where this and many other processes have become second nature. I know where to look, the questions to ask, and the responses I want.

Regardless of your experience level, my goal is to prepare you with my step by step process, so that you too can confidently find, qualify and award your next General Contractor.

The best part is it’s a system that I’ll breakdown for you into one you can easily replicate for your next project.

So with that, let’s get into exactly what I’ll be covering in this series:

1. The responsibilities of a General Contractor.

2. 20 construction contract terms.

3. 2 ways to find a General Contractor.

4. 12 questions to ask a General Contractor.

5. Reviewing and comparing General Contractors bids.

Finding a qualified and experienced General Contractor can mean the difference between a project running smoothly or it becoming your worst nightmare. They are a crucial member of your project team.

What services do General Contractors provide?

• Responsible for supplying all labour, materials, and equipment needed to execute a project.

• Bid on a project’s scope of work using the supplied construction documents, site walkthroughs, and verbal communication.

• Expected to deliver the project on time and on budget with exceptional workmanship.

• Follow industry standard building practices

• Adhere to building code, fire code and zoning by-law compliance requirements.

• Main point of contact for the client (you), design professional (Infinite Design Services), engineer(s), Building Officials (inspectors), subcontractors, suppliers, and other third party professionals.

How do they bring value to your project?

• From years spent accumulating knowledge of building methodologies.

• By understanding your needs they can set realistic expectations for your schedule and budget.

• Provide recommendations to improve the schedule and reduce costs whenever possible.

• Know how to manage all aspects of a construction project, so you do not need to be concerned with the day to day activities.

• Keep you up to date on progress and notify you of significant challenges that come up and require your input.

• Experienced in preventing and mitigating potential risks during a construction project.

*Clarification: The Project Management Institute refers to risks as known-unknowns and unknown-unknowns. Known-unknowns are issues you suspect exist, but don’t know exist with absolute certainty (ie: mold behind a wall). Unknown-unknowns are the black swans you can’t foresee (ie: a sewer backup).

Do General Contractors need to be licensed?

• This may differ based on your Province, State, and Country. In the Province of Ontario, a General Contractor is not required to be licensed. Know that being licensed does not mean they will perform better than an unlicensed General Contractor. My focus, and yours too, is finding the most qualified people to work on the project.

When should you hire a General Contractor?

You should hire a General Contractor in most situations. There will be a cost savings when managing a project yourself, but you must have the required knowledge and commitment to ensure it runs smoothly. If you decided to manage your own project you would be responsible for all of the tasks listed below and then some…

• Create a budget and schedule

• Qualify each and every subcontractor

• Explain the project scope of work and schedule to receive complete bids/quotations

• Analyze subcontractor quotes to ensure they are covering all labour, materials, and equipment to complete their respective scopes of work

• Understand payment terms, change order processes, warranties, etc.

• Issue subcontractor agreements, or sign off on each subcontractors quotes

• Dispute / conflict resolution and negotiation skills

• Provide access to the job site

• Ensure the job site is safe and clean (or you’ll be hearing from the Ministry of Labour)

• Coordinate the sequencing of work and organize the timely delivery of materials on site

• Manage construction costs, subcontractor and suppliers payments

• Ensure your construction schedule is hitting key milestones

• Manage budget risks, schedule risks, and problem solve as issues arise

• Oversee quality of workmanship

• Book inspections with Building Officials, and other Inspectors

• And more…

Know your limits and hire a General Contractor when you’ve surpassed them.

Hopefully, I’ve given you a better appreciation for the pivotal role a good General Contractor has on your project team. I’ll be discussing the construction contract terminology that you need to know in Part 2 of this series, but before moving on I wanted to offer you another valuable lesson from my past experiences as a Project Manager. This lesson will remain true throughout the rest of this series.

You’d do well to remember it!

Your correspondence with contractors, whether it be in-person, phone, or email should always be documented. If you discuss something in person or over the phone, it needs to be followed up with an email detailing the key takeaways from that discussion.

For example:

• You’ve included to supply and install “x”.

• You will action “x”, and it is going to be done by “y”.

• You found issue “x” and will be sending a change order quotation for the expected costs to resolve the issue by “y” date, so it is not impact the project schedule.

…I’m sure you get the point. Project Management is about being thorough and organized. It requires a macro-view on the construction project, so you don’t lose sight of the finish line.

I am nothing if not thorough! You will soon find out!

Remember, documentation means accountability. Lack of documentation is a liability.