General contracting is one of the most versatile services in the construction industry. This service implies comprehensive management and organizational work related to the construction of a new or major overhaul of an old construction site. The general contractor fully controls the object on the rights of the customer and, in turn, bears full responsibility to him.
Selecting a general contractor
Before starting construction work, the developer organization selects a general contractor - a legal organization that takes responsibility for the timely delivery of the finished construction object. To select such an organization, the developer organizes a general contractor tender. This competition allows you to choose from all received applications the best organization that has in its portfolio successfully built and commissioned objects of the same category as the future new building.
Don't think that every developer works only with a select circle of construction organizations. General contractors are selected based on future real estate projects, their category and level of complexity. The enterprise, which previously built only large industrial facilities, is not suitable for the construction of a new high-rise residential building or shopping complex. If the portfolio of the applicant organization included successful projects of this category, the construction contract will be concluded with it.
General contractor agreement
The main document that regulates the relationship between the developer and the selected construction organization is the general contract. This document describes all the nuances of interaction between the customer of construction works and their direct contractor. The final version of the contract is signed by all parties. According to the current rules, a construction contract must be published, and information about the developer and general contractor must be on the information board located directly on the construction site.
Tasks of the general contractor
For the organized management of the entire volume of construction work, the general contractor must act within the approved rules and agreed working documentation. In general, the functions of an organization acting as a general contractor are as follows:
- development of interaction between own branches and divisions;
- coordination of the activities of subcontractors who are entrusted with the work specified in the subcontracts;
- temporary employment of highly specialized specialists whose experience and skillsrequired to complete construction;
- cooperation with the press and media, which is behind the scenes advertising the general contractor and the construction site;
- interaction with controlling and checking services.
Responsibility and main functions of the general contractor
The organization that won the general construction contract is responsible at all levels for the quality and timeliness of the work performed. The general contractor also assumes all risks that may arise during the construction work.
Assuming responsibility for the progress of construction work, the general contractor oversees all issues related to the construction of the building, engineering work, design, including services such as:
- preliminary geodetic examination;
- analysis of calculation and design documentation with subsequent optimization;
- tendering for the best subcontractor;
- engagement of highly specialized specialists;
- providing the construction site with the necessary materials and equipment;
- organization of interaction between subcontractors;
- constant control over each stage of work;
- conflict resolution;
- interaction with inspection and control structures.
Contractor-subcontractor relationship
The organization that won the general contract may hire third-party construction companies and individuals to perform certain types of work. In relation to them, the general contractor acts as a customer and has the right:
- hire a subcontractor on a competitive basis or otherwise;
- transfer to the subcontractor certain parts of the project documentation;
- provide contractors with materials and equipment necessary for construction work;
- coordinate all subcontractors;
- control the implementation of the agreed work;
- accept work completed by a subcontractor;
- to settle accounts.
Successfully developed concept allows to implement the most non-standard construction solutions within the agreed time frame and with the passage of the full cycle of necessary work. The general contractor, selected through an open and fair tender, will be able to complete the required scope of work in the allotted time and present the customer with a fully finished turnkey construction facility.
