GENERAL CONTRACTORS: CONSTRUCTION MANAGEMENT IN MULTIFAMILY RENOVATIONS

General contracting firms play a critical role in the overall success of an apartment or condominium renovation. With so many different facets of construction all taking place on a building in the same time frame, it’s important to assign someone the task of construction management of specialty subcontractors, contract documents, labor, equipment and materials to ensure work is being completed correctly.

Multifamily renovation projects can range from thousands to millions of dollars. As such, it’s imperative to hire an experienced general contractor capable of handling large renovation projects so the job can be completed in a cost-effective, efficient and professional manner. A general contractor will make sure day-to-day onsite construction activity is being performed properly without disruption to the community’s residents. Without construction oversight, projects can quickly take a turn for the worse, often resulting in disaster with structurally, financially and legally.

For that reason, it is essential to understand the role the general contractor will play in a renovation, the services they will provide and the major construction phases of the project.

The GC’s role is to provide construction management. In this capacity, they are responsible for the planning, organizing, scheduling, and controlling all laborers, subcontractors, equipment, materials, and financial resources needed to achieve a successful multifamily renovation, delivering the project in a specific time frame by meeting beginning and completion dates.

There can be many different parties involved in the construction management of a multifamily property. Depending on the project’s goals and scope of work, there are sometimes a varied number of companies involved including architects, engineers, consultants, attorneys, etc. However, there are usually three essential parties in the construction management sector of multifamily renovations. These include the owner, management company and general contractor. Many owners may choose to bring in project engineers, architects and construction consultants, especially if there are major structural changes or the property suffers from original construction defects.

From the conceptual design to the end product, the owner is involved of in all phases of the project. Once an owner has determined what they would like to do with the property, they are responsible for accepting and paying for work that is completed. The management company usually collects bids on behalf of the owner and works with the general contractor to ensure construction is being completed on schedule. For more complex projects, often times, owners hire an architect to provide complete and accurate construction plans and specifications and an engineer or a third-party construction consultant to ensure work is being completed per plans and specifications. After the contract is awarded, the general contractor becomes responsible for the subcontractors and completing the scope for the contract amount within the specified time frame.

There are three stages for in a multifamily renovation including pre-construction, construction and post construction. In the first stage of pre-construction, the general contractor should thoroughly review the project plans and specifications as well as develop a clear understanding of the owners’ needs and expectations. Once the project has been evaluated, the general contractor must start planning, hiring key construction personnel and tradesmen/specialty contractors and develop a schedule that identifies the tasks to be completed with specific time and deadline dates.

Stage II is the actual construction. This requires the general contractor to complete the project on time and within budget while following the plans and specifications. This stage generally requires coordination of subcontractors and materials. General contractors must be very detail orientated to ensure no step has been skipped or overlooked to ensure a smooth construction site. Construction managers must have experience in contract administration and scheduling in order to run a project efficiently. Progress meetings help track milestones and keep all subcontractors as well as owners aware of the project stages.

Stage III is post construction. This is also known as the punch out phase when the general contractor compiles a list of unfinished items that need to be completed before the building is turned back over to the management company and owner. Once the subcontractors have finished the entire punch list items, it’s also the general contractor’s responsibility to ensure all warranties and final release of liens have been submitted and received from the subcontractors.