Choosing a General Contractor for your School
Construction Project
by David Cullen, President & CEO, J. P. Cullen & Sons, Inc.
In my last column, I made some suggestions about how to select an architect for your new school construction or remodeling project. This time I'm going to discuss choosing a general contractor.
Three types of contracts commonly used today are:
- the lump sum competitive bid,
- the construction management contract, and
- the negotiated general contract.
1. In the lump sum competitive bid contract — the most traditional approach — you hire an architect to design your project, then invite general contractors to submit bids. The low bidder is awarded the contract and agrees to perform the work for a fixed price, regardless of the cost to the contractor.
If you use this method, I recommend that you narrow your list of potential contractors to no more than six that have experience in school construction as well as proven ability to handle the size and complexity of your project.
2. With the construction management contract, you hire a general contracting firm to perform services and work for a percentage or fixed fee. The general contractor provides leadership to the team, which is composed of the owner, architect/engineer and construction firm. In this arrangement, you as owner likely would request separate bid packages from individual trade contractors (electrical, plumbing, masonry, flooring, plastering, painting, etc.), and you — not the general contractor — would be responsible for any problems that might arise with the subcontractors.
3. A negotiated general contract today often takes the form of a guaranteed maximum price contract; the general contractor agrees to perform the work and be paid on the basis of material and labor costs, plus a fixed or percentage fee. The contractor builds your project for the agreed-on price, but any costs exceeding that amount are borne by the contractor unless you grant approval through written change orders.
I recommend either 2) or 3) for school projects because each allows the contractor to become part of the team before a referendum is held. Early involvement enables the contractor to work as a partner with the school district and architect to arrive at the most reliable cost figures.
Just as in choosing an architect, there may be a local construction firm that will get primary consideration. However, remember that references and experience in projects of similar size and scope are important. And as with architectural firms, plentiful competition in the construction industry assures you of a fair fee.
Other considerations:
- When you conduct interviews prior to contractor selection, be sure you meet and feel comfortable with not only the principal of the firm, but the project manager who will be administering your job and the superintendent who will be directing work in the field.
- Be certain any contractor you're considering has a modern, computerized reporting system for giving you concise budgets at the preconstruction phase, monthly progress reports, and value engineering* recommendations.
- A firm's safety record with regard to its employees is important, but you should pay special attention to job site accident-prevention measures the contractor will provide for your students and staff.
*If any portion of your design is over budget, your contractor should make recommendations for reducing costs without reducing the quality of your project.
Do’s and Don’ts of a School Construction Relationship
by David Cullen, President & CEO, J.P. Cullen & Sons, Inc.
School Construction Column #3
Today’s construction climate is different from what it was 15 or 20 years ago. Contractors and architects recognize the importance of good service, honest dealings and projects that run smoothly.
The construction industry is highly competitive. Any contractor or architect allowing problems to develop with drawings, materials, methods, subcontractors or owners will not be successful — indeed, may not survive.
It takes communication and teamwork to complete a construction project. Here are some tips to help you act as a solid partner in the relationship.
Do thoroughly check references of potential architects and contractors, even going beyond names provided to you. Ask those you contact if they know of others for whom the architect or contractor has done work.
Do streamline your search for an architect by using the Quality Based Selection method recommended by the American Institute of Architects.
Do select your contractor before a referendum is held. Contractors work daily with material and labor costs; they know current rates and how prevailing costs will affect your project’s design and budget.
Do try to fashion an agreement whereby a single general contractor will be accountable to the school district for your project’s completion.
Do provide your architect and contractor with a single source of information and decision-making about your project. Work will progress more efficiently if you can avoid consulting with a committee every time a question arises.
Don’t abdicate responsibility or withdraw once your project is underway. In small school districts, the superintendent often maintains communication with the architect and contractor. In larger districts, either the business manager or someone hired by the district to represent its interests usually is the contact person.
Do be sure, if you hire a construction representative, that the person has had experience with projects similar to the size and scope of the job you are planning. In most cases, the representative should be responsible only for your project.
Do keep your payments current. It is in your best interest to expedite monthly checks to your contractor so materials for your project can be paid for and subcontractors can be reimbursed in a timely manner.
Do be sure your contractor closes out your project to your satisfaction. If necessary, hold back a portion of the last payment until all loose ends are tied up.
Don’t underestimate the key role you play in your architect’s and contractor’s success on your project as well as jobs that may lie ahead. You have tremendous power in the contractor/architect/owner relationship. The reputation of any contractor or architect is only as good as the satisfaction level of the last client.
If you have specific questions, please contact me by e-mail at david.cullen@jpcullen.com
or call me at 608-754-6601. I would be happy to meet with you or your board to provide additional information.