Mastering Construction Project Management as a Growing Contractor

Why Project Management is the Secret Weapon for Contractor Success

Why Small Contractors Should Care About Mastering Project Management

Going from a highly skilled tradesman to a business owner is admirable. You’ve probably put in long hours in starting up and managing your contracting business, right? Reaching out to contacts for upcoming projects. Visiting prospects, plan review and take-offs. Permit research. Bid submittals and client sales efforts. Subcontractor vetting. Many days working as the chief problem solver, crew supervisor, and company gopher.

Project management tools are not just for large contractors working on huge projects. The project management toolbox is perfect for the small contractor too. It provides a structured approach to planning and implementing a project workflow.

Wouldn’t you like a system that includes reliable structured planning, cost tracking, delay avoidance, timely stakeholder communications…including your crewmembers, and proven profitability? I bet the answer is yes so let’s review the parts of a great project management system for contracting businesses.

Let’s Define Project Management

First you brainstorm ideas for your business. Then you set goals. Next you divide the goals into achievable tasks. These tasks get organized in a logical sequence and you assign company resources to get the tasks done. And you create a reasonable timeline to get the steps completed.

Easiest Way to Understanding…A Practical Example

Skilled Tradesperson at Work

Example Project Overview

A general Contractor bidding on and awarded a small 500 sf, family room addition with a powder room.

1. Bidding and Pre-Construction Phase

• Client Consultation
  • Meeting the homeowner to learn the needs, budget, expectations, and timeline.
  • Site walk assessment – conditions, utilities, access, potential problems.
• Plan Review and Scope Definition
  • Review architectural and engineering plans.
  • Define full project scope – demolition, framing, electrical, plumbing, mechanical, finishes, etc.
• Navigating the Regulatory Landscape: A Critical Step in Northern Nevada and Lake Tahoe
  • Permit Research: This is a crucial and complex step in our region. You won’t be dealing with a single entity. Depending on your project’s location, you could be working with:
    • City of Reno: Utilizes the onenv.us portal for electronic submissions.
    • Washoe County: Also uses the onenv.us portal. Be aware of what projects are exempt from permits. For example, in Washoe County, decks not more than 30 inches above grade may not require a permit, but all decks in the Tahoe Basin do.
    • Placer County (California side of Lake Tahoe): Has its own set of building codes (California Title 24) and a separate permitting process.
    • Douglas County: Requires online submissions for new permits from contractors and repeat customers.
    • Tahoe Regional Planning Agency (TRPA): This is a bi-state agency with its own set of regulations for the Lake Tahoe Basin. Any project in the Basin will likely require TRPA review, which can involve a site assessment to verify land capability and existing land coverage. It’s essential to understand their requirements to avoid delays. Many projects in the Tahoe basin will require both a TRPA permit and a local building permit.
• Material Take-Off and Calculations
  • Detailed material take-off from plans
    • Lumber – framing, sheathing, etc.
    • Concrete – foundation, slab, etc.
    • Roofing and siding appropriate for heavy snow loads.
    • Plumbing, electrical, mechanical.
    • Finishes, fixtures, flooring, paint, trim.
  • Calculate quantities and overage for waste.
• Labor Calculations
  • Estimate labor hours for each phase – demo, framing, etc.
  • Account for crew size, skill levels, potential overtime, etc.
  • Factor in the Regional Labor Shortage: Northern Nevada has a significant shortage of skilled construction labor. This means you may need to budget more for labor costs, expand your search for subcontractors, and potentially invest in training for your crew.
• Budget and Bid Preparation
  • Prepare a detailed cost estimate including materials, labor, subcontractors, permits, equipment rentals, and contingencies.
  • Present a clear, detailed, and professional bid package to the homeowner.
  • Follow up with client within a determined time period. Ask for any questions or concerns.

2. Project Planning Phase – Congrats! Awarded the project

• Project Planning and Milestones
  • Establish major milestones
    • Permit approval – plan for turn around time with the AHJ (Authority Having Jurisdiction) and the TRPA.
    • Demo completion
    • Foundation completion
    • Framing completion
    • Framing inspections
    • Weather-Related Contingencies: The Sierra Nevada weather is a major factor. Plan for a shorter building season (typically May 1st to October 15th for grading) and potential delays due to snow, especially at higher elevations. Your project timeline should have built-in flexibility for weather events.
    • Best Management Practices (BMPs): Especially in the Tahoe Basin, you’ll need to implement BMPs to protect water quality. This includes things like proper erosion control and sediment barriers. These need to be factored into your project plan and budget.
• Subcontractor and Supplier Coordination
  • Schedule and coordinate with your vetted subcontractors.
  • Order materials with long lead times.
• Client Communication Plan
  • Establish a regular communication schedule with the homeowner to provide updates, answer questions, and manage expectations.

By incorporating these region-specific details into your project management process, you’ll be better equipped to navigate the unique challenges and opportunities of building in the Northern Nevada and Lake Tahoe area. You’ll not only build successful projects but also a reputation for professionalism and reliability.

Check out this article … 5 Ways to Improve Your Management Style here.