How do you keep a GC motivated to get the job done.

Question

We are currently in the middle of building a spec house in a very nice town. Our G.C. has 13 employees and he seems to have 1 or 2 jobs going concurrently with our job.

I'm having a very hard time watching the progress being made because there only seems to be a few guys on site any given day. Because our G.C. isn't on site, the employees are on their cell phones, taking breaks etc. We've owned this property for a year and it took 7 months to get permits to start building. They started building in the middle of October and have had to deal with winter issues here in the Northeast. We are just now getting the rough in electric, HVAC etc installed. Our own home is similarly sized house that was build in 6 months (but was enclosed before the bad weather hit that year). So I get it, it takes a long time to build in the winter but it's already been 5 months.

So how do I motivate my G.C. to 1) get his guys on site and 2) get them motivated to get the job done.

We won't be changing G.C.'s at this point and will probably never use him again on a job this big.

Michael Noto · Answer

You are not going to be able to motivate this guy.  He is a grown adult who is set in his ways.  He is not going to change his deep rooted attitude at this point.

Just deal with him on this project and never hire him again.

Mike F. · Answer

In construction anyone who is large enough to be running multiple jobs no matter how anyone wants to lament about it, money and honey is what is driving projects.

You can bet on two things :

1) That your contractor is paying really good attention to the jobs where the profit is good and payments are flowing simply without fuss and like water and the customer is easy to work with and get along with. Add in that it's a customer who will provide repeat business and that will further motivate him.

2) That your contractor is paying less attention and less priority to projects where the profit is not good, getting paid is a slow, laborious process and the customer is a difficult person to work with and get along with.

Good or bad, that really is the way it is. Once the contracts are signed and work begins, this can sometimes be the result of a customer winning too much prior to the contract signing. This is also multiplied through the subs, the subs are doing the exact same thing, prioritizing the jobs that are profitable to work on and deprioritizing those that aren't.

Victor Argueta · Answer

I keep a large white board at each property we purchase. I then have Monday morning meetings with my main GC and schedule out the week - I then get out of his way. This white board is a constant reminder to everyone where we need to be  by EOW. Then again, my GC and his crew are extremely proficient.

Account Closed · Answer

Threaten to fire him should he not get his act together.....things will change. Plenty of him, one of you. Easy to find replacements.

Landon Thomas · Answer

@Michael Noto Right on. Being a rather green GC myself, I can already see getting stuck in my own ways and often thinking 'that client has no clue what they're talking about'. Everyone only knows what they know and we can all be stubborn. Schedule delays are an area that may require some tactful finesse.

You have to recognize the character/attitude (as Michael said) of your GC, just as I have to recognize the character within my subs. Maybe look into hiring someone you jive with better next time. Maybe next time find the GC you don't mind or fear saying 'WHAT THE...!?' to him, knowing that he can take it and return with a response that is both constructive and professional.

@Karen Lindstrom  In the meantime you still have that GC to motivate before you reconsider working with him again. This is a method I have taken when working with my subs who are delaying. There is a lot to read between the lines and it really comes down to your effectiveness in communication and persuasion:

1) Accepting Your Own Mistakes:

Start an honest discussion, maybe accepting some responsibility at first for whatever you may have done that caused a hiccup in the project (no matter how small or insignificant it is in comparison to their delays or mistakes).

2) Offering Help:

Then ask 'What can I do to help out?' offering to do some leg work on orders or maybe clarifying an RFI or something with the architect. Just something small is fine.

3) Let Them Call the Shots:

Next, ask him 'While I'm working on that order and the RFI for you, and if you had a week, could you write up a schedule of the remaining milestones?' Don't approach penalties attached to those milestones in this first conversation.

4) Friendly Reminder:

Follow up a few days before you are to meet about the schedule and ask if your meeting is still on to review it (give him a chance to write it up, because he will likely wait until the day before).

5) Finalizing Schedule:

While reviewing the schedule, add a few days to a milestone here and there to show that you are giving grace periods to them. If you don't agree with how long something will take, ask their opinion why it will take so long and maybe verbalize that you just don't understand everything that goes into a particular phase. After hearing them out then ask if they are really sure there is no way to reduce it.

6) Post the Schedule

Both of you sign on the schedule, post it on the front door and mark off the days that have passed since your last visit (Notice **days**, plural, more below).

**Bonus Item if you're feeling chipper** Bring them donuts or a sandwich now and again, because your $20 spent on lunch will return happy, better quality, harder workers.

7) Missing the Mark

If they miss a milestone, ask them only then if you need to establish penalties. They will likely recognize that they are the ones who missed the milestone date that THEY set, and likely correct course. Just as Steven J. pointed out.

8) Backup Plan

While all of this is going on, maybe start talking with some other GCs, maybe start some conversations with other BP members to find investor friendly types in your area. Have an established relationship with a GC so that if you have to you can break and settle contract with the failing GC and not miss a beat moving on to the next. (breaking a contract clean and quickly requires another long winded post... won't go there for now :)

As a final insight and a definite no-no, as repeated by many homeowners/investors... don't do daily site visits or spend hours on end on the job site. Although you own the property contractors want own their work. If the owner is onsite constantly they/you will find more to worry about, causing more chaos. Construction is like child birth, you definitely don't want to know everything that happens during labor. The difference is you inherently trust just about any doctor, but you have to find a GC you trust.

Joseph R. · Answer

if the GC really isn't doing his job then don't pay him - its as simple as that. Assuming you didn't pay him 100% of the project then you're still highly leveraged and he should straighten up and get moving. If he's fully paid on the project then you've made a big mistake.

Steven J. · Answer

I'm not doing large extensive projects but I'm including a completion date that they pick and the penalty is between 10 and 20% of the total bid of the project is charged to them for each day beyond that date. Obviously, they are going to give themselves extra room in the schedule but they'll feel the pressure as the date looms and could lose 10-20% per day that they are behind. You're allowing them to pick the finish date and hold themselves to their word and if not they get penalized and they know they will.

I'm not a confrontational person and I'd rather deal with knowing a project is being bid a couple extra days and knowing it will be done by then. I'd much rather have that as opposed to extra weeks that sneak up on us.

Manolo D. · Answer

If you structure the deal right, you should have milestones or phase schedules, each extension of time should be approved and in writing, if its not black and white, it doesn't exist. try to take a video on his employees, see if you could get another super in there if he runs multi jobs. i would visit a site at least every other day if im running two or more, just to check progress.

Matthew Paul · Answer

The last 2 months in the North east were horrid , snow , cold , and cold and snow .  You may not realize 1 thing , This contractor , like many others may also use their trucks and equipment to plow snow . If so yes yours and other projects come to a halt .  Granted , this should have been mentioned to you , but the " white gold " is great cash flow . If this wasnt the case , the temps were so cold you couldnt do too much inside with out heat .

David Ward · Answer

@Karen Lindstrom I think @Mike F. hit it right on.  Maybe on your next project possibly set deadline dates in the contract between you and the GC. If completed on time offer a bonus, if not impose penalties ie. per week, day, etc.

How do you keep a GC motivated to get the job done.

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