Change Orders: Look Beyond the Percentage

One of the biggest issues for any GC or commercial subcontractor Seattle is change orders. This brings in automatic delays and increases. However, if the change order terms are available in the contract, then there is no way around it. The cost of a change order increases manifold if more than one commercial subcontractor Seattle is involved. This is due to multiple scopes being affected, leading to lengthy negotiations for price and time between the GC and concerned construction management subcontractors. The questions that haunt a GC in this scenario include:-

·   Who owns the transition between two materials?

·   Who handles the additional preparation required before another trade can begin?

·   Which subcontractor is responsible when one scope depends on another being completed first?

A single commercial subcontractor Seattle does not ensure that there will be no change orders. However, what it does ensure is that once only one commercial subcontractor Seattle is hired, the contractual obligations and negotiations are one-on-one. Moreover, it also allows for minimal coordination between the two parties, saving priceless time and money at the same time. 

Trade Pricing Matters

Trade pricing is one factor that keeps pushing the GC towards individual trade bids. This helps in driving the price down for the project as a whole. With three to four bids for every trade, the GC can choose the best at an optimal price. However, the real math is not just adding up single-source commercial subcontractor Seattle cost vs. multiple bid cost. In this regard, a useful internal estimating comparison like the following can really help:-

The real task is not to select one model but to identify the structure which provides the best result at optimum cost.

Multi-Trade Discounts Can Be A Game Changer

Another aspect to consider for a GC is when a commercial subcontractor Seattle offers a discount on multiple trades. This helps lower the cost and makes the decision easier for the GC. Those efficiencies might come from shared supervision, coordinated crews, fewer mobilizations, combined procurement, shared equipment, or better sequencing between related activities. The bundled approach reduces duplicated mobilization, simplifies supervision, eliminates several coordination gaps, and reduces the GC's project-management burden. A multi-trade job that costs $1M can be reduced by 20 or even 30% if performed by a single commercial construction subcontractor Seattle.

This is just an example as the numbers vary from project to project. Therefore, a deep analysis should be carried out with various permutations of whether a single commercial subcontractor Seattle is better or multiple. It should also include bundling of tasks that are performed in series, making the coordination better and easier for each selected commercial subcontractor Seattle.

The Seattle Angle

In Seattle, where GCs get awarded large residential and commercial projects, this model becomes really significant. Multifamily developments, senior living facilities, student housing, tenant improvements, and other complex projects can involve numerous interconnected scopes and tight sequencing requirements. This is where the expertise of an experienced company like United Seattle comes in as they not only provide multi-trade options but stellar pricing on it as well. It reduces the coordination cost and makes the communication easy, as everything flows from a one-window operation.

The public domain work in Seattle adds another angle to the whole approach as it adds the government coordination and communication aspect to the project. A multiple-commercial subcontractor Seattle project then further adds a layer of communication which can delay timelines as not all building subcontractor Washington communicate with the same pace. That makes scope clarity and subcontractor capacity particularly important when evaluating different delivery approaches.

Make the Comparison Before Selection

Research plays an important role in selecting the right commercial subcontractor Seattle. It plays a more important role when going to a single-trade or multi-trade option. As reiterated above, this research is not simple math or rating the bids in order and selecting the lowest one. It has to account for the additional costs that come along with a multi-trade option like Trade bid price, coordination cost, schedule exposure, change-order exposure and multi-trade discounts. The best approach is to tabulate both approaches side and by side and do a cost comparison. The credibility and limitations of each building subcontractor Washington being considered must also be catered for while making the selection. The best way to test the model is to compare both approaches using the same scope, schedule requirements, exclusions, assumptions, and project conditions.

Have an upcoming commercial, multifamily or public works project? Request a bundled bid from United Seattle here and compare the cost and schedule benefits of consolidating multiple scopes with one commercial subcontractor Seattle.

FAQs

What is a single-source subcontractor?

A single-source subcontractor manages multiple related construction scopes under one subcontract, reducing the number of separate trade contractors a GC must coordinate.

Is single-source subcontracting more expensive?

Not necessarily. The initial bid may be higher than the lowest individual trade bids, but coordination, mobilization, scheduling, and change-order efficiencies can offset the difference.

When does single-source subcontracting make sense?

It can be particularly useful for commercial, multifamily, senior living, student housing, and other projects involving multiple interconnected scopes.

How does single-source bidding affect project schedules?

With fewer subcontractor handoffs, a single-source approach can simplify sequencing and coordination, potentially reducing schedule gaps between related trades.

Should GCs compare bundled and individual trade bids?

Yes. Comparing both approaches using the same scope, assumptions, exclusions, and schedule requirements provides a more complete picture of total project cost.