General Contracting is one another widely accepted contracting model and is primarily practiced where a customer expects a competent contractor to take-up not only the construction activities of entire structure but also finishes and MEP. In General Contracting, the Client assume contractor as a single point responsibility (General Contractor) for the entire scope of works on a project at the initial award stage itself while allowing him the discretion to award the individual specialized work packages at subsequent stages.
Thus, the main works of the project, such as Civil & Structural works are awarded to a large contractor with additional responsibility of managing all other scope of works such as internal finishes, external finishes & façade, roads, landscaping and MEP works such as HVAC, Electrical, Plumbing & Sanitary, Fire Alarm, Fire Fighting, BMS, Elevators, etc. The specialized vendors for these packages may be finalized at subsequent stages solely by the Client (nominated) or may be jointly finalized by the Client and the General Contractor. The General Contractor is responsible for the proper coordination among various package contractors & also with his own scope of works and providing on-site facilities to them for smooth execution of the project.
The General Contractor is generally paid a coordination fees for the above towards his overheads and margin which may be in the form of a pre-decided percentage of the value of the specialized work packages or as a lump-sum amount. The General Contractor is responsible for the completion of the entire scope of works as per project schedule and his risk exposure is generally on the entire project value including specialized package works.