Large-scale construction projects can take years to complete and include many stages — concept, pre-construction, bidding, construction, and completion. These long-term projects can only be successful with meticulous planning and guidance from the beginning. And to get that, you need a solid pre-construction agreement.

What Is a Pre-Construction Agreement?

Put simply, a pre-construction agreement outlines the project’s initial goals and responsibilities ahead of the execution of a main building contract. It should enable your general contractor to apply their expertise to the various pre-construction activities that are vital to a project’s success such as: feasibility studies, land acquisition, hiring and coordinating with architects and engineers, obtaining licenses and permits, financing options, selecting materials, and more.

These are the main benefits you want to take advantage of with a pre-construction agreement:

1. Utilize Your Contractor’s Expertise
   

   Pre-construction agreements allow you to take advantage of your contractor’s expertise on every level of the project before final decisions are made. They should work as a part of the initial team, and be able to make suggestions on where you can save money without sacrificing quality. If they have experience building similar projects or working within your project’s municipality, they can provide priceless insight that can reduce your build time significantly.

2. Head Off Potential Issues
   

   Your architect comes up with the vision, your engineer hashes out the logistics, and your GC makes it happen. With that in mind, the GC is a vital cog as they are able to point out potential problem spots with the architect’s and engineer’s renderings before you move forward with the permitting process. A solid pre-construction agreement also provides accurate cost and scheduling analyses before the project begins.

Your contractor should be able to remove many of the unknowns associated with projects and reduce your risk, thereby remedying the situation before it exists. Identifying issues early and assessing risk in advance are the two main differentiators in keeping to timelines and budgets.