what are the steps of a private construction projects.
1 reply
May 6, 2020
Private construction projects don't really have the same formal steps as public construction projects. Generally, an owner will request bids for the work from one or more contractors. After agreeing on a price for the work, they'll execute a contract (hopefully a written one) and set a schedule for the work. Then, there will typically be some form of mobilization process where the contractor gathers the necessary materials, pulls any required permits, and hires subcontractors or suppliers as necessary. The contractor, subs, and suppliers will also begin sending preliminary notices at this time.
After that, they'll begin the work. Depending on the contract that was signed, there may be progress payments along the way. And, any time a payment is made, lien waivers should be exchanged. Eventually the work will be completed - likely with some change orders and hiccups along the way. Upon completion, final payment will be paid and retainage will be released - then contractors, subs, and suppliers should execute final lien waivers. And, with any luck, a private construction project won't involve a whole lot more than that.
This was a bit of an oversimplification, of course, and the layout above describes a pretty simple and small construction project. Every job is different, though - and it's absolutely possible (if not common) for a project to be more complex. But, since there are endless variables, I think that's a good place to start.