4 Benefits of Having a Single Prime Contractor

Managing large scale construction projects can be very complicated. Among the many factors to be considered is whether to utilize a single prime contractor, or allow multiple prime contractors to manage various aspects of the project. However, there are several significant benefits to utilizing a single Prime Contractor on capital improvement projects:

Single Point of Contact

Using multiple prime contractors means that the burden of project management falls to a leader in the customer organization. This leader traditionally carries a full load of preexisting responsibilities. The process of managing multiple prime contractors complicates the project management process as the internal representative is tasked with actively managing multiple contractors who may have competing schedules and interests.

A single prime contractor shifts the burden of active contractor management to a representative who has the experience and bandwidth to effectively manage the project. It is then only necessary for a customer representative to manage one contact for information related to every aspect of a project.

Single Point of Accountability

Managing multiple prime contractors can mean managing multiple scopes of responsibility. Without a single point of accountability, when a problem arises on a project, significant time and energy can be spent by the customer representative managing the many contractors before responsibilities are accepted and action is taken to address a problem.

A single prime contractor on a project provides the customer a single point of accountability for any issue, and streamlines the customer’s efforts toward resolution.

Cost-Effective Procurement and Management

Administrative costs related to managing multiple prime contractor bids can escalate the upfront costs that a customer incurs on a project. Additionally, multiple prime contractors can increase the number of change orders throughout the project, escalating the total cost of a project.

Utilizing a single prime contractor for a project lowers the administrative cost and reduces the number of change orders throughout the process, significantly reducing the overall procurement costs related to a project.

Better Control

It goes without saying – though we’re saying it 🙂 – having a single prime contractor provides enhanced control across all aspects of the project.

  • renovation scope
  • equipment selection
  • subcontractor and partner selection
  • final costs and timelines