national vs local general contractors

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When you’re a community based credit union or bank, and you’re looking ahead to your next branch construction project, the question of whether to hire a national or local general contractor is a worthwhile topic.

In one regard, you want to keep dollars local – after all, you pride yourself on being a “local” financial institution.

On the other hand, you want to keep costs down, and want a GC who can save you money, while also managing budgets and schedules.

Can you have it both ways?

In short – yes.

In this article, we’ll take a full look into the advantages of partnering with an experienced national Design-Build firm while also utilizing expert local Subcontractor talent within your institution’s local markets.

A National Design-Build Contractor Brings National strength and scale

More Experience

A national General Contractor has most likely completed a higher volume of projects, on a larger scale, compared to a local General Contractor. This means a national General Contractor has seen more and done more overall, bringing a broader range of expertise and can offer inputs from a larger team to advise on your success.

But just because a national GC may have their HQ in a different state, doesn’t mean there is not local representation. LEVEL5 always places a full-time, seasoned superintendent on each project, dedicated to working with Subcontractors and seeing it through to completion.

More Buying Power & STRONGER Relationships

A local General Contractor certainly won’t have the national buying power and broader relationships that allow a national General Contractor to pass on substantial cost savings to their client.

Because LEVEL5 has multiple projects at one time across the nation, we are able to consolidate purchases for materials, whether it be lumber, steel, even furniture.

And to be clear, LEVEL5 always works with as many local Subcontractors as possible. We have a robust national database of contractors across all trades in nearly every market. We’re also glad to work with your preferred local Subcontractors.

Due to our licensing and work history in all 48 contiguous states, we’re able to pull from a preferred list of competitive and trustworthy local Subcontractors within your area.

However, when there’s an opportunity to benefit our client with more savings and optimized delivery, our national frame allows us to tap into partners from other parts of the country accordingly.

For example, we always ensure that Subcontractors will actually have the availability to work on your project.

Sometimes the provider right in your own city may not have capacity and are unable to allocate resources a few miles down the road. With our network, we can resolve this issue ahead of time, sometimes securing an available sub who may not be local, but who is definitely experienced and available.

This sometimes translates into cost savings for you, too! In some cases, we may know a sub elsewhere who can work on your project for a substantially lower price than similar local Subcontractors are offering.

Specialized In Your Vertical

Many local General Contractors serve a wide array of industries…this isn’t inherently bad, but pertinent to note that they likely don’t have a comprehensive understanding of success for your particular vertical’s needs. They may be good at construction, but they are not EXPERTS in building a branch.

In LEVEL5‘s case, we have specifically provided our services to financial institutions nationwide for nearly 20 years.

With a committed team who has managed over $1 Billion in successful construction of branches, operations centers, and call centers, holistic, practical know-how in building for credit unions and community banks comes with the territory.

Keeping Your Subcontractor Dollars Local Has Huge Benefits

Reduce Your Costs

First off, you’re likely going to keep your costs lower by utilizing local Subcontractors.

Subcontractors near your construction site area are closer to the end of the supply chain for needed materials, equipment, and parts.

That generally means (but not always) lower prices for sourcing to your project if you were to compare against sourcing from Subcontractors who are further away from you.

Think of the costs needed for mobilizing a large backhoe, it’s going to be far cheaper moving it 10 miles down the road when compared to moving it from Florida to Texas.

LEVEL5 realizes this cost value that local Subcontractors bring, which is why as mentioned earlier, we try to hire them locally as much as possible, unless we see an opportunity where a non-local Subcontractor can benefit you more!

Be a True, Known Community Player

Beyond reducing your spending, keeping a majority of labor dollars local is a great Public Relations spotlight. You’re investing right back into your community, with the same folks who may even me your clientele.

Local workers on the job will spread the news of your soon-to-be branch. Families, friends, neighbors, word travels fast and when the general community realizes you’re hiring local Subcontractor businesses, it will only help solidify your standing as an organization truly dedicated to its people. Community members will take this to heart and it may even push them to consider opening an account with you.

Closer By, Quicker Response

If needed, local subcontractors can return quickly to your project site to resolve any issues or to coordinate and communicate with other Subcontractors since they’re right in the area nearby.

This would present obvious logistical problems if you were working with a sub from out of state or across the country.

For all our projects, we utilize only local Electrical, HVAC, and Plumbing Subcontractors specifically for this reason.

Imagine your branch’s heating system failing during mid-winter in Wisconsin…you’re going to want the familiar team within arm’s reach so that repairs can be made ASAP and operations can return to normal.

National + Local = A Win For Your Project

With the expansive reach, experience, and oversight delivered by a national General Contractor working in tandem with the local network of skilled, responsive Subcontractors, your project is set up to be completed with total success.