How a project is structured for bidding significantly impacts contractor strategy and risk. Multi-prime delivery and general contractor approaches represent fundamentally different models with distinct implications for those seeking work. Understanding these differences helps you bid more effectively.
Understanding the Models
General Contractor (Single Prime)
Structure
- Owner contracts with one general contractor
- GC manages all construction
- Subcontractors contract with GC
- Single point of accountability
Typical Flow
Owner → General Contractor → Subcontractors
Multi-Prime (Separate Primes)
Structure
- Owner contracts directly with multiple contractors
- Each prime responsible for defined scope
- Construction manager often coordinates
- Owner holds multiple contracts
Typical Flow
Owner → Prime Contractor A (General)
→ Prime Contractor B (Mechanical)
→ Prime Contractor C (Electrical)
→ Prime Contractor D (Plumbing)
Why Owners Choose Multi-Prime
Cost Considerations
Perceived Savings
- Eliminates GC markup on subcontract work
- Competitive bidding on each prime package
- Direct access to trade contractor pricing
- Reduced intermediary costs
Reality Check
- Coordination costs often offset savings
- Owner assumes more risk
- Change order complexity increases
- Administrative burden significant
Market Conditions
When Multi-Prime Common
- Public sector requirements (some states)
- Institutional owners with CM capability
- Markets with limited GC capacity
- Owner preference for direct relationships
Pennsylvania Example
- Separations Act requires four primes
- General, HVAC, Electrical, Plumbing
- Long history with this approach
- Specific coordination challenges
Implications for Contractors
For General Contractors
Under Single Prime
- Full project control
- Subcontractor selection authority
- Schedule management responsibility
- Single point of owner contact
Under Multi-Prime
- Reduced scope (building trades only)
- Coordination with other primes required
- Less control over schedule
- Multiple prime interface management
For Specialty Contractors
As Subcontractor (Single Prime)
- Contract with GC
- GC coordinates with other trades
- GC handles owner relationship
- Payment through GC
As Prime Contractor (Multi-Prime)
- Contract directly with owner
- Coordinate directly with other primes
- Direct owner relationship
- Direct payment from owner
Bidding Under Multi-Prime
Understanding Your Package
Scope Definition
- Clear package boundaries
- Interface responsibilities
- Coordination requirements
- Exclusions and inclusions
Typical Prime Packages
- General (structural, finishes, sitework)
- HVAC/Mechanical
- Electrical
- Plumbing
- Fire protection (sometimes separate)
Coordination Considerations
Who Coordinates?
- Construction manager (if engaged)
- Lead prime (sometimes designated)
- Each prime responsible for their work
- Owner ultimately responsible
Cost Implications
- Coordination meetings
- Schedule constraints from others
- Potential delays
- Interface detailing
Pricing Strategy
Include in Your Bid
- Your scope of work
- Coordination attendance
- Interface work defined
- Contingency for coordination issues
Watch Out For
- Gaps between packages
- Duplicate work areas
- Unclear responsibilities
- Schedule dependencies on others
Multi-Prime Challenges
Coordination Problems
Common Issues
- Schedule conflicts between primes
- Work area conflicts
- Sequencing disagreements
- Resource competition
Who Bears the Cost?
- Each prime responsible for their work
- Coordination gaps can fall to owner
- Claims potential is higher
- Documentation critical
Schedule Control
Limited Authority
- Can't direct other primes
- Must work within master schedule
- Delays by others affect you
- Recovery options limited
Protection Strategies
- Document dependencies
- Track other primes' progress
- Notice requirements for delays
- Change order awareness
Payment Issues
Direct from Owner
- Positive: No GC intermediary
- Challenge: Owner approval processes
- Risk: Owner financial issues affect all primes
- Benefit: Full payment without GC holdback
Succeeding as a Prime Contractor
Embrace the Relationship
Owner Direct Contact
- Professional communication essential
- Problem-solving approach
- Responsive to concerns
- Relationship building opportunity
Other Prime Relationships
- Collaborative approach benefits all
- Coordinate proactively
- Share information
- Address conflicts professionally
Documentation Discipline
What to Document
- All coordination meetings
- Commitments by other primes
- Schedule impacts from others
- Interface resolutions
Why It Matters
- Claims substantiation
- Change order support
- Dispute resolution
- Professional practice
Project Management
Increased Responsibility
- Self-management required
- Schedule coordination essential
- Quality self-inspection
- Direct accountability
Resources Needed
- Project management capability
- Administrative support
- Documentation systems
- Owner communication skills
Subcontractor Considerations
Under Multi-Prime System
As a Sub to a Prime
- Similar to GC relationship
- Prime responsible for coordination
- Payment through prime
- Contract with prime
Pricing Considerations
- Prime may be more cost-sensitive
- Reduced markup potential
- Direct competition with other subs
- Relationship building important
Making the Transition
Subcontractor to Prime
Requirements to Succeed
- Bonding capacity
- Project management capability
- Administrative infrastructure
- Owner relationship skills
Building Capability
- Start with smaller prime packages
- Build management experience
- Develop systems gradually
- Learn coordination requirements
GC Adapting to Multi-Prime
Scope Adjustment
- Smaller packages than full project
- Focus on general construction scope
- Different competitive landscape
- Coordination vs. control
Which Is Better?
From Contractor Perspective
Advantages of Single Prime (for GCs)
- Greater control
- Single relationship management
- Subcontractor leverage
- Schedule authority
Advantages of Multi-Prime (for specialty contractors)
- Direct owner relationship
- Higher potential margins
- Resume as prime contractor
- Payment security
From Owner Perspective
Single Prime Benefits
- Single point accountability
- Simpler administration
- Clear responsibility
- Experienced coordination
Multi-Prime Benefits
- Trade contractor pricing access
- Direct relationships
- Competitive bidding per trade
- Market flexibility
Regional and Sector Variations
Where Multi-Prime Common
Geographic
- Pennsylvania (required by law)
- Some other northeastern states
- Varies by jurisdiction
Sector
- Public K-12 (some states)
- Higher education (some)
- Government buildings
- Healthcare (sometimes)
Market Trends
Evolution
- CM-at-risk reducing multi-prime use
- Design-build growth
- Efficiency pressures
- Coordination complexity recognition
Conclusion
Multi-prime and single-prime delivery represent different approaches with distinct implications for contractors. Neither is inherently better—each has appropriate applications and requires adapted strategies.
For specialty contractors, multi-prime offers opportunity to build prime contractor experience and direct owner relationships. For general contractors, multi-prime means adjusted scope and coordination requirements.
Success under either system requires understanding the model, adapting your approach, and executing professionally. The contractors who can work effectively under various delivery methods have more opportunities than those limited to one approach.
ConstructionBids.ai shows project delivery method information when available, helping you identify multi-prime opportunities where you can bid as a prime contractor.
