Essential Guide to Industrial Contracting

Industrial contracting plays a crucial role in complex environments where every project – whether it’s installing a press line or a complete manufacturing plant construction – demands technical precision, skilled project management and specialized expertise.

This is not just about construction alone. Successful industrial projects need the right blend of engineering, execution and deep operational knowledge to keep plants running smoothly even while new systems are installed or upgraded. But not every industrial contracting company offers the same level of capability or control.

This guide explores what industrial contracting entails, best practices for a smooth project and how choosing the right partner can ensure your next project is a success.

WHAT IS INDUSTRIAL CONTRACTING?

Industrial contracting refers to construction and engineering services performed in industrial environments like factories, manufacturing plants and distribution centers. These services are typically more complex than commercial contracting due to the scale, safety requirements and integration with critical systems.

Typical industrial contracting services might include:

Rigging and machinery moving
Foundation and structural concrete
Electrical and mechanical installations
HVAC and piping
Building press pits or raising facility roofs
Plant relocation and equipment reinstallation

These are complex tasks that involve much more than mere physical execution – they require strong planning and experience in how each system interacts with others. Industrial contracting services often take place in manufacturing environments with heavy machinery and must account for operational downtime, safety hazards and highly specialized equipment.

COMMON CHALLENGES IN
INDUSTRIAL CONTRACTING PROJECTS

Whether it’s a small upgrade or full manufacturing plant construction, industrial projects face unique challenges that can derail timelines and inflate costs – especially when a number of subcontractors are involved.

Subcontractor Issues

In traditional models, multiple subcontractors handle different trades. But this often leads to conflicting schedules, overlapping scopes and miscommunication. This lack of cohesion can cause project delays and cost overruns.

Communication Breakdowns

When many subcontractors are involved – whether engineers, construction teams, vendors, or project managers – communication can turn into a game of “she said, he said,” with miscommunications that lead to costly mistakes and delays.

Budget Overruns

Inadequate planning, change orders or scope creep can drive costs beyond original estimates. Without clear accountability, these overruns are hard to manage and can turn into a budget nightmare.

Scope Confusion

Projects can quickly go off track when responsibilities aren’t clearly defined. Overlapping roles between trades often result in delays and inefficiencies.

Infrastructure Constraints

Older facilities may not be designed to handle new equipment loads or layouts. Issues with floor load capacity, ceiling height or access can complicate installations.

HOW TO CHOOSE THE RIGHT
INDUSTRIAL CONTRACTING COMPANY

One of the most effective ways to avoid the pitfalls above is to work with a self-performing industrial contracting company with many years of experience. “Self-performing” means just one industrial contracting firm manages and performs the entire project, from planning and engineering to installation and commissioning.

The In-House Advantage

Companies like Lee Industrial Contracting self-perform across all trades, from engineering to fabrication to foundations and more. This model gives you better coordination, faster project timelines and improved quality control across every step.

One Point of Contact

With a single project manager overseeing all industrial contracting services, communication is much simpler. You avoid finger-pointing between subcontractors and gain a team that’s 100% aligned on schedule and scope.

Cost Control

By reducing markup costs from subs and rentals, in-house industrial contracting teams offer more predictable pricing. Owned equipment and trained personnel mean fewer surprises.

Faster Timelines

Self-performing contractors can coordinate schedules, shift resources and resolve issues faster than traditional general contractor-led models. This is especially critical in heavy industrial contracting, where production delays carry serious cost implications.

Questions to Ask an Industrial Contracting Company

Will all of the people working on the project be your direct employees?
Will you need to rent equipment for the job or do you own it?
Do you maintain a tools and supplies inventory large enough to complete this project?
Can you provide five company references and example projects that demonstrate you are a true self-performing contractor?
How many people from each trade will you be using on this project? Will you be sub-contracting out any of these trades?
Have you ever managed a project like mine? What were the outcomes?

COLLABORATION IS KEY TO PROJECT SUCCESS

The most successful industrial contracting and manufacturing facility construction projects are built on trust and transparency. That means close collaboration with your industrial contracting partner from pre-construction to project completion. Here are some key tips for collaboration.

Involve Teams Early

Even when project plans are fixed at the bidding stage, every industrial contracting company has unique processes. Bringing your contractor in early helps proactively identify and prevent problems that could impact project execution.

Set Well-defined Goals

Two people looking at the same plans can have different visions of how to implement. Holding regular team meetings from the start ensures everyone is on the same page with the same vision. Define clear goals that outline what constitutes success both for the overall project and individual teams.

Monitor and Control

Effective monitoring helps identify problems so you can make adjustments while executing industrial contracting services. When changes occur, update the project plan and communicate the changes to all teams. Digital construction tools, such as Building Information Modeling (BIM) software, provide detailed project monitoring and makes information accessible to all stakeholders in real time.

Communicate Clearly and Often

Regular, clear communication about project progress is crucial, especially when changes occur. Similar to how a spreadsheet updates all affected cells when one value changes, your teams need to be aware so every member can adjust accordingly.

TIPS ON CREATIVE PROBLEM-SOLVING

Experienced industrial contractors like Lee Contracting have faced countless complex challenges that require creative problem-solving. Customers often have an end result in mind, but aren't always certain how to achieve it. That’s where our expert team excels.

Common Customer Challenges

Customers often request specific outcomes without understanding the necessary steps. A real-life example is when one of our customers thought they needed a 12-foot equipment foundation, but after our evaluation, we determined an 8-foot foundation would suffice, saving significantly on costs.

Problem-Solving Approaches

When tackling new problems, start with a thorough assessment of the end goal, then work backward to determine the best path. Evaluate the facility’s infrastructure, including facets like power availability, cooling systems, ceiling height and drainage, which may impact the project outcome.

In-House Advantages to Problem Solving

Comprehensive in-house expertise across multiple trades offers advantages in creative problem-solving and execution.

For example, a leading environmental services provider approached us to build and install large, hazardous vault tanks in the ground. Their last rebuild took 24 weeks, but our team members from every trade collaborated to find a more efficient plan. Through our in-house industrial contracting services, we condensed fabrication time from 24 weeks to just three weeks, building the tanks at our facility and transporting them to the customer’s plant.

Effective Problem-Solving Strategies

When addressing difficult industrial contracting challenges, our experts recommend you keep these tips in mind:

Know your resources and identify team experts.
Utilize historical data from similar projects to provide insights on the current project.
Build strong customer relationships through transparency and collaboration.

VALUE ENGINEERING FOR BETTER PROJECT OUTCOMES

Value engineering is a process used to optimize function while reducing cost. Within industrial contracting services, that might mean using a more efficient construction method, substituting materials or finding a faster installation path – all without sacrificing safety or quality.

Lee Industrial Contracting builds value engineering into every phase of the project lifecycle. When clients bring us in early, we can suggest alternatives that deliver the same or better results at a lower cost.

For example, our customer hired us to do a complete demolition to fit a piece of equipment, but our value engineering assessment helped us shift plans to a partial roof raise to create necessary machine space while allowing continued operations and condensing the timeline.

By treating value engineering as a mindset, and not just a step, we help plant managers control costs, reduce timelines and make smarter long-term investments.

SCOPING YOUR INDUSTRIAL CONTRACTING PROJECT

When planning manufacturing plant construction or any industrial contracting project, developing a well-defined scope is key. A detailed project scope helps prevent costly misunderstandings and delays by aligning expectations between your team and the industrial contracting company.

Project Objectives

Begin with an overview of primary objectives. A concise, high-level overview keeps everyone focused on the project goal and provides a reference point for decisions made during execution.

Expectations and Deliverables

Be sure to list specific deliverables along with particular expectations for the project. Detail each phase or component to ensure your industrial contracting services provider understands exactly what should be delivered. Clearly defined deliverables reduce confusion about responsibilities and help prevent scope creep.

Standards and Requirements

Your scope should also include criteria that the contractor must meet, such as industry certifications, compliance standards or material requirements. Making these requirements clear from the beginning ensures the final result meets your standards and helps avoid costly rework.

Timeline and Milestones

Establish a realistic timeline to keep your project on track. Breaking down the timeline into phases with delivery targets allows everyone to monitor progress. If you’re uncertain about milestones, your industrial contracting partner should be able to create a detailed schedule – just be sure to give them a project completion deadline to work from.

Budget and Payment Terms

In your scope, outline the budget and payment terms clearly. Transparency about finances gives the contractor a basis for accurate budgeting, helping to avoid disputes and ensure alignment on financial details.

CURRENT TRENDS IN INDUSTRIAL CONTRACTING

The industrial contracting sector is constantly evolving with new trends affecting approaches to construction, maintenance and facility upgrades. Here are a few to look out for:

Automation and Robotics

Automation and robotics are seeing increasing adoption in manufacturing plant construction and operations. Innovations like automated guided vehicles (AGVs) transform material handling without human drivers, while advanced automation equipment handles tasks like welding and inspections. This shift allows workers to focus on complex tasks, increases safety and accelerates timelines.

Upskilling Labor

The persistent labor shortage in heavy industrial contracting is prompting companies to upskill their current workforce rather than just seek new talent. Many industrial contracting companies now offer specialized training programs to close skill gaps, particularly in technology-driven roles. Apprenticeships and skill-building initiatives help attract and develop necessary talent.

Data-Driven
Decision Making

Advanced data analytics applications enable more accurate cost estimates, real-time adjustments and proactive risk assessments in industrial contracting. These capabilities reduce delays while improving budgeting, resource allocation and scheduling.

Modular and Offsite Construction

Offsite construction methods are gaining popularity as manufacturers and industrial contracting companies seek faster, less disruptive solutions. Modular approaches, such as constructing building components offsite for onsite assembly, offer greater quality control and resource efficiency, especially for space-limited sites.

SUMMING IT UP

Navigating the world of industrial contracting requires careful planning, strategic partner selection and staying on top of industry trends. Whether you’re undertaking manufacturing plant construction, implementing heavy industrial contracting projects or managing commercial contracting work, the principles outlined in this guide give you a framework for success.

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