To effectively manage a project’s budget, a general contractor must do what?

To effectively manage a project’s budget, a general contractor must communicate changes effectively. This is crucial because maintaining transparency with all stakeholders, including clients, subcontractors, and suppliers, helps to ensure everyone is informed about the financial status of the project. When budget changes occur, it's important to discuss the reasons behind these adjustments and how they may impact the project's timeline, scope, and overall goals. Effective communication fosters trust and collaboration, allowing the contractor to find solutions or alternatives with stakeholders, potentially avoiding disputes or misunderstandings that could arise from undiscussed financial changes.

By ensuring open lines of communication, a contractor can quickly address concerns, gather feedback, and adjust project plans as necessary, which ultimately contributes to the successful management of the project’s budget.