If you are in the market for building or remodeling your home, you probably heard of the term “general contractor.” However, not many people know what general contractors do or how they can help them with construction management.
What Do General Contractors Do?
The best way to describe a general constructor is as an expert in the field of home improvement. These professionals can work to conceptualize your construction, hiring other people or companies from the construction industry (subcontractors) to finish different parts of the job.
General contractors handle construction projects on their own, and often run their own business. They know how to handle every part and oversee the entire project from fruition to completion. Some of the things they do in their job include:
- Managing the construction/remodeling schedule
- Organizing and managing the job site
- Working with subcontractors and making sure all parties get paid
- Contracting suppliers and vendors
- Providing field management and labor
- Licensing or renting equipment
- Assisting with cleanup, following safety procedures, and demolition
A general contractor knows everything about building codes, licensing requirements and other details such as insurance expenses, worker’s compensation, labor, office space, etc.
They are the main individuals responsible for any potential violations, too. This is why it is important to have a licensed, bonded, and insured general contractor that carries worker’s compensation and can relieve you from any liabilities for injuries sustained on your property.
Most of the time, general contractors work for both residential and commercial construction projects. However, finding a GC that specializes in either of the above-mentioned is the best-case scenario.
Are There Any License Requirements & Qualifications For General Contractors?
There are no federal license requirements for individuals working as a general contractor in the United States. However, most states require that they are licensed locally. Similarly, most states require that contractors should be licensed work on projects such as plumbing, HVAC, electrical or other areas.
In the near future, every state is expected to have its own key requirements, which is why people interested in becoming general contractors should search for the needed requirements.
How Does A General Contractor Get Paid?
A general contractor is often known as the direct contractor, which is very important when it comes to getting paid.
In other words, “direct” here means that they are directly paid by the owner of the property. For example, if your construction company is working on a project or job and you were hired by the property owner, that makes you a direct contractor.
However, not every direct contractor sees themselves as “general” contractors.
Another thing worth pointing is that on public projects, a contractor is responsible for providing the payment bond for the project. Since they are doing this, they are not able to file a bond claim against the same bond provided, which is why general contractors are somehow not the right type when there are payment issues on a public project.
General Contractor Vs. Subcontractor
Now, let’s talk about the difference between a general contractor and a (paid) subcontractor.
As we said above, general contractors hire subcontractors and oversee the entire project. They take drawings of the plans, plan things and wait for your approval. Once you have the approval, a general contractor would hire subcontractors to complete a specific part of the project.
Subcontractors are mostly specialized in specific parts of the process and work with different materials. Plumbing, drywall, flooring, HVAC, painting, and carpentry professionals are some of the common types. They can also work for a company or be self-employed individuals.
The good thing is that subcontractors only work with the general contractor. These parties are hired, supervised, and paid by the contractor, too. The construction industry is full of general contractors who have close ties with and hire specific sub-contractors so they can have access to the right expertise for any project size – this is how most of them build their business, too.
General Contractor Vs. Construction Manager
The term “construction manager” may also confuse people who are searching for professionals for building or remodeling their properties. While a general contractor may be the best person to call for the onsite supervision of your project and the subcontractors working on it, a construction manager is a more collaborative partner that can work with you as the owner of your project.
Construction managers often have the same roles as general contractors, but have an expanded set of responsibilities and a different financial structure. While a general contractor mainly manages budgets, subcontracting companies and suppliers, the manager is responsible for the same services while being in the project from its starting phase. This means that construction managers are often there from the initial phases of the projects, right from the design stage, to ensure that the financial structures and project goals are realistic and doable.
Lastly, these professionals often work more closely with the owner and are somehow part of the owner’s team, especially if the owner wants a more collaborative partnership and would rather pay a flat fee for their services.
When Do You Need General Contractors
General contractors are great if you are in the starting phase of your construction or remodeling project and want to search for someone to help you with the entire project, from A to Z. Hiring a contractor on your site will relieve you from any stress and pair you with someone who has experience in the construction industry.
If we take a kitchen remodel as an example, a general contractor can help you with every phase. From knocking down the walls to swapping your range for a new kitchen island, adding a new sink, warming drawer and new wine refrigerator, they can work with plumbers, electricians, drywall, carpenters, painters and other subcontractors to assure everyone has the necessary materials and equipment in each stage of the project.
From licensing requirements to building codes, it might be a cost-effective decision where you can rely on the general contractor’s ability to manage all the day-to-day operations, not to mention finding the right subcontractors, obtaining the needed license and being the project general when it comes to their management.
Hiring A General Contractor For Your Construction Project? Read This…
If you decided to go with a general contractor for your next project, you should understand the contractor’s bid, fees, licensing, materials, and other details.
For starters, you should look for professional general contractors that have completed projects like yours. Ask for examples of their work and ask them if you can speak to their previous customers. Make sure that the general contractor you’ve hired is licensed, bonded, and insured (check with the Better Business Bureau to see if there are any complaints).
Next, you should understand project costs. Some general contractors charge the cost of materials and labor with an additional 15% to 20%, while others bid with a flat fee. Determine your budget and see what is the most flexible option for you. Predicting the final total is typically difficult, which is why a flat-fee bid is better if you have a specific budget in mind.
Make sure that your contract states that every detail is covered, especially if anything goes wrong and you decide to seek legal action. The contract should state the project schedule, materials and costs, the names of the subcontractors they hired and how work changes will be handled. Also, keep all records of payments and receipts and take photos to document the progress.
Final Words
We hope this guide helped your search for a general contractor. If you are looking to hire a contractor or company for your complete remodeling or new construction project, you should always look for a specialized professional with many completed jobs and a transparent price that matches your budget.
In the end, hiring a contractor comes at a certain cost for owners, but is also a stress-free decision that can help you manage your entire project in an easier way. If you are collaborating with an architect to pull permits, you might save some money, but the absence of an architect would require the contractor to charge you for details like that as well.
Its cool when you said that both residential and commercial construction projects are handled by general contractors. My uncle works in a factory and he wants to hire a steel contractor to help him improve the quality of the metals. Thanks for helping me learn more about construction general contractors and I will show this article to my uncle so that he can find a good service for himself.
Hi there! When you revealed that most general contractors are really helpful even when it comes to small-scale projects such as home remodeling because they have immense knowledge about so many technical stuff, it totally opened my mind. Lately, my husband seems interested to renovate our basement and turn it into a mini bedroom for our guests. Very well then, I’ll make sure he reaches out to the right individual so the project can be completed properly and safely.
Hey there! My sister and her husband have decided to renovate their house entirely this spring since they’re going to have twins next year. Going through this article makes me realize that general contractors are able to determine the best layout for all of our utility systems too. Fine, I’ll be forwarding this info to them so they could make the perfect decision on which company to hire later.
The fact that you mentioned that most general contractors are very helpful, even for small-scale projects like home remodeling, because they have a wealth of technical knowledge, really opened my eyes. Recently, my husband has expressed interest in remodeling our basement to serve as a guest bedroom. Okay, I’ll see to it that he contacts the appropriate person so that the project can be finished correctly and safely.