The term general contractor generally applies to the lead construction business working on a particular project. The general contractor may hire sub-contractors or other workers to assist in completing the project.
In some cases, contractors are employees of developers or owners, but usually they own their own independent contracting firms.
General contractors will submit bids or quotes for publicly-offered projects. Government agencies and large businesses will often release requests for proposals on such projects. In such cases, the general contractor must study the request and all its specifications to ascertain costs and time requirements.
The idea is to offer the lowest bid, which is usually awarded the contract. However, other factors like contractor reliability and quality of work can also influence the final decision on who wins the contract.
Most general contractors will not handle all the types of work required by the project and will instead hire subcontractors for these tasks. For example, a general contractor may hire a subcontractor to install all the wiring in an office building.
General contractors in the United States must be licensed in the states that they perform work. Requirements for licensing differ according to state law and will vary depending on the types of work performed by the general contractor. The National Association of State Contractor Licensing Agencies (NASCLA) Association provides information on state-specific general contractor licensing requirements.
While general contractors usually own or rent the equipment used for the project, they will contract with other companies for lumber, dry wall and other building materials. The general contractor is usually responsible for assuring that all building and safety codes are adhered to, and for obtaining all required permits and licenses needed for the project.
General contractors may choose to acquire voluntary certification from organizations like the American Institute of Constructors and the Construction Management Association of America.
Many general contracting businesses today are run by people with undergraduate or graduate university degrees in engineering, construction management or related fields. In other cases, contractors started off as apprentices in the industry and gradually worked their way up the ladder.
Choosing A General Contractor
Finding the right general contractor for a project consists of finding both the right qualifications and pricing for a particular job.
An ideal way to find the right general contractor is through word-of-mouth. Personal recommendations from people you trust are the most dependable source of information for most types of projects. Of course, you should make sure that work involved in the recommendation is similar to your own project.
You can also contact local home improvement stores, building supply companies, and similar businesses for recommendations. Searching online or in the telephone directory are options to use when you do not have a recommendation for your project.
Make sure to double-check to assure the contractor has all the licenses and certification required or desired for the work involved. General contractors should also be insured for personal liability, worker’s compensation and property damage.
Ask the contractor for information on their qualifications and experience to include the education, training and experience of key people in the company. Also, ask for references from jobs they have completed in the past and try to obtain as much information from these references as possible. Ask about payment arrangements, quality of work, ability of the contractor to meet cost and time projections, and anything else that might concern you.
Why Hire a General Contractor
In some instances, individuals or groups may attempt to act in the position of a general contractor themselves by hiring subcontractors for each phase of their building project.
A general contractor, though, usually gets special rates from subcontractors who they work with all the time. They also have expert knowledge on the subcontractor’s dependability and quality. Maneuvering through the permit and liability process can be a tricky business for someone without proper experience.
Since a general contractor is a professional in all these areas, there are obvious benefits to hiring them for these tasks.
