What You Should Know About a General Contractor
The general contractor, also known as the prime contractor or main contractor, is responsible for the day-to-day oversight of the construction site, overseeing all trades and vendors, and communicating project details to all parties. Here’s what you should know about this type of contractor. In addition to being responsible for the overall look and feel of a project, a general contractor should be able to offer the best value for your money.
The process starts with the contractor submitting a proposal, which outlines the details of the project. Whether you’re planning a house renovation or building a new office building, a general contractor will take into account all the factors and costs that will impact the final cost. This includes the cost of materials, equipment, labor, and insurance.
In addition to directing the project and providing estimates, a general contractor will file building permits, secure the site, and oversee the work of other subcontractors. They also oversee cash flow and write checks to material and labor suppliers. A general contractor also maintains accurate records and keeps close track of finances and schedules.
While hiring a general contractor, it is important to check their qualifications and check references. Make sure that they have insurance coverage and are licensed in your state. Some states also require general contractors to carry proof of liability insurance and a tax ID number. In addition, they must have a business address in the state in which they operate.
Payment terms: When it comes to payments, most GCs outline a payment schedule based on the scope of work. Some of them will ask for a down payment to start the work, and the rest will be due upon delivery. Others will ask for multiple payments, and the final payment is due when all work is complete.
While a general contractor may have similar responsibilities to a construction manager, the two positions are fundamentally different. The main difference lies in the type of relationship between the two parties and the structure of the contract. In general, a general contractor is paid by the property owner. In a construction project, the construction manager manages the construction team and delegates tasks to its team.
Before a general contractor can perform any construction work, he or she must be licensed in the state where he or she will be operating. Licensed contractors should have at least four years of experience. They should also be insured with workers’ compensation and general liability insurance. A general contractor may also be required to obtain a surety bond if a particular job requires it.
Hiring a general contractor will help make your project run smoothly. These professionals will work closely with subcontractors and vendors to ensure quality control and keep your project on schedule. Additionally, they will supervise all subcontractors and other labor and ensure that all materials are ready when they are needed. When there is a delay, they will adjust the schedule and communicate with all parties involved.