Contractor is a word that is used in a variety of sectors. Contractors may work for a variety of businesses, ranging from Fortune 500 corporations to tiny startups and mom-and-pop shops.
The word “contractor” may refer to a person (the phrase “independent contractor” is frequently used), or it can refer to an entire business that works on a contract basis.
However, below will define the term “general contractor” as it applies to the building business.
What is a General Contractor?
A general contractor (GC), main contractor, or prime contractor is in charge of overseeing a construction site on a daily basis, managing suppliers and trades, and communicating information to all parties (property owners and third-party contractors) involved during the duration of a building project.
In other words, if a construction business is working on a project or task and is working directly by the property owner, they are the direct or prime contractor.
A general contractor will always be a direct contractor. However, not all direct contractors consider themselves to be general contractors.
Let’s use roofers as an example to demonstrate this concept. When an existing roof needs to be repaired or replaced, the property owner may hire a roofing business directly to perform the job. That roofer would be the direct (general) contractor in this instance.
If, on the other hand, the project involves new home construction and the roofer is hired by the general contractor supervising the project, the roofer is most likely a subcontractor.
How Much Do General Contractors Charge?
According to HomeAdvisor, general contractors usually charge 10 to 20 percent of the entire cost of a building project, commonly known as “cost plus.” For bigger projects, they may charge closer to 25 percent for their services. GCs do not charge by the hour.
The fees are based on a markup on supplies, subcontractor labor, and the overall project cost. The GC bundles their charge with all services at a single total price. They pay for services, subcontractors, and supplies on their client’s behalf.
Commercial general contractor costs may be greater than those for residential construction due to overhead considerations like insurance, permits, labor, and equipment. However, if these variables do not have a major effect on your GC’s overhead or if your project is not competing with other projects at the time, they may be closer to residential GC fees.
Should I Hire a GC or Go About My Construction Project Alone?
If you are a do-it-yourselfer, you may not believe that a home general contractor can bring value to your project. That is undoubtedly true for certain kinds of jobs, but for others, a competent contractor is essential.
Almost every element of a major home repair or remodeling project should be overseen and coordinated by a residential contractor.
They employ other experts whose talents are required, such as plumbers and electricians, as well as painters and flooring installers.
Whatever trade or professional services are needed, the general contractor will arrange the subcontractors in the most efficient sequence.
Certified contractors will also have appropriate license, worker’s compensation, and insurance, implying that they accept responsibility for any property damage or injuries that may occur.
The less apparent, but essential, value they offer to your work is project management experience, as well as understanding of the appropriate construction techniques, local building regulations, and industry standards that apply to your specific project.
3 Important Questions to Ask Your Contractor
1. How long will the project take to complete?
Consider hiring a general contractor if you believe the job will take longer than a couple of weeks. The contractor can keep things going smoothly and on time by knowing how much time any subcontractors will need.
2. What impact will local building codes have on the project?
Certain projects may be required by law to be completed by certified experts who must acquire a permit – one in which non-professionals cannot obtain. If you decide to undertake such a job on your own, you may be subject to fines and additional construction expenses.
3. How many subcontractors are required?
You may be able to supervise the work of a small bathroom remodel, but if your project is a complete kitchen overhaul, this necessitates the services of several tradesmen. Therefore, hiring a general contractor may save you time, hassles, and perhaps even money.
