What Does a General Contractor Do?
A general contractor is responsible for the day-to-day management of a construction project. This role includes managing the vendors and trades as well as communicating information to all parties. A general contractor has the following responsibilities: maintaining a quality construction site, communicating with stakeholders and ensuring that a project’s schedule is met.
The general contractor should be motivated to keep a project under budget. When the total cost of a project is less than the bid price, the general contractor benefits because it keeps the money as profit. On the other hand, if costs exceed the bid price, the contractor may have to ask the owner for additional funds or alter the scope of the project. In addition, cost overruns can be more common if the general contractor is not involved in the pre-construction phase.
General contractors also have a wealth of industry knowledge. They have established relationships with many subcontractors and builders and know where to find quality materials and reasonable prices for projects. They can also ensure that the project is completed on time and according to building codes. This is particularly useful for projects where a large crew is required.
The cost of hiring a general contractor depends on the type of project, size and location. For example, a new home will cost much more than a small kitchen remodel. A general contractor may charge a flat fee or a percentage of the total project cost. Most contractors charge between ten and twenty percent of the total cost. This fee includes the costs of permits, materials, labor and subcontractors.
The general contractor also manages the day-to-day operations of the project. He ensures that everything goes according to schedule, and that everyone honors their commitments. He also helps solve problems that arise during the construction process. Furthermore, he is responsible for managing cash flow, ensuring that the project is completed on time. He or she also writes the checks to the laborers and material suppliers.
General contractors must have adequate insurance coverage and bonding. Many states require general contractors to be licensed. They can also be required to carry workers’ compensation insurance. In addition, some government contracts require a surety bond. While this is not required in all states, it is a good idea to have this insurance coverage in case of an accident or injury on the job.
When it comes to coordinating a larger home remodeling project, a general contractor can be an invaluable resource. A general contractor enters a primary contract with the property owner, oversees the work of subcontractors, and communicates with all parties involved in the project. In addition, a general contractor is licensed by their state and must comply with building codes.
A general contractor should be highly skilled and knowledgeable about construction methods and materials. Many of them have a degree in construction management, building science, or civil engineering. The knowledge they possess is important because it allows them to properly read architectural plans and evaluate the project’s cost and timetable. Moreover, they should be able to recognize qualified subcontractors.