The Benefits of Hiring a General Contractor
A general contractor is the person in charge of the construction site on a project. This person manages the day-to-day operations of the site, coordinates vendors and trades, and communicates information between all parties involved in a project. Often, a general contractor is also referred to as the prime contractor.
A general contractor is the main entity responsible for overseeing a construction project, and typically employs its own employees, as well as those of subcontractors. Generally, 80-90% of the work is performed by subcontractors under the general contractor’s supervision. They also act as a liaison between the project owner and the subcontractors.
Before submitting an estimate to a client, the contractor should visit the worksite to inspect the project and discuss the scope of work. They should also speak with reliable subcontractors and discuss pricing before coming up with a final estimate. The contractor should also consult a general contractor pricing guide to determine the estimated costs. These guides usually contain information about the costs of common materials and subcontractors’ labor rates.
Hiring a general contractor can reduce the amount of stress that you experience during the construction process. By relying on an experienced professional, you’ll ensure the project is completed in a timely manner and according to codes and regulations. This is especially important if you are unfamiliar with construction management. A general contractor has the experience and resources to manage a complex project.
A general contractor’s fee is based on his or her markup of the total construction costs. This fee is generally ten to twenty percent of the total project cost, but big companies may charge up to 25 percent of the total cost. It’s always wise to check whether your state’s licensing requirements require a down payment before hiring a general contractor.
General contractors must be licensed in order to practice their profession. Some states, such as California, have strict penalties for contractors who aren’t licensed. In addition to having a license, a general contractor should be bonded in order to perform certain jobs. Some government contracts, such as those involving large amounts of money, require a surety bond.
Another benefit of hiring a general contractor is that they handle all aspects of a project. This means you don’t have to contact numerous subcontractors on a daily basis. Additionally, a general contractor has liability insurance, which means you won’t have to worry about unforeseen issues. A general contractor will also have a larger network of trusted partners and subcontractors. These relationships help the general contractor manage the work and keep multiple parties on schedule.
While getting a general contractor’s license is not a complicated process, it does require a thorough background investigation. Applicants must be at least 18 years old, read and write English, and have a good moral standing. Once approved, the applicant will be notified of a second appointment with a licensing specialist. During this meeting, he or she will submit a General Contractor Registration Form.