What Is a General Contractor?
General contractor (GC) is a term used to describe a person or organization that performs construction work for other people, usually on a large scale. They may work with architects and engineers to design a building, and they also manage the construction process and oversee the materials, labor, and equipment needed for the project.
A GC has to make sure that their client has the materials they need on time, that they have all the right permits, and that the construction work is done safely. They need to coordinate with subcontractors, vendors, and anyone else involved in the construction process to ensure everything goes smoothly.
They also have to make sure that their clients are getting the highest quality of work possible. This means that they need to know how to evaluate their own work and be honest about what can and cannot be accomplished on a budget.
The best general contractors are realists who work closely with their clients to create a realistic scope of the project and stick to budgets and timelines. They also have an eye for detail and can respond quickly to changes.
Cost: The price of a construction job depends on the type of work being done and the amount of labor required for the project. General contractors can charge a flat fee for their services or a percentage of the total project costs. They can also add a markup to the material and labor costs they charge.
Qualifications:
A high school diploma is generally the minimum educational requirement to become a general contractor. In some countries, a college degree is necessary. These degrees can be in civil engineering, architecture, or other areas of construction management.
License:
Every state and country has its own set of licensing requirements for general contractors, which can vary significantly. Most general contractors have to get a professional license and sign a surety bond before they can perform any construction work in their area.
Insurance:
The liability and workers’ compensation coverage for a general contractor depends on their size, the types of projects they work on, and the amount of risk that the business faces. The smallest business would typically need $1,000,000 of liability coverage and $2,000,000 of workers’ compensation coverage, while the largest company could have $20,000,000 of liability coverage and $10,000,000 of workers’ compensation coverage.
Property:
The exposure to property risks for a general contractor can vary widely depending on the location and the size of the operation. Typically, the larger the operations, the greater the potential for damage to property.
Exposures can include property loss, damage to equipment, or personal injury claims due to accidents on the jobsite. These risks can be minimized by ensuring that the general contractor has the proper insurance policies in place.
Safety:
The most important responsibility for a general contractor is to make sure that the construction site remains as safe as possible at all times. This includes making sure that everyone who visits the site is aware of safety precautions and following them.