The Responsibilities of a General Contractor

General Contractor

A General Contractor is the person who oversees the construction project. He or she manages the various trades and vendors on the construction site and communicates with all parties. The main job of the General Contractor is to oversee the construction project from start to finish. Some of the main responsibilities of a General Contractor are:

Job description

A general contractor manages construction projects for businesses and individuals. Their job involves overseeing the project, working with vendors and subcontractors to complete it on time and within budget. They also manage resources and personnel and are expected to visit job sites to check on progress. This position requires experience in construction project management and excellent communication skills.

A general contractor’s job description may vary from project to project. Their responsibilities may include setting timelines, managing subcontractors and employees, purchasing construction materials, and meeting deadlines. They must also obtain necessary construction permits and ensure that all construction is up to code.

Costs

General contractors incur multiple expenses. These expenses include the salaries of office staff, office rent, office supplies, equipment, and sales and marketing expenses. In addition, they incur overhead and profit expenses. These costs are usually ten percent of the scope of the project. Most insurance providers will pay these expenses if the project scope entails the use of at least three separate trade entities. They also incur costs associated with site security and inspections.

Profits of a general contractor are usually calculated as the difference between the cost of goods or services and their price. In the construction industry, profit is typically calculated as a percentage of the cost of the work, with a standard profit level of 20%. Property insurers will usually cover these costs, but rarely go beyond the actual cash value of the property at the time of loss.

Working relationship with subcontractors

When working as a general contractor, it is important to build a good relationship with subcontractors. Subcontractors are experts in their specific field and have specialized tools and training. As a general contractor, you need to know the overall scope of the project and make sure that the work is done to the highest standards.

Building a strong relationship with subcontractors will increase your chances of repeat business. To do this, ensure that the contracts you create clearly define their roles and responsibilities. You should also include any references you might have that can speak to the quality of the work they provided on similar projects. In addition, make sure that the subcontractor has the necessary documentation, such as licensing, certifications, or special training. You should also make sure that they can handle union payroll if required.

Payment plan

Payment terms are a major factor in the successful completion of a construction project. The payment terms must be clear and agreed upon between the owner and the GC. In some cases, payment terms are based on the percentage of the project completed. This method can be problematic as determining the percentage of completed work can be challenging. However, it is a good way to ensure that the general contractor stays on track.

A payment plan allows both parties to plan ahead and manage the cash flow of the project. Contractors usually submit an application for payment on a monthly basis, including a breakdown of the building trades, the amount completed to date, the amount that is withheld as retainage, and the amount that is due. This application should be approved by both the architect and the project manager.

Liability issues

General contractors can be held liable for the actions of subcontractors they hire. While this may not seem like a big deal, the actions of subcontractors can result in litigation if the general contractor’s workmanship is deemed negligent. For example, if a roof collapses because a subcontractor fails to properly indicate underground gas lines, the general contractor can be held liable for the collapse.

General contractors must also keep their workers’ compensation insurance current. This will protect them from medical bills caused by work-related injuries. Additionally, they must ensure that all subcontractors have adequate insurance coverage. Before the job begins, they should review all contracts thoroughly.

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