A general contractor is a professional or firm responsible for overseeing and managing a construction project from its inception to completion. This role is central to the broader field of project management within the construction industry. A general contractor coordinates all aspects of the build, including hiring and managing subcontractors, procuring materials, and ensuring adherence to schedules and budgets. They act as the primary point of contact between the project owner and the various trades and suppliers involved in the construction.
History and Origin
The role of the general contractor, as it is largely understood today, began to solidify in the United States during the 1870s. Prior to this, especially for larger or more complex buildings, a project owner would typically enter into multiple individual contracts, one for each specific trade involved, such as masonry, carpentry, or plumbing. Architects would often be tasked with coordinating these various tradesmen and resolving issues that arose, a process that could be cumbersome and inefficient.15, 16
The emergence of the general contractor marked a significant shift towards a more centralized system. Early general contractors started taking on "whole contracts" for an entire building or the bulk of a large project, relieving architects of many on-site responsibilities and allowing them to focus more on design.13, 14 In Great Britain, the concept of a "contractor" for public works like lighthouses and bridges emerged earlier in the 18th century, with the term later extending to builders taking on entire construction projects by the early 19th century.11, 12 This evolution reflected an increasing need for specialized management as construction projects grew in scale and complexity.
Key Takeaways
- A general contractor is the primary party responsible for the overall coordination and execution of a construction project.
- They manage resources, schedule work, oversee subcontractors, and ensure project quality and safety.
- General contractors typically operate under a single contract with the project owner, taking on financial and logistical responsibility for the entire build.
- Their responsibilities span from pre-construction activities like cost estimation and permit acquisition to on-site management and post-construction closeout.
- Licensing requirements for general contractors vary significantly by state and locality, often requiring proven experience, exams, and financial stability.
Interpreting the General Contractor
The effectiveness of a general contractor is typically measured by their ability to deliver a construction project on time, within budget, and to the specified quality standards. For a project owner, a competent general contractor translates to reduced stress, efficient problem-solving, and a higher likelihood of a successful outcome. Their interpretation involves assessing bids for competitiveness, reviewing their track record with past projects, and evaluating their expertise in the specific type of construction being undertaken, whether it's residential construction or commercial construction.
Beyond financial metrics, a general contractor's communication skills and ability to manage complex relationships between various stakeholders—including architects, engineers, and subcontractors—are crucial. Their capacity for effective risk management also informs their reliability and the ultimate interpretation of their performance on a project.
Hypothetical Example
Imagine a homeowner, Sarah, decides to build a new custom home. After finalizing her architectural plans, she solicits bids for the construction. Three different general contractors submit proposals. Sarah reviews each bid, considering not only the total estimated cost but also the proposed timeline, the contractors' experience with similar homes, and their references.
She chooses "Apex Builders," a general contractor known for their strong reputation and detailed proposals. Apex Builders, as the general contractor, then takes over the coordination. They hire specialized subcontractors for the foundation, framing, plumbing, electrical work, and roofing. They order all the necessary materials, schedule deliveries, and ensure that each subcontractor arrives on site as planned. Apex Builders also handles obtaining all required building codes and permits, conducts regular site inspections to ensure quality, and manages any unforeseen issues or change orders that arise during the build. Sarah communicates primarily with Apex Builders, who provides her with regular updates and manages the complex day-to-day operations, ultimately delivering her completed home.
Practical Applications
General contractors are fundamental to the execution of nearly all types of construction and infrastructure development. Their role is pervasive across residential, commercial, and industrial sectors.
In real estate investment, a general contractor is critical for bringing new developments or significant renovations to fruition. Investors rely on the general contractor's expertise to ensure projects are delivered on schedule and within budget, directly impacting the project's profitability and return on investment. In larger-scale ventures, such as developing a shopping mall or a multi-unit residential complex, the general contractor manages an extensive supply chain of materials and a vast network of trades, coordinating everything from excavation to final finishes.
They are also key in public works projects, where adherence to specific contract documents and compliance with stringent government regulations are paramount. The process of obtaining a general contractor license varies significantly by state and often requires extensive experience, passing examinations, and providing proof of insurance and financial stability. This licensing ensures a degree of professionalism and consumer protection in the industry. For a detailed overview of state-specific licensing requirements, resources like Procore provide comprehensive guides.
##10 Limitations and Criticisms
While indispensable, the role of a general contractor is not without its challenges and criticisms. One common issue is the potential for budget overruns and project delays, which can stem from factors such as unforeseen site conditions, material price fluctuations, labor shortages, or poor subcontractor performance. A g8, 9eneral contractor's profit margin can be significantly impacted by these issues, leading to potential disputes with the project owner over change orders.
Another area of criticism can arise from communication breakdowns. With numerous parties involved, clear and consistent communication from the general contractor is essential to keep everyone aligned and informed, but this can be a frequent challenge. Fur7thermore, maintaining quality control across diverse subcontractors can be difficult, as the general contractor is ultimately responsible for the overall workmanship. Challenges such as a lack of skilled labor and rising material costs continue to impact the construction industry at large, posing ongoing hurdles for general contractors.
##6 General Contractor vs. Construction Manager
The terms general contractor and construction manager are often used interchangeably, but they represent distinct roles and contractual relationships in the construction project landscape.
| Feature | General Contractor | Construction Manager (CM) |
|---|---|---|
| Primary Role | Executes the project based on design plans. Assumes risk for cost and schedule. | Provides strategic oversight, planning, and coordination. Acts as an agent for the owner. |
| Engagement Phase | Typically brought in after design is complete, through a bid or negotiation. | Often involved early in the design phase, providing pre-construction advice. |
| Contract Type | Usually a fixed-price (lump sum) or cost-plus contract, with profit built into the price. | Typically works on a fixed fee or percentage-based fee. |
| Risk & Liability | Assumes direct financial risk for completing the project within budget and schedule. | Generally assumes less direct financial risk for the project's overall cost and quality, acting more as an advisor. |
| Labor Force | May employ their own labor force for certain trades and directly hire subcontractors. | Often does not maintain their own labor force and primarily manages subcontractors. |
While both roles are crucial for successful project delivery, a general contractor focuses on the "how" of building, taking on the responsibility of physical construction and coordinating trades. In contrast, a construction manager focuses more on the "what" and "when," offering strategic guidance and acting as an extension of the project owner's staff. The Construction Management Association of America (CMAA) has worked to define and distinguish the profession of construction management since its founding, highlighting that while general contractors perform construction management services, not all construction managers can build.
What does a general contractor do?
A general contractor is responsible for the overall execution of a construction project. This includes planning, budgeting, managing subcontractors and suppliers, ensuring quality control, adherence to building codes and safety regulations, and maintaining the project schedule.
##3# How does a general contractor charge for their services?
General contractors typically charge a total project price, which can be a fixed price (lump sum) or a cost-plus agreement where the owner pays for materials and labor plus a markup for the general contractor's overhead and profit. This price often includes all direct and indirect costs, as well as their fee.
Do I need a general contractor for a small renovation?
For small renovations, especially those that don't involve structural changes or multiple trades, a general contractor may not be necessary. A homeowner might directly hire individual specialized contractors (e.g., a painter or a flooring installer). However, for projects involving several different trades or requiring permits, a general contractor can streamline the process and manage coordination.
What should I look for when hiring a general contractor?
When hiring a general contractor, consider their experience with similar projects, valid licensing and insurance, a strong portfolio of past work, positive client references, clear communication, and a detailed bid that outlines the scope of work and payment schedule. It's also wise to verify their financial stability and their ability to provide lien waivers.
Is a general contractor licensed everywhere?
No, licensing requirements for general contractors vary by state, county, and even municipality within the United States. Some states require a statewide general contractor license, while others have no statewide requirements, leaving it to local jurisdictions. Often, specific trade licenses (e.g., plumbing, electrical) are always required regardless of the general contractor's license status.1, 2