Important Duties of a General Contractor
A general contractor is the person who oversees a construction project from beginning to finish. They are responsible for managing trades and vendors and communicating information to other parties. They may also be known as prime contractors. These professionals work to complete a variety of tasks, such as building and renovating homes. Listed below are some of the important duties of a general contractor.
General contractors generally aim to stay under budget. Cost overruns result in higher overall costs. Cost overruns force the general contractor to ask the owner for more money or reduce the scope of the project. In addition to cost overruns, general contractors are also responsible for insurance costs and employee salaries. A successful general contractor must keep a close eye on expenses and ensure the project is on time and within budget.
A general contractor’s payment schedule will vary depending on the type of project. A small project may require a down payment to get started, while a large one may require multiple payments over the course of the project. Typically, payment schedules will be outlined in advance. The amount due is based on the schedule of work and the estimated cost of materials and equipment.
General contractors should put the needs of their clients first. They should ensure that all building materials and components are installed properly, and maintain all warranties. They should also protect existing property from damage and clean up the site after completion. These benefits will help you avoid legal disputes and construction mediation. Additionally, they can help you get a beautiful and durable end product.
A general contractor may also offer pre-construction services. This is particularly useful for projects with multiple aspects. By doing so, an experienced general contractor will ensure that the work is completed on time and according to regulations and codes. Moreover, hiring a general contractor will save you money in the long run by saving you money on future repairs.
A general contractor’s fee is based on the cost of materials, labor, and subcontractors. This fee is usually based on a percentage of the overall project cost. This number can be anything between 10 and 20% of the total construction costs. Some larger companies may even charge up to 25%. The markup percentage is important because it will determine how much profit a general contractor will make. Regardless, a general contractor’s fee should be high enough to cover the business’ costs.
General contractors must obtain a state license to operate. However, they do not need to be licensed federally. Some states require general contractors to obtain licenses specific to certain types of projects. In addition, general contractors should be aware that payment delays may occur as a result of complicated paperwork. Streamlining paperwork, improving communication, and increasing the visibility of subcontractors will help resolve payment problems.
A general contractor should also maintain a list of trusted subcontractors. This can make estimating easier. A general contractor’s pricing guide should include the contact details of subcontractors. By using this guide, contractors can minimize any potential problems by creating a more accurate estimate. A general contractor should also practice stick estimating, which involves counting every piece of material, and determining every hour of labor. This method provides the most accurate estimate.