A general contractor is responsible for the day-to-day oversight of a construction site, management of vendors and trades, and communication of information to involved parties throughout the course of a building project.[1]
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A general contractor must first assess the project-specific documents (referred to as tender documents). In the case of renovations, a site visit is required to get a better understanding of the project. The contractor will then calculate a price, also called an estimate. The general contractor considers the cost of materials and equipment as well as the cost of labor to provide the owner with an approximate price for the project.
Contract documents include a budget, any general and special conditions, and blueprints and specifications prepared by a design professional such as an architect. In many instances the general contractor is the project engineer or project manager for construction projects.
A general contractor is responsible for providing all of the material, labor, equipment (engineering vehicles and tools) and services necessary for the construction of the project. The general contractor hires specialized subcontractors to perform all or portions of the construction work.
Responsibilities may include applying for building permits, securing the property, providing temporary utilities on site, managing personnel on site, providing site surveying and engineering, disposing of or recycling construction waste, monitoring schedules and cash flows, and maintaining accurate records.[2]
In the United Kingdom and some British Commonwealth countries the term 'general contractor' was gradually superseded by 'main contractor' during the early twentieth century. This was the term used by major professional, trade, and consumer organizations when issuing contracts for construction work, and thus the term 'general contractor' fell out of use.[3]
General contractors that conduct work for government agencies are typically referred to as prime contractors.
There are no set educational requirements to become a general contractor; most employers prefer a bachelor's degree. Some general contractors obtain bachelor's degrees in construction science, building science, surveying, construction safety, or other disciplines.
General contractors often start out as construction workers. While gaining work experience, they learn about different aspects of construction, including masonry, carpentry, framing, and plumbing. Aspiring general contractors communicate with subcontractors and may learn the management skills they need to run their own company.
Experience in the construction industry as well as references from customers, business partners, or former employers are demanded. Some states require candidates to provide proof of financing to own their own general contracting firm.
General contractors often run their own business. They hire subcontractors to complete specialized construction work and may manage a team of plumbers, electricians, builders, carpenters and other specialists. General contractors build their business by networking with potential clients, buying basic construction tools, and ensuring that their subcontractors complete high-quality work. General contractors don't usually complete much construction work themselves, but they need to be familiar with construction techniques so they can manage workers effectively.
In the City of Toronto, Ontario, Canada, there has been implemented a new Contractor Licensing program that requires various contractors and skilled trades to obtain licenses to do business within Toronto, even if they run their business outside the city. And in Ontario, it is mandatory that General Contractors who offer electrical services clearly state that they "only use ESA/ECRA Licensed Electrical Contractors".
For legal reasons it can be easier to hire and to release a contractor compared to a permanent employee. Business owners may choose to hire contractors because of economic uncertainty or other factors that make hiring employees impractical.[4]
The first step in vetting a general contractor is to perform a contractor licensing lookup to ensure the contractor is properly licensed to perform the work. Most states in the United States have free online license check databases available to the general public.[5]
A property owner or real estate developer develops a program of their needs and select a site (often with an architect). The architect assembles a design team of consulting engineers and other experts to design the building and specify the building systems. Today contractors frequently participate on the design team by providing pre-design services such as providing estimations of the budget and scheduling requirements to improve the economy of the project. In other cases the general contractor is hired at the close of the design phase. The owner, architect, and general contractor work closely together to meet deadlines and budget. The general contractor works with subcontractors to ensure quality standards.