Getting paid for a construction project is one of those things where details are really important, and one of those details that is very important is the role that the party in question has for the project. « General contractor », « subcontractor », « material supplier » and « owner » are examples of possible roles in a construction project (although there are of course many more). General contractors often start as construction workers. As they gain work experience, they learn about various aspects of construction, including masonry, carpentry, framing, and plumbing. Aspiring general contractors communicate with subcontractors and can gain the management skills they need to run their own business. Determining your « role » seems very easy. However, we often hear from people in the industry that they have difficulty figuring out how to rank their role in certain projects. « Should I be the GOC in this job, or am I considered a subcontractor? » Here at levelet, we get questions like this every day. When you start looking for a general contractor or owner`s representative for your next business project, you need to make a big decision to hire a local company or a large national contractor. As a South Florida-based company with over 20 years of industry experience, we`re of course a bit biased towards going local, but we have good reason to support this claim. Let`s take a look at some of the main differences between hiring a local entrepreneur and a national entrepreneur. A general contractor is responsible for providing all materials, labor, equipment (.
B vehicles and technical tools) and the services necessary for the construction of the project. A general contractor often hires specialized subcontractors to perform all or part of the construction work. When hiring subcontractors, the general contractor is responsible for the quality of all work performed by all employees. Like elsewhere in the country, South Florida is experiencing a skills shortage, resulting in higher construction costs and increased demand for skilled workers. The best subcontractors have tight schedules and will only choose to partner with trusted GCs they can rely on. Local businesses have these relationships established and also understand the value of finding the right subcontractors for each order. A general contractor, prime contractor or general contractor[1] is responsible for the ongoing monitoring of a construction site, the management of suppliers and trades, and the dissemination of information to all parties involved throughout a construction project. [2] Here are some of the key project payment issues affected by a party`s role in the project and how these issues relate to general contractors. Here is the best definition of general contractor for the construction industry: A real estate owner or developer develops a program of their needs and chooses a location (often with an architect). The architect assembles a design team of consulting engineers and other experts to design the building and specify the building`s systems.
Today, contractors often participate in the design team by providing pre-design services, e.B. Estimates of budget and planning needs to improve the profitability of the project. In other cases, the general contractor is mandated at the end of the planning phase. The owner, architect and general contractor work closely together to meet deadlines and budgets. The general contractor works with subcontractors to ensure quality standards. There are many, many examples of construction companies acting as general contractors on certain projects and contracts (if they are hired directly by the owner), while they are subcontractors in other jobs (if they are hired by someone other than the owner). When it comes to getting paid, this distinction is very important, as we will discuss in the next section. Numbers 2) and 3) go hand in hand, and that`s quite a challenge for GCs.
As a general rule, general contractors can only « see » the first row of subcontractors or the parties with whom they contract directly and have little fear of risk. The real risk for GCs is the fear of the unknown coming from the parts they can`t see. These invisible parties include subcontractors, suppliers and other stakeholders with whom the GOC has no visibility or direct line of communication. In short, CMs must take care of the entire payment chain of the project. Contract documents may include drawings, project manuals (including general, additional or specific terms and conditions and specifications) and additions or modifications prepared prior to the proposal/tender and prepared by a design professional, e.B architect. The general contractor can be the site manager or the high-risk site manager. [Clarification required] The general contractor is sometimes called a direct contractor, and this is very important when it comes to getting paid. We explain why by first explaining what is meant by the terms « direct » and « premium ».
A DIRECT contractor is a party who enters into contracts with the owner of the property and is hired directly by him. Another name for this is the PRIME Contractor. It depends on the person with whom the agreement is made, not the nature of the work, the name of the company in question or any other factor. The term « entrepreneur » is used in many different industries. You can have « entrepreneurs » working for all types of companies, from the largest Fortune 500 companies to the smallest startup or mom and pop mode. Sometimes the term refers to a person (the term « independent contractor » is often used; while in other cases, a contractor may refer to an entire company taking work on a contractual basis. General contractors who perform work for government agencies are often referred to as « prime contractors. » This term is also used in contexts where the customer`s direct contractor has the right to subcontract or circumstances are likely to involve subcontracting to specialized operators, e.B. in various public services. If you are looking for a local general contractor you can trust to complete your next commercial construction, contact us. We are happy to answer all your questions and help you understand the unique building requirements of South Florida. To illustrate this point, let`s take the example of roofers. Often, when an existing roof needs to be repaired or replaced, a roofing company can be hired directly by the owner to do the work.
In this case, this roofer would be the direct (general) contractor. On the other hand, if the project is commercial, new construction and the roofer is hired by the general contractor who oversees the entire project, then in this case the roofer would probably be a subcontractor. .