A general contractor is a party responsible for overseeing a construction project and who is in the prime contract with the property owner. General contractors are sometimes referred to as direct contractors. A direct, or prime, general contracting company is a party that contracts with and is hired directly by the owner of the property. The general contracting companies are determined by who the agreement is with. This is basically the only deciding factor.
In other words, direct general contractors are usually hired directly by the property owner and may hire subcontractors to work on a project or job. To illustrate this point, let’s look at roofers as an example. When an existing roof needs to be repaired or replaced, homeowners would hire a roofing company to do the work. In this case, the roofer would be the direct general contracting company. On the other hand, if the project is not residential but commercial, like new construction, the roofing company may be hired by the general contractor that’s overseeing the whole construction project, and it will be hired as a subcontractor.
There are many general contracting companies that may serve as a supervisor and remodeling contractors for various construction projects. But the main difference is that the general contractor is usually hired directly by the owner, while the subcontractors on other jobs are usually hired by someone other than the owner.
This distinction is very important when it comes to getting paid. It is where the details really matter, and one of these details that matters a lot is the role that the party has on the project. There are many roles on a construction site: “general contractor,” “subcontractor,” “material supplier,” and “property owner”.
A general contractor, or a remodeling contractor, is the party responsible for scheduling and supervising all the necessary tasks to complete a construction project from groundbreak to its completion. And therefore they are the main contact when it comes to getting paid and figuring out the costs. Generally, general contracting companies have to manage getting paid themselves and must make sure that all of the parties after them on the payment chain get paid too.
ARR Contractors is able to provide general contractor services and supervise the project “from scratch”. Contact us today to discuss the details!
