Contractor
Definition and meaning of Contractor in real estate.
A contractor is a licensed individual or business entity hired to perform construction, renovation, or repair work on a property. They are responsible for managing the daily operations of a construction site, securing permits, and coordinating subcontractors.
In more detail
General contractors oversee the entire building project, hiring specialized subcontractors for tasks such as plumbing, electrical work, and roofing. Homeowners and investors work closely with contractors to ensure projects are completed on schedule, within budget, and according to building codes. It is crucial for property owners to hire contractors who are fully licensed, bonded, and insured. Doing so protects the property owner from liability for construction defects or worker injuries.
Key facts
| Category | Property Types & Construction |
|---|---|
| Types | General contractors and specialized subcontractors |
| Required protections | State licensing, liability insurance, and surety bonds |
| Key responsibilities | Securing permits, scheduling inspections, and managing construction |
A homeowner hires a licensed contractor to remodel their kitchen, and the contractor hires the plumbers and electricians needed to complete the work.
Frequently asked questions
What is the difference between a general contractor and a subcontractor?
A general contractor manages the entire construction project and contracts directly with the owner, while a subcontractor is hired by the general contractor to do specialized tasks.
Why should I verify a contractor license and insurance?
Verifying credentials ensures the contractor is qualified and protects you from liability if workers are injured or if the construction fails to meet local safety codes.
Related terms
Sources & references
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