General Contractor
Definition and meaning of General Contractor in real estate.
A general contractor is a construction professional who manages and oversees a building or remodeling project from start to finish. They are responsible for hiring subcontractors, procuring materials, scheduling inspections, and ensuring the work complies with local building codes.
In more detail
Homeowners and developers hire general contractors to coordinate all aspects of a project, saving them from managing individual tradespeople like plumbers and electricians. The contractor coordinates the schedule, monitors the quality of the work, and manages the budget. Most states require general contractors to be licensed and bonded, which protects clients in case of incomplete work or damage. Their contracts often outline payment schedules, project timelines, and warranty details for the completed structure.
Key facts
| Category | Property Types & Construction |
|---|---|
| Licensing Requirement | Varies by state, but most jurisdictions require registration or testing |
| Responsibility | Hiring subcontractors, securing permits, and managing the project budget |
| Payment Structure | Typically structured around milestone completions or cost-plus agreements |
A couple planning a major kitchen remodel hired a general contractor to coordinate the framing, plumbing, electrical installations, and final inspections.
Frequently asked questions
What is the difference between a general contractor and a subcontractor?
A general contractor is hired by the client to manage the entire project, while a subcontractor is hired by the general contractor to perform specialized work, like roofing or electrical wiring.
How can I verify a general contractor's credentials?
You can check with your state's licensing board online, request proof of liability and worker's compensation insurance, and contact references from past projects.