General Contractor

What is a General Contractor?

A general contractor, or GC, in a construction project, is the party responsible for scheduling and overseeing the day-to-day activities of a construction project. General contractors are hired to manage the project from groundbreak to completion, providing the materials, labor, and equipment.

In the UK, general contractors are more commonly known as “main contractors.” Main contractors working primarily with government agencies are known as “prime contractors.”

Usually, a general contractor is hired by the owner or the construction manager, who serves as a direct extension of the owner. General contractors then hire specialty tradesmen or subcontractors to manage more specialized aspects of the project, like plumbing, concrete, and electrical work.

For large projects, the general contractor is most often a construction company or a developer who manages projects for numerous clients. If the project is smaller, the general contractor can be an individual. In fact, for residential projects, the general contractor is often an experienced “Jack of all trades” who doesn’t just manage but physically performs the task at hand him/herself.

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Responsibilities: What Does a General Contractor Do?

The scope of the general contractor’s responsibilities can be quite broad for commercial and large residential construction projects. However, their specific responsibilities are likely to vary by project and owner. However, common duties of a general contractor for a construction project include:

  • Creating and managing the construction schedule
  • Organizing and managing the job site
  • Hiring subcontractors and managing their quality
  • Contracting suppliers and vendors
  • Licensing and renting equipment
  • Providing field management and labor
  • Assisting with cleanup, safety procedures, and demolition

On projects requiring this level of project management, the general contractor usually submits a bid or a proposal, which outlines the project’s scheduling, cost, and labor details. Often, creating these proposals demands significant effort from the contractor, requiring quantity and material takeoff from the project specifications to develop detailed cost estimates. In making these cost estimates, the contractor considers and bills for materials, equipment rental, labor, office space, insurance expenses, worker’s compensation, and time.

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License Requirements & Qualifications for General Contractors

The United States has no federal license requirements for individuals to work as general contractors. However, most states require individuals working as general contractors to be licensed locally. Additionally, the contractor may be required to obtain various licenses to work on projects like electrical, plumbing, and HVAC installation or on projects that exceed a certain value.

No state sets educational qualifications for general contractors; however, many aspiring general contractors choose to obtain degrees in construction management, construction science, surveying, building science, or other similar fields. This can increase earning potential and the number of jobs that the contractor will qualify for.

Below is a list of the license requirements for general contractors operating in various states:

California

To perform any work worth over $500, a general contractor in California must be licensed with the California Contractors State License Board. To become licensed with California, contractors must have at least four years of experience working as or with a contractor in the field. Additionally, general contractors must obtain a surety bond and take exams for their specific trade, business, and relevant law.

Florida

Florida has one of the most extensive lists of requirements for general contractors of any state. To work as a general contractor in Florida, individuals must be licensed with the Department of Business and Professional Regulation of the State of Florida. Applicants must have four years of experience or a combination of construction education and experience to apply for a Florida license. Additionally, a general contractor must verify their financial stability and submit proof of liability and workers’ compensation insurance. They must also pass state-level trade, law, and business exams. Depending on where the contractor operates and what trades they work in, there may even be county- or city-level certifications.

New York

New York state does not require that general contractors become licensed with the state (except for those working with asbestos), but many local governments within the state have licensing requirements.

In New York City, any general contractor who builds one-, two-, or three-family homes must register with New York City’s Department of Building to obtain the permits.

Texas

The state of Texas imposes no state-level license requirements on general contractors. However, many specialties like plumbing, well-drilling, and HVAC require state-level licenses with the Texas Department of Licensing and Regulation.

Every state will have its own requirements, and those interested in becoming a licensed contractor should search for the requirements of their particular state.

Reference

Associated General Contractors of America

California Contractors State License Board

Florida Department of Business and Professional Regulation

Texas Department of Licensing and Regulation

New York City’s Department of Building

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