The Nest

NestApple's Real Estate Blog

Featuring real estate articles and information to help real estate buyers and sellers. The Nest features writings from Georges Benoliel and other real estate professionals. Georges is the Co-Founder of NestApple and has been working as an active real estate investor for over a decade.

General Contractor Duties & Responsibilities

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A general contractor (GC) is a professional who oversees and manages construction projects from beginning to end. They serve as the primary point of contact for the project, coordinating all aspects ofGeneral Contractor construction, including labor, materials, and subcontractors. General contractors ensure construction projects are completed on time, within budget, and to the required standards. To put it in perspective, it is like an office manager. They ensure that everyone is in the right place and doing what they need to do. Additionally, they handle various administrative tasks, such as developing a project timeline and managing safety standards on site.

General Contractor Duties

General contractors usually collaborate with property owners to define and visualize the scope and features of construction or renovation projects.

They are experienced professionals in home improvement, having worked on various types of properties, including residential, commercial, and industrial projects. Their extensive knowledge of the construction process enables the project.

1. Ensure Projects Meet Quality Standards

For the average homeowner, the most crucial role of a general contractor is to ensure that specific quality standards are met and progress is made according to plan. They are responsible for building construction and ensuring that it complies with codes.

The project meeting ensures that the construction crew has all the necessary permits. A good one will also ensure that all construction aspects comply with existing legal regulations and building codes. 

2. Obtaining Permits and Licenses

  • Permit Applications: Obtain the required building permits and licenses from the local authorities by applying for them.
  • Regulatory Compliance: Ensure all work adheres to local building codes, safety regulations, and zoning laws.

3. Handle Liability Issues

General contractors are responsible for managing liability issues that may arise during the construction process. A common saying is that a good general contractor is licensed, bonded, and insured. This means local authorities authorize them and have insurance to protect you from liability if something goes wrong.

4. Act as Project Manager 

A general contractor functions as a project manager. They manage all the technical and legal aspects of completing a construction project and ensure it adheres to the established timeline. If any issues arise on the construction site, they must address and resolve them.

5. Procurement of Materials and Equipment

  • Material Sourcing: Please buy or arrange to deliver construction materials and supplies.
  • Equipment Rental: Obtain the necessary equipment for the project, either by renting or purchasing it.6. Miscellaneous Tasks

The duties extend beyond the more apparent responsibilities. They also include tasks such as managing cleanup, disposing trash, and ensuring compliance with safety standards. By hiring a general contractor, you can be assured that you adhere to all local building codes and regulations.

Types of General Contractors

  • Traditional ones
  • Design-build Pros

There are generally two types: traditional contractors and design-build contractors.

Traditional contractors implement project plans created by others, adhering closely to the original design. They typically utilize designs developed by architects or engineers.

In contrast, design-build contractors collaborate with clients to conceptualize and develop a final design for the project. Taking on a more comprehensive role, they assist with planning and implementing design features, allowing them to make on-site changes more dynamically.

What Kind of Licensing Do General Contractors Have?

Every state in the U.S. has specific licensing requirements. To obtain a license, applicants must pass a competency test and provide several documents, such as proof of liability insurance and a registered business address.

While not all states mandate it, many general contractors possess a college degree in construction management or civil engineering. However, obtaining a license with just a high school diploma is possible.

The most important qualification to consider when hiring a general contractor is practical experience. Most general contractors have spent years working on construction sites in various roles, giving them a broad understanding of the construction process. This experience also enables them to estimate project costs and timeframes accurately.

How Do I Know If I Need a General Contractor?

If your construction project or renovations involve multiple tradespeople, it would be best to hire a general contractor. Additionally, any building project that requires permits will benefit from the expertise of a general contractor. Hiring a professional to manage your project’s technical and legal aspects can make the process easier.

However, many home projects and renovations do not require a general contractor. For instance, tasks like installing new plumbing or fixing electrical wiring typically don’t need the level of oversight that a general contractor provides. Hiring the tradesperson directly is often more cost-effective, as complex project management may be optional for smaller projects. You may even do it yourself by undertaking more straightforward painting room tasks. If you have the skills, painting a room can take 4 to 6 hours.

What Is the Difference Between a General Contractor and a Subcontractor?

A general contractor oversees an entire construction project, while subcontractors focus on specific aspects of the work. For instance, he may hire subcontractors to handle plumbing, electrical work, or other specialized tasks. The role includes coordinating these subcontractors to ensure they work effectively and meet their responsibilities.

Many people mistakenly believe that a general contractor is a jack of all trades. Although they usually have experience in various construction areas, they only perform some tasks themselves. Generally, general contractors only indirectly employ tradespeople. While some may have a few tradespeople on staff, they typically act as project managers and outsource specialized tasks to other agencies.

How Much Does it Cost to Hire a General Contractor?

The cost of hiring a general contractor can vary significantly based on several factors, including the type and duration of the project, the location, and the necessity for permits or other legal documents. Generally, they will provide an initial quote for their services.

Typically, they charge between 10% and 20% of the project’s total cost, though some may opt for a flat fee, which is less common. The total cost encompasses various expenses, such as materials, permits, labor, and other related costs.

General Contractor Bottom Line

A general contractor is essential for completing construction projects, overseeing every stage from initial planning to final inspection. Their responsibilities include project management, hiring and supervising subcontractors, obtaining necessary permits, ensuring safety and quality standards, and maintaining effective communication with all stakeholders.

By managing these diverse tasks, he ensures that construction projects are completed efficiently, safely, and to the client’s satisfaction.



Written By: Georges Benoliel

Georges has been working in Wall Street for the last 16 years trading derivatives with hedge funds. He has been an active real estate investor for over a decade. Georges graduated from HEC Business School in Paris and holds a master in Finance from ESADE Barcelona.

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