What’s the difference between a general contractor and a construction company?
It’s an important question to ask when you are considering hiring one for your next project.
But more importantly, all participants involved in a construction project must understand each role and responsibility to avoid confusion and misunderstandings. When it comes to the overall responsibilities, there is a great deal of overlap, and things are not always so clear-cut. The one thing that is always clear-cut is the difference between a contractor and a construction company.
So, how does a general contractor differ from a construction company? It boils down to who controls the daily operations. Let’s break down each one more clearly so that everyone knows who they are talking to and who should be responsible for what.
The owner of the property is responsible for designating the General Contractor. The property owner usually hires them to manage all aspects of construction. Every General Contractor is typically accountable for the entire job or all facets of the construction project, such as ensuring that schedules and budgets are met. They hire subcontractors to complete specialized elements or portions of the work on-site, if necessary, while directing them to apply their expertise and labor to achieve the project goals.
The General Contractor is usually not involved in creating the project, but their work begins after the contract documents have been signed and architectural and engineering plans finalized. At that point, they will coordinate all of the building activities and hire all of the subcontractors and draftspeople. They oversee all aspects of the building activities, serving as primary contact and providing periodic progress reports to the owner. General Contractors also ensure that the project stays on schedule by managing their subcontractors and issuing change orders for additional work.
Construction companies can provide a competitive bid and complete construction projects faster than a General Contractor can. They are typically responsible for building major infrastructure (roads, water, sewage), buildings owned by the Government, and many other buildings. Every construction company can manage various projects simultaneously and is responsible for completing the work as specified by law or by contract.
They are usually responsible for overseeing all aspects of a construction project, from initial discussions to completion, which can include:
- hiring and training employees
- keeping track of project timelines
- delegating responsibilities to subcontractors
- writing contract documents like purchase orders
- managing materials procurement and purchasing materials
- supervising work processes such as site preparation & impact damage assessment
The construction company provides an environment where the project team members work together as a cohesive unit to accomplish the project objectives. It enables the client to achieve cost savings by utilizing pre-designed construction packages customized to meet their specific project needs. Construction companies use best management practices (BMPs) to achieve consistency in its construction practices throughout the project period. This helps to minimize their exposure to risks and maximize their profitability through cost-effective construction techniques.
If you own a property and desire to stay within your budget plan for your business project and want to keep it throughout construction, we can help you out at ProContractor Supply. We have a wide array of construction materials at competitive prices combined with unmatched client service. So, you could concentrate on the details of your task and leave the equipment acquisition to us. Our team is always willing to assist and answer your questions here.