A general contractor is an individual who is responsible for the day-to-day operations and oversight of a construction project. In addition to this general role, a general contractor is responsible for acting as the intermediary between the design team, the construction workers and the owner of the underlying project. As the liaison, a general contractor will communicate with all those individuals and organizations involved in the project. 

Before the commencement of a construction project, a general contractor will visit and assess the construction site. When evaluating the property, the contractor will formulate an expected price for the project, known as the estimate. Upon determining the price for the property, the contractors will then evaluate the cost of all materials, equipment, as well as the cost of labor. After analyzing the expected cost of the project, the contractor will provide the owner of the building with an estimated price for the entire construction process. 

Following the delivery of the expected price for the project, the contractor will draw up contracts for the owner, the employees and the design team. These contracts will elaborate on the budget and the conditions revolving around the plans and specifications of the project. The contractor will utilize a design professional, such as an architect, to evaluate the necessities of the project in alignment with the building’s design or structure. That being said, the contractor will commonly act as the project engineer or the project manager in the majority of construction sites. 

A general contractor is responsible for providing the construction companies and the individual workers with all material, including labor, equipment and those services necessary for the construction of the project. In order to accomplish these tasks, the contractor will incorporate specialized subcontractors to perform specialized tasks or portions of the construction process. 

The responsibilities of a general contractor will vary depending on the size and complexity of the construction effort. In a general sense, a contractor is responsible for providing or accomplishing the following tasks: filing for building permits, securing the property, managing the workers on site, providing temporary materials and utilities on site, providing engineering functions and surveying for the site, disposing of wastes left over by the construction process, monitoring the schedules of workers, balancing the costs of the project and maintain accurate records regarding the finances and the construction process as a whole.

An owner of a building or a real estate developer will develop a project based on their needs and wants. Following the development of their idea, the owner will then choose a site or location for the project to be built on. An architect or design professional would then assemble a design team of engineers to design the building and pinpoint specifications needed for construction. During this phase, the general contractor will participate in the design efforts by providing services aligned with price estimations and information revolving around scheduling. 

The owner, general contractor and architect will then work closely together to meet the deadline and budget of the project. The general contractor will work with subcontractors to ensure that all quality standards have been met, in addition to the budget and timeline.  

Construction Contracts are considered to be necessary within the scope of construction projects with regard to both the implementation of the description of services, but also the commitment to the allotment of responsibility and liability of the construction project; Construction Contracts allow for the legal protection of both parties entering contracts of these nature.

Involved Parties Named within Construction Contracts

In a majority of cases – ranging from commercial Construction Contracts to residential Construction Contracts – the parties named within contract agreements are defined as the following:

The client is defined as the individual who has procured a construction project, which means that they have set forth provision means – ranging from funding to materials – to the second party in order for the construction project to be implemented with the intention of completion

The contractor – or the entity responsible for the provision and completion of the construction effort – will have received goods, services, or monies whose delivery is contingent on the completion of the construction

The Primary Components of Construction Contracts

Construction Contracts will typically vary with regard to the primary components latent within their text; this variance will most often result from the specification of the Construction Contracts in question – both residential and commercial Construction Contracts are amongst the most common types of Construction Contracts:

Residential Construction Contracts

Residential Construction Contracts will typically include the following 3 components upon their creation and legal validity:

The details of the construction project  – or project scope – is defined as the outline and framework of the construction project requested; oftentimes, the project scope with outline in detail all of the components of the project, including the architectural plans, process, and the expected results

The project schedule will typically outline the timeframe in which the construction project will take place; this section is mandated by start-dates and a completion-dates that  are agreed upon within Construction Contracts

The project funding outlines the monetary compensation existing in conjunction with the construction project, including the method of payment, rate of payment, and the terms of payment; typically, full payment is only furnished upon the completion of a project

Commercial Construction Contracts

Commercial Construction Contracts will typically include the following 5 components due to the fact that their existence within the commercial marketplace requires the adherence to additional legislature:

The terms of service section of Commercial Construction Contracts outlines the project details and the nature of construction that will be undertaken

The legislative section ensures that the construction company will adhere to any or all applicable legislation required by local jurisdictions

Contingency Clauses appearing within Construction Contracts provides for methods of modification and rectification in the event that the expressed terms are not sufficiently met by either party involved

The Default Clause within Commercial Construction Contracts illustrate the process undertaken in the event that either party violates the terms of the contract