general contractor

A general contractor is the prime contractor on a construction project, responsible for planning the work, obtaining permits, scheduling trades, managing the budget, and ensuring the job meets code and contract specifications. On residential work, they might handle foundation through final cleanup; on commercial projects, they coordinate dozens of specialized firms across months or years. The general contractor does not necessarily perform the actual work themselves, though some run crews for specific trades like framing or finish carpentry.

The key distinction is management authority and financial responsibility. When a homeowner acts as their own general contractor, they assume these duties directly: they hire electricians, plumbers, framers, and roofers; they purchase materials; they ensure inspections happen at the right stages; they settle disputes between trades and manage the payment schedule. This approach can reduce costs but requires substantial knowledge of sequencing, code requirements, and trade practices.

General contractors typically work on a fixed-price contract, a cost-plus arrangement, or time-and-materials terms. Under fixed-price, they absorb cost overruns and manage labor productivity tightly. Cost-plus adds a percentage or flat fee to documented expenses, shifting some risk to the owner. The contractor's profit margin, often 10 to 20 percent of the hard costs, depends on efficient scheduling and minimizing waste and rework.

Where problems arise

The general contractor stands between the owner and subcontractors, which creates tension when work quality lags, schedules slip, or change orders accumulate. Poor scheduling causes trades to work inefficiently or sit idle. Underbidding jobs to win the contract forces shortcuts later. Inadequate insurance or bonding can leave owners exposed if the contractor fails mid-project or disappears.

The term general contractor distinguishes them from trade contractors (electricians, masons, HVAC specialists) who focus on one discipline. On large projects, a general contractor may hire a construction manager to oversee operations while they focus on business and client relations. In some regions and project types, the roles of general contractor and construction manager blur, though managers typically work for the owner rather than as the prime contractor.