Construction of a new commercial facility or renovation of your old one is a complex process. It needs the involvement of so many professionals who have to work together to bring the project to its final shape. Among all those who work on the construction, the General Contractor is one of the most important. The entire project revolves around them and they are so indispensable that even before starting the idea of construction, one should have a general contractor handy.
But, if you have enough time and experience in the construction field, then you can decide to act as your General Contractor and take charge of the project directly. Unlike a General Contractor, the sub-contractors who are called in to complete a specific part of the project offer more flexibility and cost-saving than getting the project conducted by a general contractor.
As there are many advantages and disadvantages to letting a General Contractor take care of the project you have to consider these before deciding whether your project needs a General contractor or can be taken care of by subcontractors.
Let’s see subcontractor vs. contractor, Who is better?
Who is a General Contractor?
A General Contractor is usually hired for large commercial or residential projects and maybe an individual or a company and is in total control of the project. When you are not able to take care of the project by yourself and have to get it done through others, then a General Contractor will be the best option for you. With their rich experience and specialized knowledge in the construction field, they can virtually act as the owner of the project right from the planning stage and see that the project is completed as per the plan and as per the budget.
The responsibilities of the General Contractor are far and wide and begin well before the start of the project and end only after the project is complete in all respects.
What Does a General Contractor Do?
- Sourcing and supply of all materials used in the construction
- Selection and hiring of all the manpower for the project
- Bringing in the required equipment, machinery, and tools
- Appointing subcontractors to complete specific parts of the project
- Ensuring that the project timeline is adhered to
- Taking responsibility for the quality of work
- Taking care of the payment schedules and maintaining a smooth cash flow
- Maintaining all the records for the projects
- Being responsible for the safety and security at the worksite
How To Become a General Contractor?
A general contractor does not need any formal education to become one. His accumulated experience, specialized knowledge about each phase of the construction project, and the training they had by actually working in the field are the most important requisites for an individual to work as a General contractor. But in countries like the US, there is a requirement for those aspiring to become a general contractor to pass a written exam.
Aspirants looking to obtain a contractor’s license in California have to pass a two-part exam through the California Contractors State Licensing Board (CSLB). The NASCLA Accredited Exam for Commercial Building Contractors is recognized as a trade exam for commercial licensing in US regions like Alabama, Arizona, Florida, Georgia, Mississippi, Nevada, North Carolina, Oregon, South Carolina, Virginia, and several others.
Exams like these test aspirants in the fields of workplace safety, adoption of proper construction practices, and compliance with various construction-related laws and regulations. For the license, contractors also have to pay a series of fees, including a license application fee, an initial license fee, and a contractor license bond.
Become your own General contractor
As the project owner, you have all the knowledge about the project, and hence if you want you can become your General contractor if you have the necessary knowledge and experience. This way you can lead your project and need not have to look to others to take care of your project. But, you must have all the necessary knowledge and training so that you can professionally handle the project. You also must have all the required licenses, insurance, and other legal compliance to lead the project as your own General Contractor.
When you decide to conduct the construction project as becoming your own GC, then you can engage subcontractors to complete specific types of work, and that way you can easily take care of specialized works. But, you must be able to plan and execute things in such a way that the project proceeds smoothly and is completed within the planned time and budget.
Finding The Best General Contractor For Your Project
Appointing a General contractor is one of the most important decisions that you will be making while planning your construction project. You have to find the best person available in your local area and they may be an individual or a company with the necessary industry standing and accumulated experience. The selection must be based on their reputation, qualifications, and experience as a general contractor.
Do your homework thoroughly and consider a few factors jotted down below before deciding on the suitability of a person to be your GC.
Consider The Following Before Making Your Contracting Decision:
- Their industry standing
- Their past projects
- Their professionalism in handling the projects
- Have they completed projects similar to yours?
- Are they legally licensed and certified to act as general contractors
- Are they insured to act as a general contractor?
- Their pricing structure
- Their knowledge of the latest trends in building design, and construction processes
- Their approachability
- Their ability to engage with the project and offer suggestions and recommendations for easy and professional completion of the project
- Their ability to find and finalize the best deals while procuring materials for the project
- Their ability to handle emergencies
- Their way of dealing with financial matters
- Their past work history
- Their legal problems especially of their past clients
- Their positive references and reviews from online directories and their past clients
Doing your own research and listening to your gut feeling is above and beyond all of the information that anyone can offer.
What is a Subcontractor in Construction?
A subcontractor is defined as a person who comes into your project to complete a specific part of the project and usually works under the general contractor. These subcontractors have specialized knowledge and skill in doing a particular part of the project and take on the responsibility for the due completion of a small part of the whole project.
Most of the time the subcontractor is a small business a team of persons or even an individual possessing the specialized knowledge and skill in doing a particular type of work. They complete the tasks allotted to them by the general contractor and they are called to work on the project due to their reputation and expert knowledge in completing a part of the project.
As reported by Statista, there were 473,108 small and medium-sized specialty trade contractor businesses operating in the United States in 2022.
What Does a Subcontractor Do?
A subcontractor with their specialized knowledge and training performs the specific tasks they are skilled in, concentrate more on doing their part of the project, and go off the project as soon as their part of the project is completed.
Some of the specific types of work they do on the project include:
- Electrical Works
- Plumbing works
- Installation and operation of Appliances
- Carpentry and all types of woodwork
- Drywalling
- Heating and Insulation
- Tiling and flooring
- Painting
- HVAC
- Sewer construction and drainage systems
These are only some parts of the project that will be usually handled by a sub-contractor. As the subcontractor is selected and engaged by the GC you do not have any responsibility for the subcontractor or his way of working.
How to Become A Subcontractor?
To become a subcontractor, one must gain relevant construction experience by attending a technical college, completing an apprenticeship, or working with a larger contracting firm. It’s also necessary to obtain licenses and certifications for practicing the job. In the state of California, aspirants must pass the CSLB state exam for a specialty contractor.
Independent subcontractors don’t need insurance coverage, however, if you are planning to launch a subcontracting business, ensure you obtain insurance policies like –
- General liability
- Worker’s compensation
- Builder’s risk
- Surety bonds
After securing appropriate experience, licensing, and insurance, subcontractors may start finding projects that accept their bids.
Differences Between General Contractors and Subcontractors
Before making a decision, note these key points of differentiation and better understand the subcontractor vs. contractor debate.
| General Contractor | Subcontractor |
| Works directly with the project owner | Works under the General Contractor |
| Responsible for the entire project | Responsible for only a part of the project |
| Follows the instructions of the Project Owner | Follows the instructions of the General contractor |
| Can do anything on a project to complete it | Does only his part of the project |
| Usually paid as per the cost of the project | Paid fixed sums for his part of the work |
Advantages of a General Contractor
- They take care of every part of the project hence the project completion is worry-free for you
- They safeguard you against any legal liabilities as they are fully licensed and insured against all workplace liabilities
- They take care of the selection and engagement of subcontractors
- You have a single point of contact during the working phase of the project
Disadvantages of General Contractors:
- They charge a price based on the size and budget of the project
- They engage subcontractors for most parts of the project hence the cost of the project escalates
- The quality and performance of the project are all under the control of the general contractor and you cannot exercise control over the project execution
Advantages of Subcontractors:
- As they are experts in their field of activity they are fast, sure, and efficient
- Can be called in at any time and they can work extra as required
- They are cheaper than the general contractor
- Engage them to complete a single work and hence you have flexibility in the execution of the project
Disadvantages of Subcontractors:
- They do not work under you and hence you cannot exercise full control over the
- Do not expect them to have the same commitment and loyalty towards you as full-time employees or GCs
- Tax implications are different when you are working with a subcontractor
Similarities Between General Contractors & Subcontractors
Keeping aside the subcontractor vs. contractor debate, there are certain instances where general contractors and subcontractors are similar in construction.
- They all contribute work to some property improvement with their tools and equipment.
- From the perspective of a house owner, a builder and subcontractor simply identify some individual or company who’s not an employee.
- On many construction tasks, general contractors and subcontractors will both require appropriate permits to perform their jobs. And they will have to conduct their businesses independently from the homeowner.
- Consequently, both general contractors and subcontractors need to supply their liability insurance. If they have workers, they manage their health insurance and other benefits.
4 Factors to Consider When Selecting Between a General Contractor and Subcontractor
1. Subcontractor vs. Contractor: Handling the Project
When picking between a general and a subcontractor, owners should consider the size and complexity of their commercial projects. For example, if you’re planning to construct a multi-storey corporate building that requires green building features and specialized insulation, then a general contractor will be a better choice. On the other hand, hiring a subcontractor will be justified in case of a simpler renovation project like upgrading a hotel bathroom or a cafeteria kitchen.
2. Subcontractor vs. Contractor: Budget and Schedule
Subcontractors have specialized skill sets, hence, they finish their job portions quicker and charge lower rates than the GCs. General contractors are usually responsible for overseeing large-scale commercial projects and so, they have extensive and coordinated workflows in place. Large building projects demand higher budgets and longer timelines. For project owners who have restricted budgets and timelines, going ahead with a subcontractor might be a better option.
It is also necessary to remember that general contractors provide more accurate schedules and cost estimates whereas subcontractors leave room for price negotiations.
3. Subcontractor vs. Contractor: Level of Authority and Participation
What level of control and participation you want your hired professional to have in the construction project can greatly influence your decision. A commercial general contractor manages and participates in every aspect of the project, from planning, designing, permit approvals, personnel management, site inspections, material procurement, and even post-construction activities. However, a subcontractor is only responsible for their specific trade.
Since a GC is in charge of all teams, they are a single point of contact for stakeholders and construction employees. If you’re working with a subcontractor, you might need to put in more effort to communicate and coordinate plans. This also means you get an opportunity to become hands-on in managing the project.
4. Subcontractor vs. Contractor: Availability of Local Professionals
Partnering with a local professional offers multiple benefits to the owners; they better understand local regulations, building permits, zoning compliances, and weather conditions. Search for “commercial general contractors near me” and “subcontractors near me” on the internet to check which construction professionals are readily available. If they are abundant in numbers, you will have more options to pick from. However, if there is a shortage of qualified general contractors or subcontractors in your area, then finding the right professional may take time.
The Choice is Always Yours
In the debate on Subcontractor vs. Contractor, both types of construction professionals have their own merits and demerits and the choice lies with you as to the selection of the way you want to go for your project. Spend time to do the research and make your decision based on sound facts the objectives you want to achieve and the amount of money you are ready to spend for the engagement.
If you require the services of general contractors, do contact us at Constructive Solutions, Inc. to learn about our personalized services.
FAQs
What documents are needed and provided by contractors and subcontractors?
Contractors are expected to submit licenses, certificates, tax documents, workers’ compensation insurance, general liability insurance, and other bonding documents. Independent subcontractors submit licenses and skill certificates but don’t need to provide any tax records, workers’ compensation insurance, or bonding documents.
Is a subcontractor an employee?
A subcontractor is self-employed and independently works under contracts for different projects. An employee too works on a contract basis but is under the leadership of a general contractor and doesn’t have professional freedom.
What are some mistakes to avoid when working with a general or a subcontractor?
Here are five mistakes to avoid:
- Not defining the contract terms properly
- Establishing poor communication means and expectations
- Inadequate due diligence before hiring
- Failing to monitor the quality of work done
- Delaying payments
Relevant Resources:
Tips for Selecting the Right Commercial General Contractor In San Francisco? – Part 2
The Differences between General Contractors and Construction Managers
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