Blog

Every project is smoother with someone overseeing it. That’s why general contractors are crucial to the construction industry. 

Their job is to consider the big picture of commercial or residential projects. They keep projects on track and on budget. 

This guide explains the crucial role that general contractor services play in construction management. It also provides details on how to succeed in this important role.

What Is a General Contractor?

A general contractor, or GC, is hired to manage a construction project. From start to finish, the GC is responsible for making sure everything goes smoothly. To do that, they perform many services. These include the following.

  • Setting project estimates
  • Hiring subcontractors
  • Visiting the site regularly to check the quality of work 

GCs are licensed professionals who oversee many types of projects. These range from small-scale remodels to building large structures from the ground up.

RELATED ARTICLEHow to Get a Contractor’s License: Decoding the Requirements

What Do General Contractors Do in a Construction Project?

Builder with a female client near the wooden house structure on the construction site

GCs have obligations at every step of a construction project. Here are some of the different tasks they complete at different phases. 

Pre-construction Stage Tasks

GCs are in charge of submitting project estimates to customers. They’ll need to price subcontract work to build in their profits. Once hired, they perform tasks like these during the pre-construction phase: 

  • Setting a detailed project budget
  • Obtaining permits
  • Reviewing blueprints and plans
  • Getting contracts signed and deposits from the property owner
  • Hiring subcontractors to complete specific tasks
  • Creating a job schedule

RELATED ARTICLEHow to Ask for a Deposit “Politely” as a Contractor

Construction Stage Tasks

Once construction begins, GCs have many more jobs to do.

  • Keeping the project on schedule
  • Inspecting to confirm subcontractors do quality work
  • Managing payments to suppliers by paying construction invoices promptly
  • Solving problems that arise on site 

Post-construction Stage Tasks

Finally, once the project is complete, general contractors take care of post-construction tasks. 

  • Collecting payment from the property owner 
  • Collecting lien waivers from subcontractors
  • Paying all subcontractors
  • Closing out permits

RELATED ARTICLE — How to Write an Invoice for Construction Work (with Free Template)

What Services Do General Contractors Offer?

General construction contractors work on many different types of projects. Here are some of the services construction-focused GCs offer to customers. 

Turnkey Projects

Turnkey projects get their name because contractors take care of everything. The GC just turns over the keys to a usable space at the end of the project. They handle all of the tasks involved, from design to execution to completion.

New Construction

New construction involves implementing an architect’s or property owner’s vision. The contractor takes blueprints and executes them. This could involve constructing a new home for residential clients. It could also be building a commercial property, like a hotel or restaurant. 

Site Improvements

Site improvements prepare a property for its intended use. This may involve installing utilities or grading the ground. GCs in charge of site improvement may also do the following:

  • Add parking
  • Install lighting
  • Create water drainage systems

Remodels

Some general contractors work in the home renovation business, while some take charge of commercial renovations. Their job is to revitalize an existing property. This could involve projects like tearing out an old kitchen and installing a new one. 

Taking Over Ongoing Projects

Sometimes, GCs come in to save the day when a project is underway. A homeowner might realize they can’t handle all the necessary construction tasks. They could hire a GC to come in and help them finish the job. 

Different Types of Contractors in the Construction Industry

GCs are just one type of contractor working in the construction industry. Here are some others:

  • Construction managers. Construction managers are very similar to GCs. They also manage projects. However, they’re often hired earlier in the process. They focus on the business or logistics of the project. A GC oversees the actual construction work. 
  • Specialty contractors. GCs might hire speciality contractors. They complete specific tasks during construction. For example, they might be in charge of doing the electrical or plumbing work.

RELATED ARTICLEHow to Become an Independent Contractor: A Complete Guide

How Do General Construction Contractors Manage Payment?

Property owners typically pay the head contractor. GCs then make payments to subcontractors. However, GCs sometimes face challenges in managing payments. Here are some potential issues they may face: 

  • Limited visibility in the payment chain. GCs usually only work directly with the subcontractor. They don’t always know who is working for the subcontractor or supplier. This can create issues of visibility. 
  • Risk of no payment. GCs must fulfill their obligations to get paid. This usually includes collecting lien waivers. If they can’t take care of all required tasks, they might not get paid for their work. 

RELATED ARTICLEHow to Offer Financing as a Home Services Contractor

4 Tips for Providing Excellent General Contractor Services

building contractor and worker at construction site

General contractors need many skills to be successful. These tips can help: 

  • Promoting a supportive work environment. A positive environment attracts the best subcontractors and improves communication between team members. This maximizes the chances of a successful project 
  • Writing strategic business plans. Creating a business plan helps general contractors grow their business. They can then provide more valuable services and decide how best to attract customers, price projects, and choose jobs. 
  • Managing risks of all kinds. There are many risks inherent in the construction industry. Poor work, supply delays, and poor weather may set a project back. GCs must prepare for potential problems. 
  • Being a humble leader of the team. Everyone must work toward a common goal. When disagreements happen, the GC needs to make sure everyone finds a solution.

Stay Organized and Manage Customers On the Go

With general contractors doing so many jobs, using the right tools is crucial for success. This includes the best tools to track customers. 

Joist makes that easy. Joist offers many client management features. You can store, access, and export customer information from anywhere—at any time.