General Contractor Salary Explained
A general contractor, principal contractor or developmental contractor is in charge of the day-to-day supervision of a construction site, coordination of trades and vendors, and the dissemination of details of the project to all concerned parties. They are responsible for determining the budget and scope of the project as well as for managing any subcontractor or sub-contractor involved in the project. They usually have an extensive amount of experience in these fields and are capable of completing the project on time.
Sometimes, however, it becomes difficult to determine which subcontractors should be hired. In these instances, the General Contractor’s Office may recommend that a more experienced person to be brought onto the project as an observation. In such cases, the job would fall into the hands of the general contractor. However, if the contract requires the hiring of some subcontractors, the contractor has the obligation to make sure they are well suited for the job. For instance, an individual who has been a long-time employee of the company may not be allowed to become a general contractor because his work history there was unsatisfactory.
As with most things in business, it is important to choose carefully when hiring subcontractors. The safety of the general contractor must always come first. If an error is made in the calculations during the estimate process, then the result will always be disastrous. Mistakes in hiring can also lead to unexpected expenses. For instance, if a group of workers under a general contractor are suddenly required to be added to the bill at the last minute, it could cause a major rift in the business.
A general contractor is usually responsible for any type of large-scale construction project, from a residential complex to a national skyscraper. Their services include anything from laying the concrete to installing the electrical wiring and any other necessary components. The prime contractor is typically involved in all aspects of the building project and has complete authority over how the project is progressing. In order to be that person, a general contractor needs to have a lot of experience in the field and possess many years of experience. They may also want to hire several subcontractors, giving them more hands on control over the progress of the project.
When contracting with a general contractor, the project owner will typically pay a retainer fee to secure the contract and continue working with the company. However, some construction companies encourage their clients to keep them on as an active partner for the duration of the construction project so that their subcontractors do not need to find another potential partner. This practice is often considered advantageous to both parties since the project owner has a consistent and stable contractor and their subcontractors do not have to compete for a job.
Generally, the general contractor salary ranges between forty-five to seventy five thousand dollars a year depending on the size of the construction project and the number of individuals employed by the company. They also can get higher amounts if the scope of the work and responsibility of the entire project increases. However, there are certain factors that can limit the amount of money paid out. For example, if the general contractor is doing two projects instead of just one they will generally pay less per hour. However, if they are handling the entire project including day-to-day tasks, this will increase their actual compensation package. It will be based on their expertise in the specific niche of the project as well as their knowledge of the subcontractor labor market.