CONSTRUCTION OR RENOVATION IN THE USA: WHY USE A GENERAL CONTRACTOR?

CONSTRUCTION OR RENOVATION IN THE USA: WHY USE A GENERAL CONTRACTOR?

A general contractor in the United States can be compared to a construction manager or site supervisor. They're a bit like the conductor of a renovation or construction project in the real estate sector. But in what situations should you call upon this partner? Is it really necessary to work with a GC (general contractor)? How to choose the right person for your project in the United States? Here are the answers we can give you!

WHAT IS A GENERAL CONTRACTOR IN THE UNITED STATES?

A general contractor oversees the entire project and manages the team to complete specific tasks. General contractors focus more on the logistics of the product. They work closely with the client. They will hire subcontractors to perform specialized tasks, such as an electrician or a carpenter. Their role is crucial to the success of a project. They are the "time master" and must ensure that deadlines are met. They are also responsible for ensuring that budgets are met. Some of the tasks they perform include:

Draft the construction schedule and budget.

Hire and assign work to subcontractors and workers

Liaise with the owner, architect and/or engineer.

Obtain the necessary permits and licenses.

Manage the ordering and delivery of materials.

Ensure security on site.

Keep the project aligned with the client's budget and schedule and quality expectations.

Manage payments to subcontractors.

Schedule post-work inspections

WHY USE A GENERAL CONTRACTOR AS AN INVESTOR?

If you are embarking on a construction or renovation project, you have several options:

You personally carry out all the work yourself, which is usually only possible on extremely small projects. It also means being almost entirely dedicated to this task by being on-site.

You act as a general contractor on your own property. This is called an "owner-builder." You find and hire various subcontractors, such as electricians, plumbers, earthmovers, etc. This requires experience and a strong local presence.

The ultimate option is to hire a few contractors to carry out and manage all the work. They will have their own team of employees and a reliable number of subcontractors they use on a regular basis. Their recurring nature also allows them to have suppliers of materials they use regularly.

WHY DELEGATE RATHER THAN MANAGING THE PROJECT YOURSELF?

Obviously, not every construction project requires the supervision of a general contractor. Many smaller renovations or those simply requiring a facelift can be handled by a savvy investor, who is already on site. Also note that some states do not allow an investor to work on their own property, only their primary residence. Check your local laws. An experienced general contractor will have many completed projects under their belt and will know how to deal with the various stakeholders on the project. The goal is to keep your project on schedule and as close to the original budget as possible. You may be a handyman or builder in your location, but it will take several years of experience and several completed projects to acquire the same knowledge. A general contractor will add a certain percentage to the subcontractor's prices as well as certain materials. So, for example, if their plumber receives $5,000 for the plumbing work on the project, the general contractor will charge you $6,000 for the plumbing item. This pays the general contractor's overhead and allows for a small profit for managing the entire project. But you don't want to give your hard-earned money to someone just for management you could have done yourself, do you? Look at it this way: A good general contractor will have good working relationships with subcontractors. They're guaranteed to give them work throughout the year. This allows the general contractor to be confident in the quality of their work, while also increasing their loyalty. But most importantly, these subcontractors will offer lower prices than you, the investor, might receive.

HOW TO CHOOSE THE RIGHT PARTNER FOR YOUR PROJECT?

Here are some simple tips before partnering with a general contractor in the USA:

Make sure it complies with local laws. In particular, make sure its license is in order.

Make sure they have insurance with proof of a valid policy.

Perhaps most importantly, make sure they have workers' compensation insurance.

Ask to see other projects they have completed or are currently working on.

Be extremely clear from the start about the scope of work, budgets and timeline

Never pay the full amount upfront. If so, run away. They may ask you for a percentage upfront. This is perfectly understandable, especially for purchasing materials and getting started on the project. But paying the full amount upfront is a questionable practice.

Obtain a “release of lien.” This is a document that certifies that the tradesman has carried out all of the work on the property and that he has been paid in full for this work.