What Is a Contractor?

If you've ever hired someone to build a house, update a kitchen, or even repair your roof, you've probably worked with a contractor. However, many are still asking simple questions such as: "What is a contractor?" "What is a general contractor?" and "What does a general contractor do"?

We will sum it up in plain terms.

What Is a Contractor?

A contractor is someone hired to do an agreed-upon job or task. They are not a regular employee. They typically have a contract, which means they understand the amount of work they are going to do, are compensated for a specific price, and agree to a certain length of the project.

There are many different types of contractors, including:

• Construction contractors

• Electrical contractors

• Plumbing contractors

• Painting contractors

• Landscaping contractors

• IT and freelance contractors

Each contractor has a specific skill or trade.

'In 2024, IBISWorld reported that there were over 3.6 million independent contractors working in construction and home services in the U.S.' Clearly, contractors are common in today's world and in high demand.

What is a General Contractor Do?

Depending upon the size and nature of the project, a general contractor should be involved in the entirety of the project:

Plans the Project

The general contractor meets with the client (homeowner or company) and learns what is to be built or renovated.

Prepares a Budget and Timeline

The general contractor determines the total cost of the job and determines the timeline. The estimate includes things like labor, materials, permits, and tools.

Hires Subcontractors

Generally, the GC will not perform all of the physical labor. Rather, the GC hires some sub contractors to act on their behalf. I.e., buildings will hire electricians, plumbers, and roofers.

Obtains the proper permits

Most construction projects involve official permits. The General Contractor will handle this as well.

Supervises the Daily Tasks

They ensure that the workers timely arrive, materials arrive on time, and the safety rules are followed.

Administers Payments

A GC pays the employees and suppliers. They monitor invoices and receipts.

Delivers the Final Product

After the job was completed, the GC supervises the product to make sure it met expectations, and gives the finished product to the client.

Practical Example

Suppose you want to build a small café and hire a general contractor. The general contractor will:

• Hire an architect

• Call an electrician to wire the kitchen

• Co-ordinate flooring and tiling

• Organize plumbing works

• Make sure all city codes are adhered to

Accepting a GC gives you the job without you making the individual calls.

Here's when you should engage a general contractor

You may want a general contractor in the following situations:

• Your project is large (such as a home or commercial build)

• You have multiple tradespeople (such as roofers, electricians, and painters).

• You want someone else to handle all the work.

• You don't want to get involved in the minor details.

What to look for in a good general contractor

Before hiring a GC, make sure you get someone that:

• Has experience with similar projects.

• Is appropriately licensed and insured.

• Provides a clear estimate.

• Has good references or reviews.

• Communicates efficiently.

Good general contractors will save you time, avoid mistakes, and reduce stress during large build projects.

Conclusion

So now if someone asks you what is a contractor, you can tell them that it is a person who is hired to do something in a specific job. Then, if they ask what is a general contractor, you can clarify the expectation that it is one resource that manages a whole project and hires all workers to accomplish the project.

A general contractor is the main responsibility to make construction organized and correctly delivered. It does not matter if it is a new home, redoing an office space, or just renovating a kitchen, but having a trusted general contractor overseeing makes it easy for you.

The size of the housing and construction market is growing with an increasing amount of new general contractors as the market grows. If you ever plan a project that it is possible to utilize a general contractor, knowing what and who to hire will help you make better decisions.