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Building a home is very much like launching a campaign, whether it is a political campaign or a military one. For these missions there is usually a head person like a chief-of-staff or general. Well, a home construction project is a drawn-out journey with peaks and valleys and collections of talents and personalities much like those other processes. And just like them there has to be a leader – and that leader is called a general contractor.
A dream home begins with smatterings of thoughts that begin to come together with a financial capability. The prospective homebuilder may have a mountain of home magazines or clippings that show what is important in to them in a home. Taking these ideas they may consult an architect to draw up their plans or pick a suitable set from an online seller. Either way they will have the blueprints for the next phase of their lives and now need a pilot to steer them around the wide variety of obstacles that appear when building a new home. This is where the general contractor comes in.
Hiring a GC is the first process after the financing and plans are finalized. He or she will take those plans and come up with a bid to build the home on the required lot at a certain price and in a specified time. All this will come out in the contract but the details should be verified by you lawyer. If all the rules are laid out in advance the process will be more enjoyable.
The bidding system begins with a GC taking your plans to the subtrades – electricians, framers, plumbers, etc. - and getting their prices. Then, by adding on the cost of materials, specialized machinery rentals, permit costs and a dozen other costs the real price will emerge. On top of this will be the cost overseeing the project that is called the margin or construction management fee. This varies but usually is around 15-20%. The cost-plus system, where the cost of building is shown separate from the commission, is a great way to show you how much the house costs and how much the GC gets. In the bid the cost of inflation for building materials is also included and a warranty.
When going for a bid you have to realize that few GC's will want to bid against more than 2 or 3 others. Its not worth their time when they have lest than a 25% chance of getting the job. However, this is in normal times. If work is scarce then this does not necessarily apply.
Here is a list of basic general contracting duties:
For seasoned general contractors consult our Contractor Directory or post a job on out contractor matching service.
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