Liability insurance is essential for contractors. These policies protect contractors from claims resulting from property damage and injuries. However, selecting the right insurance can be tricky. Liability insurance can cover a number of different areas, and you need to make sure you understand what your state requires. It’s a good idea to check with your state’s building code to determine the specific requirements for general contractors.
Keeping costs under control is a primary motivation for a general contractor. Cost overruns are common in construction projects, and a general contractor benefits if the project’s overall cost is below the bid price. They keep the extra money they save on the project as profit. On the other hand, cost overruns require the general contractor to request more funds from the owner or change the scope of the project. This is particularly common when the general contractor isn’t involved in the pre-construction phase.
A general contractor must be licensed by the secretary of state in which he operates. Some states require contractors to have business exam scores and proof of construction experience. Some states require more than others, so you’ll need to research the requirements of your state. The type of work a general contractor is qualified to perform will depend on the size and type of the project.
A general contractor will submit a project proposal, a document that details the details of the project. It requires considerable effort on the part of the contractor, since it includes the costs of materials and labor. It also covers the contractor’s markup and overhead costs. It also covers the necessary insurances and worker’s compensation, if applicable.
A general contractor will coordinate and supervise all subcontractors on the construction project. Often, the general contractor will hire specialized subcontractors to perform certain tasks. A general contractor’s main responsibility is to maintain the overall quality of the work, while maintaining a safe work environment on the construction site. He’ll also be in charge of ensuring that the project is completed within budget.