Building construction is a complicated process. The complexity of many components involved in construction can be very time-consuming. In addition, many aspects of construction need to be monitored closely by many different people throughout the construction process. A general contractor, principal contractor, or subcontractor is typically responsible for the day-to-day oversight of a construction site, coordination of trades and vendors, and distributing pertinent information to all involved parties.
Hiring firms are an increasingly popular way for contractors to manage their construction projects. A construction contractor hiring firm will conduct background checks on potential contractors, perform contract appraisals, provide financial estimates, offer creative ideas for improvements, and take care of other details vital to successful construction. Often, hiring firms will have several construction contractors on their books at the same time.
There are certain advantages to contracting out work. Firstly, it allows the construction company to focus on the work that they do best. Instead of hiring and managing dozens of construction personnel, they can focus on just the most comfortable people. A construction project manager is an example of the type of person contractors usually hire.
It is much easier to coordinate one main contractor than it is to coordinate dozens of subcontractors. The construction manager is also less likely to get overloaded with work that can be delegated elsewhere. The main contractor focuses on the jobs at hand and may only delegate work to sub-contractors when requested by one contractor. For smaller projects, this may not be an issue since the work that needs to be done does not usually cross from primary to secondary contractors. On the other hand, contractors can and do easily get “stuck” in a construction project with a wide variety of work they want to be done.
There are some exceptions to this benefit, though. Construction contracts can also serve as an excellent way to attract new business. A new construction company that just started in town could use a construction contract to draw attention to their new operation. In addition, there is a certain amount of leeway given to a company that signs a construction contract, namely a potential increase in business.
This benefit of construction contracts is one of the reasons why many builders contract out the work they do. Another benefit is the benefit of reduced expenses. Contractors will have to pay a portion of their own wages to gain access to the building site and perform the work, which should go to the company instead. In addition to lower wages, some contractors also agree to provide health care, insurance, vacations, housing, and other such benefits to workers under contract. In most instances, these workers have to wait a specified period of time before gaining these benefits.
A construction manager has a duty to the company. This duty requires that the manager is available for business at any reasonable hours. If a prime contractor should ever go on vacation or not show up to work, then the manager of the main contractor could be held legally responsible.
Finally, construction contracts help protect the homeowner from unexpected costs. Suppose the main contractor begins working on a roof but decides a day or two ahead of time that a leak will occur. If the homeowner had already signed the construction contracts for the work she wanted, then she would be protected. The homeowner could then sue the contractor for damages, even if the reason for her lawsuit is unrelated to any construction contracts.
There are many advantages to having construction contracts. First, they help avoid disputes between contractors and homeowners. For example, suppose a contractor accidentally starts a fire while on work. If the homeowner had already signed a construction contract for the work she wanted, then she would have no legal recourse. However, this is an infrequent instance, and when it does happen, the law favors the contractor.
In fact, construction managers and general contractors usually have an attorney on retainer. This is because, just like any other type of professional, they need to protect themselves and their clients. As part of their duty to the client, these contractors will normally provide insurance to cover legal expenses. In addition, most general contractors will charge a fee to the homeowner if they need to pay for unexpected bills. This fee is typically paid to cover the cost of having the contractor’s attorney file paperwork with the court.
Finally, most construction contract jobs are small in scope. The typical contract will only cover things like materials and labor. In most cases, a home remodeling job or addition to a house will not require such an elaborate contract. Therefore, homeowners shoulde inquire with their contractor about whether or not the job they want to be done will require a contract before making a final decision on whom to hire.