Normal Construction Company And Professional Contract Company

Ø  In any construction project there is the general contractor and after the general contractor come to the subcontractors.

Ø  Though sometimes people use the term interchangeably, contractor and subcontractor have very different scope of work.

Ø  In this article we shall tell you about the different contracts in construction project and we would also shed some light on the difference between a normal contract, which could also be called subcontract, and the professional contractor or the general contractor.

Ø  Before discussing more about the general contractor and subcontractor, it becomes important to know the kind of contracts that exist in the construction industry.

Ø  A contract, as is well known, a binding agreement.

Ø  What might be surprising for some people to know is the fact that for a contract to be binding it need not be only in the form of written, even a spoken agreement to get the work done could be held up in court as a binding contract.

Ø  A construction contract is a binding agreement between the contractor and the client in regards to the construction, which specifies an amount for the compensation for completing the project with the specifications in the specified period of time.

Ø  During a construction process there are many contracts that are made to finish the different processes.

Ø  The general contractor is the company which has won the bid and thus makes a contract to finish the project.

Ø  They further hire subcontractors to complete the work.

Ø  They form agreements with the contractor and don’t directly deal with the client.

Ø  For example in building, there are different subcontractors for laying the slab, shuttering, steel, etc.

Ø  Thus, subcontractors in dealing with contractors tend to have a network of contractors and work on many different projects, whereas contractor focus on projects as a whole. Thus, the time that subcontractors devote to a project depends on the work that they providing, whereas contractor is present for the entire duration of the project.

Ø  Subcontractors are not directly in touch with the client and they are also not answerable to the client directly.

Ø  Their obligation is towards the contractor and they are answerable to them.

Ø  This becomes especially important to keep in mind when deadlines come into the picture.

Ø   As a general contractor when you depend on the subcontractors to finish a certain work in a stipulated period of time and it gets delayed, it is the general contractor who would be in trouble with the client because of this delay.

Ø  Contractors need to focus on the entire project thus they need to have efficient planning in place.

Ø  They need to also their subcontractors wisely because if they don’t exercise caution in choosing the subcontractor then they might end up in a contract with a person or a team which does the work in a shabby manner and which would ultimately result in losing time and money for cleaning up the mess that would be caused due to work that will not be accepted by the client.

Ø  That is why it is very important for the contractor to find subcontractors which are trustworthy.

Ø  A job well done will lead to a good reputation for all the parties involved.

A contract, as is well known, a binding agreement.

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