A general contractor is someone you hire to coordinate a home renovation or construction project. Although many support a variety of project types and sizes, they are typically used for larger projects, complex projects, or in cases where multiple interconnected projects need to be completed. There are a number of benefits to hiring a general contractor. After all, general contractors can buy insurance! General liability insurance for general contractors is usually taken out by a company specializing in these contractors. Keep in mind that if you`re considering getting a loan for a large project, the lender often asks you to hire an experienced general contractor, unless you can demonstrate significant experience in the field. First, understand what insurance companies consider to be general contractors (paper contractors). Insurance companies generally consider general contractors to be any contractor who. An entrepreneur can do whatever it takes. When you use many subcontractors, the right procedure becomes difficult. This sometimes puts the paperwork through the cracks. Traditionally, general contractors have workers on their payroll to do demolition, carpentry, electrical, plumbing, and other basics.

For everything else, they will hire different subcontractors or “subcontractors” (the balance varies from subcontractors to staff). In some cases, a “paper contractor” does not have its own staff, but subcontracts all the work. In almost all cases, over time, they have established relationships with certain subcontractors they know and trust. Second, why is this a problem with insurance companies? When an entrepreneur operates in this situation, he is considered “too weakly distributed”. When a general contractor takes out a policy, it`s about covering themselves and their customers. The insurance also covers the final product to a certain extent. Knowing what a general contractor (GC) is and what they do is the first important step in knowing if they are the right person to help you complete your project. This blog post from our friends at the Club de réadaptation des Moines gives a good overview of what a general contractor does and costs (original article from 2013). You can read more on renovateDSM.org. In other words, a general contractor can move a project forward faster and with less grief for you.

Quick Note: If the subcontractor does not have workers` compensation insurance, the general contractor may still be liable for a workplace accident. This is true even if your state doesn`t need coverage. If you choose a general contractor, interview them thoroughly. Be sure to check the references and get a detailed breakdown of the costs as part of the contract. Using a general contractor instead of “subcontracting” the work itself usually costs about 10-20% more on average. However, in some cases, it may cost less than doing it yourself, especially if you don`t receive multiple offers when you hire subcontractors. Often, the general contractor`s employees can perform certain work for less than the subcontractors. This creates another layer of protection for their customers. .