General contractors: how much do they cost?
In case you don't know, general contractors are the type of specialists that will manage any type of projects from the beginning to the end. They manage the jobs and bring together all the laborers needed for the different steps of a particular project. In order to do so, they hire a series of sub-contractors. A general contractor typically has different arrangements and agreements with many sub-contractors, although some general contractors can have their own staff of laborers, paying them at an hourly rate. The contractors that have their own staff normally work with people that are specialized in many trades in order to successfully cover all the stages of any kind of job.
In case you are wondering which is a general contractor cost, you need to know that there are three forms of contracts in this business: fixed price contracts, time and materials contracts and costs + fees deals. Each type of contract is different and has its advantages and downsides for the client, according to the type and size of the job you have in mind.
The first type of contract we are going to explore is the fixed price contract. As its name states, this contract commences with a bid from the contractor, accepted by the client. The sum of money agreed upon is expected to remain the same until the end of the job. In the case of smaller projects, this formula in efficient, but for larger, more complex projects, it is very unlikely to maintain this fixed price, because a lot of changes can take place.
The next type of contract, the time and material contract, is a document that contains the hourly charges for the workers, the fees for the materials used and the mark-up of various sub-contractors that could be needed for the different stages of the project. So, if your plans change and you add work to the project, the time increases and the prices will grow. This form of contract has its downsides, specifically for the client. If you don't employ a respected, reputable and sincere contractor, you may lose some money, because any extra time spent on the job is paid from your pocket.
The last type of contract, cost + fee contract, works the other way around. This contract has the costs of the materials and a fixed fee for the general contractor, which means that they are interested in accomplishing the job as efficiently and quickly as possible.