A general contractor is hired to control, build and
oversee a project. This individual typically does very
little hands on work and will sub-contract some of the
work. The contractor often provides a hired crew to
perform some of the construction.
The general contractor
will profit by providing the labor, and by marking up
construction materials, typically from 10% - 20%. For
example, if the building package, labor and the balance
of building materials costs $100,000.00 the contractor
will add $10K - $20K (and sometimes more) for profit and
overhead. The general contractor is thus compensated for
assuming all of the risks involved with the building of
the structure, and for purchasing additional insurances
and warrantee expenses after the project is completed.
This is typically the most expensive route, but also is
the safest and most conservative approach. Some banks
prefer this method before lending.
Please consult with us before choosing any option so we can best serve your needs.