General Contractors
General contractors (GCs) are
the playmakers for any significant construction project, taking responsibility
for all key operations such as construction assignments, job site supervision, and
activity coordination. Typically, GCs have their own construction specialty
(example: malls, restaurants, office buildings, stadiums, arenas, parks, etc.).
GCs are often larger concerns with a lot of expertise in their area of
specialty. The level of experience is critical since it permits a construction
project to be led efficiently and more successfully.
GCs may assign/award work
in a variety of ways, such as:
·
supplying
all of the specialty contractors for an entire project, such as the excavator,
electrician, heating contractor, cement contractor, plasterer, and so forth
·
using
their own, permanent employees for certain jobs, and then subcontract the
remaining tasks to other construction specialists
After land has been purchased and the design/architectural
work has been done, the general contractor proceeds, usually beginning with
site preparation, through excavation, foundation-laying, framing, and finishing
until the building or project is completed. The general contractor provides the
materials and equipment according to the applicable design specifications
(usually provided by the architect). The GC must comply with all local and
state ordinances, codes and zoning requirements. This includes purchasing the
necessary permits and obtaining the necessary surety bonds.
GCs may either be hands-on
operators, who actively take part in construction, or they may be
"paper" operators, overseeing the actual work of other contractors. The
general contractor may rent, lease or borrow equipment (including equipment
operators) for use by subcontractors. Since the general contractor is
responsible for the job site, he/she should be aware of the proper use of the
equipment during construction. Is the equipment being used as it was designed
to be used? Is the equipment's load capacity routinely exceeded? Finally, GCs
have many contractual and administrative obligations such as making sure that
critical project deadlines are met, that payroll is handled, materials and
equipment are obtained and that the project's budget is followed (avoiding cost
overruns).
GCs face a myriad of loss
exposures that vary substantially according to the type of construction
project. Their insurance needs may range from a simple, low limit package of
coverage to a huge wrap-up program, involving multiple lines of business,
different insurers and reinsurers with various layers
of coverage. Firms involved as general contractors must work with insurance
professionals who are equally adept at handling large tasks.
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