A construction general contractor (GC) plays a pivotal role in bringing projects to life. Whether you're planning a commercial build or a home renovation, understanding what a general contractor does is essential to ensuring your project runs smoothly. In this guide, we'll break down the responsibilities of a general contractor, the benefits of hiring one, and what it takes to become a GC.
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A construction general contractor manages and oversees all aspects of a construction project, ensuring it's completed on time, within budget, and to the required standards. GCs coordinate multiple teams and project components across every phase of the construction process.
The key responsibilities of a general contractor include:
Essentially, GCs are accountable for the overall success of a construction project, acting as the key linchpin and point of communication between owners, designers, and specialty contractors (also known as subcontractors). They take on significant risks, such as financial liabilities for delays or project overruns safety compliance on-site, and the quality of the finished work.
While GCs aren't always directly liable for the actions of subcontractors, they can be held liable for not vetting subs properly, not overseeing their work, or failing to act on construction safety concerns.
Because their role is so central in construction projects, general contractors are responsible for dealing with a wide variety of challenges such as design changes, labor shortages, construction material price volatility, and managing disputes with subcontractors. The best GCs navigate these hurdles by cultivating collaborative relationships, being proactive on the jobsite, and adopting the right technologies.
While some general contractors are increasingly getting involved in the design phase, especially on Design Build projects, a general contractor typically comes in after the design stage to oversee the physical construction process. This includes handling subcontractors, sourcing materials, and applying for licenses and building permits.
On the other hand, a construction manager (CM) typically works closely with the project owner from the planning stage, helping them coordinate and manage risk. Depending on the project, the CM may also play a role in overseeing construction activities on site.
While construction contracts and financial agreements may vary from project to project, general contractors typically work under a lump-sum or fixed-price contract and take on greater financial risk for delays or cost overruns. Meanwhile, construction managers may work based on a percentage (5% to 15%) of the project's total cost.
Choosing between a GC and a CM depends on the project's scope, complexity, and the level of control you need. A general contractor could be ideal for turn-key projects where you want a single point of accountability. On the other hand, you may want to opt for a construction manager when collaboration during planning and flexibility in decision-making are priorities. Nonetheless, GCs and CMs offer unique benefits depending on your project requirements and relationship needs.
General contractors can make or break the success of a project. Let's look at some of the roles and responsibilities that GCs take on.
The permit application process is one of the first steps in any construction project. General contractors handle the application process, making sure that necessary approvals are obtained. They also source high-quality materials at competitive prices, leveraging their industry expertise to avoid delays and ensure that owners get the most value from those materials.
General contractors vet and select experienced specialists, such as electricians and plumbers, to handle different parts of the project. It's also up to GCs to supervise these teams and see to it that the work aligns with project standards and timelines.
To ensure on-site construction goes smoothly, the jobsite itself needs to be set up for success. With that, general contractors oversee land clearing, grading, and utility setup so the site is ready for building. They also coordinate the movement of materials, equipment, and workers.
GCs play a crucial role in ensuring that projects are delivered on time and within budget. Many general contractors use precise cost estimation tools and construction project management software for this.
Compliance with building codes and safety standards is non-negotiable. General contractors see that every aspect of the project adheres to regulations. This minimizes liability risks and ensures the project passes inspections.
As the central communication hub, general contractors facilitate alignment among all stakeholders. They promote collaboration between owners, architects, and subcontractors, addressing concerns and keeping everyone informed. That way, teams can resolve issues quickly and maintain the project's momentum.
So, what does the process look to become a general contractor in construction? Let’s review some of the key steps.
As with any other role, the right education and experience are key. If you're looking to go down the GC career path, consider the following.
Most states require a general contractor license to operate. Licensing ensures that GCs meet established standards for safety and competence, which protects both clients and workers.
Not only do GC licensing requirements and fees vary by state, but they can also differ depending on the county or city where you operate. As such, you need to research the specific rules for your jurisdiction, including experience prerequisites and documentation needs. Consult with your state licensing board or local government agencies to understand the process.
If your state requires a general contractor license, you will need to pass a licensing exam. Again, the specifics of this will depend on your location, but it typically requires paying a fee and scheduling the exam.
Some of the topics you'll be tested on may include:
Most states require proof of insurance to issue a general contractor license. This usually includes general liability insurance to cover property damage or injuries and workers' compensation insurance for employees. Keeping your insurance policies current and compliant is crucial to maintaining your license and protecting your business from potential lawsuits or claims.
Documents, licenses, and certifications are essential, but the most successful GCs go beyond these basics by building industry relationships and investing in continued education to grow their expertise.
Strong industry connections can open doors to new opportunities and partnerships. So, attend events, join organizations, and engage with local industry groups to build credibility and trust. Check out the following:
Construction techniques and regulations are constantly evolving, so staying informed is key. Invest in courses and renew your certifications so your knowledge and skills are always sharp.
Another way to further your knowledge and expertise? Look to other GCs that are adopting leading best practices and tech.
Consider the following.
A GC that generates $4.8 billion across commercial and industrial projects, Barton Malow exemplifies innovation and efficiency. The company integrates lean construction principles into its projects and promotes strong stakeholder collaboration.
Case in point: the firm adopted an integrated project delivery (IPD) approach for a diesel truck plant project, ensuring open lines of communication between all parties. Barton Malow used the Autodesk Bridge tool in Autodesk Construction Cloud to streamline file sharing and maintain a single source of truth, enabling seamless collaboration while retaining data ownership.
Miller-Davis Company, a full-service construction firm in Michigan, adopts a thoughtful approach to tech implementation. The company ensures that people, processes, and technologies are constantly aligned, which puts the firm in the best position to deliver on projects.
When Miller-Davis took on the 85,000 sq ft Montessori School project, the GC firm adopted Autodesk Build and gave 80+ team members access to the construction project software. Doing so ensured everyone could get their hands on updated information, which minimized delays and errors.
Miller-Davis also implemented automated submittal logs via Pype AutoSpecs, cutting weeks-long processes to two days. This enabled faster project starts and streamlined communication with subcontractors.
PENTA is a Las Vegas-based general contractor that does $700 million in commercial construction annually. One of its notable projects is the first-ever Formula 1® racetrack in Las Vegas, which PENTA delivered in record time.
A key component of the project's success was using a shared construction platform that kept everyone aligned. Aside from the construction team, project owner, and trade partners, PENTA also had to coordinate with the city council, numerous casinos along the track, police and fire departments, and the regional transportation commissions.
Learn more about PENTA’s innovative approach to this project:
The construction sector doesn't stay stagnant, so general contractors must evolve along with the industry. Here are some of the trends and construction innovations that GCs need to embrace.
Sustainable construction isn't a buzzword—it's an absolute must if we want to have a built environment that can support future generations. Forward-thinking GCs integrate energy-efficient materials, renewable energy systems, and water-saving technologies into their projects. Eco-friendly building codes are driving these changes, offering cost savings and environmental benefits. Modular and off-site construction methods also continue to gain traction as sustainable and efficient alternatives to traditional building techniques.
With project delivery models like design-build and integrated project delivery continuing to gain steam, GCs must be more collaborative and foster teamwork between contractors, designers, and owners. According to ENR, median design-build revenue went up 27.1% in 2023 compared to the previous year. Additionally, FMI predicts that design-build will account for 46% of all construction spending in 2026, further highlighting the need for GCs to build their alternative delivery method portfolio.
The future of construction is undeniably more digital, and GCs must adopt advanced technologies including AI and machine learning to stay ahead. Key innovations include:
General contractors are the backbone of successful construction projects. Whether you're a developer, a sub, or an aspiring GC, understanding this role's intricacies can set you up for success.
Want to learn more about GCs and how to thrive in today’s landscape? Check out Autodesk’s collection of resources for construction general contractors.
