Their contracts are with the general contractor, and they are paid by the general contractor. For example, a plumbing contractor installs the plumbing, an electrical contractor installs the electrical system, a steel erector structural steel, and an elevator contractor installs elevators. The contractor engages subcontractors who take responsibility for the work of the various trades required for construction. The owner compensates the contractors for construction costs and services.Ī general contractor assumes overall responsibility for construction of a building. After a contract has been awarded, contractors must furnish and pay for all materials, equipment, power, labor, and supervision required for construction. This requires development of a concept for performance of the work and a construction time schedule. ![]() Hence, their initial task is to prepare a bid price based on an accurate estimate of construction costs. ![]() While they would like to satisfy the owner and the building designers, contractors have the main objective of making a profit. 1.3, construction under the traditional construction procedure is performed by contractors.
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