What is a General Construction Contractor?
Below is the best general contractor definition by the construction industry:
A general contractor is someone that is responsible for overseeing a construction project, in addition to being the one that will enter into the prime contract with a property owner.
A general contractor is often known as the direct contractor, and this is important when it comes to getting paid. We will explain why by first explaining what is meant by using the words “direct” and “prime.” the former is a party that contracts with and is hired directly by the property owner, another name for this is a PRIME contractor. This is determined by who the agreement is with, and not by the nature of the work, the name of the company, or any other factor.
To put it in layman’s terms, if a construction company is working on a project or job, and they were hired directly by the property owner, then that makes them the direct or prime contractor. A general contractor will always be a direct contractor. However, not all direct contractors see themselves as “general” contractors.
Can a General Contractor File a Lien or Bond Claim?
On public projects, the general contractor is the one responsible for providing the bond for the project. Because the general contractor is the one that is providing the bond on a public project, they are not allowed to file a bond claim against the same bond. Which puts general contractors at a bit of a disadvantage.
On private projects, general contractors do have lien rights, although lien filings are not as common from general contractors as from other project participants, this is because the general contractor has a direct relationship to the project owner, and, is in a better position to work out any payment issues before they become any worse.
If you are looking for a Jersey City, NJ based general construction contractor, then call Blacktop Construction first at (201) 431-8233 today.
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