General contractors: how much money do they cost?
Just in case you don't know, general contractors are the kind of companies that will take care of any kind of jobs from the start to the end. They manage the jobs and put together all the people needed for the several steps of a particular job. To do so, they hire a number of sub-contractors. A general contractor usually has several arrangements and agreements with a lot of sub-contractors, even though a few general contractors can have their own staff of laborers, compensating them at an hourly rate. The contractors that have their own staff generally work with people that are specialized in many fields in order to competently address all the levels of any type of job.
Just in case you're asking yourself which is a general contractor cost, you need to know that there are 3 forms of agreements in this business: fixed price agreements, time and materials agreements and costs + fees deals. Each kind of contract is different and has its benefits and downsides for the customer, based on the type and overall size of the venture you have in mind.
The first kind of agreement we're going to explore is the fixed price agreement. As its name states, this contract commences with a quote from the service provider, approved by the customer. The amount of money decided upon is meant to stay the same until the completion of the job. When it comes to smaller sized jobs, this method in effective, but for bigger, more intricate jobs, it's very unlikely to preserve this fixed price, since a great deal of changes can take place.
The next kind of agreement, the time and material contract, is a document which contains the per hour fees for the employees, the fees for the building materials used and the mark-up of different sub-contractors that could be required for the various phases of the job. And so, if your plans change and you include extra work to the job, the time increases and the prices will grow. This form of contract has its negative aspects, specifically for the customer. If you do not work with a respected, reputable and sincere professional, you may lose some money, since any extra time spent at work is paid from your pocket.
The last kind of agreement, cost + fee contract, works the other way around. This agreement has the costs of the materials and a fixed charge for the general contractor, meaning that they are interested in wrapping up the job as effectively and rapidly as feasible.