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General Contractor vs Construction Company

33K views 43 replies 13 participants last post by  Mitch M  
#1 ·
Hey
I'm an electrician but I want to open up my own company to build homes and help people do renos.... But I faced this problem on my way, I don't know the difference between a General Contractor or a Construction Company.
Thanks for you help
 
#2 ·
Construction company is kind of general term. GCs are the one who contracts with the client or homeowner, and subcontracts specialty trades out to trade contractors. General Contractor is not a term you hear around here unless it is being said about a commercial outfit. Builder is the term most people use when discussing a home builder/ remodeler, down here anyway. Just a difference in terms.

What kind of experience do you have in construction besides electrical?
 
#5 ·
A gc IS a construction company.

There are many different types of contracting companies:

General Contractor
Construction Manager
Builder
Remodeling Contractor
Design/Build Contractor


As far as what will suit you best,that depends on what you want to be.

Do you want to do certain aspects in house,or sub it all out and manage it? Do you want to do new construction,remodeling,or both? Do you want to help design and CAD their ideas,or work off prints once they get them? Residential or commercial?

Most all specifications above are interchangeable,and many companies are all things.

It's really all about what you want your company to be and where you want to take it.
 
#7 · (Edited)
I actually have two company's, same people, just different markets. One we market remodeling, one is towards new homes. We wanted to concentrate on full service remodeling. It worked well, just have to keep two sets of books. We have the same logo with both names. Wouldn't recommend two names though. A lot of action.
 
#18 ·
Turbo said:
So Can I have a company with the title Construction instead of GC in order to service everything?
It can be whatever your heart desires. It's your business and your baby.

Can be Turbo Construction, Turbo Contracting,John Smith Builders,Turbo Smith Home Improvements,The Turbo Corporation, Turbo & Associates, etc...

Make it your own. The name will be what everyone associates your reputation with.
 
#22 · (Edited by Moderator)
In my opinion when I here Construction my mind goes directly to road construction, when I hear builders I think of home builders, general contractor covers all the bases. Or you can go with something outside the box and be creative in you name choice. People like something new and exciting and if your reputation speaks and your work is good, it won't really matter what your company's name is. Do a good job, and people will hire you again and tell their friends to hire you.

Joehttp://www.gmr-usa.com
 
#38 ·
At the risk of beating a dead horse, I'll explain something.

First, find out what you can legally do. I don't know about where you are, but here, working in a power generation facility would not qualify you to build or remodel houses.

Second, a builder is someone who builds. Period.

A construction company is a company that performs construction services. It could be building new homes, remodeling, commercial construction, industrial construction, or it could be a plumbing or electrical construction company.

A contractor is someone who is legally able to sign contracts for construction services. (I am obviosly leaving out other types of "contracting", such as Blackwater/XE services.:eek:)

A construction company must also be a contracting company, for the simple reason that all construction services are provided with a written contract. ;);)



Yes. You would be a contractor if you/your company can legally sign contracts. It makes no difference if you do the work, your employees, or your subs.




I don't have any of those in my name :eek:

Nothing in my name screams construction.:blink:

Cole

I know. I googled "Coles Custom Creations", and I got a t-shirt screen printing service.:whistling:eek:
 
#28 ·
How much do you guys charge per SQ or how do you charge them? Including material or what?
Strike two. Sorry, there isn't a first strike. :laughing:

We do not discuss "how much" here; it just leads to too much grief. It's up to you to work out what the job is worth, based upon material costs and labor, plus whatever profit you want/need to make. It's pretty much irrelevant what others charge.

You should already have a clue or two about this if you're ready to become a general contractor. Not to be unkind, I suspect you're really more of a handyman type. No shame in that, but GC'ing is a whole other world. :thumbsup:
 
#33 · (Edited)
In reviewing your original question and your follow ups, I don't think we or you really know what your question really is. What you call yourself is not the issue, what service of value you can provide is the issue. Details, such as where you're located and then what type of services you're going to provide would help us.

The answer to your question above is yes. Just as you are an electrical contractor, if you're going to do drywall, then you could be a drywall contractor. For some services or trades, you may need certain licenses, but that is dependant upon where you're located. The there is permitting, again depending on scope and trade and dependant on local requirements.

I think of being a general contractor, in that you provide an array of services, but certainly or not necessarily all. Some builders, would sub out near most of the job, but they would be considered general contractors. Whereas, 'contractor' I think as singular service.

I guess in the end, I just don't understand your preoccupation with the terminology for your situation. Others have offered responses, but you only return with more of the same question. :confused1:
 
#37 ·
Big damn difference between being a custom builder and a spec builder. Try not knowing chit and see how far you go as custom builder and especially a remodeler.

Also, cheap how? Lots of builders are cheap, but many are not. We pay well, and buy top materials and products. Not all GCs nickel and dime their subs and suppliers to death.
Sorry, I did not mean to strike a nerve.

I completely agree there is a difference in "real custom builders and remodelers". And, I know that different parts of the country have different market methods for home building in general.

Here in OK, there are very few larger companies building new homes, ie DR Horton, Ideal Homes, and another or two.

Most are mom and pop type operators, but this trend seems to be changing just a little. But for the most part, every tom, dick , and harry are "homebuilders" here.

I would assume this is different in other areas of the country. Also, I would agree that to be a good builder/remodeler, some subject matter expertise. Also, that would be someone whom has actually done some work and has significant experience. Those guys are not the cheap arses. But they are few and far between, at least here in my area.

Also, sorry to hijac op original thread.

Have a great day.
 
#44 ·
I think if you are going to be a builder, I think General Contractor is the better way to go. I even go by xyz Construction Company. But the thing that you do have to consider is the law. In NC, you cannot call yourself a General Contractor unless you have taken the test and completed all the paperwork requirements. Construction Companies can imply all kinds of companies.

I have only heard of a few companies with the names in it being sold and those were good times. So pick a name that you are comfortable with and make sure the licensing is right and get with the program.