Explaining 7 Different Types of Building Contractors

There are several types of building contractors working in the construction industry. Following, we are going to explain a few of the many contractors (based on their work). This will give you a better perspective about these contractors, the work they do and why you need them. So, kindly do take your time to read the following types:

this picture explains one of the 7 different tyoes of building contractors

General Contractor

General Contractor oversees a building project from start to the very finish. This might involve the creation of building from ground up or renovation projects. General contractors often consist of carpenters as carpentry encompasses activities of several other trades.

Electrician

Electrician Works on almost every construction project. There is almost no building that is built without proper infrastructure for electricity. Electricians install breaker boxes, wiring or fixtures or deal with power companies to have grid power turned off so that new systems are hooked up safely. Electricians are involved in the installation of alternative and decentralized energy systems like solar, wind and geothermal.

Plumber

A plumber is responsible for water systems in the building including connecting a house to a well or water main. Installing water heating equipment and building and maintain drainage as well as septic systems.

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3 Types of Basic Construction Contracts

There are 3 basic types of construction contracts. Following, we are going to take our time to explain each one of these contracts. So, take the time to read them!

Basic Construction Contracts

this picture shows one of the basic ocnstruction contracts

Lump-Sum or Fixed Price

Such a contract evolves around fa fixed price for every construction-related activity. Lump-Sum contracts cover incentives as well as benefits of early termination including the penalties dubbed liquidated damage (thanks to late termination). Lump-sum contracts are preferred with a clear scope and with a defined schedule which is reviewed and agreed upon.

The contract is used when the risk is transferred to the builder and the owner wants to avoid the change order for any reason. The contractor needs to include a percentage cost related to carrying the risk. Such costs are hidden at a fixed price. In the case this is a lump sum contract, it’s hard to obtain credit back for work not completed, so consider when evaluating your options.

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