What Does
Construction Contractor Mean?
A construction contractor is an individual or a company hired to complete a defined scope of work on a construction project. Unlike regular employees, they are hired on a contractual basis.
Construction contractors are hired, either directly by a facility owner, land developer, architect, prime contractor, or through third-party employers. They provide independent professional services for a defined scope of work on a project.
Firms classified as construction contractors can include single-person operations (independent contractors), trade contractors, general contractors, and firms that provide engineering, procurement, and construction (EPC) services.
Safeopedia Explains Construction Contractor
Bringing construction contractors onsite allows the company that hires them (known as the hiring firm) to:
- Temporarily increase their labor force to increase productivity or speed up a project, or
- Complete specialized tasks that their employees can’t, due to a lack of expertise or certification
The General Contractor
A general contractor is any contractor that hires subcontractors. On a complex worksite, multiple general contractors may work for the facility owner, the architect, or the prime contractor/constructor.
The general contractor is responsible for hiring any subcontractors needed to complete their scope of work. They also act as a project manager, oversee the subcontractors, and coordinate the services they provide.
A land developer could, for example, hire a general contractor to handle the construction of a series of residential buildings. The general contractor would then be responsible for hiring roofing contractors, supervising their progress in completing the job, and ensuring they conform to the hiring firm’s quality and safety standards.
Types of Construction Contractors
There are various types of construction contractors, each with a specialization. Common renovation, residential, and commercial construction services include:
- Surveying
- Site preparation
- Electrical
- Plumbing
- Framing
- Flooring
- Masonry
- HVAC
- Drywall
- Windows
- Tile and terrazzo
- Millwork
- Insulation
- Excavation and earthworks
- Concrete
Construction contractors can also specialize in different types of construction projects, including:
- Industrial contractors specializing in major facilities like chemical plants, oil and gas, heavy manufacturing plants, nuclear, and power generation
- Infrastructure contractors specializing in roads, railways, airports, marine facilities and water systems, and waste disposal
- Commercial contractors specializing in commercial buildings, such as office buildings, retail spaces, and schools
- Residential contractors specializing in building homes, townhouses, and carrying out renovation projects for homeowners
- Landscape contractors specializing in the construction of outdoor spaces, such as garden areas and patios
Contractor Safety
Construction is a high-hazard industry, and construction workers face a higher rate of injuries and fatalities than those in most other industries. As such, construction contractors often use their past safety performance and their programs as a selling point when bidding for contracts.
The presence of contractors on a construction site introduces some complicated employment relationships. When there is a safety incident involving a contractor, the responsibility and liability may fall on more than one party:
- For incidents involving a construction contractor, both the hiring firm and the contractor can be exposed to sanctions by OHS regulators
- For incidents involving a subcontractor, there is exposure for the subcontractor and the general contractor who hired them
Legal Liability
Hiring firms can transfer significant legal liability for safety risk to a general construction contractor when they exercise sufficient due diligence when fielding prospective contractors and effectively monitor performance in the field.
General contractors are responsible for the work that is specified in their contract and the scope they delegate to subcontractors. They can also be held liable for any incidents that result from the work they oversee. Subcontractors also retain some level of responsibility for the safety of their own workers, even after they have been hired by a firm.
Benefits and Risks of Hiring Construction Contractors
Hiring construction contractors can improve the capability and capacity of a construction project. However, contracting can also introduce certain safety risks.
The main benefit of hiring a construction contractor is that the hiring firm is entrusting the work to competent professionals who have the training needed to understand the hazards and know how to do the job safely.
However, hiring construction contractors also means bringing people on the jobsite who are not directly under the builder’s control.
While clients and prime contractors can minimize risk by implementing a pre-qualification process and a comprehensive safety management system, they are still delegating the hiring process and day-to-day management to a general contractor.