Understanding the role of general contractors and subcontractors in making these projects happen can help you better optimize the results of your own construction management franchise business.
First, let’s look at what it means to be a general contractor or subcontractor; then, we’ll look at some of the differences and how to get them working in your favor.
What is a General Contractor?
A general contractor is a person or a company that seeks to do business by obtaining contracts and carrying them out. Being a general contractor is naturally comparable to being a project manager business owner – you negotiate your deals, work for yourself, have your clientele and are rewarded on your own merits. A construction contractor offers a particular suite of skills which she or he can perform for clients on a contractual basis. As a contractor, you will be paid more for work than you would be as a worker because you have put in the effort of finding the customer yourself. Therefore, any profits from contract work belong to the general contractor.
What is a Subcontractor?
A subcontractor is a type of contractor. Subcontractors also work on a contractual basis, and they also offer a particular set of skills which they perform for customers. The key point about subcontractors is that they form agreements with the general contractor, not with the customer. Subcontractors often specialize in one specific area of construction and try to network with general contractors who negotiate for larger jobs that include this area of specialty. In this way, a successful subcontractor will always have work, thanks to their network of general contractors.
Transblue Managerial Contractors – They make things happen!
It may seem on the surface that the only real difference between a general contractor and a subcontractor is the title, but let’s take a moment to unpack how that difference manifests in reality. While general contractors generate projects and referrals and engage in networking with customers to find business, subcontractors are mostly looking to network with the general contractors that have work for them. As a result, contractors need to be far more sales, marketing, and project management-focused than subcontractors to function effectively.
Furthermore, subcontractors tend to specialize in one specific area, like concrete, turf installations, fences & decks, outdoor kitchens, or a different trade. This makes subcontractors especially good at service delivery for their area of expertise. As a contractor however, you need to see the big picture of a project more than your subcontractors do. This means
Subcontractors can be very effective workers, but contractors must be organized planners and effective managers. This is what entitles contractors to earn profits on the work of the subcontractors that they deal with. Working with subcontractors is a great way to increase your profits and create customer satisfaction as a contractor.
At Transblue, we provide world-class service, and we believe world-class service begins with proper contractor management training. The Transblue Academy’s mission is to provide our franchise owners and their employees with ongoing, valuable training for personal and technical enrichment so that they can provide the attention and service Transblue customers deserve!