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General Contractor (GC)
What is a General Contractor (GC)?
A general contractor (GC), also commonly referred to as a prime contractor, is the main contractor responsible for managing an entire construction project. They are in direct contact with the build’s owner/developer and hold primary responsibility for the construction, execution, quality, and completion of the project under the agreed terms and schedules. As such, the GC addresses concerns and resolves issues related to the project, contributing to the effective execution and timely delivery. The GC also manages the procurement of materials, labor, and equipment, ensuring compliance with building codes and regulations.
A critical part of the GC’s job is hiring and managing trade contractors, also known as subcontractors, who specialize in specific construction trades like electrical, plumbing, framing, etc. The GC essentially acts as a hub, contracting out portions of the work to skilled trade contractors while retaining overall control of the project operations.
GCs have a vested interest in working with subcontractors who not only are highly skilled in their respective trades but also have efficient, well-defined operational and financial workflows to ensure reliability and consistency in their performance. Streamlined billing processes are crucial in this regard. When subcontractors can quickly and accurately generate pay applications—complete with the necessary compliance documentation and lien waivers—it allows the GC to bill the project’s owner promptly and get paid faster. Delays in subcontractor billing can significantly impede the GC’s ability to get paid in time, thereby causing delays in payments to other contractors, too.
This is where a solution like Siteline can ultimately benefit GCs by helping their subcontractors streamline billing processes. Siteline accelerates subcontractor billing by automatically generating pay apps per GC specifications, tracking compliance requirements, managing change orders and lien waivers, and providing payment visibility. When subcontractors use Siteline to automate billing, GCs receive accurate, compliant pay applications faster, allowing them to bill project owners promptly and get paid quicker as a result.
See how Siteline can accelerate your construction billing cycle and get you paid faster by scheduling a demo today.
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Other construction terms
What is a Surety?
A surety in construction is a company that provides financial guarantees, typically in the form of bonds, to ensure that contractors fulfill their contractual obligations. The surety acts as a third-party guarantor, promising to step in and complete the work or compensate for damages if the contractor fails to meet their commitments.
Sureties issue various types of construction bonds, including bid bonds, performance bonds, and payment bonds. These bonds protect project owners from financial loss and give them confidence that contractors can deliver on their promises. To obtain bonding, contractors must demonstrate financial stability, technical expertise, and a track record of successful project completion.
For subcontractors, working with bonded general contractors provides payment protection, but maintaining your own bonding capacity is equally important for winning larger projects. Sureties evaluate contractors based on several factors, including financial health, project experience, and accounts receivable aging. Since poor A/R management can hurt your bonding capacity and disqualify you from major projects, keeping payments flowing quickly becomes critical for more than just cash flow.
Siteline helps subcontractors maintain healthier A/R aging by streamlining billing processes, providing visibility into payment statuses, and creating automated reminders to stay on top of collections. This all positively impact bonding evaluations and keep more opportunities within reach. Learn more about Siteline.
What are Liquidated Damages?
Liquidated damages in the construction industry are a pre-agreed sum specified in a construction contract, which the contractor will pay to the client in the event of a breach of contract, typically when there are delays in completion. This contract clause serves as a protection mechanism for the client, giving an estimate of the potential loss they might incur due to the delay. However, liquidated damages must be a genuine pre-estimate of loss, not a penalty. They are not intended to be a punishment, but a compensation for the client's actual anticipated loss. This approach mitigates the risks and provides predictability for both parties in a construction project. One party cannot claim more than the contracted liquidated damages. They bring certainty to the potentially complex process of calculating actual damages in construction delays, thus fostering an efficient dispute resolution.
What is Breaking Ground?
Breaking ground refers to the official start of construction on a project, typically marked by the initial digging into the ground. It’s the first step toward site preparation, which involves various tasks, like soil testing, land clearing, excavation, leveling, etc. The term originates from the literal act of "breaking" or disturbing the ground to begin foundation work.
Breaking ground marks the transition from pre-construction activities (permitting and design finalization) to actual building work. This is when project timelines become essential to track, material deliveries need coordination, and subcontractors start mobilizing their teams and equipment to the job site.
Once its time to start building, it’s time to start billing. Siteline helps subcontractors streamline their pay app and lien waiver processes, eliminating bottlenecks that can hold up payments for faster payments. Learn more about Siteline.
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