General Contractors

Industry at a Glance: Construction (NAICS 23)

The Construction sector comprises establishments primarily engaged in the construction of buildings or engineering projects (e.g., highways and utility systems), establishments primarily engaged in the preparation of sites for new construction and establishments primarily engaged in subdividing land for sale, as building sites are also included in this sector.

Construction work done may include new work, additions, alterations or maintenance and repairs. Activities of these establishments are generally managed at a fixed place of business, but they usually perform construction activities at multiple project sites. Production responsibilities for establishments in this sector are usually specified in contracts with the owners of construction projects (prime contracts) or contracts with other construction establishments (subcontracts).

Establishments primarily engaged in contracts that include responsibility for all aspects of individual construction projects are commonly known as general contractors, but also may be known as design-builders, construction managers, turnkey contractors or (in cases where two or more establishments jointly secure a general contract) joint-venture contractors. Construction managers that provide oversight and scheduling only (i.e., agency) and construction managers that are responsible for the entire project (i.e., at risk) are included as general contractor type establishments. Establishments of the “general contractor type” frequently arrange construction of separate parts of their projects through subcontracts with other construction establishments.

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This is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice. © 2014 Zywave, Inc. All rights reserved.

 

2017-09-28T21:13:28+00:00
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