Carrying out a construction investment is a complex process that requires a professional approach, the coordination of many activities and supervision of the works. At the centre of this process is often the general contractor, who takes responsibility for the comprehensive delivery of the project. Let us take a closer look at who the general contractor is and what the general contracting system in the construction industry involves.
Who is a construction general contractor?
A construction general contractor is the entity responsible for managing a construction investment comprehensively, from the very beginning to the last finishing works. It is a firm or company specialising in carrying out construction orders for the investor in their full scope. The general contractor takes responsibility for the whole construction process – from preparing the design, through organising the construction works, to handing the completed facility over for use.
Unlike partial contractors or subcontractors, who provide services of limited scope, the general contractor deals with all aspects of delivering the investment. Its main task is to complete the project in line with the investor's assumptions and the provisions of construction law.
To act as a general contractor, appropriate formal and professional qualifications are necessary. In Poland, this activity requires running a registered company and holding construction qualifications, particularly in the case of persons managing projects or acting as construction manager.
What does the general contracting system involve?
General contracting is a model of managing and delivering construction investments in which the general contractor plays the main role. The system has several key features that distinguish it from other forms of delivering construction projects.
First of all, general contracting is based on the comprehensive delivery of the investment. The general contractor is responsible for all stages of the construction project, including construction management, material supplies and the coordination of subcontractors. In addition, under the concluded contract, it assumes full responsibility for the quality, timeliness and compliance of the works with construction law.
The general contracting system includes supervising and coordinating all works on the construction site, directing construction works at every stage of erecting the building, as well as handling the necessary formalities connected with the delivery of the investment. The key elements of the general contracting system include:
- Comprehensive delivery– the construction general contractor manages the entire project from start to finish
- Responsibility for quality – full control over the standard of workmanship of all works
- Coordination of subcontractors – managing all the companies involved in the project
- Cost optimisation – thanks to its knowledge of the market, the general contractor can negotiate favourable terms
- Timeliness – keeping to the schedule and meeting agreed deadlines
An experienced general contractor, thanks to its knowledge of the market, can negotiate favourable terms for the purchase of construction materials, which reduces the cost of delivery. In addition, because it supervises all stages of the investment, it ensures a uniform standard of workmanship in line with the design and applicable standards.
What role does the general contractor play?
The role of the general contractor is to provide comprehensive project support and to deliver the investment in accordance with construction law, within the deadline agreed with the investor. The general contractor performs a key function in the construction process, being responsible for coordinating the entire project, supervising the work of subcontractors and ensuring that the delivery of the investment complies with applicable law.
The general contractor signs a contract with the investor, undertaking to carry out the necessary construction and installation works. Its role includes both tasks related to the construction process itself at every stage of the investment and contact with the investor, as well as handling investment-related formalities.
In practice, the general contractor is the decision-making centre of the entire construction process. It manages the schedule and material supplies, controls quality and ensures safety on the construction site. Thanks to this, the investor can focus on other aspects of the project, confident that the construction works are carried out professionally and on time.
What is the general contractor of an investment responsible for?
The general contractor of an investment bears broad responsibility for the entire construction process. Its duties include managing and coordinating all construction works, including organising the construction site, scheduling the works and supervising the deadlines for individual construction stages, and ensuring the supply of construction materials in accordance with the contract and the investor's requirements. The key areas of responsibility of the general contractor of an investment are:
- Project management – coordination of all activities related to delivering the investment
- Technical supervision – checking that the works comply with the design and building standards
- Subcontractor management – selection, supervision and settlement of subcontracting companies
- Materials logistics – ensuring materials are delivered on time and of the right quality
- Site safety – ensuring compliance with health and safety regulations
- Construction documentation – keeping the construction log and other required documentation
- Financial settlements – budget control and payment management
- Technical acceptance – preparing the facility for partial and final acceptance
An important area of responsibility is managing subcontractors and suppliers. The general contractor selects contractors for individual stages of the works, signs contracts with subcontractors, supervises their work and coordinates the schedules of the various construction companies in order to avoid delays.
The general contractor is also responsible for supervising quality and safety. It checks the quality of the works against the design and construction law standards, ensures that the delivery of the investment complies with building regulations, and provides safe working conditions for all employees on the construction site.
In addition, the general contractor bears responsibility for completing formalities and documentation, including concluding contracts with subcontractors and suppliers, preparing progress reports and obtaining all permits and acceptances required to complete the investment.
In financial terms, the general contractor is responsible for cost optimisation and financial efficiency, negotiating the prices of materials and services and ensuring effective use of the investment budget.
How to choose a construction general contractor?
Choosing the right general contractor is a key decision that can determine the course of the works and the final results of the investment. Several important criteria are worth bearing in mind when choosing.
First of all, the general contractor's experience plays a key role. It is worth looking at the company's previous projects, obtaining detailed information about them, and checking its reputation and reviews.
It is also important to make sure that the contracting company employs a person holding the appropriate qualifications to act as construction manager. In addition, you should check whether the chosen contractor bears responsibility for all the activities undertaken and whether this is specified in the contract.
It is also very important that the contractor has adequate equipment resources to carry out the individual works. It is also worth checking the legal status of the company providing general contracting services, as well as its financial condition and resources.
When considering the choice of a general contractor, it is worth paying attention to firms with an established position on the market, such as Grupa KDM. Our many years of experience in delivering a wide variety of construction investments guarantee a professional approach to every project.
Grupa KDM ensures full security of the investment process thanks to the comprehensive coordination of all stages of construction – from design, through general construction works, to fit-out arrangement. By choosing an experienced general contractor, the investor gains confidence that their project will be delivered to the highest quality standards.
Every construction investment involves considerable commitments, including financial ones, so it is very important to cooperate with an experienced, proven and reliable general contractor.
What conditions should a general contractor meet?
To perform its function effectively, a construction general contractor should meet a number of formal conditions and have the appropriate professional competences.
First of all, the general contractor must have the necessary qualifications and industry experience, which enables it to manage a team of specialists effectively and coordinate works on the construction site. It should also hold construction licences, which confirm the technical qualifications to carry out construction work, such as supervising project delivery, managing the team and controlling the quality of works.
A construction general contractor must also know construction law, technical standards and health and safety rules, which are essential for conducting construction safely and lawfully. Besides formal licences, soft skills are also important, such as planning, time management, negotiation and communication with investors and subcontractors.
Having adequate equipment resources to carry out individual works and a sound financial condition that allows the investment to be delivered smoothly are also important conditions.
What falls within the general contractor's duties?
The scope of the general contractor's duties is very broad and covers all aspects of delivering a construction investment. The general contractor's basic tasks include:
- Handling formalities related to the construction process
- Preparing cost estimates
- Agreeing financial terms with workers
- Preparing material proposals
- Efficient division of work between own crews and hired subcontractors
- Monitoring the progress of works
- Providing the necessary construction equipment and machinery
- Appropriate securing of the construction site
The general contractor is also responsible for drawing up the works schedule and for checking the quality of materials and services, supervising the work of subcontractors, ensuring safety on the construction site and reporting progress to the investor. It is also responsible for obtaining all necessary permits and consents, and for any negotiations with neighbours or other interested parties.
It is worth stressing that general contracting covers both the necessary works on the construction site, aimed at erecting a building of a specific purpose, and installation works. The general contractor's detailed duties at different stages of the investment include:
- Preparation stage – preparing the construction site, organising site facilities, drawing up the schedule
- Delivery stage – coordinating construction works, supervising subcontractors, quality control
- Finishing stage – supervising finishing works, coordinating specialist installations
- Acceptance stage – preparing as-built documentation, participating in technical acceptance, rectifying defects
Is the general contractor responsible for the subcontractor?
The general contractor bears responsibility for subcontractors in many respects. This responsibility is multifaceted and covers both financial matters and the quality of the works performed.
As regards financial liability, the general contractor is jointly and severally liable with the investor for payment of remuneration to subcontractors under Article 647(1) of the Civil Code. This means that a subcontractor may pursue its claims against both the general contractor and the investor, if the latter consented to the engagement of the subcontractor.
The general contractor is also liable for any errors and omissions of subcontractors. If the work performed by subcontractors does not meet quality requirements or does not conform to the design, the general contractor is obliged to remedy it. Under Article 474 of the Civil Code, the general contractor is liable to the investor as for its own actions or omissions for the actions and omissions of persons with whose help it performs its obligations or to whom it entrusts their performance.
Moreover, the general contractor must manage the risk connected with engaging subcontractors, which includes, among other things, checking their financial capacity and verifying that subcontractors hold appropriate insurance to protect against potential claims.
What to remember about the general contracting system
General contracting is an effective model for delivering construction investments that brings many benefits to the investor. The general contractor takes responsibility for the whole construction process, coordinating the work of subcontractors, managing logistics and ensuring that the delivery of the investment complies with applicable law and technical standards.
By choosing to use the services of a general contractor, the investor gains a guarantee of efficiently and expertly conducted works, and can also save time and money. This allows them to focus on other aspects of the project, confident that the construction works are carried out professionally and on time.
It is worth remembering that choosing the right general contractor is a key decision that can determine the success of the entire investment. When choosing, attention should be paid to the potential contractor's experience, reputation, licences held, and equipment and financial resources.
The general contracting system is characterised by a comprehensive approach to delivering the investment, full responsibility for the quality and timeliness of works, cost optimisation and a uniform standard of workmanship. These features make it an increasingly chosen model for delivering construction investments, especially in the case of large and complex projects.
Grupa KDM is a general contractor with many years of experience – comprehensive delivery of investments is the company's speciality – from design, through general construction works, to fit-out and service. As a construction general contractor, Grupa KDM guarantees a predictable process and full coordination of all stages. A team of professionals ensures timeliness, safety and the highest quality of workmanship on every investment entrusted to it.
