# General Contractor vs Construction Company



## Turbo (Feb 2, 2012)

Hey
I'm an electrician but I want to open up my own company to build homes and help people do renos.... But I faced this problem on my way, I don't know the difference between a General Contractor or a Construction Company.
Thanks for you help


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## Jaws (Dec 20, 2010)

Construction company is kind of general term. GCs are the one who contracts with the client or homeowner, and subcontracts specialty trades out to trade contractors. General Contractor is not a term you hear around here unless it is being said about a commercial outfit. Builder is the term most people use when discussing a home builder/ remodeler, down here anyway. Just a difference in terms.

What kind of experience do you have in construction besides electrical?


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## Turbo (Feb 2, 2012)

jawtrs said:


> Construction company is kind of general term. GCs are the one who contracts with the client or homeowner, and subcontracts specialty trades out to trade contractors. General Contractor is not a term you hear around here unless it is being said about a commercial outfit. Builder is the term most people use when discussing a home builder/ remodeler, down here anyway. Just a difference in terms.
> 
> What kind of experience do you have in construction besides electrical?


Carpentry,Flooring,Tiling,Drywall you know, the general stuff. I want to know the term to include in my logo like you know BLABLABLA CONTRACTING or BLABLABLA CONSTRUCTION


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## Jaws (Dec 20, 2010)

Seen builders with names like blah blah Builders, LLC, or blah blah Construction, Inc, Blah Homes. Lots of framers use Blah Blah Construction, usually their name and Construction.


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## Mud Master (Feb 26, 2007)

A gc IS a construction company.

There are many different types of contracting companies:

General Contractor
Construction Manager
Builder
Remodeling Contractor
Design/Build Contractor


As far as what will suit you best,that depends on what you want to be.

Do you want to do certain aspects in house,or sub it all out and manage it? Do you want to do new construction,remodeling,or both? Do you want to help design and CAD their ideas,or work off prints once they get them? Residential or commercial?

Most all specifications above are interchangeable,and many companies are all things. 

It's really all about what you want your company to be and where you want to take it.


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## Tinstaafl (Jan 6, 2008)

I just use my name. No point in limiting yourself with anything else.


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## Jaws (Dec 20, 2010)

I actually have two company's, same people, just different markets. One we market remodeling, one is towards new homes. We wanted to concentrate on full service remodeling. It worked well, just have to keep two sets of books. We have the same logo with both names. Wouldn't recommend two names though. A lot of action.


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## Diablo View (Apr 10, 2011)

Tinstaafl said:


> I just use my name. No point in limiting yourself with anything else.


Only downfall to that is. It is hard to sell a company that has your name. I know when I am ready to hang it up I plan on selling and it seems it will be much easier to sell a business name then a personal name.
But to each his own


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## Jaws (Dec 20, 2010)

Tinstaafl said:


> I just use my name. No point in limiting yourself with anything else.


 This works well. My grandpa just uses his name, comma, Builder or will build to suit on his signs. Old school


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## Jaws (Dec 20, 2010)

Diablo View said:


> Only downfall to that is. It is hard to sell a company that has your name. I know when I am ready to hang it up I plan on selling and it seems it will be much easier to sell a business name then a personal name.
> But to each his own


 You ever see someone buy a GC business? Just curious. I only have once, when times were good, and it was his son. Probably works well with larger company's, I would imagine.


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## skillman (Sep 23, 2011)

My electrician is doing the samething as you want to do. He is a construction company with two divisions.


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## Turbo (Feb 2, 2012)

Mud Master said:


> A gc IS a construction company.
> 
> There are many different types of contracting companies:
> 
> ...


To tell you the truth,I want my company to include all of those trades.


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## Tinstaafl (Jan 6, 2008)

Diablo View said:


> Only downfall to that is. It is hard to sell a company that has your name.


I'm not interested in selling my name. :laughing:

90% of my work is done via personal referral. I am the company, and people know that. When I'm done, I could sell my client list, but you'd be a fool to buy it. They don't know you.


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## Turbo (Feb 2, 2012)

So Can I have a company with the title Construction instead of GC in order to service everything?


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## Diablo View (Apr 10, 2011)

jawtrs said:


> You ever see someone buy a GC business? Just curious. I only have once, when times were good, and it was his son. Probably works well with larger company's, I would imagine.


No not personally but I am sure it has been done. I know plenty of business owners who have built 30 yrs of solid clientelle and that has value. You just have to sell it to someone like you sold to customers for 30 yrs.
I'll check back in on this post in about 20 years and let ya know how I make out with the sale :thumbsup:


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## Jaws (Dec 20, 2010)

Turbo said:


> So Can I have a company with the title Construction instead of GC in order to service everything?


You can do whatever you want, bud. You are the boss.


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## Diablo View (Apr 10, 2011)

Tinstaafl said:


> I'm not interested in selling my name. :laughing:
> 
> 90% of my work is done via personal referral. I am the company, and people know that. When I'm done, I could sell my client list, but you'd be a fool to buy it. They don't know you.


That's where we differ my clients not only know me they know my company. 90% of my work is referal and they are referring my company name.
There are ways to sell you to sell your business, but Like I said to each his own.


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## Mud Master (Feb 26, 2007)

Turbo said:


> So Can I have a company with the title Construction instead of GC in order to service everything?


It can be whatever your heart desires. It's your business and your baby.

Can be Turbo Construction, Turbo Contracting,John Smith Builders,Turbo Smith Home Improvements,The Turbo Corporation, Turbo & Associates, etc...

Make it your own. The name will be what everyone associates your reputation with.


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## Cole82 (Nov 22, 2008)

Mud Master said:


> A gc IS a construction company.
> 
> There are many different types of contracting companies:
> 
> ...


I don't have any of those in my name 

Nothing in my name screams construction.:blink:

Cole


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## Mud Master (Feb 26, 2007)

Cole82 said:


> I don't have any of those in my name
> 
> Nothing in my name screams construction.:blink:
> 
> Cole


Barring the house in your logo, I'd agree. Your company name is original, which is actually great.

I know a lot of guys that don't have anything related to construction. It's XYZ Corporation, or ABC & Associates.

As long as your customers know who you are, you could be Snot Incorporated I suppose.


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## Cole82 (Nov 22, 2008)

Mud Master said:


> Barring the house in your logo, I'd agree. Your company name is original, which is actually great.
> 
> I know a lot of guys that don't have anything related to construction. It's XYZ Corporation, or ABC & Associates.
> 
> As long as your customers know who you are, you could be Snot Incorporated I suppose.


I'm not sure the house is the best idea either because I do commercial work as well.

Anyway you slice it I'm screwed. :laughing:

Cole


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## PrevailingWage1 (Feb 9, 2012)

In my opinion when I here Construction my mind goes directly to road construction, when I hear builders I think of home builders, general contractor covers all the bases. Or you can go with something outside the box and be creative in you name choice. People like something new and exciting and if your reputation speaks and your work is good, it won't really matter what your company's name is. Do a good job, and people will hire you again and tell their friends to hire you.

Joehttp://www.gmr-usa.com


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## Turbo (Feb 2, 2012)

Mud Master said:


> It can be whatever your heart desires. It's your business and your baby.
> 
> Can be Turbo Construction, Turbo Contracting,John Smith Builders,Turbo Smith Home Improvements,The Turbo Corporation, Turbo & Associates, etc...
> 
> Make it your own. The name will be what everyone associates your reputation with.


Remind me whats corp again and like associates


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## Turbo (Feb 2, 2012)

PrevailingWage1 said:


> In my opinion when I here Construction my mind goes directly to road construction, when I hear builders I think of home builders, general contractor covers all the bases. Or you can go with something outside the box and be creative in you name choice. People like something new and exciting and if your reputation speaks and your work is good, it won't really matter what your company's name is. Do a good job, and people will hire you again and tell their friends to hire you.
> 
> Joehttp://www.gmr-usa.com


What do you mean by GC covers the bases?


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## katoman (Apr 26, 2009)

Cole brings up a good point. Everyone is a GC or Construction Co.

I use my name followed by "carpentry". Even though I GC.

As to what you are legally allowed to do, consult your attorney.


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## Turbo (Feb 2, 2012)

Can I still be called as a general contractor if I do all the work myself instead of contracting?


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## Turbo (Feb 2, 2012)

Sorry to get off topic but I just received a personal request to install and mud drywall. How much do you guys charge per SQ or how do you charge them? Including material or what?


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## Tinstaafl (Jan 6, 2008)

Turbo said:


> How much do you guys charge per SQ or how do you charge them? Including material or what?


Strike two. Sorry, there isn't a first strike. :laughing:

We do not discuss "how much" here; it just leads to too much grief. It's up to you to work out what the job is worth, based upon material costs and labor, plus whatever profit you want/need to make. It's pretty much irrelevant what others charge.

You should already have a clue or two about this if you're ready to become a general contractor. Not to be unkind, I suspect you're really more of a handyman type. No shame in that, but GC'ing is a whole other world. :thumbsup:


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## cdkyle (Jul 12, 2009)

jawtrs said:


> What kind of experience do you have in construction besides electrical?


Who said you had to have experience to be a home builder?

Around here, some of the most successful spec type builders I have known, did not know the difference between a j-bolt and a recessed can light. 

You don't have to know ANYTHING here to be a "builder." Just have the money to buy a lot, get the loan, and get some subs. That last part is easy, they're everywhere; they've got 20's on their beat up truck, dark windows, and dice cubes hanging from rear view mirror, and a nail gun. Pretty easy to find subs. Start building and hope it sells. No licensing required. Just get some business cards printed up, get a loan and a permit, get after it. Now you are a home builder.

Oh, and I forgot to mention one more stipulation to being a builder; must be a cheap arse. And to be successful, must be a REALLY cheap arse.

BTW, this information is free today only.


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## cdkyle (Jul 12, 2009)

Also, OK is a "Right to Work" state. Citizen of the United States of America or not.


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## Jaws (Dec 20, 2010)

cdkyle said:


> Who said you had to have experience to be a home builder?
> 
> Around here, some of the most successful spec type builders I have known, did not know the difference between a j-bolt and a recessed can light.
> 
> ...



Big damn difference between being a custom builder and a spec builder. Try not knowing chit and see how far you go as custom builder and especially a remodeler.

Also, cheap how? Lots of builders are cheap, but many are not. We pay well, and buy top materials and products. Not all GCs nickel and dime their subs and suppliers to death.


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## Turbo (Feb 2, 2012)

But my real question now is that I want to know if I can still be called as a contractor when I'm doing my own work instead of having subs.


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## Hmbldr (Dec 7, 2011)

Turbo said:


> But my real question now is that I want to know if I can still be called as a contractor when I'm doing my own work instead of having subs.


In reviewing your original question and your follow ups, I don't think we or you really know what your question really is. What you call yourself is not the issue, what service of value you can provide is the issue. Details, such as where you're located and then what type of services you're going to provide would help us. 

The answer to your question above is yes. Just as you are an electrical contractor, if you're going to do drywall, then you could be a drywall contractor. For some services or trades, you may need certain licenses, but that is dependant upon where you're located. The there is permitting, again depending on scope and trade and dependant on local requirements.

I think of being a general contractor, in that you provide an array of services, but certainly or not necessarily all. Some builders, would sub out near most of the job, but they would be considered general contractors. Whereas, 'contractor' I think as singular service.

I guess in the end, I just don't understand your preoccupation with the terminology for your situation. Others have offered responses, but you only return with more of the same question. :confused1:


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## Mud Master (Feb 26, 2007)

Hmbldr said:


> In reviewing your original question and your follow ups, I don't think we or you really know what your question really is. What you call yourself is not the issue, what service of value you can provide is the issue. Details, such as where you're located and then what type of services you're going to provide would help us.
> 
> The answer to your question above is yes. Just as you are an electrical contractor, if you're going to do drywall, then you could be a drywall contractor. For some services or trades, you may need certain licenses, but that is dependant upon where you're located. The there is permitting, again depending on scope and trade and dependant on local requirements.
> 
> ...


I concur.

Turbo, we have given examples of what each "name" basically means.

Inside the parameters of your work, there is no law barring you from any of those names. You can use whatever you want. Stop putting so much emphasis on the "contractor" part of it, and more on getting whatever your name will be to be synonymous with great work and an honest ethic.

Here are the two safe bets if your going to be an in house all around contractor:

Turbo Construction Company
Turbo Contracting

Now have at it.:thumbsup:


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## Turbo (Feb 2, 2012)

Hmbldr said:


> In reviewing your original question and your follow ups, I don't think we or you really know what your question really is. What you call yourself is not the issue, what service of value you can provide is the issue. Details, such as where you're located and then what type of services you're going to provide would help us.
> 
> The answer to your question above is yes. Just as you are an electrical contractor, if you're going to do drywall, then you could be a drywall contractor. For some services or trades, you may need certain licenses, but that is dependant upon where you're located. The there is permitting, again depending on scope and trade and dependant on local requirements.
> 
> ...


Yes, from where I live, Toronto,Canada. According to by-laws you will need to have license in order to operate in the city. I'm sorry for going in circles from my questions but I just wanted a clear answer. Thanks for your help.


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## Turbo (Feb 2, 2012)

Okay thanks, I can conclude on me using the endings as Contracting. Thanks for all your support. If you guys where wondering which company I work for, I work for Direct Energy.


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## cdkyle (Jul 12, 2009)

> Big damn difference between being a custom builder and a spec builder. Try not knowing chit and see how far you go as custom builder and especially a remodeler.
> 
> Also, cheap how? Lots of builders are cheap, but many are not. We pay well, and buy top materials and products. Not all GCs nickel and dime their subs and suppliers to death.


Sorry, I did not mean to strike a nerve. 

I completely agree there is a difference in "real custom builders and remodelers". And, I know that different parts of the country have different market methods for home building in general. 

Here in OK, there are very few larger companies building new homes, ie DR Horton, Ideal Homes, and another or two.

Most are mom and pop type operators, but this trend seems to be changing just a little. But for the most part, every tom, dick , and harry are "homebuilders" here. 

I would assume this is different in other areas of the country. Also, I would agree that to be a good builder/remodeler, some subject matter expertise. Also, that would be someone whom has actually done some work and has significant experience. Those guys are not the cheap arses. But they are few and far between, at least here in my area.

Also, sorry to hijac op original thread. 

Have a great day.


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## Seven-Delta-FortyOne (Mar 5, 2011)

At the risk of beating a dead horse, I'll explain something. 

First, find out what you can legally do. I don't know about where you are, but here, working in a power generation facility would not qualify you to build or remodel houses.

Second, a builder is someone who builds. Period.

A construction company is a company that performs construction services. It could be building new homes, remodeling, commercial construction, industrial construction, or it could be a plumbing or electrical construction company.

A contractor is someone who is legally able to sign contracts for construction services. (I am obviosly leaving out other types of "contracting", such as Blackwater/XE services.)

A construction company must also be a contracting company, for the simple reason that all construction services are provided with a written contract. 



Turbo said:


> Can I still be called as a general contractor if I do all the work myself instead of contracting?


Yes. You would be a contractor if you/your company can legally sign contracts. It makes no difference if you do the work, your employees, or your subs.






Cole82 said:


> I don't have any of those in my name
> 
> Nothing in my name screams construction.:blink:
> 
> Cole



I know. I googled "Coles Custom Creations", and I got a t-shirt screen printing service.:whistling


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## Cole82 (Nov 22, 2008)

A.T.C. said:


> I know. I googled "Coles Custom Creations", and I got a t-shirt screen printing service.:whistling


I don't have a website or much web presence and I am fine with that for now. 

Yeah the PA screen printing place is what comes up when I google it too.:laughing:

Cole


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## katoman (Apr 26, 2009)

Turbo said:


> Okay thanks, I can conclude on me using the endings as Contracting. Thanks for all your support. If you guys where wondering which company I work for, I work for Direct Energy.


I know them, my condolences. :whistling


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## Seven-Delta-FortyOne (Mar 5, 2011)

Cole82 said:


> I don't have a website or much web presence and I am fine with that for now.
> 
> Yeah the PA screen printing place is what comes up when I google it too.:laughing:
> 
> Cole


I think that's awesome, personally. The history of our trade is littered with brilliant craftsmen who were exceptional at what they did, and someone always found them without the benefit of the internet. I know, I know, times change, but maybe I'm just a bit nostalgic. I sometimes just get so tired of reading these trade magazines, like Remodeling, that talk on and on ad nauseum about marketing strategies, advertising, logos, SEO, and so forth. I think alot of that would be unnessesary nif there was better quality work being done.

O.K. I'm shutting up now.


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## Cole82 (Nov 22, 2008)

A.T.C. said:


> I think that's awesome, personally. The history of our trade is littered with brilliant craftsmen who were exceptional at what they did, and someone always found them without the benefit of the internet. I know, I know, times change, but maybe I'm just a bit nostalgic. I sometimes just get so tired of reading these trade magazines, like Remodeling, that talk on and on ad nauseum about marketing strategies, advertising, logos, SEO, and so forth. I think alot of that would be unnessesary nif there was better quality work being done.
> 
> O.K. I'm shutting up now.


I feel the same way, Face to face networking goes much further than a website.

Cole


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## Turbo (Feb 2, 2012)

I'm with you guys too. Cole 82 and ATC
Thanks for all your help.


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## Mitch M (Dec 4, 2006)

I think if you are going to be a builder, I think General Contractor is the better way to go. I even go by xyz Construction Company. But the thing that you do have to consider is the law. In NC, you cannot call yourself a General Contractor unless you have taken the test and completed all the paperwork requirements. Construction Companies can imply all kinds of companies.

I have only heard of a few companies with the names in it being sold and those were good times. So pick a name that you are comfortable with and make sure the licensing is right and get with the program.


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