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What is a general and independent contractor?

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A general contractor is an business or individual that contracts with another organization or individual (the customer) for a project such as the construction of a building, road or other facility.

A general contractor is defined as such if it is the signatory as the builder of the prime construction contract for the project. A general contractor is responsible for the means and methods to be used in the construction of the project in accordance with the contract documents. Said contract documents usually include the contract agreement, the general and special conditions and the plans and specification of the project that are prepared by a design professional.

A general contractor usually is responsible for the supplying of all material, labor equipment and services necessary for the construction of the project. To do this it is very common for the general contractor to subcontract part of the work to other persons and companies that specialize in these types of work. These are called "subcontractors".

General contractors conducting work for government agencies are typically referred to as prime contractors. The responsibilities of a prime contractors working under a contract are essentially identical to those outline above. In many cases, prime contractors will delegate portions of the contract work to subcontractors.

An independent contractor is a natural person, business or corporation which provides goods or services to another entity under terms specified in a contract. Unlike an employee, an independent contractor does not work regularly for an employer but works as and when required during which time, he or she may be subject to the Law of Agency.

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