Why Hire a General Contractor in Northern Nevada?

We recently discussed what a general contractor is, but that conversation would be meaningless without additional context. The frame of reference that discourse lacks is the why of it all. Why hire a general contractor?

Expertise of a General Contractor

There is no set-in-stone path that leads to a career as a general contractor. With that said, a common thread is prior work in another industry trade. Significant time and effort devoted to a singular trade affords subcontractors a substantial degree of mastery and expertise. Additionally, increased exposure to one piece of a larger construction puzzle actually broadens focus, rather than narrows it. This may seem counterintuitive, however, dedication to one trade opens up awareness to the tremendous interconnectedness of the entire project. No trade operates in a vacuum–performing exclusive actions that neither influence other trades or are influenced by them–and one of the primary functional distinctions between a general contractor and a subcontractor is that a general contractor possesses the working knowledge and prowess to connect all of the independent pieces, rather than simply a few of them.

It is unreasonable to expect a general contractor to exhibit the same competence as each subcontractor within his or her own trade. With that said, though, a general contractor should carry the requisite knowledge of every trade to correctly assemble all of the puzzle pieces into an articulate, cohesive picture. In other words, a general contractor should be a jack-of-all-trades, and possibly a master of one or two.

Another tangible consequence of expertise is superior job scheduling and material purchasing. Efficient scheduling and allocation of resources, both labor and material, leads to decreased project costs. Effective and efficient project management is positively correlated to not only superior products, but substantially decreased time to turn-key.

Expertise is also invaluable in the capacity and familiarity required to navigate the numerous and inevitable bureaucracies that oversee and regulate construction. Local governments, regulatory commissions, and home owners authorities, to name just a few, present substantial barriers to entry and progress for the uninitiated. Red tape and paperwork can severely delay projects and increase costs considerably.

Hiring a General Contractor Mitigates Risk

Licensed contractors in Nevada are required to carry Workman’s Compensation insurance, which means any injuries that occur on a job site are covered under this mandatory insurance policy. This is critical for property owners because use of an unlicensed contractor may translate to personal liability for any injuries that occur on that property.

General contractors in the state of Nevada are required to carry general liability insurance. The benefit of this insurance coverage for customers is that it provides recourse in the event of defects of material or craftsmanship. Essentially, if problems arise from poor craftsmanship or materials, such as leaking pipes that damage a subfloor, a client has a remedy by way of the contractor’s liability insurance to cover immediate and ensuing damages. General contractors in Northern Nevada are required to cover defects under a general liability policy, depending upon the type of defect, for a period of 7-10 years. Additionally, Nevada Revised Statutes clearly dictate legal protections for clients of general contractors in Nevada.

General contractors in Nevada are also mandated by law to carry a surety bond. A surety bond is, in essence, an added level of protection for not only construction clients, but also for the Nevada State Contractors Board. A surety bond is a contractural arrangement required by the NSCB, entered into between a contractor and a surety insurance carrier that ensures a line of credit if a contractor fails to complete contractual obligations.The bond amount required of a general contractor is set by the Nevada State Contractors Board. This is another risk mitigation factor that protects clients and seeks to ensure their dream is realized.

Another avenue available to Northern Nevada residents to allay risk upon entering a contractural arrangement with a general contractor is the residential recovery fund. According to the Nevada State Contractors Board, “The Residential Recovery Fund, under certain conditions, provides limited monetary compensation to single-family homeowners, in the event that they have been damaged by a licensed contractor’s failure to appropriately execute a contract and have exhausted all other means of recovery. Owners who occupy a single-family residence and who have entered into a contract with a licensed residential contractor for the performance of construction, remodeling, repair or improvement and have been harmed by the failure of that contractor to properly perform the work, may be eligible to apply for help from the Residential Recovery Fund. Claimants to the Recovery Fund must apply within four (4) years after the completion of the qualified services. The claimant must occupy the single-family residence, and the residence must be owned by a natural person. If the claimant has been awarded a judgment from a Nevada court, that claimant may apply for payment within two years after the judgment has been granted.”

It’s All About Getting What You Want

The truth is, one-size-fits-all contracting just doesn’t work. There are so very many types of construction projects, and more importantly, so many diverse, unique client expectations. No single contractor can be everything to everyone, nor should they attempt to be. What is so vital, then, is identifying and securing the right fit. We’re here to help. We know all too well how overwhelming and intimidating construction can be. It doesn’t have to be though. We’re here for you every step of the way. Please rely on our growing expert database to find answers for your construction questions, and hopefully it will prove to be the resource that helps you realize your construction dream–whether you utilize us as a general contractor or not.

A final word of warning from the regulatory agency, the Nevada State Contractors Board: Contracting without a valid state contractor’s license is a crime in Nevada. When you hire a contractor, you should make sure that he or she is licensed in the proper classification for the work they are proposing to do, that their name is the same as that on the license, and that the license remains in good standing. If you hire an unlicensed contractor, your contract is null and void by law. Also, you are possibly incurring the liability for injuries, damages or other problems that could possibly arise while doing the job. With unlicensed contractors, you have very little recourse if something goes wrong with your project or if it is never completed. Any unlicensed contracting activity should be reported to the Nevada State Contractors Board.

We’ll follow up this article with a detailed guide on how to best vet and then select the contractor who aligns with your expectations and your project, a brief examination of construction contracts, and options that exist for those who would rather forgo a general contractor entirely. Please don’t hesitate to contact us with any content requests or if you are ready to realize your own construction dream. Thank you.