Different Types OF Construction Companies

companies in the industry. The different types of construction companies are mainly differentiated based on the type of tasks they perform.

There are different tasks such as design, financial planning, acquisition of land, operating, maintaining and carrying out paper works and execution which different companies perform as per their speciality.

General Contractors

Companies who have expertise in either alteration work or new buildings are referred as general contractors. There are some alteration contractors’ trade with their own forces.

On the other hand, building contractors subcontract a section of the building. There are a few who also specialise in public works.

Small Renovation Contractors

These contractors work on small projects which usually require small capital investment and work to be done. Unlike huge projects, small projects require lesser cost estimation and work analysis.

These contractors generally carry out home renovations or commercial plots. A few small renovation contractors have home office which gives them the leverage to carry out the paperwork at night.

Owner Builder

If you try to make sense of the literal words then you will realise that an owner –builder cannot be termed or called as a contractor. A company like this builds buildings and also has its ownership. They either sell or rent them and operate.

However, there are few owner builders who act as contractors to gain additional income and build network. This actually works in some instances but it is important to balance both of these responsibilities for a steady business growth.

Professional Construction Manager

A professional construction manager can be called as an individual, a company, a group of individuals who come together to perform the necessary functions in building a project based on the instructions of the owner. They act as an agent to the owner. They ensure that the job is performed with equal efficiency as the owner’s employees might have done.

All necessary personnel requirements are fulfilled and organised by the construction management company. The personnel include project managers, expediters, accounting personnel and construction superintendents.

The manager charges a fee from the owner for performing various tasks on behalf of him. This may include field supervision, office administration, requisitioning, payroll reports, paying of subcontractors… and so on.

Apart from these some of the work is assigned by the manager to other workers/employees under him.

Real Estate Developer

You can say that this is another type of owner-builder. Apart from building for personal ownership they may also build to sell. The selling can be either before or after the completion of the project.

Usually, one-two- family home builders come under this category. In a way, they carry out dual function of building, selling or owning the property.

Sponsor Builder

If you are dealing with government-aided or subsidised building especially in field of housing then they are known as sponsor builder. They are assigned the responsibility of rental, management, planning, construction and maintenance.

A sponsor’s role is to guide you through the government process and different designing stages. The sponsor has to get in touch with attorneys in order to manage the government agencies, financial institutions and real estate consultants. They can help you to get necessary information about land acquisition and appraisal.

While signing the contract for the construction of the building the sponsor has to fill-in for the builder’s role. This means that the sponsor acts as an owner-builder of the building.

Package Builders

Companies like these have the potential to take contracts for construction as well as design of a building. In most instances, such companies also take up the responsibility of land acquisition and construction finance of the project.

Companies that offer package building are capable to show prototypes to their prospective clients of similar buildings that they have previously worked on. There are some package builders who outsource or hire professional architects and engineers. But, mostly they have their own team of architects, engineers and also construction personnel.

However, if you intend to hire a package builder then you must enquire whether they have professional license for engineering or architecture. This is so because it is mandatory in many states to have legal license for such services.

Now that you have a clear idea about different types of construction companies, it is easier for you to determine what type of company you want to start or hire for a particular construction function.