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Estimating & Biddingaka: GCaka: prime contractoraka: main contractor

General Contractor

In Plain English

The main contractor who manages the whole project and is responsible to the owner.

Definition

A general contractor (GC) is the primary contractor responsible for the overall management and execution of a construction project under a direct contract with the owner. The GC coordinates all subcontractors, manages the construction schedule, and is accountable for project quality, safety, and cost. On most projects, the GC self-performs some work and subcontracts the remainder.

Why It Matters in Bidding

The general contractor is the single point of accountability to the owner for delivering the project, so in procurement the GC is who the owner contracts with, who manages competitive subcontractor bidding, and who carries the financial risk of the contract price. How the GC is selected, by low bid, best value, or negotiated GMP, shapes the entire bidding strategy, and the GC's markup and general conditions are major components of the price an owner ultimately pays.

Example

The owner invited four prequalified general contractors to submit lump-sum bids on the design-bid-build project and awarded to the lowest responsive, responsible GC after verifying its bonding capacity.

Related Terms

Prime ContractorSubcontractor BidDesign-Bid-BuildGeneral Conditions

Frequently Asked Questions

Owners select GCs through competitive low-bid procurement, best-value evaluation that weighs price against qualifications, or direct negotiation. Public projects often require open competitive bidding with the award going to the lowest responsive, responsible bidder, while private owners have more freedom to negotiate or prequalify firms before inviting them to bid.
A GC's bid bundles subcontractor and supplier quotes, self-performed labor and materials, general conditions like supervision and temporary facilities, equipment, insurance and bonds, overhead, profit, and often a contingency. The general conditions and markup are the GC's own costs layered on top of the trade pricing, and they vary by project size and risk.
The general contractor holds the prime contract directly with the owner and is responsible for the entire project, while subcontractors contract with the GC to perform specific trades such as electrical, mechanical, or concrete. Subcontractors submit their bids to the GC rather than the owner, and the GC coordinates and pays them while delivering the whole job.

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