Below is the Comparison Between Building Contractor and Labor Contractor
Whenever One plans to construct a building the first issue that you will have to settle is about the choice of contractor. Contractors for construction of buildings are normally categorized into two, namely; building contractors and labor contractors. That means, you will have to make a choice between these two categories of contractors.
The building contractor undertakes the building work on turnkey basis. He will take up all types of work connected with the building. His workforce includes masons, plumbers, electricians and so on.
On the other hand, the labor contractor may not have a work force in branches of building work. For example, he may only masons or plumbers; in short his work force is considerably limited.
A building contractor will procure materials on his own. He will have wide contacts with various suppliers like dealers in cement, steel, sand and such other materials needed for construction work. He procures these materials directly from the suppliers and he will be held responsible any poor quality materials used.
On the other hand a labor contractor will be responsible only for the execution of work and not procure any materials. In so far as labor contractor is concerned, you will have to procure the materials and he will work with the materials that you have supplied. As a result, the labor contractor will not be responsible for defective quality of materials used.
Normally the agreement signed with a building contractor includes items like procurement of materials and execution of work on the site. That means you will have to pay to the building contractor towards the cost of materials procured as also towards the labor charges.
But, in so far as the labor contract is concerned, you will pay him on an hourly basis or on the basis of plinth area of work carried out by him.
Duties and responsibilities:
The duties and responsibility of building contractor are far and wide. He will be responsible for the quality of construction and also for the materials used. This is because he procures the materials and executes the work.
On the other hand, the labor contractor’s responsibility is limited to the execution of work and not for the materials used in the construction work.
Cost of construction:
There is a general perception that since the building contractor has procured the materials he will escalate the material cost.
On the other hand people feel if you award labor contract, then you will procure the material and therefore you will be able to save a considerable amount of money.
Details : Current rates for House construction
As you can see each of these two types of contracts has its own advantage and disadvantages. If you award the work to a building contractor then you may incur higher expenditure.
On the other hand, if you award the work of a labor contract, then you will have to take responsibility for the quality of materials procured. As you are not experienced in procuring construction related materials you may procure inferior material which may affect the quality of construction. You will have to make a choice after taking into account all these points.