Below is the Comparison Between Building Contractor and Labor Contractor
Whenever one plans to construct a building, the first issue you will have to settle is about contractor choice. Contractors for the construction of buildings are normally categorized into two, namely, building contractors and labour contractors.
That means you will have to choose between these two categories of contractors.
Details: Present Rates for Building and Labor contractor
The building contractor undertakes the building work on a 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 workforce in branches of building work. For example, he may only masons or plumbers; in short, his workforce 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 other construction materials. He procures these materials directly from the suppliers, and he will be held responsible for any poor quality materials used.
On the other hand, a labor contractor will be responsible only for executing the work and not procuring any materials. In so far as labor contractor is concerned, you will have to procure the materials, and he will work with the materials you have supplied. As a result, the labor contractor will not be responsible for the 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 the building contractor towards the cost of materials procured and the labor charges.
But, in so far as the labour contract is concerned, you will pay him on an hourly basis or the basis of the plinth area of work carried out by him.
Duties and responsibilities:
The duties and responsibility of the 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 to the construction work materials.
Details: Advantages and Disadvantages of Building & Labor Contractors
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, 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 a labour contract’s work, 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 construction quality. You will have to choose between taking into account all these points.