Prime Contractor

What is a prime contractor?

The prime contractor (often called the general contractor on building projects) holds the direct contract with the project owner. They coordinate subcontractors, permits, scheduling, safety, billing, and closeout.

If your company signs the owner contract, you are the prime on that job.

Prime contractor responsibilities

Typical prime duties include:

• Mobilization and site logistics
• Hiring and managing trade subs
• Progress payment applications to the owner
• Change order administration
• Inspections and warranty handoff

Prime contractors carry coordination risk even when subs perform the physical work.

Prime vs subcontractor

Prime status also affects lien notice rules and prompt payment obligations on many projects.

Prime contractor vs construction manager

A construction manager may advise the owner without holding the main construction contract. A prime contractor usually carries contract price and performance risk unless the delivery method says otherwise.

Read the contract type before you assume CM vs GC responsibilities.

Cash flow as prime

The prime pays subs before the owner always pays the prime. Model lag between retainage, owner draws, and sub invoices in your cash flow plan.

On the job

Flow down owner requirements in subcontracts. Scope, insurance, and payment terms should match upstream obligations.

Do not pay subs from deposits meant for other jobs.

Document coordination in writing. RFIs and change orders protect margin.

Being prime means you own the job in the owner's eyes. Coordinate like it, price like it, and collect like it.