The Difference Between a Builder and Contractor Explained

Do you have a construction project coming up? If so, then knowing the difference between a builder and a contractor is crucial.

This will help you make the right decision when hiring. There is a long process ahead of you and many important decisions to make, but one of these decisions you need to make is whether to choose a builder or a general contractor.

The difference between a builder and a contractor is their responsibilities. Builders work strictly on the development and building of structures. Contractors can do the same, but also handle building permits and can do specialized work involving heating, plumbing, and electrical work.

You might not see much difference between the two of them. Asking around or looking up on the Internet does not give you a definite answer on what is the difference between a builder and a contractor. Moreover, one person can be both at the same time, so is there a difference at all? Read more to learn about the difference between builders and contractors and the role they play in the construction process.

Where Does The Difference Come From?

Generally speaking, the difference between a builder and a contractor is usually seen to be quite negligible. The terms “builder” and “contractor” are usually interchangeable, and while there is a reason for that, when you face a long and important construction like building a house that can last for decades, even this slight difference can become crucial.

Building a house is a complicated process, which roughly involves four big parts:

Developing a plan
Building a house
Specialized and licensed work, like electricity and plumbing
Getting permits

Unfortunately, you cannot hire one person to do all four of these, and this is where the difference between a builder and a contractor comes in.

What Are Builders?

Builders will take care of the developing and building process of your house. You can hire a builder when you have nothing but bare land. They will assess your existing property, give advice, and work with you to sketch your future construction.

Here is where the first major difference comes in:

Builders are builders and not architects, so if you choose to work with a builder, you will need to hire additional personnel to assist your primary builder.
When it comes to preliminary work, for instance, builders will require you to hire an architect to start the developing process.

If you already have a plan of construction, a builder can still be very useful. Contractors will take your plan and execute it. Builders will pay more attention if you ask them and might give you advice on how to reduce cost or how to make your future home more efficient and comfortable.

The Limitations of Builders

Builders will then do what they do best: building. They will set the foundation, erect walls, roofing. After that, however, you are going to need to look for more people when it comes to specialized work: electricity, plumbing, heating, cooling, etc. Usually, builders will recommend you specialists that they worked with before, but who they hire is totally up to you.

Another part that builders will not do is get various permits for your project. However, it does not mean that they will not assist you in getting them, since they have been through this process with other clients before, and they know how it works. They will not do it for you, but they can have some advice on how to get these permits.

Builders usually work on only one or two projects simultaneously. They spend a lot of time on their projects because they basically work on them mostly alone with a little help from other specialists that you might hire to assist them. Prices on their services, thus, are higher than a contractor’s compensation.

What Are Contractors?

General contractors usually work with a premade team of subcontractors, including builders. They will look at your plan, do the same work as builders do: set the foundation, erect walls, cover it all with a roof. But then, where builders’ responsibilities halt, a general contractor will keep ongoing with your project: do the electrical work, building heating and cooling systems, and do all the plumbing work for your new place.

It does not mean that a contractor is an all-in-one package, though. Most usually, you will still need to hire some additional people. For instance, contractors require a plan of work, so somebody needs to develop it, and you will need to hire an architect anyway.

General contractors, unlike builders, will take care of permits for your construction, too.
This is a big advantage when hiring a contractor since a builder will not cover that crucial and sometimes complicated part of construction.

Unlike builders, contractors usually work on multiple projects at the same time. Since contractors work with a team of subcontractors and have less hands-on time with your project, they need to take on more projects to support their business.

Contractor License

One big upside of hiring a contractor is that this is a licensed profession. Depending on the state, they will get licensed with the local Department of Regulatory Affairs, and this process will require them to present some documents that you might be interested in, for instance, liability insurance or other types of insurance.

Here comes a caveat, though. Builders and contractors are often confused because builders usually get registered and licensed as contractors, too; in some areas, especially rural ones, it is almost a must for their competitive advantage.

Be careful when hiring a contractor. If your state requires a license, they must have it. Hiring an unlicensed contractor can get you into trouble.

Who Do You Need?

There is a reason why both builders and contractors exist. Builders and contractors both have their advantages and disadvantages, and whom to choose comes down to what you personally need from your specialist.

Understanding what builders and contractors are permitted to do on a construction site is important for deciding which type of worker you need and figuring out how much their labor will cost.

When to Hire a Builder

Builders will suit a project that you want to have full control over and the undivided attention of one person, who will carry your construction from start to finish. It sounds counterintuitive since this very page said before that builders basically only build and do not do specialized work or get permits.

However, if you hire a builder, they will supervise the whole process, recommend additional specialists, and advise you on how to optimize the process or make your finished product better. Your work relationship with a builder is very close; they will become your closest advisor on how to make the most out of your construction.

When to Hire a Contractor

When hiring a contractor, you can distance yourself from your project as much as you want since they will take care of most of your needs and will not require much attention from you—all they need is a good plan.

Here comes another caveat, though: if you are ready to hire a contractor and distance yourself from a project, this plan must be very well-written, and every part of it must be very well spelled out. Otherwise, a bad plan will lead to a bad result, and, obviously, vice versa.

Contact Superior Commercial Solutions

Building a good and lasting house is a long, complicated, and strictly speaking, intimate process. Depending on the type of construction, you might want to get more involved with this process, like if you are building a family home, where you will raise your children, or less involved, if this is a commercial project.

Hiring a builder for your construction will guarantee full control over your project and give you the chance to make a decision on every step of it. In this scenario, though, you can remain very flexible with your project and keep on improving it over and over. Hiring a contractor will let you get the job done quickly and efficiently. If you are sure you have a solid plan and can let go of control, contractors are your choice.

For these reasons and more, you should count on Superior Commercial Solutions. We are an industry leader in supplying and installing cabinets and quartz countertops for Multi-Family, Student Housing, Assisted Living, and Hospitality projects across the United States. Contact us today to see how we can transform your commercial project.