Definition - Contractor is the firm that is in prime contract with the owner for the construction project, either in its entirety or for some designated portion thereof (Sears et. al, 2008). Contractor responsible to organize, plan, schedules and control the field of work and liable for getting the project completed within the time and cost limitation. Contractor then coordinate matters related to the construction by dealing directly or indirectly with individuals and organization involved throughout the supply chain.
How Contractor Operate - In most of construction contract, the contractor is given one opportunity to set the price (the bid). A number of procurement systems are available to construction clients, including traditional lump-sum (fixed price), design-build, construction management, project management, on-call multi-task contracting, guaranteed maximum price, full cost reimbursable, and BOOT (build, own, operate, transfer). From that point, profit is determine by the contractor’s ability trough project management team to save money trough better planning of daily operation and the skill to make good decision (Drew & Skitmore, 1997)
Issues faced by the contractor - Some issues faced by the contractors that resulting project delays and uncertainty are lack of financing capability, delays in payment by the owners and difficulties in utilizing of professional involved in construction project (Razak, 2008). Although an increase proportion of work on site is undertaken by specialists or sub-contractors, the problem of getting the project constructed have increase due to interface problems (Gray & Flanagan, 1989). Contractors are often responsible to ensure that any latent defect in the work are remedied if the project gone badly wrong, thus responsible for overall quality of the project (Gray & Flanagan, 1989)
Managing Sub-contractors- Contractors play the role of ‘mothering’ the sub-contractors to ensure that they keep to programme and achieve the quality required (Gray & Flanagan, 1989)
Scheduling and co-ordinating project - Construction site can be busy and congested and required the exact scheduling of all delivery. Scheduling in definition is the process of listing of duties and events in sequence that they will occur (Gould, 2005). Many formalised tools for scheduling have been developed over the years like Critical Path Method (CPM) and Performance Evaluation and Review Technique (PERT) which will help contractor to accomplished the role at site.