An Overview of the Types of Construction Companies

The construction industry is a massive sector that involves many moving parts. For those with industry experience, all the people, processes, and tools are part of their day-to-day lives. However, for someone who does not have a background in construction or is just getting started, navigating everything can be a bit of a challenge.

A good starting point for understanding the ins and outs of the building industry is to be aware of the different types of companies and how each reflects the varied and complex demands of construction projects. Doing so is fundamental to truly understanding how this massive industry works.

To help you with this task, we’ve put together this insightful blog post that outlines the top types of construction companies and details the role each plays in bringing projects to life. Let’s dive in!

Top Types of Construction Companies

If you are looking to hire a contractor, considering a career in construction, or simply want to know more about the industry, understanding the different players is of utmost importance. Below is a breakdown of the types of construction businesses.

1. Real estate developer

A real estate developer is a construction business whose primary mission is to build and market a project, often large-scale, to profit from it. The process involves the developer buying a property, securing financing, obtaining permits and approval, hiring a design team, and overseeing the project’s development.  

In most cases, the real estate developer is the property owner. Still, a property owner can sometimes hire a developer business to take care of the project due to its expertise and contacts.

2. Architecture firm

An architecture or design firm is responsible for developing a project’s drawings and design specifications. They are often hired by the real estate firm or the project owner to assist in the design process. Sometimes, these companies also take on a management role, hire general and specialty contractors, and take care of the payments as part of their service.

3. Engineering services

An engineering firm is hired to work in collaboration with the design team to bring the project to life. They bring their knowledge and expertise to help ensure the design complies with building codes, safety regulations, and site-specific conditions. They also assist in testing different strategies and technologies to ensure successful completion.

4. Construction management

As its name suggests, a construction management company offers services related to the complete management of a project. This involves hiring all the staff, including the project manager, general contractor, and specialty contractors. This type of business is hired when the project is big and requires a big team. The company is often in charge of contractor management and payments. 

5. Equipment companies

Some construction companies have their own machines and equipment. However, sometimes there is a need for more complex equipment that is too expensive to buy, and it is better to rent to an equipment lessor company. These businesses rent equipment for construction projects and often take care of the machinery transportation to the building site at the agreed time and date. Sometimes, these companies also offer the personnel to handle the machines. 

6. General contractor (GC)

On smaller projects where a construction management company is not necessary, the owner hires a general contractor to manage the project’s construction phase. The GC company and its team collaborate with the project manager and design team to ensure all specifications are respected to avoid costly reworks. They are responsible for subcontractor management, which includes hiring subcontractors, coordinating their schedules, and paying them according to the agreed contract terms.

7. Specialty contractor

Specialty contractors are crucial when exploring the different types of construction companies. As their name suggests, these businesses offer highly focused services that meet specific project needs regarding materials, equipment, regulatory standards, or techniques. They are often hired by the general contractor or the entity in charge of the project.

8. Renovation

Construction projects come in all shapes and sizes. Sometimes, it is not about building a huge and complex project but just renovating a specific room or area of an existing structure. In these cases, a renovation company is hired as they are experts in these types of projects. Renovation companies often deal directly with the project owner and bring their own team and materials. 

9. Heavy civil construction

These companies oversee building complex infrastructures that are essential for communities to function. These include bridges, railroads, roadways, ports, and tunnels, among many others. These types of construction companies require a high level of experience in civil engineering, legal permits, and sustainable construction.

10. Residential builders

As its name suggests, residential builder businesses are experts in developing people’s living spaces, like houses or apartment complexes. These organizations focus on more than just erecting structures; they are responsible for creating environments where communities can develop. Therefore, they need to understand local zoning laws and landscape design.

Conclusion

As you’ve learned throughout this post, there is a wide variety of construction businesses tailored to the different needs of the industry. Knowing the role each of these organizations plays can bring you a step closer to understanding the intricacies of the building industry.

Each of these construction business types is an expert in their field and is responsible for bringing the structures we populate daily to life. To do so successfully, they must support themselves with the right technology to ensure resources are spent smartly and efficiently.

At RIB Software, we are leading providers of construction software solutions that assist owners, engineers, architects, contractors, and more in delivering projects with the highest quality and accuracy, all supported by innovative technology and the support of experts with decades of experience in construction. If you are looking for a partner who will help you boost your project’s profitability, get a free demo of RIB Software today!