Difference between a professional construction company and contractors

by | March 15, 2022




Homeowners in India usually turn to individual contractors for their residential projects. Choosing between an individual contractor and a professional construction company is confusing. To begin with, there is very little understanding of the roles, responsibilities, and capacities of construction companies and contractors.


Then how do you know whom to choose? What is the difference between a construction company and a contractor? How does hiring a construction company make a difference? What should be your choice for building an efficient and durable house?


You need to understand the difference between contractors and construction companies to make a wise decision and hand over your project to someone who handles it efficiently.


Who is a contractor?


A contractor is a licensed or unlicensed individual who assists homeowners in constructing their residential building or house. Contractors provide independent services on a contractual basis.


  • Contractors are skilled individuals with a wide and cordial network in different departments.
  • They help you hire construction workers throughout your project based on the requirements.
  • Contractors monitor the site to avoid any design mistakes or construction delays.
  • They coordinate between different departments to ensure everything is going as per plan.
  • Contractors possess sound knowledge about the raw materials required for construction and help you acquire appropriate quantities of construction materials to avoid wastage.
  • Contractors are knowledgeable about municipal permissions and regulations. Hence, they can guide you in obtaining permits quickly in a hassle-free way.


What is a construction company?


A construction company is a kind of organization, business, or enterprise that deals with strategizing, designing, and executing different civil works.


  • Unlike individual contractors, construction companies deal with civil projects of different scales, such as residential buildings, industrial constructions, infrastructure projects, etc.
  • Construction companies are large entities with specialized engineers, architects, designers, and contractors at their assistance.
  • Unlike contractors, you don’t have to worry about hiring multiple contractors or subcontractors. A single construction company can take care of all your construction needs.
  • Since construction companies are already a team of architects, engineers, and designers, you don’t have to run from pillar to post to hire everyone individually.
  • Construction companies monitor and supervise every single detail throughout your entire construction journey.
  • They assist you from site inspection to your house warming ceremony in ensuring your construction project takes the shape of your dreams and vision.
  • They also help in quickly obtaining municipal permissions for your house.
  • Some construction companies even have a legal team to assist you with civil legal issues.


Differences between construction companies and contractors.



Individual contractors Construction companies
  • Individual contractors usually do not deal with big projects. They are not an ideal choice for prestigious projects, high-rise buildings, or luxurious bungalows.
  • Construction companies are capable of dealing with large-scale projects.
  • Construction companies, too, are limited by their capacities. But a well-reputed organization can deal with bigger projects like infrastructure, commercial buildings, industrial projects, and other similar construction projects.
  • Contractors hire subcontractors, architects, designers, and engineers on a local level.
  • Although well-reputed contractors can carry out efficient construction projects, they are not specialized and are limited by their individual capacities.
  • Construction companies build a team of experienced professionals and specialists in each department or field for personalized assistance and focused solutions for all your construction-related concerns and needs.
  • For example, a construction company assigns a dedicated team of engineers, architects, and designers for your construction project for a committed and focused plan and execution.
  • Even though contractors can help you with municipal permissions and housing documentation, they cannot assist you with logical and legal solutions to obtain all permissions in an easier way.
  • Some construction companies have an in-house legal or civil advocate team to help you sail through such problematic situations with ease.
  • You may have to directly communicate and coordinate between multiple contractors, subcontractors, architects, engineers, and supervisors despite hiring a contractor.
  • It may result in spillage or wastage of your resources or even money as you have to pay for each service individually.
  • Construction companies do all the communication before starting the project.
  • They take care of all communicating and coordinating by keeping in mind your vision and all requirements..
  • Construction companies quote their prices way ahead of beginning the construction.
  • They offer a package of services. You can choose to opt for or ignore a certain service and pick a package that suits your needs better.
  • Hence, you pay for everything in bulk. It helps you track your construction expenditure and avoids invisible and over-the-board expenditures.
  • Contractors may or may not necessarily be completely knowledgeable in the civil construction field.
  • Anyone with basic knowledge about construction materials, management skills and a good network can be a contractor across the departments.
  • Not all of them can execute or deliver your project effectively
  • Construction companies are fully aware, knowledgeable, and licensed organizations with distinguished expertise in all construction departments.
  • Hence, your construction can never go wrong with a construction company at your assistance.

Talk to our Experts



The key to efficient construction processes and output is proficiency and experience, whether you hire a construction company or a contractor. You should look out for experience, expertise, construction skills, and reputation in the industry before hiring anyone.


Compassion and empathy are equally important to realize the vision of your ‘dream home.’ Both contractors and construction companies can be either licensed or unlicensed. It is better to go with licensed contractors or entities to avoid unpleasant consequences in the future.


Do not forget to research the track record of contractors or construction companies. Their reputation and success rate of efficiently executing different construction projects symbolize their credibility.


Remember, you cannot stop your construction mid-way and go back to hiring new contractors or construction companies. Hence, be sure about your requirements, project scale, limitations, and the expertise you think you need to execute your project efficiently. After careful consideration, hire a contractor or a company you think can take over this huge responsibility and hand over your dream project in the best shape.



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