What is the difference between a contractor and a principal in a construction project?

In Texas, the difference between a contractor and a principal in a construction project is largely dictated by the contract they have agreed to. Generally speaking, a contractor is an individual or company that has agreed to complete specific tasks in exchange for a fee. This could be anything from skilled labor to the actual building of the structure. A contractor typically reports to and is managed by the principal, who is the party responsible for the entire project. A principal can be an individual, such as a homeowner, or a business entity, such as a corporation. The principal will be responsible for overseeing the entire construction process, including hiring contractors, securing permits, and making sure the project is completed to their specifications. The main difference between a contractor and principal comes down to their roles in the project. A contractor is an individual or company hired to fulfill specific tasks related to the project, while a principal is the party who oversees the entire process and has the last say in any decisions that need to be made. Contractors are typically hired by the principal and are required to abide by the terms of their contract, which outlines the work they must perform and the compensation they will receive for doing so. On the other hand, the principal is the ultimate authority when it comes to the construction project and has the right to change any aspect of the project at any point in time.

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What is the difference between a contractor and a principal in a construction project?

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