General contractors

What a general contractor does

A general contractor takes responsibility for a whole project rather than one trade. On a kitchen remodel, an addition or a gut renovation, the GC prices the job, pulls the permits, hires and schedules the subcontractors — framers, plumbers, electricians, drywall, tile, painters — orders materials, books inspections and is the one person you deal with when something goes wrong.

Some GCs do much of the carpentry themselves and sub out the licensed trades; others only manage. Either is normal. What matters is that one firm is accountable for the sequence, the quality and the budget, and that the contract says so.

Do you need a GC, or just a trade?

If the job is one trade — a new water heater, a panel upgrade, repainting a room — hire that trade directly. A general contractor earns their margin when the work needs several trades in the right order, structural changes, or permits and inspections at several stages. Moving a wall, adding a bathroom, finishing a basement and building an addition are typical GC jobs.

Many states license general contractors, and some only above a project value. California, for example, requires a licence for any job of $1,000 or more in labour and materials since January 2025. Check your own state’s rule with its contractor board rather than assuming.

Red flags before you sign

The Federal Trade Commission lists the warning signs of a home improvement scam: a contractor who turns up at your door because they are “in the area”, says they have materials left over from another job, pressures you for an immediate decision, asks for full payment or cash up front, suggests you pull the permits yourself, or pushes you towards their own lender (FTC).

A permit pulled in your name makes you responsible for the work passing inspection. A licensed GC should pull it in theirs.

How to choose a general contractor

1. Get more than one written estimate, each describing the work, the materials, the timeline and the price. The FTC advises asking about any big difference between bids rather than taking the lowest automatically.
2. Check the licence number with your state or county, and ask for proof of liability insurance and, if they have employees, workers’ compensation.
3. Ask for references from jobs of a similar size and type, and call them.
4. Ask who will be on site day to day, which trades they sub out, and how they handle change orders.
5. Read the contract before signing. The FTC says it should include the contractor’s name, address, phone and licence number, start and completion dates, the promises made about scope and cost, and a written statement of your right to cancel within three business days where that right applies.

Some states set rules on deposits and progress payments for home improvement contracts — California’s board publishes what a contract must contain. Your state’s consumer protection office can tell you the local limits.

What affects the cost

• The scope and how settled it is. A job specified down to the fixtures prices tighter than “we’ll decide as we go”.
• How the GC charges: a fixed price, cost plus a percentage or fee, or time and materials. Each puts the risk of overruns in a different place.
• Structural work, engineering and the permits and inspections your city requires.
• Finish level — the cabinet, tile and fixture choices often swing the total more than the labour.
• What the house hides. Older homes can reveal rot, outdated wiring or plumbing once walls open; ask how the contract handles unforeseen conditions.
• Local labour market and how busy contractors are when you want to start.

Construction & Contracting cost guide: the factors pros price on →

Being your own general contractor

Some homeowners manage a project themselves and hire each trade directly. It can save the GC’s margin, but you take on the scheduling, the permits, the inspections and the job of getting six businesses to turn up in the right order. If a trade damages another’s work, sorting it out is yours too.

It suits a small, well-defined project and someone with time on weekdays. For structural work or anything touching several licensed trades, a GC usually costs less than the mistakes.

Common questions

What is the difference between a general contractor and a handyman?

A handyman does small repairs and installations, usually alone. A general contractor runs whole projects with several trades, permits and inspections. Many states limit how big a job an unlicensed handyman may take on.

Should a general contractor pull the permit?

Yes, normally. The FTC lists a contractor asking you to get the permits yourself as a warning sign; a permit in your name makes you responsible for the work.

How many estimates should I get?

More than one, in writing, for the same scope. Ask the contractors to explain big differences rather than choosing on price alone.

How much should I pay up front?

Not the full amount. Some states cap deposits on home improvement contracts — ask your state consumer agency — and tie later payments to visible stages of work.

Do general contractors need a licence?

In many states, yes, often above a project value. The threshold and the licence classes differ by state, so check with your state contractor board.

What is a change order?

A written change to the agreed scope and price, signed by both of you before the extra work starts. It is how a contract stays accurate when plans change.

Who hires the subcontractors?

The general contractor, who is responsible for their work and for paying them. Ask for lien releases from the main subcontractors and suppliers as they are paid.

Sources

Safety and standards advice on this page comes from these publishers. Dates are the ones each page shows.

• Federal Trade Commission, How To Avoid a Home Improvement Scam (July 2022)
• California Contractors State License Board, What Is a Home Improvement Contract? (no date shown; read October 2026)
• California Contractors State License Board, License Requirement for Minor Work Increases from $500 to $1,000 (2024 industry bulletin, effective January 1, 2025)