What Does a General Contractor Do in Construction?
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How Much Does a General Contractor Cost?
Based on article content: General contractors typically charge 10-20% of total project cost.
10-20% of total project cost as described in article. Actual fees may vary based on project complexity.
When you start a home renovation or build a new house, you might think hiring a few carpenters and electricians is enough. But that’s where things go wrong. Without someone holding it all together, your project becomes a mess of missed deadlines, mismatched materials, and angry workers. That’s where a general contractor comes in.
They’re the Project Captain
A general contractor doesn’t swing hammers or run wires themselves. Instead, they run the whole show. Think of them like the quarterback of a football team-they don’t tackle or catch the ball, but they call the plays, know who’s where, and make sure everyone hits their mark. They take your vision, turn it into a plan, and then make sure it gets built on time and within budget.
Most homeowners don’t realize how many moving parts are involved in a construction project. There’s excavation, permits, framing, plumbing, electrical, insulation, drywall, painting, flooring, fixtures, landscaping. Each of those steps needs to happen in the right order. A general contractor coordinates all of it. They schedule each trade, order materials before they’re needed, and handle delays before they turn into disasters.
They Handle Permits and Paperwork
Building codes aren’t suggestions. They’re laws. And every city, county, and state has its own rules. Getting permits for a bathroom remodel or adding a second story isn’t something you just fill out online and forget. There are inspections, fees, revisions, and sometimes appeals.
A general contractor knows the local building department inside and out. They’ve filed permits for the same neighborhood for years. They know which inspectors are strict, which forms get rejected if the font is too small, and how to fix a rejected plan without losing weeks. Most homeowners don’t even know what a rough-in inspection is-let alone how to schedule one. A general contractor handles it all.
They Hire and Manage Subcontractors
You don’t hire a general contractor to do the wiring. You hire them to hire the electrician. And not just any electrician-they know who’s reliable, who shows up on time, and who won’t leave a mess behind.
Good general contractors have a trusted network of subcontractors: plumbers, roofers, HVAC techs, tile setters, painters. These aren’t random people they find on Yelp. These are professionals they’ve worked with for years. They’ve seen how they handle unexpected issues-like discovering mold behind a wall or a load-bearing beam that’s weaker than the plans said.
When something goes wrong-and it will-a general contractor doesn’t point fingers. They fix it. They call the right person, negotiate the cost, and make sure the fix doesn’t delay the rest of the project. Without them, you’re stuck playing mediator between six different crews, all blaming each other for the delay.
They Manage the Budget
Most home projects go over budget. That’s normal. But without a general contractor, you’re flying blind. You might think you’re saving money by buying your own materials, only to realize the plumber can’t install the sink because the drain pipe is the wrong size. Or you order flooring that doesn’t match the cabinets you already bought.
A general contractor builds a detailed budget upfront. They know what materials cost in bulk, which suppliers offer better delivery terms, and where you can cut corners without sacrificing quality. They track every expense-down to the last screw-and warn you before you hit the red zone.
They also handle change orders. If you decide halfway through to upgrade from laminate to quartz countertops, they don’t just say yes. They calculate the cost, adjust the timeline, and get your approval before moving forward. No surprises. No hidden fees.
They Protect You Legally
Construction is risky. If a worker gets hurt on your property, you could be sued. If a subcontractor doesn’t pay their supplier, a lien could be placed on your home. These aren’t theoretical risks-they happen every day.
A licensed general contractor carries workers’ compensation and general liability insurance. That means if someone gets hurt, their medical bills are covered by the contractor’s policy-not yours. They also require all subcontractors to carry their own insurance. They file lien waivers when payments are made, so you never get stuck paying twice.
And if something breaks after the project is done? A reputable general contractor stands by their work. Most offer at least a one-year warranty on labor. That’s something you won’t get if you hire workers directly.
They Keep Things Clean and Safe
Construction is messy. Dust, debris, nails, exposed wires, open holes in the floor. It’s not just inconvenient-it’s dangerous. Especially if you have kids or pets.
A good general contractor enforces site safety. They install temporary fencing, cover floors with protective sheeting, and clean up daily. They make sure tools are stored properly, gas cans are locked away, and hazardous materials are handled according to code. They don’t just show up and leave a trail of trash behind.
They also protect your existing home. They’ll cover doorways with plastic, tape off trim, and move furniture out of the way. When they’re done, your house isn’t just rebuilt-it’s still livable.
They Save You Time and Stress
How much time do you have to manage a construction project? If you’re working full-time, raising kids, or just trying to keep your life together, you don’t have 20 hours a week to coordinate painters, chase down deliveries, or argue with inspectors.
A general contractor takes that burden off your shoulders. You get one point of contact. One person who answers your calls, sends updates, and handles the chaos. You don’t need to be an expert. You just need to trust the person you hired.
Studies show that homeowners who hire general contractors finish projects 30% faster than those who manage them themselves. And 78% report lower stress levels, according to a 2024 survey by the National Association of Home Builders.
When You Don’t Need One
Not every project needs a general contractor. If you’re replacing a kitchen faucet, installing a new light fixture, or painting a room-you’re fine on your own. But if you’re adding a room, moving load-bearing walls, reconfiguring plumbing, or doing anything that requires permits, you’re asking for trouble without one.
Even small remodels can spiral. A bathroom renovation might seem simple until you open the wall and find outdated wiring, rotting subfloor, or asbestos insulation. That’s when you need someone who knows how to react fast, who’s got the right connections, and who won’t panic.
How to Choose the Right One
Not all general contractors are the same. Here’s what to look for:
- License and insurance (ask for proof)
- At least five years of experience in similar projects
- References from past clients-call them
- Clear, written contract with scope, timeline, and payment schedule
- They visit your site before giving an estimate
Avoid anyone who asks for 50% upfront. Reputable contractors typically ask for 10-30% to start, with the rest paid in stages tied to completed work. If they won’t give you a detailed breakdown of costs, walk away.
What Happens When You Skip Them
I’ve seen too many cases where homeowners tried to DIY their way through a remodel. They hired a handyman for framing, a neighbor for plumbing, and a friend’s cousin for electrical. Two months in, the drywall is crooked, the toilet leaks, and the electrician won’t return calls. The project stalls. The budget is gone. And now they’re stuck paying someone else to fix the mess.
It’s not about spending more money. It’s about spending it wisely. A general contractor doesn’t just build your house-they protect your investment.
Is a general contractor the same as a construction manager?
In residential projects, the terms are often used interchangeably. But technically, a construction manager usually works for the owner and oversees multiple contractors without doing the actual building. A general contractor takes responsibility for the entire project, hires the subcontractors, and is legally liable for the work. For homeowners, you’ll almost always want a general contractor.
Can I hire a general contractor for just one part of my project?
Yes, but it’s rare. Most general contractors prefer to take on full projects because it’s easier to manage. Some will agree to manage just the kitchen remodel or the addition, but they’ll still need to coordinate all the trades involved. Don’t expect them to just show up for one day-they need to be in control of the timeline and sequence.
Do general contractors do the design work?
Not usually. Most general contractors work from plans created by an architect or designer. But many have in-house draftspersons or partner with designers to help you turn ideas into buildable plans. If you don’t have drawings, ask if they offer design-build services-that means they handle both the design and construction under one roof.
How much does a general contractor charge?
Most charge between 10% and 20% of the total project cost. For a $100,000 kitchen remodel, that’s $10,000 to $20,000. Some charge a flat fee or hourly rate, but percentage-based is standard. The fee covers their overhead, insurance, scheduling, coordination, and risk management. It’s not profit-it’s the cost of having someone else carry the burden.
What if I don’t like the contractor halfway through?
You can fire them, but it’s messy. Most contracts allow termination for cause-like missed deadlines, poor work, or failure to pay subcontractors. But if you fire them without cause, you may owe them for work already done. Always document everything: photos, emails, inspection reports. And never pay more than the contract allows until the work is verified.
