Everything you need to know before hiring a general contractor.
A general contractor manages all aspects of a construction project: pulling permits, hiring and coordinating subcontractors (plumbers, electricians, framers, etc.), ordering materials, scheduling inspections, maintaining the project timeline, and ensuring work meets code and quality standards. They are the primary point of contact for the homeowner.
GCs typically charge 10–20% of the total project cost as their fee. On a $100,000 project, this means $10,000–$20,000 for GC management. Some GCs charge a fixed fee rather than a percentage. The GC fee covers project management, overhead, insurance, and profit — it does not cover materials and subcontractor labor.
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Find a ContractorMost states require general contractors to hold a state contractor's license. Requirements vary by state — some license at the state level; others at the county or city level. Verify your contractor's license on your state's contractor licensing board website. Also verify they carry general liability and workers' comp insurance.
A general contractor manages the overall project and is responsible to the owner. Subcontractors are specialty tradespeople (plumbers, electricians, tile setters, roofers) hired by the GC to perform specific scopes of work. The GC coordinates scheduling, quality, and payment for all subs.
Ensure all bids are based on the same scope of work and specifications. A very low bid may indicate incomplete scope, lower-grade materials, or a contractor who will request change orders later. Review each bid's allowances, exclusions, and assumed conditions carefully. Price alone is not the best criterion — experience and references matter.
A thorough contract should include: detailed scope of work with plans and specs, itemized cost breakdown, payment schedule tied to project milestones, project start and completion dates, change order procedures, materials specifications, warranty terms, dispute resolution process, and lien waiver requirements.
A change order is a written agreement that modifies the original contract scope, cost, or timeline. All changes to the original contract should be documented with a signed change order before work begins. Avoid contractors who make verbal promises about changes — if it's not in writing, it's not agreed upon.
A modest home addition (400–600 sq ft) typically takes 3–6 months from permit approval to completion. Timeline depends on scope, permit processing time, subcontractor availability, and weather. Complex additions with custom finishes or structural work take longer. Build buffer time into your expectations.
A lien waiver is a document signed by a contractor or subcontractor confirming they have received payment and waiving their right to file a mechanic's lien against your property for that payment amount. Request lien waivers from your GC and all major subcontractors at each payment milestone to protect your property title.
Verify license and insurance before signing anything. Never pay more than 10–15% as a deposit. Tie payments to project milestones, not a calendar schedule. Get everything in writing — scope, materials, timeline, and changes. Check references by calling them personally. Avoid contractors who pressure you to decide immediately or offer dramatic discounts for immediate commitment.