Description of General Contractors

A general contractor is someone you hire to coordinate a home improvement project. Although most will take on any sort of project, they are normally used for bigger projects or in cases where there are multiple projects to be completed. Traditionally general contractors will have some workers on their payroll to handle demolition, carpentry, electric, plumbing, and other basics; for everything else they will hire various subcontractors, or "subs" (the balance of subs to staff varies). Often times, they will have a relationship with certain subs that they know and trust.

What does a General Contractor Cost?


Using a general contractor instead of "subbing out" the work yourself will usually cost around 10-20% more on average. In some cases, however, it may actually cost less than doing it yourself, particularly if you don't get multiple bids when hiring subs. Often the general contractor's staff can do certain jobs for less than subs.

What are the Advantages?


There are a number of advantages to hiring a general contractor.
  • First, it makes larger, more complex projects more manageable, since you can leave many of the details to someone else (finding subs, making sure the work is done and done right, paying the sub, etc).
  • Second, experience in coordinating some of the more general aspects of projects can be very valuable (e.g. knowing which parts of a project need to happen in what order, when and how to get permits, and issues of licensing/bonding).
  • Finally, since general contractors have established relationships with certain subs, providing them with regular business, it is not uncommon for a general contractor to be quietly bumped up on the schedule of projects because they want to keep the general contractor happy.

In other words, a general contractor can make a project move faster and with less heartache for you.

Getting it Right


If you do decide to use a general contractor, interview him or her thoroughly. Be sure to check references, get multiple bids, and get a very specific itemized cost breakdown as part of the contract. It is customary to add 5-15% to a bid to cover unforeseen costs. Any use of this "contingency fund" should be formally approved by you. The best way is to use a "change order" form, so you have it in writing. Note that if you plan on getting a loan to do a major project, the lender will often require that you hire an experienced general contractor unless you can demonstrate substantial experience in the field.

There are cases where a contractor and owner disagree about the cost of a change to the project - the formal procedure for handling these is called a Change Order Request.

[This article was based on text originally written by Rick Hunter.]

General Contractor Interview Questions

You will want to gather as much information as you can from potential contractors before making your decision. The potential contractor should walk through the project with you - this is your opportunity to assess the contractor’s experience, work ethic, and personal demeanor.

  1. Make sure the contractor has the appropriate business and professional licenses and is insured. Once you have signed a contract, you should request a copy of the contractor’s “insurance binder” that lists the specific coverages for your project. Save this sheet of paper with the contract and don't lose them.

  2. Get all the contact information you can. Write down the contractor's business address, cell phone, telephone, fax, e-mail address, business license number, and truck license plate. If something goes wrong during the project, you need to be able to make contact. Before signing a contract, look up the business at the Better Business Bureau web site. Complaints lodged with the BBB should not necessarily exclude the contractor, but may lead you to ask some specific questions and/or write some additional language into a contract.
  3. Ask the contractor to describe similar projects he/she has worked on. Get two or three recent references and call them. Don’t trust photos the contractor brings as your only source of information.
  4. Make the contractor aware of any individual requirements and issues with your project. Ask if the contractor can work within whatever guidelines you set.
  5. Ask about project management. Who will be working on the job? Will there be a supervisor, superintendent or lead carpenter on site or will it be managed from a different location?
  6. Inquire about timing. How much lead-time does the contractor need to schedule your project once the contract is signed? How long does the contractor anticipate the project taking?
  7. Ask about the contractor’s bidding process. What will be included in the bid? What is specifically excluded? Do they need a full set of architectural drawings?
  8. Was the contractor on time to the meeting? Did he or she call to let you know about any delays?
  9. Ask about the contractor’s business. How many projects are completed in a year? Does the contractor have an office? How long has the contractor been in business? How many employees are there?
  10. How are complaints or differences of opinion typically resolved? Does the contractor have an established punchlist system? Does the contractor warranty his or her work? Is there an arbitration clause in the contract?
  11. Ask about payment. How much money does the contractor require up front? What is the payment schedule? Can the contractor agree to the lender’s terms and the required draw schedule?

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