When you’re building a house or doing major renovations, you’ll deal with many different workers. That’s why hiring a general contractor is often necessary. They’re like the director of a play, managing all the other workers to make sure everything comes together smoothly. General contractors are especially helpful for big projects because they keep things organized and reduce your stress.
In this blog, we’ll explain why you might need a general contractor, how to find a good one, and what to expect when you hire them.
What is a general contractor?
A general contractor (GC) is like the leader of a construction project, whether it’s renovating or building something new. They manage communication between the homeowner and all the different workers involved, such as plumbers and electricians, to ensure everything runs smoothly.
Unlike specialized workers, like plumbers or electricians, general contractors don’t focus on just one area. They oversee every aspect of the project, from laying the foundation to installing the roof and handling wiring.
General contractors are involved in nearly every stage of the home-building process, from planning to construction. They might even handle tasks after construction, like paying workers, obtaining permits, and scheduling inspections.
Read here for more information about general contractors.
Types of general contractors
In the past, general contractors mainly focused on following plans created by others, like architects or interior designers, to build or renovate homes. While some specialized in certain areas like bathrooms or kitchens, they typically didn’t contribute to the design process.
However, there’s another approach called design-build construction. This method encourages contractors and design professionals to collaborate from the start of the project. It promotes transparency, teamwork, and ultimately leads to better outcomes.
What does a general contractor do?
A general contractor supervises construction sites to ensure work is done correctly and safely. Their responsibilities include:
- Creating timelines and budgets.
- Hiring subcontractors and workers.
- Communicating with homeowners, architects, and engineers.
- Obtaining necessary permits.
- Coordinating material orders and deliveries.
- Maintaining on-site safety.
- Meeting client’s budget, schedule, and quality standards.
- Handling payments to subcontractors.
- Scheduling post-work inspections.
Aside from the list above, they have more responsibilities that you can check here.
When do you need a general contractor?
Even if you’re skilled at DIY projects, there are times when hiring a general contractor for remodeling is a good idea.
Typically, it’s recommended to hire a general contractor if your renovation will last more than a week or involves multiple specialized workers. Complex jobs like renovating bathrooms and kitchens often require a general contractor’s expertise.
For instance, if you just want to install a simple shower, a plumber can handle it. But if you’re remodeling your entire bathroom, it’s smart to hire a general contractor who can manage various aspects like plumbing, electrical work, and tiling.
Another situation where a general contractor is beneficial is when building permits are needed. Experienced contractors know local building codes and the permitting process well. Having them handle permits can save you headaches and prevent issues with authorities.
Paying the general contractor
General contractors usually don’t charge by the hour for their work on longer projects. Instead, they typically receive a percentage of the total project cost.
According to HomeAdvisor, general contractors typically get between 10% and 20% of the project’s total cost. For bigger projects, some may charge up to 25%. So, for a house that costs around $282,000 to build on average, a general contractor might earn between $28,000 and $56,000.
However, this payment isn’t given all at once. It’s spread out over the course of the project, following a payment plan that you both agree on and document. Many contractors have a standard payment schedule they use with clients, which can serve as a starting point for your agreement.
Typical payment plans often include a down payment, which covers initial expenses like materials and permits. Then, payments are made at specific milestones throughout the project. For example, you might pay 10% upfront, then another 20% at each milestone, with the remaining 30% due upon project completion.
When it comes to paying your general contractor, here are some tips to ensure a smooth and fair process:
- Agree on payment terms upfront.
- Check the work is done right before paying.
- Keep communication open.
- Pay on time to maintain a good relationship.
- Get lien waivers to avoid legal issues.
How to hire a general contractor?
Before hiring a contractor for your home project, it’s crucial to do your homework since you’ll be working closely with them. The best contractors are often in high demand, so start researching your options as soon as you have the land title and blueprints, or even earlier if you’re considering a design-build firm.
If you’re not sure where to begin, ask friends, family, co-workers, and acquaintances for recommendations. See if anyone has worked with exceptional general contractors who might be available for new projects. Additionally, do some online research to find well-rated contractors with experience in your type of project.
Once you’ve compiled a shortlist of candidates, reach out to each one and schedule a brief introductory meeting. During this meeting, ask important questions like:
- Are you licensed?
- Do you have insurance?
- What is your experience with projects similar to mine? (Some contractors specialize in certain types of projects, like historic homes or new builds.)
- How long has your firm been operating?
- Can you provide references? (Make sure to contact a few.)
- How often will we communicate? Will you provide regular updates?
While all these questions are essential, it’s crucial to ensure that your potential contractor has the necessary license and insurance as required by your city or state. If they seem hesitant or dismissive when asked about this, it could be a warning sign.
Conclusion
Trying to build or remodel a home by yourself can be overwhelming, unsafe, and even illegal in some cases. If you’re planning a big renovation involving lots of subcontractors or permits, it’s much simpler to hire a general contractor. They’ll handle the day-to-day work and make sure the project gets done.
Sure, hiring a general contractor adds another person to the mix, and their services can be pricey, sometimes up to 25% of the total project cost. But think about it: Who will decide what needs to be done and when? Would you recognize if something’s not right with the roof or if the cement is drying too slowly?
In the end, a general contractor’s experience, skills, and problem-solving abilities can make a huge difference in your home project. They’ll help keep things on track with your budget, timeline, and vision for your dream home.
Leave a Reply