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How to Hire a General Contractor Contractor

A general contractor manages your entire building project — from permit application through final inspection — coordinating subcontractors, materials, schedules, and code compliance so you do not have to. In most states, general contractors performing work above certain dollar thresholds must register with their state's contractor licensing authority. Verify any GC's registration and confirm they carry general liability insurance (minimum $1 million) and workers' compensation coverage. For major projects like home additions, new builds, or full gut renovations, your GC should handle all permit applications, schedule and attend required inspections, and provide you with a detailed contract covering scope, schedule, payment milestones, and a defined change order process. A GC's value is primarily in coordination and risk management. They vet and schedule subcontractors — electricians, plumbers, HVAC mechanics, tile setters, framers — ensure their work passes inspection, and sequence tasks so the project moves forward without costly delays. When problems arise — a sub fails to show up, a structural surprise opens in a wall, weather delays a concrete pour — the GC absorbs and manages that disruption. For projects involving multiple trades over several months, the cost of a competent GC's oversight (typically 10–20% of total project cost) is well worth the coordination time and risk it removes from the homeowner.

Typical cost

$15,000 – $150,000per project

GC costs are project-dependent and vary more than any other trade category. GC fees typically represent 10–20% of total project cost on top of subcontractor and material costs. Home additions: $100–250 per finished square foot all-in; a 400 sq ft bedroom addition typically $60,000–100,000; a full second-story addition $150,000–350,000+. Kitchen remodels with a GC: $25,000–90,000. Finished basements: $25,000–60,000. Detached two-car garage: $35,000–80,000. New residential construction: $150–350 per square foot. Permit fees for major projects: $500–2,500. Budget a 10–20% contingency for any project involving existing structure. Retain 10–15% of total payment until final inspection and punch-list completion. Get at least three fully scoped, itemized bids before awarding any project over $20,000.

Hiring checklist

  1. 1Verify their contractor registration with your state's contractor licensing authority.
  2. 2Confirm general liability insurance (min. $1M) and workers' compensation before signing.
  3. 3Get a written contract with full scope, schedule, payment schedule, and change order terms.
  4. 4Ask who handles permit applications and inspections — your GC should manage this.
  5. 5Ask for a list of subcontractors and confirm all licensed trades use licensed subs.
  6. 6Request references from at least two projects of similar size completed in the past two years.

Before you hire a general contractor contractor

Hiring a general contractor for a significant project is one of the larger financial decisions a homeowner makes. Start by confirming the contractor's registration with your state's contractor licensing authority — most states have online lookup tools. Verify that the registration is current and covers the type of work you are planning. Ask for a certificate of insurance that names your project address, and call the insurance carrier to confirm the policy is active. Coverage minimums: $1 million general liability per occurrence, plus workers' compensation. The written contract is your primary protection. A thorough GC contract includes the full scope of work in enough detail that there is no ambiguity about what is included; a construction schedule with key milestones; a payment schedule tied to those milestones; a change order clause specifying that no additional work begins without your written approval; and warranty terms for both materials and workmanship. Review it carefully before signing, and be skeptical of contractors who resist adding specifics. Request a list of the key subcontractors the GC plans to use for licensed trade work (electrical, plumbing, HVAC). Confirm those subs hold the appropriate state specialty licenses. Ask for references from projects of similar scope completed in the past two years. Ask references specifically whether the GC communicated clearly when problems arose, whether the change order process felt fair, and whether the project came in close to the original contract price.

Frequently asked questions

  • How much does a general contractor contractor charge?

    Typical general contractor costs range from $15,000 to $150,000 per project. GC costs are project-dependent and vary more than any other trade category. GC fees typically represent 10–20% of total project cost on top of subcontractor and material costs. Home additions: $100–250 per finished square foot all-in; a 400 sq ft bedroom addition typically $60,000–100,000; a full second-story addition $150,000–350,000+. Kitchen remodels with a GC: $25,000–90,000. Finished basements: $25,000–60,000. Detached two-car garage: $35,000–80,000. New residential construction: $150–350 per square foot. Permit fees for major projects: $500–2,500. Budget a 10–20% contingency for any project involving existing structure. Retain 10–15% of total payment until final inspection and punch-list completion. Get at least three fully scoped, itemized bids before awarding any project over $20,000.

  • Do general contractor contractors need to be licensed?

    Licensing requirements vary by state. In most states, general contractor contractors must hold a state license. Always verify the license number with your state's licensing board before work begins.

  • How many estimates should I get?

    Get at least three written estimates for any project over $1,000. Compare line by line — not just the bottom line — to ensure you're comparing equivalent scopes of work.

  • What should be in the contract?

    A written contract should include: full scope of work, materials specified by brand and grade, timeline with start and completion dates, payment schedule tied to milestones, workmanship warranty terms, and a change order process.

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