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A general contractor is the licensed professional who takes legal and financial responsibility for an entire construction project — pulling permits, hiring and supervising subcontractors, enforcing OSHA safety plans, and handing over a finished product that meets local building codes adopted under the International Residential Code (IRC) or International Building Code (IBC). Licensing requirements vary by state: California requires a C-10, B, or specialty license from the CSLB; Texas has no statewide GC license but requires registration in most municipalities; Florida mandates a Certified General Contractor (CGC) license through the DBPR. The twelve sub-services below organize General Contractor work by scope — from raw land and new construction through green building upgrades and emergency restoration — so you can match your project to the right specialist from the start.

Q: Can I act as my own general contractor and manage subcontractors myself?
Owner-builder programs exist in most states and allow homeowners to pull permits and act as the GC on their primary residence — California, Florida, and Texas all have owner-builder exemptions. However, you assume full legal liability for code compliance, subcontractor injuries (workers' comp exposure), and construction defects. Most lenders financing construction loans will not release draws to an unlicensed owner-builder. If you lack direct trade knowledge, plan to be on-site daily, and understand inspection sequencing, the savings — typically 15–25% of project cost — can be real, but the risk is equally real. Hiring a licensed GC transfers that liability.
Q: What does a general contractor typically charge as a markup or fee?
Most GCs price projects one of three ways: fixed-price (lump sum), cost-plus with a percentage fee, or Guaranteed Maximum Price (GMP). On cost-plus contracts, GC overhead and profit typically runs 15–25% on top of subcontractor invoices and material costs — so $100,000 in sub and material costs becomes a $115,000–$125,000 owner invoice. On fixed-price bids, the markup is baked in. Project management fees on large commercial projects sometimes run as a flat fee — $50,000–$150,000 on a $1M+ project — rather than a percentage. Always ask how change orders are priced; many GCs charge 10–20% markup on change-order work, which is where cost surprises accumulate.
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New Construction & Additions
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Remodeling & Renovation
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Structural & Framing Work
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Exterior Construction
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Interior Finishing
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Plumbing, Electrical & HVAC Coordination
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Site Preparation & Demolition
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Permitting & Project Management
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Commercial & Light Industrial
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Specialty Construction
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Insurance Restoration & Emergency Work
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Green Building & Upgrades
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General Contractor Hiring Guide

📖 Overview

[New Construction & Additions](https://contractorsplanet.com/?service=general-contractor&subcat=new-construction-additions) covers building from the ground up or expanding an existing footprint — custom homes, spec homes, accessory dwelling units (ADUs), room additions, and garage conversions. A new custom home in a mid-cost market runs $150–$400 per square foot, with high-cost metros like San Francisco or New York pushing $500–$900/sf. Room additions typically run $80,000–$250,000 depending on size and whether a structural engineer is required. GCs coordinating new construction work alongside [HomeBuilder](https://contractorsplanet.com/?service=homebuilder) professionals and typically partner with a licensed [Architect](https://contractorsplanet.com/?service=architect) or [Design](https://contractorsplanet.com/?service=design) professional on permitted drawings.

[Remodeling & Renovation](https://contractorsplanet.com/?service=general-contractor&subcat=remodeling-renovation) handles interior transformation projects — kitchen remodels, bathroom overhauls, basement finishing, whole-house renovations, and multi-trade projects that touch [Plumbing](https://contractorsplanet.com/?service=plumbing), [Electrical](https://contractorsplanet.com/?service=electrical), and [HVAC](https://contractorsplanet.com/?service=hvac) simultaneously. A mid-range kitchen remodel runs $25,000–$75,000; a full bathroom remodel runs $10,000–$35,000; a basement finish averages $30–$75 per square foot. GCs in this space manage the schedule so tile setters don't show up before waterproofing is cured and cabinet installers don't arrive before rough-in inspections pass.

[Structural & Framing Work](https://contractorsplanet.com/?service=general-contractor&subcat=structural-framing-work) addresses load-bearing elements — wall removal, beam installation, floor system repair, foundation reinforcement, and seismic or wind-resistance retrofits required by local amendments to the IRC. Removing a load-bearing wall and installing an LVL or steel beam typically runs $3,500–$12,000 including the structural engineer's stamp, which most jurisdictions require before permit issuance. [Framing](https://contractorsplanet.com/?service=framing) subcontractors work under the GC's supervision on new framing, while licensed structural engineers of record must approve any modification to a primary load path. [Concrete](https://contractorsplanet.com/?service=concrete) and [Masonry](https://contractorsplanet.com/?service=masonry) trades often run in parallel for foundation and footing work.

[Exterior Construction](https://contractorsplanet.com/?service=general-contractor&subcat=exterior-construction) covers everything outside the building envelope — siding, roofing, windows, decks, fencing, driveways, and exterior waterproofing. A full exterior re-cladding with fiber cement siding (James Hardie is the dominant brand) runs $12,000–$40,000 on a 2,000-sf home. GCs coordinating exterior projects routinely pull in [Roofing](https://contractorsplanet.com/?service=roofing), [Windows](https://contractorsplanet.com/?service=windows), [Stucco & Siding](https://contractorsplanet.com/?service=stucco-siding), [Gutters](https://contractorsplanet.com/?service=gutters), and [Fencing](https://contractorsplanet.com/?service=fencing) subcontractors under a single contract, simplifying scheduling and warranty responsibility.

[Interior Finishing](https://contractorsplanet.com/?service=general-contractor&subcat=interior-finishing) encompasses the visible, final-phase trades: [Drywall](https://contractorsplanet.com/?service=drywall), [Flooring](https://contractorsplanet.com/?service=flooring), trim carpentry, cabinetry, [Painting](https://contractorsplanet.com/?service=painting), tile, and hardware installation. Interior finishing typically represents 25–40% of a project's total labor cost, making scheduling and sequencing critical — painting before flooring is installed, for example, saves hours of masking. Millwork and custom cabinet packages alone can run $15,000–$80,000 on a full kitchen, and GCs who specialize in finishing work often have standing relationships with finish [Carpentry](https://contractorsplanet.com/?service=carpentry) crews and tile setters who hold their schedule slots months in advance.

[Plumbing, Electrical & HVAC Coordination](https://contractorsplanet.com/?service=general-contractor&subcat=plumbing-electrical-hvac-coordination) is the mechanical rough-in phase where the GC's scheduling competence determines whether a project stays on budget. NEC Article 110 requires electrical work to be performed by or under the supervision of a licensed electrician; IPC and UPC govern plumbing rough-in; ACCA Manual J load calculations govern HVAC sizing. A GC who sequences [Plumbing](https://contractorsplanet.com/?service=plumbing), [Electrical](https://contractorsplanet.com/?service=electrical), and [HVAC](https://contractorsplanet.com/?service=hvac) rough-in correctly — mechanical before insulation, insulation before drywall, drywall before finish trades — can save 10–20% in labor by eliminating re-work caused by trade conflicts.

[Site Preparation & Demolition](https://contractorsplanet.com/?service=general-contractor&subcat=site-preparation-demolition) handles clearing, grading, demolition of existing structures, and soil preparation before any building begins. EPA RRP Rule (40 CFR Part 745) requires lead-safe certified contractors for demolition in pre-1978 homes; [Asbestos](https://contractorsplanet.com/?service=asbestos) abatement must be completed by licensed abatement contractors before any structural demo can proceed. [Excavation](https://contractorsplanet.com/?service=excavation) for footings and utilities is typically subcontracted. Demolition of a single-family home runs $8,000–$25,000; interior selective demo for a remodel runs $2,000–$10,000 depending on scope and hazmat findings. [Junk Removal](https://contractorsplanet.com/?service=junk-removal) and [Trash Removal](https://contractorsplanet.com/?service=trash-removal) are coordinated for debris hauling.

[Permitting & Project Management](https://contractorsplanet.com/?service=general-contractor&subcat=permitting-project-management) is the administrative and legal backbone of any permitted project. A licensed GC assumes contractual and legal responsibility for obtaining all required permits — building, mechanical, electrical, plumbing — and scheduling inspections with the AHJ (Authority Having Jurisdiction). Project management overhead typically runs 10–20% of total construction cost and covers scheduling software, submittal coordination, RFI management, lien waiver collection, and certificate of occupancy pursuit. GCs on larger projects increasingly use Procore or Buildertrend for document control. Without proper permitting, work may need to be demolished or disclosed at resale — a risk no reputable GC should let a client accept.

[Commercial & Light Industrial](https://contractorsplanet.com/?service=general-contractor&subcat=commercial-light-industrial) addresses tenant improvements, retail buildouts, office renovations, warehouse conversions, and light manufacturing facilities built under IBC rather than IRC. ADA compliance under 28 CFR Part 36, Title III governs any public-accommodation space. Prevailing wage requirements under the Davis-Bacon Act apply to federally funded projects. A commercial tenant improvement in a leased space typically runs $50–$200 per square foot depending on finish level and mechanical complexity. GCs in this space carry higher general liability limits — typically $2M per occurrence — and often bond at 100% of contract value.

[Specialty Construction](https://contractorsplanet.com/?service=general-contractor&subcat=specialty-construction) covers niche scopes that require GCs with specific trade knowledge: [Pool & Spa](https://contractorsplanet.com/?service=pool-spa) integration, [Sauna](https://contractorsplanet.com/?service=sauna) rooms, [Skylight](https://contractorsplanet.com/?service=skylight) installation, [Solar Panels](https://contractorsplanet.com/?service=solar-panels) structural mounting, [Fireplace & Chimney](https://contractorsplanet.com/?service=fireplace-chimney) construction, and [Elevator](https://contractorsplanet.com/?service=elevator) rough-in for residential accessibility projects. Specialty scopes often trigger additional permit categories — an in-ground pool requires a separate pool permit, electrical permit, and gas permit in most jurisdictions. Cost ranges here vary enormously: a residential elevator rough-in runs $15,000–$30,000 while a gunite pool ranges $60,000–$150,000.

[Insurance Restoration & Emergency Work](https://contractorsplanet.com/?service=general-contractor&subcat=insurance-restoration-emergency-work) handles projects triggered by fire, flood, wind, or impact damage — work that must coordinate with insurance adjusters, Xactimate estimates, and mortgage lender draw schedules. GCs in this space frequently partner with [Water & Mold Remediation](https://contractorsplanet.com/?service=water-mold-remediation) firms on water-loss claims and with [Roofing](https://contractorsplanet.com/?service=roofing) contractors on hail or wind events. Supplement negotiation — the process of adding line items the adjuster missed — can recover 15–40% additional claim value. Restoration GCs must carry both general liability and pollution liability coverage given the overlap with mold and [Asbestos](https://contractorsplanet.com/?service=asbestos) disturbance during demo.

[Green Building & Upgrades](https://contractorsplanet.com/?service=general-contractor&subcat=green-building-upgrades) covers energy-efficient construction and retrofit projects: LEED-certified new construction, ENERGY STAR upgrades, passive house retrofits, air-sealing and [Insulation](https://contractorsplanet.com/?service=insulation) upgrades, and [Solar Panels](https://contractorsplanet.com/?service=solar-panels) integration. The Inflation Reduction Act (IRA) Section 25C tax credit offers homeowners up to $3,200 annually for qualifying energy improvements; GCs who track these credits can help clients time scopes across tax years for maximum benefit. HERS Index ratings, blower-door tests, and third-party commissioning are common deliverables in this space.

Choosing the right sub-service at the start is the single highest-leverage decision you make before contacting a GC. A contractor who specializes in insurance restoration thinks differently from one who builds custom homes — their licensing endorsements, subcontractor networks, bonding levels, and software systems are optimized for different problems. For genuine emergencies — active water intrusion, structural failure, fire or storm damage — contact a GC with 24-hour emergency response capability and cross-reference with your insurer before signing any authorization.

✅ What it covers

  • Permit application, AHJ submittal, inspection scheduling, and certificate of occupancy
  • Subcontractor hiring, supervision, and payment including lien waiver collection
  • Site safety planning under OSHA 29 CFR 1926 and EPA RRP lead-safe compliance
  • Structural rough-in: framing, foundation, and load-bearing modifications with engineer review
  • Mechanical rough-in sequencing for plumbing, electrical, and HVAC trades
  • Interior and exterior finish coordination: drywall, flooring, siding, roofing, windows
  • Site preparation, grading, demolition, and hazmat assessment
  • Budget tracking, schedule management, and owner-contractor draw disbursement
  • Insurance coordination, Xactimate supplement negotiation, and restoration sequencing
  • Green building certifications, HERS testing, and energy-upgrade tax credit documentation

💵 Typical cost range

$5,000 to $2,000,000

Small remodel scopes (bathroom refresh, selective demo, finish work) start around $5,000–$15,000. A mid-range kitchen remodel runs $25,000–$75,000; a room addition $80,000–$250,000. New custom home construction ranges $150–$400 per square foot in most markets — a 2,000-sf home runs $300,000–$800,000 depending on finish level and region. Commercial tenant improvements run $50–$200/sf. GC overhead and profit (markup) typically runs 15–25% on top of subcontractor and material costs. High-cost markets (NYC, SF, Honolulu) can push custom residential above $900/sf. Always clarify whether a bid is cost-plus, fixed-price, or GMP (Guaranteed Maximum Price) — the contract structure affects your cost exposure.

🛡️ Hiring tips

  • Verify your GC's license status on your state's contractor licensing board website before signing anything — confirm the license type covers your scope (e.g., California B-General Building vs. specialty licenses) and check for any disciplinary actions or complaints on record.
  • Require proof of general liability insurance ($1M–$2M per occurrence minimum) and workers' compensation before work begins — get certificates naming you as an additional insured, not just a verbal assurance, so you are not liable if a worker is injured on site.
  • Get at least three written bids on fixed-price or GMP contracts for projects over $25,000 — wide bid spreads (more than 20%) usually signal scope ambiguity, not contractor generosity, so reconcile the scope before choosing the lowest number.
  • Never pay more than 10–15% as a deposit upfront; California law caps contractor deposits at $1,000 or 10% of the contract, whichever is less — large upfront payments are a leading indicator of financial distress or fraud.
  • Confirm that the GC, not you, will pull all required permits — homeowner-pulled permits in many states void the contractor's liability and can complicate your homeowner's insurance coverage at claim time.
  • Ask for a detailed construction schedule with milestones before work starts, and tie payment draws to milestone completion rather than calendar dates — this protects you if work stalls and gives the GC a clear incentive to maintain pace.
  • Check lien laws in your state and require conditional lien waivers from the GC and every major subcontractor at each payment draw — mechanics' liens can cloud your title even when you paid the GC in full if the GC failed to pay subs.
  • Interview at least one reference from a project of similar scope completed in the last 24 months — ask specifically about schedule adherence, change-order transparency, and how punch-list items were handled at project close.

More frequently asked questions

How do I decide between repairing an existing structure and tearing down to rebuild?
The 50% rule is a useful threshold: if renovation costs exceed 50% of the structure's replacement value, many building departments require the project to be brought into full current code compliance — which can make repair more expensive than rebuild. A licensed structural engineer ($500–$2,000 for a residential assessment) can evaluate load paths, foundation condition, and envelope integrity. Renovation preserves embodied carbon and avoids demolition costs ($8,000–$25,000 for a single-family teardown), but older homes with knob-and-tube wiring, galvanized plumbing, and inadequate insulation often deliver a better long-term outcome as new construction. Get a GC and structural engineer assessment before committing.
What is the difference between a fixed-price contract and a cost-plus contract?
A fixed-price (lump-sum) contract sets a single number for a defined scope — the GC absorbs cost overruns and keeps savings. This protects owners from surprises but requires a thoroughly defined scope before signing; vague specifications lead to change orders that erode the fixed-price advantage. A cost-plus contract reimburses the GC for actual costs plus a percentage fee (15–25%) or fixed fee — the owner sees all invoices and benefits if material costs fall, but absorbs overruns. A GMP (Guaranteed Maximum Price) hybrid caps the cost-plus total, splitting savings above the cap between owner and GC. Fixed-price works best on well-defined scopes; cost-plus suits complex or fast-tracked projects where full design is not complete at bid time.
Do I need a permit for my renovation, and what happens if I skip it?
Permits are required by virtually all jurisdictions for structural work, mechanical changes (plumbing, electrical, HVAC), additions, and new construction — thresholds vary, but most AHJs require a permit for any work exceeding $500–$5,000 in value or any work touching structural or life-safety systems. Skipping permits creates serious consequences: unpermitted work must typically be disclosed in real estate transactions (or discovered during a home inspection), mortgage lenders may refuse to finance a home with known unpermitted additions, and insurers can deny claims on losses traceable to unpermitted work. Retroactive permits — called 'as-built' permits — often require opening walls for inspection and can cost 2–3x the original permit fee.
How can I tell if my home has structural problems before starting a renovation?
Key indicators of structural issues include: doors and windows that stick or no longer close square (suggests foundation movement or racking), visible diagonal cracks at window and door corners (differential settlement), floor slopes exceeding 1 inch per 8 feet (measured with a 4-foot level), sagging ridgelines visible from the street, and basement or crawlspace walls bowing inward more than 1 inch. A licensed structural engineer charges $500–$2,000 for a residential structural assessment and produces a written report. A home inspector ($300–$600) can flag concerns but is not qualified to diagnose load paths or specify repairs. For foundation issues specifically, get a foundation specialist's evaluation alongside the structural engineer's opinion.
What are the most common red flags or scams to watch out for when hiring a general contractor?
The most common scams in the GC trade: (1) Storm-chaser fraud — unlicensed crews arrive door-to-door after a weather event, collect large deposits, and disappear or do substandard work. Always verify license and insurance before signing. (2) Artificially low bids designed to win the job, followed by aggressive change orders that push the final price above competing bids. (3) Requests for cash payment to 'save on taxes' — this eliminates your paper trail and lien waiver rights. (4) Contractors who ask the homeowner to pull the permit, shifting code-compliance liability to you. (5) Unlicensed subs working under a licensed GC's umbrella — ask for sub license numbers on any project over $50,000. Verify every license at your state's contractor board before any money changes hands.
My home just suffered major fire or water damage — what should I do in the first 24 hours?
Call your insurer immediately and open a claim before authorizing any contractor to begin work — most policies require prompt notice, and signing a broad Assignment of Benefits (AOB) before speaking to your adjuster can complicate the claim in states like Florida where AOB abuse is common. Document all visible damage with timestamped photos and video before any cleanup. For water damage, emergency mitigation (water extraction, structural drying) should begin within 24–48 hours to prevent mold growth per IICRC S500 standards — this is separate from the full restoration scope. Get your insurer's authorization or a written emergency authorization acknowledging the cost before the mitigation crew starts. Contact a GC with restoration experience after mitigation is underway, and cross-reference their Xactimate line items against your adjuster's estimate before signing a rebuild contract.

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