General Contractor
The primary contractor responsible for managing all aspects of a construction project, including hiring and overseeing subcontractors.
A general contractor (GC) is the licensed professional who takes overall responsibility for a construction project. The GC manages the project schedule, hires and coordinates specialty subcontractors (electricians, plumbers, HVAC, tile setters), orders materials, ensures code compliance, and serves as the primary point of contact for the homeowner. The GC typically holds the building permit in their name.
GCs make money through a markup on subcontractor labor and materials (typically 10–20% for cost-plus contracts) or through the difference between their fixed-price bid and their actual costs. Their value lies in project coordination, quality oversight, problem-solving, and accountability—particularly valuable on complex multi-trade projects.
When selecting a GC, homeowners should verify their license with the state contractor licensing board, confirm they carry general liability insurance (minimum $1M) and workers' compensation, check references from recent similar-scale projects, and compare at least three bids. Low bids are often low because the GC has excluded scope items that others included.
Real-World Example
The homeowners hired a general contractor to manage their whole-house renovation, paying a 15% overhead-and-profit markup on all subcontractor costs.