A general contractor handles all of the nuts and bolts of building a house, so you don't have to
Building a home can be stressful, which is why it’s best to hire a general contractor who can handle all the nuts and bolts of the process. There are countless things to consider, from the HVAC system and the roofing to the cabinetry and everything in between. A general contractor can assist with hiring subcontractors for individual jobs, pulling permits, and overseeing code inspections. Here’s what you should know about hiring a contractor to build a house.
General contractors manage the entire construction process from start to finish, whether it’s a small renovation or a whole new build. As such, they offer a wide range of services. Mainly, a general contractor is a project manager. They’re responsible for planning, scheduling, and keeping the build on track, on time, and on budget.
This process involves overseeing day-to-day operations and addressing problems as they arise. A general contractor hires and manages subcontractors like carpenters, electricians, and plumbers and ensures that everyone has what they need by sourcing materials and equipment. The contractor also ensures a safe working environment and a quality final product. Lastly, they obtain permits and schedule inspections to make sure everything is up to code.
Considering that general contractors charge 10% to 20% of your overall contract cost, which is typically between $29,000 and $58,000, you want to make sure you have the right person for the job. Before reaching out to contractors, you should prepare as many details as you can.
Do your research before diving into a remodeling project. Reach out to as many different types of people as you can, from contractors to remodeling companies, to be as informed as possible on all the modern remodeling options available to you.
A good jumping-off point for finding a general contractor is to ask around. Chances are you have a family member or a friend who has someone they’ve worked with in the past and liked, so you already have one reference for their work. The National Association of the Remodeling Industry (NARI) website is also a good resource.
Once you’ve got a list, you can get on the phone and get some of your questions answered before taking the time out of your day to meet them in person. This is a good time to ask for financial references, if they’re willing to give client referrals, and confirm if they take on projects of your size and scope.
Based on your phone interviews, narrow down to a list of at least three general contractors you’d like to meet with and get quotes from. Building a house is not like a simple remodeling project—this is a person you’re going to have to deal with for at least six months, so this is a good opportunity to make sure you communicate well.
Start with the Better Business Bureau or your state’s consumer protection agency and see if your contractor has any complaints against them. Then you can start calling their clients to get a feel for how their projects went. If you can, visit a current project site and see how things are going.
When general contractors build homes, they hire subcontractors for different project stages. These include subcontractors who deal with:
Foundation/concrete
Framing
Masonry
Doors, windows, and siding
HVAC
Plumbing
Electrical
Roofing
Flooring
Grading
Cabinetry
Countertops and tile
Finish carpentry
Landscaping
...and more, depending on the unique circumstances of your build.
All general contractors should be insured, and if they hire subcontractors, they should carry coverage for anyone who works for them. Call your local building authority and verify that your contractor’s license is current.
It’s important to get everything in writing before your contractor begins the build. Working out a payment schedule ahead of the start of construction will save you headaches later. For big projects, a schedule usually starts with 10% up front, three payments of 25% at agreed-upon intervals, and 15% once all the work is completed. If the contractor asks for a large amount up front, like half, then it’s time to take a step back and reevaluate the relationship.
It’s a good idea to keep track of the work as it progresses, no matter how wonderful your contractor may be. If you run into any snags, having clear written communications and records can help clear up misunderstandings and get the project back on track. As best you can, make notes of:
When work begins and ends each day
How the project is progressing in relation to the timeline
If the crew is keeping the site clean and safe
The face-to-face meeting is an ideal time to get all your questions out on the table and get a rough timeline for your project. Some good questions to ask are:
How long have you been in business?
How many houses do you build a year?
Are you insured and licensed?
What is the project timeline?
What are each day’s work start and end times?
How can I get in touch with you and how long does it take for you to respond?
How will you protect the building site?
Choosing the right contractor can make a huge difference in the overall success of your project. Building or renovating a home is stressful and having the right contractor to guide everyone through the process can give you invaluable peace of mind.
When looking for a contractor, be sure to do your research. Ask for recommendations from family or friends, read reviews, and check references. You want to be sure your general contractor knows what to expect from your project, so see some of their previous work if you can. It’s also important to meet with your potential contractors and see how you get along. Remember that, depending on the scope of your project, you’ll be working with this person for quite some time, so it’s important that you're on the same page.
When you’re satisfied that all the I’s have been dotted and T’s have been crossed, it’s time to issue the final payment. Be sure to address any problems before you make your final payment. If you’re happy with the contractor’s work, they’ll appreciate you leaving them a good review and offering to be a reference.
