When starting a home remodel or new construction project, you will probably hire a general contractor. A general contractor is a professional who is qualified to take a set of building plans and construct them as outlined. The general contractor may help perform the day-to-day building, or they may just hire workers and oversee all the work activities. In either case, the job of the general contractor is to see that your project gets built.
When you have a building project, ask for bids from various contractors. The bids tell you how much each will charge and what their scope of work will be. Once you have selected a bid, you sign a contract with that general contractor outlining the specifics of the project and the milestones during the project when they will receive payment installments. Once the contract is official, the general contractor will bring in their crew to begin construction. The contractor will manage the workers and subcontractors (anyone who doesn’t work directly for their company but that they need to outsource, like a marble installation pro), order all the materials, obtain work permits, and confirm that all the workers and subcontractors are completing their projects as planned. They typically handle all the payments to the workers and subcontractors, and send you invoice. For all these reasons, it’s also especially important to follow a few smart hiring practices when it comes to finding a general contractor. If you are organized and competent to oversee construction projects, and are able to make sure everything is being built properly and meeting code, it’s possible you can be your own general contractor.
Construction project managers help in all stages of your construction project, starting from the very first step. Typically paid a percentage of a total project cost, they are part of the design and planning process and help ensure seamless communication between the design parties and the construction team. According to the U.S. Department of Labor, their scope of work includes preparing cost estimates, budgets and work timetables; interpreting and explaining contracts and technical information to other professionals; reporting work progress and budget to clients; collaborating with architects, engineers and other construction pros; selecting subcontractors and scheduling and coordinating their tasks; responding to work delays, emergencies and other problems; and ensuring compliance with legal requirements, building and safety codes, and other regulations.
The work of construction project managers may seem very similar to that of general contractors, but there are some critical differences. One difference is that, unlike most general contractors, project managers are not engaged in the actual construction — they are onsite overseeing the work of subcontractors. Another key difference is that project managers are hired during the design phase, while general contractors are hired after plans have been made. The project manager is generally paid a percentage of the total project cost, while the general contractor is more typically paid according to the bid they gave to build your project.
Hiring a general contractor is a good idea for many remodeling projects. Home renovation contractors have a broad range of skills to manage, coordinate and complete a project. They should help make sure your project comes in on time and within your budget as they hire and supervise all the necessary subcontractors, including electricians and plumbers. They also handle procuring all the materials required for your job. Some homeowners look to save money by acting as their own contractor, but an experienced home renovation contractor is worth the cost. They should know local building codes, be able to pull all necessary permits, and work with inspectors to make sure the construction meets local codes. Also, because they get professional discounts, they can typically buy materials at a better price than you can; better prices on materials and labor save you money, and make up for at least a percentage of the cost of the contractor.
If you’re doing a home remodel, building a new home or embarking on a commercial building project, you’ll hire a general contractor. A general contractor is a professional who is qualified to oversee and execute construction projects. Each construction project is unique; even two duplicate homes built on lots next door to each other could have different construction costs due to factors like different excavation costs when building the foundation. Since each project is unique, many general contractors make bids on potential construction projects. These bids can then break down to a per square foot cost that encompasses the labor of all the workers needed for the job, materials, the scope of work, and any equipment needed. Materials and finishes make a major difference in your cost per square foot. For example, choosing standard kitchen tiles at $3 per square foot will result in a lower total project cost than imported marble tiles that cost $63 per square foot. Where you live will also affect how much general contractors charge, as labor and the cost to do business can cost less in many regions than in high-cost areas like New York or San Francisco. Here are some examples of average costs general contractors typically charge in various regions:
- Home addition in San Francisco: $250-$270 per square foot.
- New home construction in Knoxville, Tennessee: $100-$200 per square foot.
- Kitchen remodel in Tennessee: $40-$80 per square foot, depending on finishes.
- Bathroom remodel in Vancouver, Washington: $110-$170 per square foot.
Be sure to check out our smart hiring practices when it comes to finding a general contractor.
A contractor license number is proof that your contractor is operating their business legally, that they have the proper documentation required by your state or region, and that they are competent in their area of work (electrical, plumbing, construction, etc.). Licensed contractors should freely advertise their contractor license number. If not, you can request it before considering them for hire. You can also research your contractor using their license number. The database for your state will indicate the field they are licensed to work in; whether they are up to date on insurance, workers’ compensation and bonds; and whether they have any consumer complaints issued against them. If the licensed contractor you are hiring does not have employees, they are not required to carry workers’ compensation. Each state or region will have their own database for licenses, such as the State of Oregon Construction Contractors Board. For more, check out our tips for smart hiring on Thumbtack.