What Do General Contractors Do?

Jeremy Henderson
Jeremy Henderson
Owner's Rep
Oct 28, 2024
What Do General Contractors Do?

Every construction project, whether it’s a kitchen renovation or a multi-story office building, needs someone to keep all the moving parts in sync. That’s where a general contractor comes in. Acting as the project’s central coordinator, a general contractor ensures that everything from budgeting to building meets the plan’s specifications.

In this guide, we’ll break down what general contractors do, the responsibilities they manage, and when it makes sense to hire one. Whether you’re planning a home remodel or a commercial project, understanding their role can save you time, money, and a whole lot of stress.

What Is a General Contractor?

A general contractor is the person or firm responsible for overseeing a construction project from start to finish. They handle planning, budgeting, hiring subcontractors, and ensuring that work complies with local regulations. Think of them as the captain of a ship, steering the project through complex waters while keeping everything on course.

Key Differences from Other Roles:

  • Handyman: Handles smaller, simpler tasks (e.g., fixing a door or installing a faucet) rather than managing large projects.
  • Subcontractor: Specialized in a specific trade, like plumbing or electrical work, and hired by the general contractor for specific tasks.
  • Construction Manager: Works on behalf of the project owner, focusing more on administrative oversight rather than direct coordination of labor and materials.

In short, the general contractor acts as the primary point of accountability for the entire construction project, ensuring that all pieces come together seamlessly.

Responsibilities of a General Contractor

The role of a general contractor spans the entire lifecycle of a construction project. Here’s a closer look at their responsibilities:

Pre-Construction Tasks

Before construction even begins, a general contractor is busy laying the groundwork for success. Their key tasks include:

  • Budgeting and Cost Estimation: Creating a detailed budget that accounts for labor, materials, permits, and unexpected expenses.
  • Hiring Subcontractors: Identifying and vetting specialized trades like electricians, plumbers, and painters.
  • Permits and Codes: Applying for building permits and ensuring the project complies with local zoning laws and safety regulations.
  • Collaboration with Architects: Working with architects to finalize the design, scope, and timeline of the project.

During Construction

Once construction begins, the general contractor ensures that every aspect of the project stays on track. Responsibilities include:

  • Project Oversight: Managing the day-to-day progress, ensuring deadlines are met, and addressing any delays.
  • Coordination of Trades: Scheduling and supervising subcontractors to ensure each phase transitions smoothly into the next.
  • Health and Safety Standards: Maintaining a safe work environment and complying with OSHA guidelines.
  • Communication: Acting as the primary point of contact for clients, architects, and subcontractors to address questions, changes, or updates.

Post-Construction

Even after the work is done, the general contractor’s job isn’t quite over. Their post-construction duties include:

  • Reviewing Invoices: Ensuring all payments are accurate and securing lien waivers from subcontractors.
  • Final Inspections: Conducting walkthroughs to confirm all work meets the agreed-upon specifications.
  • Handover: Delivering the completed project to the owner, ensuring satisfaction and compliance.

General Contractor Licensing in California

In California, general contractors are regulated by the California State Licensing Board (CSLB). Licensing is not only a legal requirement but also a marker of professionalism and trustworthiness.

Types of Licenses

  1. Class A License: For large-scale engineering projects, such as highways or dams.
  2. Class B License: For general building projects that involve multiple trades.
  3. Class B-2 License: A specialized license for residential remodeling projects that don’t require structural changes.
  4. Class C License: For subcontractors specializing in specific trades like electrical, plumbing, or HVAC.

Why Licensing Matters:

  • Ensures compliance with state laws and safety regulations.
  • Protects homeowners and project owners through liability coverage.
  • Grants lien rights, ensuring contractors can legally claim unpaid dues.

Types of General Contractors

Not all general contractors operate the same way. Their approach and expertise can vary based on the type of projects they take on. Let’s explore the different types of general contractors:

Traditional General Contractors

These professionals focus on managing the overall project. They handle budgeting, scheduling, and coordinating subcontractors while ensuring compliance with regulations. Their primary goal is to keep the project on track, both financially and logistically.

Design-Build Contractors

This type of contractor combines design and construction into a single, unified service. Instead of hiring separate architects and contractors, a design-build firm manages everything, offering a more streamlined process. This approach can save time and reduce miscommunication since all work falls under one team.

Residential vs. Commercial Contractors

  • Residential Contractors: Specialize in home construction or renovations, such as kitchen remodels, new builds, or additions. They’re well-versed in local zoning laws and neighborhood aesthetics.
  • Commercial Contractors: Handle large-scale projects like office buildings, retail spaces, or warehouses. These contractors often have experience with complex regulations, safety standards, and large crews.

Choosing the Right Type:
The best general contractor for your project depends on the scope, complexity, and specific needs. For a home renovation, a residential contractor might suffice, but a large commercial build requires a contractor with expertise in commercial construction.

When to Hire a General Contractor

Not every project requires a general contractor. Here are scenarios where hiring one makes sense—and where it might not:

When to Hire

  • Complex Projects: Projects involving multiple trades, such as a kitchen remodel requiring plumbers, electricians, and carpenters, benefit from a general contractor’s coordination skills.
  • Large-Scale Construction: Building a new home or adding significant square footage typically requires a professional to manage timelines, budgets, and compliance.
  • Code-Intensive Work: Projects needing permits or strict adherence to local building codes are best handled by a licensed general contractor.
  • Safety Concerns: Contractors ensure work sites meet OSHA standards, protecting both workers and homeowners.

When You Might Not Need One

  • Specialized Tasks: For single-trade jobs, such as replacing a roof or installing new plumbing, hiring a subcontractor directly can save money.
  • DIY Enthusiasts: Smaller projects like painting or installing flooring might be manageable without professional oversight if you have the skills and tools.

Key Consideration: While subcontractors handle specific tasks, general contractors oversee the big picture, ensuring that all trades work together efficiently.

The Bidding and Payment Process

Understanding how general contractors bid and manage payments can help you navigate your project with confidence:

The Bidding Process

  1. Initial Consultation: Contractors review the project’s scope, plans, and requirements.
  2. Estimate Submission: Based on labor, materials, and timelines, the contractor provides a detailed cost estimate.
  3. Negotiation: Homeowners and contractors discuss the bid to align expectations.
  4. Contract Agreement: Once agreed upon, a contract is signed outlining terms, timelines, and costs.

Payment Management

A transparent payment process is crucial for avoiding disputes. Most general contractors use a milestone-based payment schedule:

  • Initial Deposit: Covers upfront costs for materials and permits.
  • Progress Payments: Made at specific project milestones (e.g., foundation completion, framing, or final inspection).
  • Final Payment: Issued after the project is completed to satisfaction.

Lien Waivers: Contractors often collect lien waivers from subcontractors to ensure all parties are paid, protecting homeowners from future disputes.

Finding and Choosing a General Contractor

Selecting the right general contractor can make or break your project. Here’s how to find and vet potential candidates:

Where to Start

  • Referrals: Ask friends, family, or neighbors for recommendations.
  • Online Reviews: Platforms like Yelp, Angie’s List, or Google Reviews can provide insights into contractors’ reputations.
  • Industry Networks: Check with local builders’ associations or home improvement stores for trusted recommendations.

Key Questions to Ask

  1. Are you licensed and insured?
  2. How many similar projects have you completed?
  3. Can you provide references?
  4. What’s your estimated timeline and budget for this project?
  5. How do you handle unexpected delays or changes in scope?

Verify Licensing

For California residents, use the CSLB website to check a contractor’s licensing status, ensuring they meet state requirements and carry insurance.

The Importance of a Written Contract

Never start a project without a detailed, written contract. It should include:

  • Project scope and specifications.
  • Payment terms and schedule.
  • Estimated timeline.
  • Change order policies.
  • Warranty information.

Conclusion

General contractors are the backbone of construction projects, managing the complexities of planning, coordination, and execution. Whether you’re tackling a home remodel or a commercial build, hiring the right contractor ensures your project runs smoothly, stays within budget, and complies with all regulations.

By understanding their responsibilities, licensing requirements, and how to vet them, you can approach your project with confidence and peace of mind. Armed with this knowledge, you’ll not only know what general contractors do—you’ll know how to choose the best one for your needs.

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Jeremy Henderson
Jeremy Henderson
Owner's Rep
Oct 28, 2024

Based in Orange County, Jeremy Henderson founded Mr. Valet Parking, servicing elite venues. He previously managed luxury yacht projects at Pacific Asian Enterprises and worked at Lending Point Mortgage.

Disclaimer: The information provided in this blog is for general informational purposes only and should not be considered financial, legal, or real estate advice. ROI estimates, cost ranges, and market trends are based on publicly available data and general industry insights and may not accurately reflect individual circumstances, regional specifics, or current market conditions. Revive makes no guarantees regarding outcomes or returns on investment. Readers are strongly encouraged to consult with licensed professionals, such as contractors, real estate agents, or financial advisors, to assess their unique needs and conditions before starting any remodeling or home improvement projects. Revive is not liable for decisions made based on the information provided herein.

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