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Hiring Guide

How to Hire a General Contractor: Complete 2026 Checklist

A general contractor manages your entire home improvement or construction project from start to finish. They coordinate subcontractors, pull permits, and ensure work meets building codes. Hiring the right GC can save you thousands and months of frustration.

$50–$150 per square foot10-step checklist8 red flags

10-Step Hiring Checklist

Follow these steps before hiring any general contractor.

  1. 1

    Define your project scope

    Write a detailed description of the work, including materials, dimensions, and finishes. A clear scope prevents misunderstandings and change-order disputes.

  2. 2

    Get at least three estimates

    Request itemized bids from a minimum of three licensed contractors. Compare line by line, not just the bottom number.

  3. 3

    Verify their license

    Check your state's contractor licensing board to confirm the license is active and matches the type of work you need.

  4. 4

    Check insurance and bonding

    Ask for certificates of general liability insurance (minimum $1M) and workers' compensation. Verify directly with the insurer.

  5. 5

    Review past work and references

    Ask for at least three references from projects similar to yours. Visit completed job sites if possible.

  6. 6

    Search for complaints

    Check the Better Business Bureau, state licensing board, and online reviews for unresolved complaints or disciplinary actions.

  7. 7

    Review the contract thoroughly

    The contract should include scope of work, materials, timeline, payment schedule, change-order process, and warranty terms.

  8. 8

    Confirm the payment schedule

    Never pay more than 10-15% upfront. Payments should be tied to milestones, with the final payment held until a walkthrough is complete.

  9. 9

    Verify permit responsibilities

    Your contractor should pull all required permits. If they suggest skipping permits, that is a major red flag.

  10. 10

    Get the warranty in writing

    A reputable contractor offers a workmanship warranty of at least one year. Make sure it covers both labor and materials.

Red Flags to Watch For

Questions to Ask Before Hiring

  1. 1How long have you been in business, and how many projects like mine have you completed?
  2. 2Who will be on-site daily, and who is my main point of contact?
  3. 3What is your expected timeline, and how do you handle delays?
  4. 4Can you provide an itemized estimate with materials and labor broken out?
  5. 5What is your change-order process and how are additional costs handled?
  6. 6Do you use subcontractors? If so, are they licensed and insured?
  7. 7What warranties do you offer on workmanship and materials?
  8. 8What is your payment schedule?

What to Verify

Confirm all of the following before signing a contract with any general contractor.

Average Cost

$50–$150per square foot

Prices vary by location, project complexity, and the general contractor's experience. Always get multiple written estimates before making a decision.

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Frequently Asked Questions

How much does a general contractor charge?
General contractors typically charge between 10% and 20% of the total project cost as their fee. For a $50,000 remodel, expect to pay $5,000 to $10,000 in GC fees. Some charge a flat fee instead. The total project cost including labor and materials typically runs $50 to $150 per square foot depending on complexity.
Do I need a general contractor for a small project?
For small projects under $5,000, you may be able to hire individual tradespeople directly. However, any project that requires permits, multiple trades, or structural work benefits from a general contractor who can coordinate the work and ensure code compliance.
How do I verify a contractor's license?
Visit your state's contractor licensing board website and search by the contractor's name or license number. The listing should show an active license, the correct classification for your project type, and no unresolved disciplinary actions.
Should I get a written contract?
Absolutely. A written contract protects both you and the contractor. It should specify the scope of work, materials, timeline, payment schedule, change-order process, warranty terms, and dispute resolution procedures. Never proceed with only a verbal agreement.
What is the difference between a general contractor and a handyman?
A general contractor is licensed to manage large construction and renovation projects, pull permits, and hire subcontractors. A handyman handles smaller maintenance and repair tasks that typically do not require permits or specialized licenses. Most states set a dollar threshold (often $500 to $1,000) above which a contractor license is required.

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