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How to hire a General Contractor

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 to $150

per square foot

10 steps

Full hiring checklist

8 red flags

Warning signs to catch

The hiring checklist.

Work through these before you hire any general contractor. Skip a step and it's usually the one that comes back to bite you.

  1. 01

    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. 02

    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. 03

    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. 04

    Check insurance and bonding

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

  5. 05

    Review past work and references

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

  6. 06

    Search for complaints

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

  7. 07

    Review the contract thoroughly

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

  8. 08

    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. 09

    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.

Any one of these should give you pause. Two or more, and it's time to walk away.

  • Demands full payment upfront or cash-only payments
  • No physical office or business address
  • Pressures you to sign immediately or offers a 'today-only' discount
  • Cannot provide proof of license, insurance, or bonding
  • Has multiple unresolved complaints on the BBB or licensing board
  • Suggests skipping building permits
  • Refuses to put the agreement in writing
  • Will not provide references from recent projects

Questions to ask first.

Ask these before you sign anything. The answers tell you fast who knows the work and who's improvising.

  1. 01How long have you been in business, and how many projects like mine have you completed?
  2. 02Who will be on-site daily, and who is my main point of contact?
  3. 03What is your expected timeline, and how do you handle delays?
  4. 04Can you provide an itemized estimate with materials and labor broken out?
  5. 05What is your change-order process and how are additional costs handled?
  6. 06Do you use subcontractors? If so, are they licensed and insured?
  7. 07What warranties do you offer on workmanship and materials?
  8. 08What is your payment schedule?

What to verify.

Confirm every one of these in writing before you sign a contract with any general contractor.

  • State contractor license (active, correct classification)
  • General liability insurance ($1M minimum)
  • Workers' compensation insurance
  • Surety bond (if required in your state)
  • Business registration and physical address
  • References from at least three recent projects

Average cost

$50 to $150

per square foot

Prices swing with location, project complexity, and the general contractor's experience. Always get multiple written estimates and compare them line by line, not just on the bottom number, before you decide.

Find licensed general contractors near you.

Browse verified listings with ratings, reviews, and licensing details in the free Vemra directory, then request quotes from the ones you've vetted.

Search general contractors

Common 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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