What does a General Contractor do? The general contractor is in essence a project manager with in-depth knowledge of building requirements and vendor resources. S/he is responsible for the day-to-day oversight of a construction project, including the procurement of materials, management of vendors and trades, and the communication of information to all involved parties throughout the course of a building project. S/he should provide clear guidance on best practices and insure work is completed on schedule, on budget and to code.
Do I need a General Contractor for my project? Depends! There are a myriad of home projects that can easily be completed without a General Contractor. It is often a matter of personal choice.
If the project requires multiple trades, a General Contractor can add value by providing subcontractors and coordinating the work across them. For example, if you are updating a bathroom. A plumber will gladly install the new toilet and faucet, but who is going to install the new vanity? If you are installing those dreamy new sconces, you will also need an electrician. If you are updating that old linoleum floor, now you need yet another tradesperson! Yes, you can google and get these same services for individual providers, but a General Contractor can coordinate these for you and often save you money in the end. Service providers have what is known as “retail pricing”. That means that Suzie Homeowner calls up and the price for services is X. General Contractors typically have “preferred customer” pricing, which means that we have not only used the vendor in the past and have a knowledge of their abilities, but we have pricing that is often well below the standard retail price!
If a project requires a permit, a General Contractor can add value. Homeowners in the state of Minnesota can pull their own permits for a variety of tasks. You can use google and pretty quickly figure out where to do that, but the process is unique to each city and the forms aren’t very user friendly. You can call your local building inspector for assistance. Once you have acquired the permit, you now need the skills and tools to execute the work to code in order for the inspector to pass the work and close the permit. It is an achievable task, but is it worth the time and effort? Referring back to the original answer, it depends!
How do I select the right General Contractor? If there was a magic formula, there wouldn’t be thousands of homeowners postings on the internet about bad General Contractors! The success of a project comes down to effective communication of expectations and personal accountability, but here are some common red flags to avoid:
Asks you to get required building permits. This suggests that they are not actually licensed and cannot pull the permits themselves!
Only accepts cash. While cash is nifty, this suggests there may be underlying financial issues and General Contractor cannot actually cash a check or is avoiding proper reporting of income.
Solicits door-to-door. Door-to-door sales are a thing of the past. Individuals who are currently selling this way are often “storm chasers” that are canvassing neighborhoods after a significant event. They have often come to the area from another state specifically for that purpose and may not have proper licensing or a local presence if warranty issues arise with the work.
Asks you to pay for the entire job up front. General Contractors are taking a risk when work begins without any payment. After all, we can’t repossess your new kitchen if we don’t receive payment. Some General Contractors will often tell you sob stories of homeowners who have not paid for renovations and how paying them up front protects them. While it is likely that a General Contractor has experienced at least some issues collecting payment on work, there are processes in place for General Contractors to attach liens to a property if payment is not received and their past experiences are not your problem. Some reputable companies will ask for some portion upfront, especially if custom materials are being ordered, but this still carries some risk for homeowners. If incremental payment is needed, opt for a sliding payment schedule based on work completed. Break down the project into clear and measurable phases where payments can be made. This allows you to insure work is being completed in a timely manner and you aren’t paying for work that hasn’t even begun.
Tries to scare you into signing for repairs claiming they are urgent. Some repairs may actually be urgent, but that is very rarely the case. If a water pipe is broken and your home is actively flooding, call a plumber! If you are talking to a General Contractor about a remodeling scenario, they should not be using scare tactics to accelerate your decision.
Doesn’t provide detailed documentation of the tasks and costs. Setting expectations begins with a common understanding of what is going to be done and this should ALWAYS be put in writing. If there isn’t enough detail in their descriptions, ask for more words. It is okay to ask for more specifics. A good description will outline specific materials, fixtures, colors, etc.
Responds to specific questions with vague language such as “no problem” or “we will just figure it out”. Clear expectations begin with precise answers to questions. There are times when things are unknown, but these should be explained. For example, opening walls could unforeseen consequences such as moisture damage, non-code framing and unexpected electrical, plumbing or ductwork. A good General Contractor should try to identify as many issues as possible up front and be honest about potential risks during the planning phase of the project.