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Why General Contractors Are Necessary When Building A House

If you are building a new home, you will need to look for general contractors (GC)

. GCs are professionals that oversee a project until it is completed. They are tasked with hiring and managing different types of subcontractors such as roofing, plumbing, or electrical contractors. GCs can also supervise a major home renovation but they are different from repair and maintenance contractors.

For individual repairs and minor maintenance work, you will need a subcontractor like an independent plumber or electrician to perform checks and to fix broken fixtures. A general contractor coordinates large projects with subcontractors working under him. A GC does not directly perform labor to fix your house or do installations. These tasks are left to the subcontractors working under a GCs supervision.

If you are building a home, you will have a single contract with a general contractor. The GC on the other hand holds contracts with various subcontractors like electricians, an excavator, concrete workers, plumbers, roofers, carpenters, painters, and flooring contractors. The GC pays them for their work while homeowners pay general contractors only.

GCs make profit by marking up the subcontractors fee. For example, he can charge the homeowner for electrical work at 30% more of what electrical contractors are charging him. This marked up fee will be included in the total charges for managing the project that include other charges from plumbing services, carpenters, or roofing contractors.


Aside from managing the project and subcontractors, GCs are also responsible for other obligations such as providing dumpsters, insurance, and other needs that come with building a home. Subcontractors make profit from labor fees and marking up materials that go into the construction. For example, roofers may take a cut of 20% from the wholesale price of their roofing materials.

A big part of a GCs work is focused on communicating with the homeowners and coordinating the homeowners needs to subcontractors. GCs are also tasks with making sure that deadlines are met and that all subcontractors keep within their project time limit. General contractors must also plan the logistics to make sure that different types of subcontractors can work together in a cooperative manner.


For example, electrical contractors need to coordinate with the carpenter or concrete guy making the ceiling and walls. A GC will make sure that this happens in an organized manner. An electrician has to coordinate with whoever is building the wall so that electrical wires and outlets can be properly installed within the walls.

A painter must coordinate with the carpenters. Roofers need to work hand-in-hand with the carpenter or concrete contractor. Plumbers likewise have to work with the people working on the floors and walls. The GC makes sure that all these people under him will work in an efficient manner to build the house in an organized manner.

Good general contractors can help you and other homeowners save money by facilitating faster work and efficiently performed tasks that will not have to be redone due to mistakes. When hiring a GC, look for experience and a license. Make sure they also get insurance to cover liabilities involved in building a new home.

by: Shaly Criston
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