What Is General Contractor?
A general contractor (GC) oversees construction and renovation projects. They pull permits, hire subcontractors (plumbers, electricians, etc.), manage timelines, and ensure work meets code. Use a GC for major rehabs—kitchen remodels, full renovations, value-add-renovations. For small repairs, a handyman is often cheaper. Find GCs through referral-networks and property-management-company recommendations. Get 3 bids and check references.
A general contractor is a licensed professional who coordinates construction projects, hires subcontractors, and manages permits and timelines.
At a Glance
- What it is: A licensed professional who coordinates construction projects
- Why it matters: Major rehabs need permits, coordination, and code compliance—GCs handle that
- When to use: Full rehabs, kitchen/bath remodels, deferred-maintenance over $10K
- Cost: Typically 10–20% markup on subcontractor work; or fixed bid
- Alternative: Handyman for small repairs under $2,000
How It Works
Role. GC pulls permits, hires and coordinates subcontractors, orders materials, manages schedule, and ensures work passes inspection. You give them a scope; they deliver a finished project.
Pricing. Fixed bid (lump sum for the project) or cost-plus (materials + labor + markup). Fixed bid is common for defined scopes. Cost-plus for change-order-heavy projects. Get it in writing.
For investors. GCs who work with investors understand arv, forced-appreciation, and timeline pressure. They've done value-add-renovations before. Avoid residential GCs who only do retail remodels—they don't understand investor economics.
Real-World Example
Sophia in Tampa. Sophia bought a $189,000 single-family that needed a full kitchen and bath remodel. She hired a GC who had done 15+ investor rehabs. Fixed bid: $42,000 for kitchen, both baths, flooring, paint. The GC coordinated plumber, electrician, flooring, and painter. Project completed in 6 weeks. Arv increased from $205,000 to $247,000. The GC's fee was built into the bid—Sophia didn't pay extra for coordination. A handyman couldn't have pulled permits or managed the scope.
Pros & Cons
- Handles permits, subcontractors, and code compliance
- Single point of contact—you don't coordinate plumber, electrician, etc.
- Fixed bids provide cost certainty
- Investor-savvy GCs understand arv and timeline
- Cost—10–20% markup adds up
- Overkill for small repairs—use handyman for under $2K
- Quality varies—vet carefully
Watch Out
- Licensing: Verify the GC is licensed and insured. Unlicensed work can void insurance and create liability.
- Payment schedule: Don't pay 50% upfront. Stagger: deposit, progress payments, final payment after punch list. Hold 10% until work is complete.
- Scope creep: Get a written scope. Change orders add cost. "While you're here" requests can blow the budget.
Ask an Investor
The Takeaway
Use a general-contractor for major rehabs—full kitchen, bath, value-add-renovations. Use a handyman for small repairs. Vet the GC, get a written scope, and stagger payments.