The Core Concept
A GC is your single point of accountability for the build — but not for the decisions that define what gets built.
The GC builds what the plans specify, manages all trades, pulls permits, and owns the schedule. Design decisions, finish selections, draw approvals, bid comparison, and contingency management are owner responsibilities — regardless of how good your GC is.
What a General Contractor Does — 8 Core Responsibilities
The GC is responsible for selecting, contracting, scheduling, and paying all subcontractors — framing crew, plumber, electrician, HVAC installer, roofer, drywaller, painters, tile setters, and finish carpenters. You never hire subs directly in a GC contract.
The GC is responsible for obtaining the building permit, trade permits (plumbing, electrical, mechanical), and scheduling all required inspections at each phase. In most states, only a licensed contractor can pull a permit for work they did not design.
Coordinating dozens of trades so they arrive in the right sequence — foundation before framing, framing before rough-in, rough-in before insulation and drywall — is a full-time job. The GC owns the schedule and is responsible for delays caused by poor coordination.
The GC coordinates material deliveries, storage on site, and waste removal. They maintain relationships with lumber yards, suppliers, and distributors. In tight markets, their supplier relationships can mean faster lead times than you would get independently.
As each phase is completed, the GC submits draw requests to your construction lender. They are responsible for providing the documentation (lien waivers, inspection sign-offs) required to release each draw payment.
Any deviation from the original plans and specifications — homeowner changes, unforeseen site conditions, material substitutions — is handled through a formal change order with a written price and timeline impact.
The GC is responsible for building to code — local building codes, energy codes, and accessibility requirements. They coordinate with the building department and ensure inspections pass at each phase.
OSHA requirements, site security, fall protection, temporary fencing, and worker safety are the GC's responsibility. Workers injured on site may have claims against the GC and, in some cases, the property owner.
What the Owner Must Still Do — Even with a GC
These responsibilities do not transfer to the GC. Every owner building a new home must handle these personally.
You need a baseline to evaluate the GC's bid. Without one, you cannot know if you are overpaying.
Never release a draw for work not yet complete. This is your primary financial leverage point.
GC license number, general liability certificate, and workers' comp certificate must be in hand before work begins.
Every selection made during construction is a change order. Selections made on paper cost nothing extra.
The GC manages subcontractors — but you own the property. Walking the site gives you visibility and leverage.
One bid gives you a price. Three bids give you a market. The difference between the high and low bid routinely runs 10–20%.
The GC does not hold your contingency. You do. Budget 15% of construction cost as a separate fund.
The change order clause, draw schedule, and exclusions section will affect your build as much as anything the GC does.
Frequently Asked Questions
What is the difference between a general contractor and a subcontractor?
A general contractor (GC) manages the entire project — they hire and coordinate all subcontractors, pull permits, manage the schedule, and are your single point of contact and accountability. Subcontractors (subs) perform specific trades — framing, plumbing, electrical, HVAC — under contract to the GC. In a GC contract, you never hire subs directly.
How much does a general contractor charge for a new home?
General contractors typically charge 15–25% overhead and profit applied to the total cost of subcontractor work. On a $400,000 build, the GC markup runs $60,000–$100,000. This covers their management, supervision, coordination, warranty work, and business overhead. Markup below 10% is a red flag — the GC may plan to recover margin through change orders.
Do I need a general contractor to build a house?
In most US states, you can act as your own general contractor (owner-builder) for a home you intend to occupy. However, you assume all the responsibilities a GC normally handles — hiring and managing subs, pulling permits, scheduling inspections, and managing the draw schedule. Owner-builder projects succeed when the owner has significant construction knowledge and time. Most first-time homebuilders are better served by a licensed GC.
What does a GC not do?
A GC does not make your finish selections (cabinets, countertops, flooring, fixtures), manage your construction loan on your behalf, negotiate your land purchase, choose your floor plan, or act as your architect. Design, planning, financing, and finish selections are owner responsibilities — the GC builds what the plans specify.
What should I look for when hiring a general contractor?
Verify license number through your state contractor licensing board. Require certificates of general liability and workers' comp insurance. Get 3–5 references from recent completed projects and call them. Review contract terms carefully — especially the change order clause, draw schedule, and exclusions. Get 3–5 competitive bids on the same plans and specifications.
Kerem is a construction cost analyst and architectural graduate with a degree from the Illinois Institute of Technology. He has spent over a decade analyzing residential and commercial build costs across all 50 U.S. states, and leads the cost methodology team at Equin Global LLC — the company behind CostToBuildHouse.com.
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