What Does a General Contractor Actually Do? (And When Do You Need One?)
You need a bathroom remodel. Do you hire a general contractor for $35,000 or hire the plumber, tile guy, and electrician yourself for $22,000?
That $13,000 gap is real. But so is the value a good GC provides. Understanding what you're paying for helps you decide whether you actually need one.
What a General Contractor Does
A GC manages your renovation project from start to finish. Their job includes:
Scheduling and coordination. The plumber needs to rough-in before the tile goes up. The electrician needs to run wires before drywall. The painter comes after drywall mud is dry. A GC sequences all of this so trades show up in the right order and nobody's waiting around.
Hiring and managing subcontractors. Most GCs don't do all the work themselves. They hire specialists (plumbers, electricians, tile installers, painters) and manage them. A good GC has reliable subs they've worked with for years.
Pulling permits and scheduling inspections. The GC handles the paperwork. They know what permits your project needs, they pull them, and they schedule inspections at each required stage.
Problem solving. When the plumber opens the wall and finds galvanized pipes that need replacing, the GC adjusts the plan, gets you a change order price, and keeps the project moving. Without a GC, you're the one making that call at 7 AM while getting ready for work.
Quality control. A GC inspects each sub's work before the next trade starts. Bad tile work gets fixed before grout goes in, not after.
Liability and insurance. The GC carries general liability insurance and workers' comp. If a sub drops a tool through your floor or gets hurt on site, the GC's insurance handles it.
What a GC Charges
GCs typically add 15-25% on top of the combined cost of labor, materials, and subcontractors. This is their gross margin, and it covers their overhead (insurance, truck, office, tools) plus profit.
On a $30,000 project:
- Subcontractor costs: ~$18,000
- Materials: ~$7,000
- GC overhead and profit (20%): ~$5,000
- Total: $30,000
That $5,000 buys you project management, liability coverage, and someone whose job it is to make sure everything gets done right and on time.
When You Need a GC
Multi-trade projects. If your renovation involves 3+ different trades (plumber, electrician, tile, drywall, painter), a GC is worth the markup. Coordinating these yourself is a part-time job.
Structural work. Anything involving load-bearing walls, foundations, or major framing needs a licensed GC. The liability risk is too high to manage yourself.
Permitted work. If the project needs permits, a GC handles the process and ensures everything passes inspection. Doing this yourself is possible but time-consuming, especially if you've never pulled a permit before.
You work full-time. Project management takes 5-10 hours per week during an active renovation. If you can't take calls during the day, answer questions on site, and check work quality, a GC is worth every dollar.
When You Don't
Single-trade projects. Replacing a water heater? Hire a plumber. Rewiring a room? Hire an electrician. You don't need a GC for work that involves one trade.
Cosmetic updates. Painting, new fixtures, cabinet hardware, light switches. These are straightforward projects that don't require coordination between multiple trades.
You have construction experience. If you know how to read plans, sequence trades, and evaluate quality, acting as your own GC saves 15-25% on the project. Some states require a GC license for projects over a certain dollar amount, so check your local laws.
How GC Bids Differ from Trade Bids
When you get a bid from a GC, you're getting a wrapped price that includes their management fee. When you get bids from individual trades, you're seeing raw costs but taking on the management yourself.
To compare fairly:
- Get the GC's itemized bid (materials, labor by trade, permits, GC fee)
- Get individual bids from 2-3 trades for each component
- Add 10-15% to the individual bids for your own time managing the project
- Compare the totals
If the GC's total is within 10% of your DIY management estimate, hire the GC. The stress reduction alone is worth 10%.
Evaluating a GC's Bid
A good GC bid breaks out:
- Demo and site prep
- Each trade's labor (plumbing, electrical, tile, drywall, paint)
- Materials (with specifications)
- Permits and inspections
- GC fee or overhead (sometimes baked in, sometimes separate)
- Contingency allowance
- Payment schedule tied to milestones
If you get a GC bid that just says "Bathroom Remodel: $35,000" with no breakdown, that's not a bid. That's a guess with a number attached.
Upload your GC bids to BidCheck for a line-by-line analysis. We'll show you how each component compares to local rates, whether the GC markup is within normal range, and where there might be room to negotiate.