What is a General Contractor and Why Are They Needed?

Corie Allen
Nov 4, 2024
5 min read

For homeowners starting on a home renovation project, recognizing the importance of a general contractor is quite important. This article is dedicated to understanding the responsibilities of a general contractor, showcasing situations where their knowledge can help in your home renovation project, and emphasizing the immense value they bring to the successful completion of your remodeling project.

What Is General Contracting?

General contractors oversee home remodeling and building projects without necessarily doing the physical labor themselves. They rely on plans and specifications given to them by the client and design team to establish project timelines and budgets and then they coordinate with various trades to ensure successful completion of the work.

Why Is A General Contractor Important?

In the context of a home remodeling project, a general contractor serves as an invaluable asset to the customer due to several reasons:

1. Project Management: A general contractor oversees the entire project, managing schedules, coordinating subcontractors, and ensuring that the work progresses smoothly and on time.

2. Expertise and Experience: General contractors bring a wealth of knowledge and experience to the table, offering insights on design, materials, and construction techniques that can enhance the project's outcome.

3. Cost-Efficiency: By leveraging their network of subcontractors and suppliers, general contractors can often secure materials at a lower cost, saving the homeowner money in the long run.

4. Quality Assurance: General contractors are responsible for ensuring that the work meets industry standards and building codes, providing peace of mind to the homeowner regarding the quality of the remodel.

5. Problem Solving: In the event of unexpected issues or challenges during the project, a general contractor can quickly address and resolve them, keeping the project on track.

6. Time-Saving: With a general contractor at the helm, homeowners can save time and effort that would otherwise be spent on managing the project themselves, allowing them to focus on other priorities.

Overall, by entrusting a general contractor with their home remodeling project, homeowners can benefit from professional guidance, efficient project management, and a smoother renovation experience.

Planning Phase

Planning is a crucial step that involves meticulously crafting the physical layout and selecting the materials for the new space. Depending on the project's scale, a general contractor must collaborate with an architect, draftsman, and designer to ensure a successful outcome. These services are typically compensated upfront to get the project started. Clearly outlining your expectations for the project's quality and budget is paramount, as it enables the general contractor to align with subcontractors effectively, ensuring that the final result meets your exact standards. Homeowners should bear in mind that this phase may incur costs, since time is a valuable commodity for all of these teams.

It is important to engage in discussions with the general contractor regarding your budget and project objectives. If the contractor does not bring up this topic, it is up to you to initiate the conversation to prevent investing time, effort, and resources into a plan that surpasses your financial constraints.

For example, if an individual is planning on renovating their master bathroom and they are thinking that the remodel that they want till cost around $25,000 but the renovations that they are wanting actually cost between $40,000 to $50,000, then it is important that the contractor and the client are on the same page from the get go. Having this conversation early on can save time and prevent delays. Either the client needs to pick a different plan for their bathroom or they need a healthier budget. This is definitely not something that you want to learn when a project is already under way!

Bidding Phase

After the design or planning phase is finished, the general contractor will solicit bids for materials and labor according to your project requirements to restore the space..

Contract/Permit Phase

During the contract signing phase, it is crucial to have a clear understanding of the project's scope. You need to be aware of the total cost, the start date of the work, and the estimated duration. At this stage, the necessary materials for the project are typically ordered, and the laborers are informed about their assignment along with a schedule.

Construction Phase

Throughout the construction phase, the general contractor will oversee the project to ensure it is finished according to your requirements within the set budget and timeline. Their responsibilities include coordinating various trades, ensuring quality work, and adherence to specifications. It is essential for the general contractor to maintain regular communication with you (2-4 times per week) to provide updates on the progress. In case of unexpected issues, the general contractor is responsible for informing you about the problem, proposing a feasible solution, and estimating the cost of addressing it.

Wrap-Up Phase

Upon completion of the project, there is a wrap-up phase. Prior to the project being tidied up and transferred to you, a meeting is held with the general contractor to inspect the project and identify any remaining issues. Subsequently, the general contractor will coordinate the return of tradespeople to address the identified issues. The project will be finalized with a thorough cleaning and the final payment to the general contractor.

Cost

Typically, a general contractor's pricing is based on the total cost of the project. For instance, many contractors include a category in the estimates that they provide to their clients called “indirect costs.” These expenses are necessary for business operations but are not directly linked to a specific project. Examples include insurance, office rent, office supplies, and payroll taxes. Generally, this accounts for 2-5% of the project's total cost, but may vary depending on the project's complexity, location, duration, and distance from our office. In addition to indirect costs, there is also a project management fee, usually amounting to 20-25% of the project's total cost.

When To Hire A General Contractor

Home remodeling projects do not necessarily require the presence of General Contractors. Some homeowners opt to take on the role of a general contractor themselves and engage with their own trades or subcontractors. To undertake this responsibility effectively, the following characteristics and traits are essential:

Availability - Being able to meet with each trade on-site multiple times is necessary.
Organization - Managing a plethora of information, schedules, and financial responsibilities requires a structured system.
Effective communication - Clearly conveying your expectations to trades regarding tasks and timelines is essential.
Knowledge - Understanding or acquiring knowledge about quality work standards is necessary. Additionally, being able to address unsatisfactory work with trades skillfully is crucial.
Resilience - Being able to navigate challenging situations, find solutions, and maintain positive relationships with trades is important.

If you lack any of these five abilities, it is advisable to consider hiring a general contractor. For complex projects involving wall additions or removals, bringing on an experienced general contractor is likely a wise decision.

Important Takeaways

If you hire a general contractor, they will oversee a team of skilled tradespeople to help you realize your renovation vision. When engaging a general contractor, you can expect them to:

Select subcontractors who will deliver a final product that aligns with your expectations, plans, and requirements.
Ensure the project stays within budget – check out my blog post on the expenses associated with a renovation, here
Finish the project within the agreed timeline
Provide regular updates and offer guidance to help you make informed decisions.

For more information on contacting a trusted General Contractor for your home renovation in the Lake of the Ozarks, feel free to reach out to VanDusen Contracting to get started with your remodeling project today!