When it comes to general contractors, licensing laws vary from state to state. Even if your state doesn’t require your general contractor to have a license, your municipality or city might, so it’s a good idea to check with your town before getting started. Be sure to check our state licensing tool to review the local general contractor guidelines. 

If your state or city doesn’t require a general contractor to be licensed, it’s still worth it to hire an expert. The costs of hiring an unlicensed or uninsured contractor are high, as you might need to pay out of pocket for employee injuries or even the cost of redoing the project. 

As you browse our pro listings, take note of the “we are Certified” badge. Our Certified businesses meet our standards for certification which include:

• The owner, principal, or relevant manager passed a criminal background check

• Required to have applicable state and local licenses

• Maintain an average star rating of 3.0 or better on our network, if they have at least one review

• Paying to advertise their services

• Meeting any other eligibility criteria required.

Generally, general contractors charge between $50 and $150 hourly, though not every contractor charges by the hour. If charging based on the project, you can expect a markup of 10% to 20% of the construction cost. You can expect to pay between $300 and $500 daily if charged by the day.

General contractors are the ones that coordinate home construction projects. They are in charge of the day-to-day oversight of the subcontractors to ensure that the project is completed on time and to resolve problems as they arise. General contractors:

• Complete pre-construction planning, both with the customer and crew

• Provide realistic cost estimates

• Develop construction timelines

• Ensure deadlines are met

• Acquire permits as needed

• Purchase supplies and materials

Before hiring a general contractor for your home project, it’s a great idea to write down a list of questions to discuss with each prospect. Some example questions to get you started include:

• Which types of insurance do you carry?

• Can you provide a list of references?

• What is the expected timeline for this project?

• How will my project be supervised?

• Will you hire subcontractors for the job?

• What is the best way to communicate changes?

• Will you obtain all of the required building permits?

Yes, most general contractors require a down payment for project completion. A reasonable down payment for a contractor is 10% to 25% of the total project cost, though that will vary based on project size and location. The down payment helps cover the upfront costs of materials and permits and helps ensure payment for the project at hand.