Hire guide · Reviewed 2026-10-06

How to hire a general contractor you can trust

Verification, fair quotes, contracts and red flags — written for homeowners, not contractors pitching you.

Verify at the source — reviewed 2026-10-06

Licensing, insurance and deposit rules vary by state and city. Use this page to know what to ask; the state board lookup and your written contract are what actually protect you.

Three things that matter before you hire general contractors

Always verify an active General Building Contractor state license (e.g., Class B in CA, Certified GC in FL) and confirm all sub-trades hold active specialty licenses.
Demand a fixed-price detailed schedule of values broken down by division (demolition, framing, MEP trades, finishes) along with a binding project schedule with milestone completion dates.
Ensure the contract includes lien waiver protocols (conditional upon progress payment, unconditional upon cleared funds) for both the GC and every subcontractor working on your site.

The two-minute verification routine

Step 1. Verify the General Contractor's state license status, license class, and worker's comp status on state licensing boards.
Step 2. Request a Certificate of Insurance (COI) sent directly from the carrier showing $1,000,000 to $2,000,000 general liability and active statutory workers' compensation.
Step 3. Confirm state contractor surety bond validity and check for pending consumer complaints or legal judgments.
Step 4. Contact 3 recent local references who completed similar major renovation or construction projects within the past 12 months.
Step 5. Verify local municipal builder registration and active standing with your local building department.

State licensing guides with lookup links: Licensing by state

Licence, insurance and bond expectations

General Contractors manage multi-trade projects and structural work. States require rigorous general building contractor exams, financial net worth verifications, and trade experience proofs. General liability limits should be $1,000,000 per occurrence / $2,000,000 aggregate minimum. Workers' compensation is legally required for all employees and subcontractors lacking their own policies. Contractor surety bonds ($15,000–$25,000+) protect owners from mechanic's liens, unpaid sub-tier bills, or job abandonment.

What a fair quote must itemize

Detailed Schedule of Values broken down by MasterFormat divisions (demolition, concrete, framing, roofing, MEP trades, drywall, tile, millwork)
Architectural drawings, structural engineering plans, and specified brand allowances for fixtures/finishes
Permit application fees, plan review costs, municipal inspection coordination, and impact fees
Project timeline with clear phase start dates, critical path milestones, and estimated completion date
Subcontractor management protocol: licensed trade requirements for electrical, plumbing, and HVAC
Site protection, dust isolation, dumpster placement, temporary utilities, and daily jobsite cleanup scope
Mechanic's lien waiver schedule detailing conditional and unconditional releases for every progress draw
Formal Change Order protocol defining written approval rules and GC overhead/profit markup percentages

Fair price orientation

National planning ranges for common general contractor jobs — use these to sanity-check a written quote, not as a bid target.

Cost guides

Red flags specific to general contractors

Lacks a valid General Building Contractor state license or attempts to work under an unlicensed handyman status.
Provides a vague 'lump sum' price proposal without a broken-down Schedule of Values or finish allowance specs.
Asks the homeowner to pull building permits or suggests working without permits to save time.
Refuses to provide written mechanic's lien waivers from sub-tier trade contractors and material suppliers.
Demands a large upfront cash advance (over 10% to 20%) before permits are issued or work begins.
Employs unlicensed sub-tier workers for electrical, plumbing, or HVAC trades.
Has no fixed change order protocol, leading to unapproved verbal price increases during construction.
Cannot produce a Certificate of Insurance showing active general liability and workers' compensation.

Questions to ask, by stage

Before you call

Are you licensed as a General Building Contractor in this state, and what is your license number?
Do you carry $1M–$2M general liability and full workers' compensation coverage for all site workers?
Will you provide a detailed Schedule of Values and written project milestone timeline?
Who will be the dedicated on-site project manager or superintendent for my job?

On site / in the estimate

How will you handle MEP (mechanical, electrical, plumbing) sub-contracting licensing and permits?
What dust protection, floor protection, and site security measures will be implemented?
How are material allowances structured, and what happens if finish selections exceed the allowance?
What is your exact written change order process if hidden structural or electrical issues are discovered?

Before you sign

Is the contract fixed-price, and does it include a clear milestone payment draw schedule?
Will you provide conditional and unconditional lien waivers from yourself and sub-contractors for every draw?
What builder workmanship warranty do you provide, and how are punch-list items addressed at completion?
Does the contract specify substantial completion dates and retainage holdback conditions?

Contract must-haves

Complete set of architectural blueprints, engineering specs, and itemized Schedule of Values attached as exhibits.
Fixed contract price with explicit allowance schedules for fixtures, cabinetry, tile, and flooring.
Milestone payment schedule tied to passed municipal inspections (e.g., foundation, framing, rough MEP, final).
Mandatory written change order clause requiring homeowner signature before any cost adjustments occur.
Lien waiver clause requiring signed conditional releases with invoice submissions and unconditional releases upon payment.
Comprehensive builder warranty terms (minimum 1-year full workmanship, statutory structural coverage).

Payment schedule and deposit norms

General contractor payment schedules must be strictly tied to verifiable progress and passed inspections. Standard deposits are capped at 10% or $1,000 upon contract execution. Subsequent draw payments align with major project phases (e.g., 15% foundation/demolition, 20% framing, 25% rough MEP and insulation, 20% dry-in/finishes), with a mandatory 10% retainage held by the homeowner until final inspection sign-off and completion of the punch list.

Who pulls the permit

The General Contractor MUST pull the master building permit as contractor of record. The GC is legally responsible for managing trade permits (electrical, plumbing, mechanical) pulled by their licensed specialty subcontractors, scheduling municipal inspections, and obtaining the final Certificate of Occupancy.

Warranty expectations

Expect a 1-year comprehensive builder warranty on all workmanship, finishes, doors, and trim. Structural components (framing, foundations, load-bearing beams) carry statutory structural warranties ranging from 5 to 10 years depending on state contractor law. Major appliances, roofing, and HVAC systems carry their respective manufacturer warranties.

If it goes wrong

Deliver a formal written cure notice outlining specific scope deficiencies or schedule defaults to the GC via certified mail.
Withhold the 10% final retainage or milestone draw until punch-list items and code corrections pass inspection.
Invoke the contract dispute resolution clause (formal mediation or binding arbitration if specified).
File a formal complaint with the state contractor licensing board (e.g., CSLB, DBPR) and municipal building official.
File a claim against the GC's state contractor bond or contractor recovery fund for financial completion costs.

Emergency hiring vs scheduled work

Emergency general contracting services (major storm collapse, vehicle impact to building structure, severe flood framing damage) require immediate emergency shoring and board-up ($500–$2,500). Scheduled renovations (additions, whole-house remodels) require 1 to 3 months of pre-construction planning, architectural design, permitting, and multi-bid comparisons.

Find general contractors near you

Browse by metro for local licensing notes and verified listings where we have them. We do not rank or sell placement — filter by what you need.

Metro directory

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Tools before you hire

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Frequently asked questions

What does a General Contractor do versus a subcontractor?

A General Contractor manages the overall project, hires and supervises specialized sub-trades (plumbers, electricians, roofers), coordinates permits, material deliveries, and inspections, and assumes overall legal liability for project completion.

How do mechanic's liens work and how do lien waivers protect me?

If a GC fails to pay their subcontractors or material suppliers, those subs can file a legal 'mechanic's lien' against your house — even if you paid the GC in full. Lien waivers prove subs were paid and release lien rights.

What deposit should I pay a General Contractor?

In states like California, deposits are capped by law at 10% or $1,000. Never pay more than 10–15% upfront. Payments should strictly follow completed, inspected construction milestones.

What is a Schedule of Values?

A Schedule of Values is an itemized line-item budget that breaks down the total contract price across specific work categories (demolition, concrete, framing, plumbing, electrical, tile, paint). It ensures you only pay for completed work.

What is a Change Order?

A Change Order is a written amendment to the contract that modifies the scope, price, or timeline. It must be detailed, itemized, and signed by both homeowner and contractor before extra work begins.

What is retainage and why should I hold 10% at the end?

Retainage is a 10% portion of each draw withheld by the homeowner until the entire project is 100% finished, passed by city inspectors, and all punch-list items are resolved.

Do I need architectural plans before hiring a General Contractor?

For major additions, layout changes, or structural wall removals, yes. Having engineered blueprints allows GCs to bid on an apples-to-apples basis and enables accurate permit filings.

How do fixture allowances work in a GC contract?

Allowances are temporary budget placeholders for finish items like appliances, tile, light fixtures, or cabinets. If you select fixtures exceeding the allowance, you pay the difference via change order.

What insurance must a General Contractor maintain?

A GC must carry Commercial General Liability ($1M–$2M limits), Workers' Compensation for all employees/subs on site, and Builder's Risk insurance during major structural additions.

What is the difference between a fixed-price contract and cost-plus?

A fixed-price contract sets a firm total dollar amount for defined scope, placing cost overrun risk on the GC. A cost-plus contract charges actual material/labor costs plus a set percentage fee (15–20%), shifting financial risk to the homeowner.

How long is a general contractor's warranty?

Standard builder warranties cover 1 year for general workmanship and finishes, 2 years for MEP trade installations, and 5 to 10 years for major structural defects under state law.

Can a General Contractor perform electrical and plumbing work directly?

Only if the GC or their employee holds valid individual specialty Master licenses in electrical or plumbing. Otherwise, state law requires hiring licensed specialty trade contractors.