What Does a General Contractor Do? The Complete Guide to Hiring and Managing Construction

You have the dream home in your head. You’ve saved up the cash. You’ve even picked out the tile for the kitchen backsplash. But then you hit the wall: who actually builds it? This is where the general contractor steps in. If you are planning a renovation or a new build, understanding this role is not just helpful; it is the difference between a project that finishes on time and one that drains your savings and sanity.

Many homeowners confuse general contractors with subcontractors or architects. They don’t. A general contractor (GC) is the quarterback of your construction project. They do not necessarily swing the hammer every day. Instead, they manage the entire process from start to finish. They hire the electricians, pull the permits, order the materials, and ensure the work meets code. Without them, you are trying to coordinate ten different tradespeople while also working your full-time job. It is a recipe for disaster.

The Core Responsibilities of a General Contractor

So, what exactly does a general contractor do during a typical project? Their job falls into three main buckets: planning, managing, and executing. Let’s break down what that looks like in the real world.

Project Planning and Estimating is where it all begins. Before a single shovel hits the dirt, the GC reviews your plans. They calculate how much lumber, drywall, and concrete you need. They create a detailed bid that includes labor costs, material costs, and their own overhead. A good GC will spot potential issues early. For example, they might notice that the soil in your backyard is too rocky for a standard foundation, saving you thousands in rework later.

Next comes Scheduling and Logistics. Construction is a domino effect. The framers can’t start until the foundation cures. The drywallers can’t start until the electrical rough-in is inspected. The painters can’t start until the drywall is sanded. The GC creates a critical path schedule to keep these trades moving in sync. If the plumber is two days late, the GC adjusts the schedule so the rest of the crew isn’t sitting idle costing you money.

Finally, there is Quality Control and Safety. The GC walks the site daily. They check if the studs are spaced correctly. They verify that the wiring follows the National Electrical Code. They ensure the site is safe for workers and neighbors. If something is wrong, they tear it out and fix it before it gets covered up. This is why you pay them-they take the liability off your shoulders.

General Contractor vs. Subcontractor: What’s the Difference?

This is the most common question I hear. People see a guy in a hard hat and assume he works for the GC. Sometimes he does, but often he doesn’t. Here is the simple distinction:

• General Contractor (GC): Hired by the homeowner. Responsible for the whole project. Holds the main contract. Pays the subs. Pulls the permits.
• Subcontractor (Sub): Hired by the GC. Specializes in one trade (electrical, plumbing, roofing). Only responsible for their specific scope of work. Paid by the GC.

Imagine you are building a restaurant. You hire a GC. The GC hires a roofer, an electrician, a plumber, and a painter. Those four people are subcontractors. If the roof leaks, you call the GC, not the roofer directly. The GC holds the sub accountable. This layer of management is crucial because it gives you a single point of contact. You don’t want to be playing referee between your electrician and your plumber when they argue over who cut whose wires.

How Much Does a General Contractor Cost?

Money talks. In Vancouver and across Canada, construction costs have risen significantly in recent years due to material inflation and labor shortages. So, how much should you expect to pay for a GC?

There are two main ways GCs charge:

1. Fixed Price (Lump Sum): The GC gives you a total price for the project. This is great for your budget because you know exactly what you will pay. However, the GC will add a contingency buffer to cover unexpected risks. If they find rot behind the walls, that might come out of your pocket unless specified otherwise.
2. Cost Plus: You pay for the actual cost of materials and labor, plus a percentage fee (usually 15-20%) for the GC’s management. This is more transparent but riskier for your wallet. If material prices spike, your bill goes up. This model works best for complex projects where the scope changes frequently.

On average, a GC’s fee ranges from 10% to 20% of the total project cost. For a $200,000 kitchen renovation, you might pay $20,000 to $40,000 just for their management services. Is it worth it? Absolutely. DIYing the coordination of a major build usually results in higher costs due to mistakes, delays, and lack of bulk pricing on materials.

When Do You Need a General Contractor?

Not every project requires a GC. If you are painting a room or fixing a leaky faucet, you can hire a handyman or do it yourself. But there is a line where professional management becomes necessary.

You need a GC when:

• Permits are required: Structural changes, electrical work, and plumbing almost always require city permits. The GC knows how to navigate the bureaucracy and get inspections passed.
• Multiple trades are involved: If you need both a framer and an electrician, you need someone to coordinate their schedules.
• The project exceeds $5,000: In many jurisdictions, including British Columbia, contracts over a certain amount must be registered with the Workers’ Compensation Board (WSIB equivalent). A licensed GC handles this compliance.
• You want warranty protection: Reputable GCs offer warranties on workmanship. If the roof fails in five years, they come back and fix it. If you hired individual subs, chasing them down for repairs is a nightmare.

Red Flags: How to Spot a Bad General Contractor

The construction industry has some bad apples. Protecting yourself starts with vetting. Here are the biggest red flags that scream "run away":

1. No Written Contract
Never start work without a detailed contract. It should include the scope of work, payment schedule, timeline, and change order process. If a GC says, "We don’t need paperwork," they are likely operating illegally or hiding something.

2. Demand for Large Upfront Payments**
It is normal to pay a deposit (usually 10-20%) to secure the slot and buy materials. But if they ask for 50% or more upfront, be wary. Use a draw schedule where payments are tied to completed milestones (e.g., 20% after framing, 20% after drywall).

3. Lack of Insurance**
Ask for proof of liability insurance and workers’ compensation coverage. If a worker falls off your roof and you don’t have proper coverage, you could be sued for medical bills. A legitimate GC will provide certificates of insurance immediately.

4. Poor Communication**
If they are hard to reach during the bidding phase, imagine how they will be during construction. A good GC updates you weekly. They answer calls. They show up to meetings. Silence is a sign of disorganization or dishonesty.

The Hidden Value: Change Orders and Problem Solving

Construction is unpredictable. You open a wall and find asbestos. The lumber delivery is delayed by a strike. The client decides they want marble instead of quartz. These are called Change Orders.

A skilled GC manages change orders efficiently. They document the extra cost and time impact before doing the work. They negotiate with suppliers to minimize price hikes. They adjust the schedule to mitigate delays. Without a GC, you are stuck making these decisions alone, often at a premium because you are buying small quantities and don’t have trade relationships.

In Vancouver, for example, dealing with heritage restrictions or steep lot gradients requires local expertise. A GC who has built in West Van or Kitsilano knows which inspectors are strict, which suppliers deliver on time, and how to navigate the specific zoning bylaws. That local knowledge is part of what you are paying for.

Frequently Asked Questions

Do I need a general contractor for a small renovation?

For very small jobs like painting or minor flooring, you might not need a full GC. However, if the project involves structural changes, electrical, or plumbing, you legally need permits and licensed trades. A GC ensures these codes are met. If the project is under $5,000 in BC, you may not need WSIB registration, but you still need to ensure the workers are insured.

Can I act as my own general contractor?

Yes, this is called owner-builder status. You save the GC’s fee (10-20%), but you take on all the responsibility. You must pull permits, hire subs, schedule inspections, and handle disputes. It requires significant time and knowledge. Most homeowners find the stress outweighs the savings, especially if they have full-time jobs.

Who pays for construction permits?

Typically, the homeowner pays for permit fees, but this is negotiable. Some GCs include permit costs in their bid, while others bill them separately. Make sure this is clarified in your contract. Permit fees in Vancouver can range from a few hundred dollars for a deck to several thousand for a new house.

What happens if the general contractor goes bankrupt?

This is a rare but serious risk. If your GC goes bankrupt, you may lose your deposit and face delays. To protect yourself, use an escrow account for large payments or ensure the GC has strong financial references. Also, check if they have performance bonds, which guarantee completion of the project even if they fail financially.

How long does it take to hire a general contractor?

In high-demand markets like Vancouver, top-tier GCs may have waitlists of 6-12 months. Start looking early. Prepare your plans and budget before contacting GCs so you can get accurate bids quickly. The bidding process itself usually takes 2-4 weeks from initial contact to contract signing.