Construction Budget Estimator
Project Details
Estimated Total Cost
With General Contractor Fees and Contingency
Base Project Cost:
$0
GC Fee (15%):
$0
Contingency (10%):
$0
Permits & Fees:
$0
Why this matters: As explained in the article, general contractors handle permits, subcontractor management, and unexpected issues. This estimate includes standard industry practices where 15% covers GC management fees and 10% covers unforeseen issues.
Ever wonder who’s really running the show when a house gets built or a commercial building goes up? It’s not the architect. It’s not the electrician. It’s the general contractor. This person doesn’t lay bricks or wire outlets, but without them, nothing gets done right-or on time.
They’re the Boss of the Job Site
A general contractor (GC) is the main point of contact between you, the homeowner or business owner, and everyone else working on the project. Think of them as the quarterback of construction. They don’t tackle the ball, but they call the plays, manage the team, and make sure the whole thing doesn’t fall apart.
When you hire a GC, you’re not just hiring someone to build something. You’re hiring someone to coordinate dozens of moving parts. That includes scheduling plumbers, electricians, carpenters, roofers, inspectors, and delivery trucks. If the plumber shows up two days late because the electrician didn’t finish their work, it’s the GC’s job to fix that mess-not yours.
They Handle Permits and Paperwork
Building codes aren’t suggestions. They’re laws. And every city, county, and state has its own rules. A good general contractor knows them all. They file for permits before any digging starts. They submit plans for review. They schedule inspections for framing, electrical, plumbing, and final sign-off.
Most homeowners don’t even know what permits they need. One client I worked with tried to skip the permit for a bathroom remodel. Three months later, the city showed up during a home sale and shut everything down. The GC we brought in had to redo half the work and pay fines. That’s why hiring someone who handles permits isn’t a luxury-it’s insurance.
They Pick and Manage Subcontractors
You don’t hire a plumber directly. You don’t hire a roofer directly. You hire the GC, and they hire the subcontractors. But it’s not as simple as calling the cheapest bid.
A reliable GC has a network of trusted tradespeople they’ve worked with for years. They know who shows up on time, who uses quality materials, and who won’t cut corners. They don’t just pick anyone with a truck and a toolbox. They vet them. They check references. They watch their work.
Bad subcontractors can ruin a project. I’ve seen jobs where a GC cut costs by hiring an unlicensed electrician. Two years later, the whole house had to be rewired because of faulty connections. That’s not a mistake-it’s negligence. A good GC protects you from that.
They Manage the Budget
Most people think the budget is set in stone: $200,000 for a new kitchen. But things change. Materials go up in price. Unexpected damage shows up behind walls. A pipe bursts. A foundation crack appears.
A general contractor doesn’t just take your money and spend it. They track every dollar. They give you detailed estimates. They explain why costs shift. They never surprise you with a $10,000 bill out of nowhere. If something changes, they come to you with options: "We can use this cheaper material, or we can stick with the original plan and go $3,000 over budget."
They also hold back a portion of payments until work is done right. That’s called a retainage. It’s not a trick-it’s protection. If the roofer leaves half the job unfinished, the GC doesn’t pay them until it’s done. You don’t pay them either. That’s how accountability works.
They Keep the Project on Schedule
Construction timelines are fragile. Rain delays roofing. Delivery trucks get stuck in traffic. A supplier runs out of tile. A GC doesn’t just hope things go smoothly-they plan for delays.
They build buffer time into the schedule. They order materials early. They have backup suppliers. They know which trades need to be done in order. You can’t install cabinets before the plumbing is roughed in. You can’t paint before the drywall is hung. A GC knows this. A homeowner? Probably not.
I worked on a project where the GC scheduled the HVAC install two weeks before the ductwork was ready. The crew showed up, sat around for three days, and charged us for idle time. The GC had to cover that cost because they messed up the sequence. That’s the difference between someone who knows what they’re doing and someone who’s just guessing.
They Solve Problems Before They Blow Up
Construction is full of surprises. You think you’re building a 10x12 bathroom. You cut open the wall and find rot that goes back two feet into the floor joists. Or you find asbestos insulation from the 1970s. Or the soil under the foundation is shifting.
A good GC doesn’t panic. They assess. They call in engineers. They get quotes. They explain your options without jargon. They don’t push you into the most expensive fix. They give you the truth: "This will cost $15,000, but if we don’t fix it now, the whole structure could settle unevenly."
Most homeowners don’t have the experience to know what’s serious and what’s not. A GC does. And they’re the ones who make sure you don’t end up living in a house that’s structurally unsafe.
They Guarantee the Work
When you hire a general contractor, you’re not just getting a build-you’re getting a warranty. Most reputable GCs offer at least a one-year warranty on workmanship. Some offer two. That means if your drywall cracks, your faucet leaks, or your garage door doesn’t close right, they come back and fix it. No extra charge.
That’s not something you get from individual subcontractors. The electrician? They’ll say, "I did my job. If the outlet doesn’t work, call the GC." The plumber? "I installed the pipes. If there’s a leak, it’s a materials issue."
But the GC? They own the whole thing. They’re the last line of defense. If something breaks, they’re the one who has to fix it. That’s why they’re so careful about who they hire.
They’re Not Just Builders-They’re Project Managers
A general contractor isn’t just someone who knows how to build. They’re a project manager, a negotiator, a problem solver, and a communicator rolled into one. They handle your expectations. They answer your texts at 10 p.m. They explain why your new floor is taking longer than expected. They show you photos of progress. They clean up the site every day.
They’re the reason your house gets built on time, on budget, and without you losing your mind.
That’s why you don’t just hire a contractor. You hire a general contractor.
Do I need a general contractor for a small renovation?
Even for small jobs like a kitchen update or bathroom remodel, a general contractor is worth it. They handle permits, schedule trades, and manage materials. Without one, you end up coordinating six different people yourself-calling plumbers, waiting on delivery, chasing down inspections. It’s a full-time job. A GC does it for you, and they’re trained to avoid delays and hidden costs.
How do I know if a general contractor is licensed and insured?
Ask for their license number and check it with your state’s contractor licensing board. Most states have online databases. Also ask for proof of general liability insurance and workers’ compensation. If they can’t provide both, walk away. Uninsured contractors leave you liable if someone gets hurt on your property.
Can I be my own general contractor?
Technically, yes-if you’re in a state that allows owner-builders. But it’s risky. You’ll need to know building codes, pull permits, schedule inspections, and manage subcontractors. Most people underestimate how much time it takes. One homeowner I worked with spent 18 months on a six-month project because they kept hiring the wrong people. A professional GC completes the job faster, safer, and with fewer headaches.
What’s the difference between a general contractor and a construction manager?
In residential work, they’re often the same person. But in large commercial projects, a construction manager is hired by the owner to oversee the project without doing the actual building. A general contractor actually builds and hires subcontractors. The CM doesn’t take on the risk of construction-they just manage it. For homeowners, you’ll almost always work with a GC.
How much should I expect to pay a general contractor?
Most GCs charge between 10% and 20% of the total project cost. For a $150,000 remodel, that’s $15,000 to $30,000. The fee covers their management, coordination, permits, and overhead. Cheaper isn’t better. If someone quotes 5%, they’re probably cutting corners or skipping insurance. Look for transparency, not the lowest number.
