What Is a General Contractor? When Do You Need One?

What Is a General Contractor?

A general contractor (GC) is a construction professional who manages a project — hiring and coordinating specialty subcontractors, pulling permits, scheduling inspections, and serving as the single point of contact for the homeowner.

What a GC Does

Bids on total project cost

Hires licensed plumbers, electricians, framers, drywall contractors, etc.

Schedules work sequences (framing before electrical before drywall)

Manages permits and inspections

Handles quality control of subs

Takes overall responsibility for the project

The GC's fee (called "overhead and profit" or "markup") is typically 15–25% of the total project cost.

When You Need a General Contractor

Use a GC for:

Full home renovation or addition

Kitchen or bathroom remodel involving multiple trades (plumbing + electrical + tile)

Building an ADU or garage conversion

Any project that requires permits for multiple trade types

Projects taking more than 3–4 weeks

Consider hiring trades directly (no GC) for:

Single-trade projects: HVAC replacement, roof replacement, painting

Simple projects with one clear contractor type

Projects where the specialty contractor (e.g., foundation company) naturally manages their own work

Texas and the GC License

Texas does NOT have a statewide general contractor license. Anyone can legally call themselves a general contractor in Texas. This makes vetting more important:

Ask for proof of general liability insurance ($1M minimum)

Ask for a list of their licensed subcontractors

Check BBB and Google reviews

Verify financial stability (how long in business, references)

The GC Markup: Is It Worth It?

On a $50,000 kitchen remodel, a GC adds $8,000–$12,000 in overhead. In exchange, you get:

Single point of contact

Professional scheduling and sequencing

Warranty on the overall project

Someone to resolve disputes between subs

For complex projects, the GC fee is usually worth it. For simple jobs, it's usually not necessary.

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