ADU

Selecting a General Contractor: 10 mistakes to avoid

Learn the 10 mistakes homeowners make when hiring a general contractor — from asking for free estimates to hiding your budget.

A woman calling on a mobile phone to discuss a contractor project

Licensed general contractors can take on a wide range of residential projects, from small repairs to remodeling an entire room, complete home renovation or building a house. They can also work with a variety of materials, so you can be sure they will be able to handle your project.

Plus, because they have years of experience and training, you can rest assured that the work will be done properly.

Are contractors slow to answer your calls? Learn From These 10 Mistakes Before You Start Talking to Contractors.

Who Is A General Contractor?

A general contractor (GC) is an organization or individual that acts as the overall coordinator of a construction project. Typically, the general contractor is responsible for hiring and managing sub-contractors, obtaining the necessary permits, and ensuring that the project is completed on time and within budget. In some cases, the general contractor may also be responsible for providing materials and equipment.

Best general contractors typically have a wide range of skills and expertise. They're experienced in managing large projects and know how to get the most out of their subcontractors. They also have a network of reliable contacts in the construction industry, which can be helpful when sourcing materials or finding specialist tradespeople.

If you are planning a construction project for the first time, it is important to understand the role of a general contractor. In most cases, hiring a general contractor is the best way to ensure your project is completed on time and within budget.

If you're thinking about hiring a general contractor, here are some services they might offer that will add immense value to your project:

General contractor working on a residential construction project

Services Offered By A General Contractor

There is a variety of services that a general contractor can offer. These services can be broadly categorized into three main categories: construction services, project management services, and design services.

Construction Services: Construction services are the most basic and essential services a GC offers. These include site preparation, foundation work, framing, and so on.

Project Management Services: Project management services are more specific to the GC's role as a coordinator. These services involve scheduling, budgeting, and managing subcontractors.

Your project manager acts as a liaison between subcontractors, city inspectors, architects and engineers on both sides so you don't have to interact directly with them unless you choose to do so.

Design Services: Design services are the most creative and artistic services that a GC can offer. These services may include creating architectural plans and other design documents, conducting research for the owner's project, finding innovative solutions to problems and issues with the project, etc.

This is different from what you would expect of an Interior Designer who focuses only on interior spaces, but these two professionals work together in most cases.

  • Carpentry
  • Drywall installation and repair
  • Electrical work (but not always)
  • Flooring installation and repair
  • Masonry work
  • Painting
  • Plumbing work (but not always)

New home construction is the most demanding of all residential building projects.

Companies that offer full range of services are often called design-build firms.

Construction is a hot topic. As in any market, it is an issue of supply and demand, and right now the demand for construction labor across US, and even more so in Bay Area, is high, while supply of it is low. This literally means a contractor can pick and choose his clients, and the client has to present her project in a way that makes a contractor take this job.

I am not talking about multi-million dollar projects. These are relatively rare and still sought after. I am talking home additions, accessory dwelling unit construction, average bathroom or kitchen remodels.

There is also a certain unspoken cut off point for every contractor when he decides if he should or should not take this particular project. So you have to understand when you need to look for a handyman, and when for a design-build firm. However, some rules are the same across the board.

What are the red flags for contractors and reasons for not calling back a potential client?

Why would they not provide a written estimate after meeting a potential client?

Red Flag #1: Asking contractors for free estimates.

If you want a realistic custom estimate, be prepared to pay for it. Asking for a free estimate is asking someone to work for you for free. Why would an experienced and most likely sought after contractor do that? You will get a rough order of magnitude number, but never a fixed bid. Just too many details go into it. We know, we do estimates for ADUs all the time.

Red Flag #2: Talking about tight budgets.

If one of your first sentences in your conversation with a contractor is about costs and tight budget, you are giving all the wrong signals. Looking for a quick fix is also a wrong verbiage to use.

Red Flag #3: Promising contractor other jobs to come.

Whether by mentioning other bids, or important connections, you might be trying to make sure they will give you the good price. The reality is you are shooting yourself in the foot: what a contractor hears is you are not prepared to trust him or her.

Contractors love clients with permits and budgets

Red Flag #4: Saying you will be doing some of the job yourself.

There are some contractors that will let you demo or paint, but most just won't.

Red Flag #5: Saying you need it done tomorrow.

This assumes that you have picked a contractor that had nothing to do till you called. Sounds bad for both of you. Why should you pick a contractor who does not have jobs lined up? Why have you waited till the last minute?

Construction site with materials and a contractor reviewing plans

Red Flag #6: Trying to save on materials by buying it yourself.

In this case you should know a lot more about construction than an average Joe or Jill.

It really slows the contractor down, it will take him twice as long to explain it to you, than to just go and get it himself as usual. And please, do not expect any warranty in this case.

Red Flag #7: Trying to get an itemized bid and then cutting short the admin or management fee.

Do not assume that management fee is deductible. It takes a lot of admin support to move the project forward. The smaller the project, the more support it needs. Do not ask to break down into 20 various individual jobs. Or ask to separate labor and materials. And tell straight away what you have allocated for finishes, furniture and fixtures. The contractor does not know if you are planning to install a $300 or $4000 Toto toilet.

Red Flag #8: No scope of work.

Please be prepared. Do your homework. Have a list of things you want done – in order if priority. You are more than likely to underestimate the current costs, so some compromise most likely will be needed. Drawings, sketches, idea boards are truly helpful to get everyone on the same page.

Red Flag #9: No clear budget.

What is your budget? A good contractor will always ask this question. They want to know if you have realistic numbers in mind, and they definitely do not want to waste their time. You are not doing any favors to yourself , or to the contractor by not disclosing the budget. Here is an example of how we talk about ADU budgets.

Red Flag #10: Saying you could do it yourself. Or saying it is an easy job.

Then just do it. Because a remodel is never easy. Downplaying work a contractor does is impolite. Especially when you are talking a kitchen or bathroom remodel in a house build in the last century (98% of the time).

Working out a scope of work on a new home or ADU is what we do

Day in. Day out.

Benefits Of A General Contractor

There are many benefits of working with a GC. Perhaps the most obvious benefit is that they can save you a lot of time and hassle. A good GC will be able to take care of all the details of your project, from start to finish. This means that you won't have to worry about dealing with different subcontractors or suppliers, or keeping track of progress yourself.

Another big benefit is that a contractor can often get you better deals on materials and labor. This is because they have established relationships with suppliers and subcontractors, and they know how to negotiate the best prices. In addition, a good contractor will usually be able to get discounts for bulk purchases, which can save you even more money.

Finally, working with a contractor can also help protect your investment. If something goes wrong with the project, or if there are any problems with the quality of workmanship, you will have someone to turn to who can help fix the problem and get your money back. This is especially important if you're planning on selling the property in the future. By working with a reputable contractor of good standing, you can ensure that your investment is protected.

When choosing a GC, it's important to do your research and make sure that you're working with someone who is reputable and has a good track record. You can check out their website, work history, read customer reviews, and make sure their business entity has not been set up yesterday.

Is A General Contractor Important?

Any time you are planning a home improvement project, it is important to have a contractor. A general contractor (GC) will handle all aspects of the project from start to finish. This includes hiring subcontractors, obtaining building permits, scheduling inspections, and ensuring that the job is completed on time and within budget. GCs are also responsible for managing day-to-day operations on the job site, ensuring that workers are productive and safety standards are met.

In addition, they must be able to resolve conflicts and deal with unexpected problems that may arise. As you can see, a GC plays a vital role in any home improvement project. Without one, the chances of the project being completed on time and within budget are greatly reduced. Therefore, if you are planning a renovation or addition to your home, be sure to hire a reputable GC who can get the job done right and the final product is to client satisfaction.

What Is The Cost Of Hiring A Contractor?

Homeowners often face the daunting task of hiring a GC when they need home repairs, renovations, or improvements. The cost of hiring a general contractor can vary widely, depending on the size and scope of the project. Project cost depends on scope, location, time line and a million of other factors.

For large-scale projects, such as remodeling a kitchen or bathroom, the cost can range from $200 to $800 per square foot. Homeowners should also factor in the cost of materials when budgeting for a project. In general, it is advisable to get at least three estimates from different contractors before making a final decision. By taking the time to compare prices and services, homeowners can ensure that they get the best value for their money.

A general contractor can provide a wide variety of services to their clients. Some of these services include remodeling, painting, flooring, handyman work, and more. If you are in need of any of these services, be sure to contact a qualified and experienced general contractor.

Common questions about hiring a general contractor