What Is a General Contractor?
A general contractor (GC) manages the overall project. They hire and coordinate subcontractors (electricians, plumbers, tile setters), pull permits, and are responsible to the homeowner for the entire scope. The GC charges a markup on subcontractor work — typically 10-20% — in exchange for project management, accountability, and warranty.
What Is a Subcontractor?
A subcontractor specializes in a specific trade — plumbing, electrical, tile, HVAC, or framing. They are hired by the GC (or directly by the homeowner in some cases) to perform specific portions of the work. Subcontractors have their own license for their trade.
Should You Hire Subcontractors Directly?
- Hiring subcontractors directly (acting as your own GC) can save 10-20% in markups
- You take on the coordination burden — scheduling, sequencing, and resolving conflicts between trades
- You are responsible for pulling permits and ensuring inspections are completed
- This works well for simple single-trade projects but becomes complex on whole-room remodels
Frequently Asked Questions
Why does a GC charge a markup on subcontractors?
The GC markup covers project management, coordination, warranty, and accountability. When a subcontractor makes a mistake, the GC is responsible to the homeowner — not the sub. The markup also covers the GC's overhead and profit.
Can I hire subcontractors directly and skip the GC?
Yes, for single-trade projects. For multi-trade projects like a full bathroom remodel, acting as your own GC requires coordinating plumbers, electricians, and tile setters in sequence. Most homeowners underestimate this complexity.