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What Does a General Contractor Do? Ultimate Guide to Construction Management

What Does a General Contractor Do? Ultimate Guide to Construction Management

What is a general contractor?

A general contractor is the primary manager overseeing construction projects from start to finish. These construction professionals coordinate all aspects of building projects, including:

  • Managing day-to-day operations
  • Hiring specialized subcontractors like plumbers, electricians, roofers
  • Securing necessary building permits
  • Obtaining insurance coverage for workers
  • Organizing job site logistics
  • Scheduling construction timelines
  • Ensuring safety protocol compliance
  • Monitoring project budgets

Unlike specialized trade contractors, general contractors don't focus on a single construction aspect. Their expertise lies in project management coordination between multiple parties:

Project StakeholdersInteractions
Property OwnersDaily updates and  progress reports
Architects/EngineersDesign implementation technical oversight
SubcontractorsWork coordination quality control
Material SuppliersProcurement scheduling deliveries
Building OfficialsPermit compliance inspections

General contractors are responsible for supervising the quality of construction work performed by subcontractor workers on the project site. They act as the central point of communication between property owners, architects, and trade specialists to ensure project completion according to specifications, timelines, and budget requirements.

In what states can you be your general contractor?

SUSal U.S. states allow property owners to act as their general contractors without requiring a license. Here are the critical states with less restrictive requirements:

  • Texas operates without state-level licensing requirements for general contractors
  • New York maintains no state-level license mandate except for asbestos-related work
  • Vermont permits property owners to manage their construction projects
  • New Hampshire allows individuals to oversee their building work
  • Maine enables homeowners to coordinate their construction activities

The ability to serve as your general contractor comes with specific limitations:

  • Local municipalities maintain their licensing requirements
  • Projects exceeding certain monetary thresholds require licensed contractors
  • Specialty trades like plumbing, HVAC & electrical work need separate licenses
  • Commercial projects face stricter regulations than residential work
State RequirementsDetails
Minimum Project Value$500+ requires a licensed GC in most states
Age Requirement18 years or older
Experience Level4 years in construction trades
Education AlternativeA college degree reduces the required experience

These regulations reflect state-specific policies administered by each Department of Consumer Affairs and Contractors State License Board. Operating without proper credentials in states requiring licenses results in penalties and project delays.

What does a general contractor do?

A general contractor manages day-to-day construction operations from project initiation to completion. Here are the key responsibilities:

Project Management

  • Creates detailed construction schedules
  • Coordinates material deliveries
  • Monitors project budgets
  • Ensures compliance with building codes
  • Secures necessary permits
  • Maintains site safety protocols

Subcontractor Oversight

  • Hires specialized subcontractors (plumbers, electricians, masons)
  • Verifies subcontractor licenses
  • Review the quality of completed work
  • Manages payment schedules
  • Coordinates work sequences

Documentation Management

  • Maintains project records
  • Tracks construction milestones
  • Documents change orders
  • Files necessary permits
  • Keeps insurance certificates current

Site Operations

  • Provides temporary utilities
  • Manages waste disposal
  • Conducts site surveys
  • Implements security measures
  • Coordinates equipment rentals
  • Acts as liaison between property owners
  • Reports project progress
  • Addresses construction issues
  • Coordinates with building inspectors
  • Manages vendor relationships
Responsibility TypeTime Allocation
Project Management35%
Subcontractor Oversight25%
Documentation15%
Site Operations15%
Communication10%

Each project phase requires specific attention to timelines, budgets, quality standards, regulatory compliance, and safety protocols. A general contractor maintains continuous oversight throughout construction, ensuring all components integrate seamlessly toward project completion.

Types of general contractors

General contractors specialize in different areas of construction based on project scope expertise or specific industry focus. Here are the main categories:

Commercial General Contractors

Commercial general contractors focus on business-related construction projects, including:

  • Managing office building construction from foundation to completion
  • Overseeing retail space development with proper zoning compliance
  • Coordinating restaurant build-outs with specialized equipment installation
  • Supervising educational facility construction with specific safety requirements
  • Executing industrial warehouse projects with logistics considerations

Residential General Contractors

Residential general contractors specialize in home-related projects,s including:

  • Coordinating new house construction from groundbreaking to finishing
  • Managing home renovation projects with existing structure modifications
  • Overseeing home addition projects with proper permit acquisition
  • Executing kitchen remodeling with plumbing and electrical considerations
  • Supervising bathroom renovations with waterproofing requirements

Design-Build Contractors

Design-build contractors offer comprehensive construction services, including:

  • Providing architectural design services with construction integration
  • Managing project planning with cost-effective solutions
  • Coordinating material selection with budget considerations
  • Executing construction with seamless design implementation
  • Supervising quality control throughout the design-build process
  • Coordinating historical building renovations with preservation requirements
  • Managing sustainable construction with eco-friendly materials
  • Overseeing disaster reconstruction with safety protocols
  • Executing healthcare facility construction with medical specifications
  • Supervising industrial plant construction with specialized equipment installation
Contractor TypeTypical Project ValueAverage Project Duration
Commercial$500,000 - $10M+6-24 months
Residential$50,000 - $500,0003-12 months
Design-Build$250,000 - $5M+4-18 months
Specialized$750,000 - $15M+8-36 months

How To Become A General Contractor

Education and Training Requirements

General contractors gain expertise through formal education or specialized training programs. A bachelor's degree in construction management combines structural engineering knowledge with business management skills. Trade schools offer focused construction programs through organizations like:

  • North America's Building Trades Unions (NABTU) Building Trades Academy
  • Associated General Contractors of America (AGC) certification courses
  • Construction management certificate programs
  • Trade-specific technical training

Professional Experience

Gaining hands-on construction experience forms a critical part of becoming a general contractor. Essential experience includes:

  • Working 3-5 years in construction trades
  • Learning multiple specialties (masonry, carpentry, framing, plumbing)
  • Managing construction projects under supervision
  • Coordinating with subcontractors on job sites
  • Developing project management expertise

Licensing and Documentation

State requirements for general contractor licensing vary. Common prerequisites include:

Requirement TypeTypical Specifications
Age18 years or older
Experience2-4 years of  documented work
InsuranceLiability and workers' compensation
Financial ProofBusiness capital verification
Background CheckClean criminal record
  • Reading construction plans and specifications
  • Creating detailed project estimates
  • Managing construction schedules
  • Supervising work crews
  • Coordinating with suppliers
  • Maintaining financial records
  • Securing necessary permits
  • Understanding building codes
  • Implementing safety protocols

What Do You Call A Home Improvement Contractor

A home improvement contractor operates under several professional titles in the construction industry. The most common designations include:

  • General Contractor (GC): The primary manager overseeing entire renovation projects
  • Prime Contractor: The main point of contact responsible for project coordination
  • Main Contractor: The principal contractor who manages subcontractors
  • Renovation Contractor: A specialist focused on home remodeling projects
  • Home Improvement Professional: A broad term for residential construction experts

A general contractor manages multiple aspects of home renovation:

Responsibility AreaScope of Work
Project ManagementBudget planning, timeline coordination, permit acquisition
Subcontractor OversightHiring specialists, coordinating schedules, quality control
Site OperationsDaily supervision, safety protocols, material management
DocumentationPermits, contracts, insurance certificates

The title "general contractor" indicates comprehensive project management capabilities in residential construction. These professionals coordinate between:

  • Building inspectors for code compliance
  • Specialty trade contractors for specific tasks
  • Material suppliers for resource management
  • Property owners for project updates
  • Municipal authorities for permit requirements

Each designation reflects specific roles in construction management while maintaining the core responsibility of project oversight.

How Much Do General Contractors Make

General contractor salaries vary based on location, experience, and project type. Here's a comprehensive breakdown of earnings in the United States:

Income LevelAnnual SalaryHourly Rate
Entry Level$58,446$28.10
Average$87,814$42.22
High End$134,000$64.42

Geographic Salary Variations

Metropolitan areas typically offer higher compensation rates compared to rural locations. General contractors in states with high construction activity earn more than those in less active markets.

Experience-Based Income

Income levels correlate directly with years of experience:

  • Entry-level positions start at $58,446 annually
  • Mid-career contractors earn between $60,000 to $100,000
  • Experienced contractors with established businesses earn $134,000+

Project Type Impact

Different project types affect earning potential:

  • Commercial projects generate higher revenue
  • Residential renovations provide steady income
  • Government contracts offer consistent pay rates
  • Specialty projects command premium rates

Payment Structures

General contractors earn through multiple channels:

  • Fixed project fees
  • Percentage-based contracts
  • Hourly rates for consulting
  • Management fees for overseeing subcontractorsAccordingg to the Bureau of Labor Statistics, the median wage is $62,000 annually, which equates to $30 per hour. Total compensation packages include project bonuses, profit sharing, and business ownership benefits.

Who is the biggest general contractor in the US?

The largest general contractors in the United States compete for leadership positions based on annual revenue. Here's a current breakdown of the industry leaders:

CompanyRevenueYearNotable Details
Turner Corporation$17+ billion2023Current industry leader
Bechtel Corporation$17.5 billion2021Previous industry leader

Bechtel Corporation maintains a significant presence with:

  • 55,000+ employees
  • Operations in 50 countries
  • Headquarters in Reston, Virginia
  • Specializations in:
  • Defense systems
  • Nuclear security
  • Environmental management
  • Mining operations
  • Infrastructure development
  • Oil gas processing
  • Chemical processing

The rankings demonstrate the dynamic nature of the construction industry, with leadership positions shifting based on project volume, market conditions, and successful contract execution. These organizations handle complex, large-scale projects across multiple sectors, from infrastructure development to industrial facilities.


All Metro Construction Services Inc
Rated 5/5 (5 Reviews)
Blaine, Minnesota, 55434, United States

All Ohio Construction
Rated 3.4/5 (5 Reviews)
Massillon, Ohio, 44647, United States

All Seasons Construction
Rated 3.6/5 (5 Reviews)
Cedar Rapids, Iowa, 52405, United States

All-Pro Renovations LLC
Rated 5/5 (5 Reviews)
Olathe, Kansas, 66061, United States

Allenco Construction
Rated 5/5 (5 Reviews)
Unley, South Australia, 5061, Australia

Allens General Contracting
Rated 4.8/5 (5 Reviews)
Lebanon, Pennsylvania, 17042, United States

Alliance Construction Solutions
Rated 2.8/5 (5 Reviews)
Denver, Colorado, 80221, United States

Alliance General Construction Corp
Rated 5/5 (5 Reviews)
Bronx, New York, 10461, United States

AllPro - Chicago Remodeling Contractors
Rated 4.2/5 (5 Reviews)
Bridgeview, Illinois, 60455, United States

Alls General Construction, LLC
Rated 4.2/5 (5 Reviews)
Bluffton, South Carolina, 29910, United States

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