Hiring the wrong general contractor costs you money, time, and peace of mind. Most contractors charge between 10 and 20 percent of your total project cost, so a bad hire doesn’t just slow your build, it drains your budget too. Whether you’re finishing a basement, adding a garage, or building new, the contractor you pick decides how smooth the whole process feels. This guide covers what general contractors charge, the features that separate a reliable one from a risky one, and the questions to ask before you sign anything.
What Does a General Contractor Cost?
General contractors usually charge one of two ways. Some bill a flat percentage of your total project cost. Others bill by the hour for smaller jobs instead. Here’s what to expect from either model.
| Pricing Model | Typical Rate | Best For |
| Percentage of project | 10%–20% | Full builds, additions, major remodels |
| Hourly rate | $50–$150 per hour | Small jobs, consulting, minor repairs |
| Cost-plus | Cost + 10%–20% markup | Custom projects with changing scope |
On a $50,000 remodel, a 10 to 20 percent fee works out to $5,000 to $10,000 on top of materials and labor. Larger or more complex projects can push that fee toward 25 percent, since coordinating more trades takes more of the contractor’s time.
Features That Separate a Reliable Contractor from a Risky One
Price tells you part of the story, not the whole picture. Here’s what to look for beyond the bid:
- A current license and proof of liability insurance
- A written contract with a clear payment schedule
- References from recent, similar projects
- A realistic timeline instead of a rushed promise
- Clear communication about delays or scope changes
- Local permit experience in your city or county
A reliable general contractor manages more than the crew on site. They pull permits, schedule inspections, order materials on time, and keep every subcontractor working toward the same deadline. Skipping any of these steps creates delays that cost you money later, no matter how low the upfront bid looked.
Watch how a contractor communicates during the bidding process. A contractor who answers questions clearly, shows up on time for the estimate, and gives you a written breakdown is more likely to run a smooth project. Vague answers or pressure to sign quickly are early warning signs worth taking seriously.
Local knowledge matters more than most homeowners expect. A contractor familiar with your city’s permit office, inspection schedule, and common soil or climate issues moves through the process faster than one bidding on unfamiliar ground. That local experience often shows up in fewer surprises once construction starts.
General Contractor Hiring Questions Answered
Here are quick answers to the questions homeowners ask most before signing a contract.
How Many Bids Should I Get before Hiring a Contractor?
Get at least three bids for any project over a few thousand dollars. Comparing bids side by side shows you what’s included and what’s missing, since one contractor might leave out permits or cleanup that another includes in the price.
What Questions Should I Ask a Contractor before Hiring Them?
Ask about their license number, insurance coverage, and how they handle change orders. A reliable contractor answers these questions without hesitation and can show proof on request.
How Do I Know If a Contract Is Fair?
A fair contract spells out the payment schedule, project timeline, and what happens if costs change mid project. Read every line before signing, and ask for changes in writing if something feels unclear.
Should I Pay a Contractor the Full Amount Upfront?
No, avoid paying the full project cost before work begins. Most reliable contractors ask for a deposit, then bill in stages tied to project milestones, so you only pay for work that’s already done.
You may also read: Ultimate Guide to Hiring a Utah Basement Finisher
Hire with Confidence
A reliable general contractor keeps your budget, your timeline, and your finished project on track. Compare bids, check licenses, and read every contract before you sign. Ready to hire a contractor you can trust? Reach out to BuildDP for a free quote on your next project.