To ensure smooth execution and completion of construction and remodeling projects, knowing how to choose a general contractor (GC) is essential. To find one who will be a good match for you and your project, consider the following:
- Experience
- Credentials
- References
- Examples
- Permits, Inspections, Lien Waivers
- Project Inclusions, Exclusions, Warranty
- Employees and Subcontractors
- Supervision and Communication
- Timeline
- Safety, Security, Cleanliness, and Comfort
- Payment Schedule
- The Project Contract
- Contractor Red Flags
Experience
Among the many benefits of working with an experienced genearal contractor (GC) are: industry knowledge, refined project management skills, established networks of subcontractors and suppliers, and familiarity with local building codes and regulations.
To find a GC who would be a good match for your project, search key words such as: Contractors, General Contractors, Builder, Home Builder, Construction Company, Custom Home Builder, Remodeling Contractor, Home Improvement Contractor, and Residential Remodel Contractor, and pair any of these terms with “Near Me” or the name of your town.
Questions to ask a prospective contractor include the following:
- How long have you been in business?
- What kind of projects do you do most frequently?
- What kinds of projects are you working on now?
- Haw many projects similar to mine have you done?
- What are some of the most difficult projects you have worked on? How did you handle those?
- What are you good at? What complaints have clients had about you?
- Have you ever been in a dispute or lawsuit with a client? What happened? Are you involved in any lawsuits now?
- Have you ever had to file a mechanic’s lien?
Pro Tip:
Knowing how to choose a general contractor starts with experience. By partnering with an experienced GC you can better ensure that your project will run smoothly, stay on schedule, and remain within budget.
Credentials
A professional GC should have an up-to-date contractor’s license, liability insurance, and workers’ compensation insurance.
California licensed contractors must pass a background check and California State License Board Law, Business, and Trade exams, have a $25,000 contractor bond, and at least four years of journey-level experience.
Effective January 1, 2025, California requires that any project totaling $1,000 or more in labor and materials be performed by a licensed contractor.
Working with an unlicensed contractor carries significant risks, including limited recourse for poor workmanship.
General liability insurance protects you from liability for accidents and from damage or negligence on the part of the GC, their employees, and any subcontractors they bring onto your property. It also protects you if your project does any damage to a neighbor’s property.
Workers’ compensation insurance protects you from liability if a worker is injured while on your property.
Pro Tips:
- Ask the GC for a copy of their Contractor’s License, Certificate of Liability Insurance, and Worker’s Compensation Insurance. Verify the license number, company name, company owner, and expiration date by checking the Contractors’ State License Board website (https://www.cslb.ca.gov/).
- Verify liability insurance and workers’ compensation insurances by contacting the issuing insurance companies listed on the CSLB. (Note that contractors who do not have employees might not have or need workers’ compensation )
References
A credible GC should be able to provide you with references from clients for whom they have performed similar work. Contact at least three to five references and inquire about the following;
- What was the scope of the project?
- Were you satisfied with the results?
- Did the project come in according to budget?
- Was the project completed on a timely basis?
- Were any difficulties encountered and were they resolved to your satisfaction?
- What did you think of the team’s punctuality, cleanliness, and communication?
- Would you hire the general contractor again? If not, why not?
- Why did you agree to be a reference for the GC?
Pro Tip:
- Begin the call or email by stating your name and explaining the reason for your call. For example: “Good afternoon. My name is XYZ and I am calling because PDQ Contracting has provided you as reference. Would it be possible to schedule a brief conversation about your opinions of the work they did for you?”
Examples
An important step in evaluating a contractor is to see examples of their work.
- To ascertain scope: Ask to see photos of or visit two or three projects that are similar in size and scope to yours.
- To gauge design style: Observe the design style of the projects (modern, traditional, luxury, historic restoration, or eco-friendly/sustainable construction) to see if it resonates with your vision for your project.
- To gauge quality of workmanship and attention to detail: Look carefully at the finish work. Notice the details.
- To gauge problem-solving approach: Ask the contractor about construction problems they have faced and how the problems were handled.
- To gauge project delivery method: Ask if the contractor specializes in “design-build” (handling both design and construction) or traditional “A contractor -build” (construction only).
Pro Tip:
- If you plan to build a new contemporary-style house, but the contractor specializes in bathroom remodels or restoration of Victorians, you might not have a match. By seeing examples of the contractor’s projects, you can gain an understanding of the contractor’s scope, style, quality, and attention to detail. This information will assist you in making an informed decision.
- Working with a contractor who specializes in design-build generally offers lower costs and streamlines the process from project concept to completion.
Permits, Inspections, and Lien Waivers
An experienced GC should be familiar with local building code requirements and be willing to handle all aspects of the building permit process, including required or recommended inspections.
At the end of the project, at your request the GC should provide you with a lien waiver–a legal document verifying that you have paid the GC in full for the services rendered and ensures that the GC or any subcontractors waive their right to place a lien on your property.
Questions to ask a potential GC:
- Will my project require certain permits and inspections?
- How many permits have you pulled in this area in the past two years?
- Who will coordinate the required inspections?
- Will you provide me with a written lien waiver at the end of the project if I reguest one?
Pro Tips:
- Having your GC handle the permitting process and inspections gives you protection that the job will be done in full compliance with local building codes. A contractor who asks that you obtain permits yourself is likely unlicensed or unqualified for the job.
- It is advisable that you be present for final inspections so you will hear any comments and recommendations for corrections that the building inspector has about the work.
- Ask your GC for copies of all permits, inspection approvals, and lien waivers and keep them for your records. They will be useful if you sell your property in future.
Inclusions, Exclusions, and Warranty
A carefully prepared contract will clearly outline what items are included and what items are excluded in the total cost. Many contracts include costs of rough materials and labor and exclude costs of finish materials and specialty trades.
Rough materials are basic structural and functional components such as concrete, lumber, drywall, wiring, pipes, and ductwork.
Finish materials are products such as tile, windows, doors, flooring, skylights, sun tunnels, appliances, countertops, backsplashes, cabinetry, plumbing fixtures, and lighting fixtures that the homeowner chooses and pays for and the general contractor’s team installs.
Spectialty trades are those requiring special skills less commonly used in remodeling or construction projects (such as garage doors, stair railings, metal work, swimming pools). Often the GC will recommend specialty contractors and the homeowner will hire them directly.
When you review the contract, notice the following details:
- What specific tasks and materials are included?
- What specific tasks and materials are excluded?
- How will details be handled? For example:
- Will existing flooring be removed before new flooring is installed?
- Will a moisture barrior be installed if flooring will be laid on concrete slab?
- Will the tile setter consult with me about the design (focal point) and will the floor layer consult with me about layout of the wood?
- Do you warranty your work against accidents, faulty workmanship, or incompletion of the project?
Pro Tips:
- A warranty should outline what is covered, what is not covered, and for how long. Look for a minimum of one year on work and materials.
- If you make changes during the project, the contractor should provide you with a written Change Order for each change and should require your signature before work on the change begins.
Employees and Subcontractors
Many GCs will use their employees to perform project oversight and general construction tasks and will supplement with a team of trusted subcontractors who are experts in their trades (engineering, foundation, framing, roofing, plumbing, electrical, HVAC, tiling, drywall, painting, stucco, landscaping, etc.) (Note that experienced GCs carefully curate their team of subcontractors over time. They consider this proprietary informtation and are unlikely to share a list with clients.)
Questions to ask a potential GC:
- How many people are on your team?
- What parts of the project are handled by your employees and what parts do you give to subcontractors?
- How do you evaluate and monitor the work of your subcontractors?
Pro Tips:
- A reliable GC will assign subcontractors to your project based on their expertise and availability and will monitor the quality of the work that they do.
- Your GC can provide you with references and documentation of licenses and insurance for the subcontractors assigned to the project if you so request.
Supervision and Communication
The GC or another individual should oversee your project and manage daily operations from start to finish to ensure the work is done correctly and is compliant with local building codes.
The GC and project supervisor should answer your questions in a professional, courteous, and timely manner.
Questions to ask a potential GC:
- Who will oversee the project?
- Will a project manager visit the site daily?
- How often will you give me project updates?
- What is the best way to contact you or the project manager (phone / email) if I have questions or concerns?
Pro Tips:
- Observe the communication style of potential contractors. If they respond to your initial inquiries in a reasonable amount of time and are proactive in askng you questions to better understand your vision, they are more likely to maintain timely and open communication with you throughout your project.
- If there is an issue with the work of a subcontractor, bring it up with the General Contractor. They are not the GC’s employees, but the GC has asked them to do the job and has a vested interested in them doing it well.
Timeline
Your GC should be able to give you a date by when they would be available to start your project and to estimate how many weeks the project will take from start to completion. Factors such as complex site conditions, lengthly permitting process, and availability of materials can affect the timeline.
Questions to ask a potential GC:
- When can the work begin?
- What is the estimated timeline for project completion?
- What will the daily schedule be? What time will workers arrive, take breaks and lunch, and finish up for the day?
- Will they work on weekends?
- Will there be days during which no one is working on the project?
- How many projects do you work on at one time?
- How do you handle project delays caused by late product deliveries or weather events?
Pro Tips:
- Keep in mind that experienced GCs generally have busy schedules and might not be able to begin your project immediately.
- In custom residential home construction projects in the Bay Area, the design and permitting phases can take 5 to 10 months or more and the typical timeline for custom residential home construction in the Bay Area from design and permitting to move-in is 14 to 26 months or more.
Safety, Security, Cleanliness, and Comfort
Keeping your property safe and secure during the construction process is partly your responsibility and partly the contractor’s responsibility.
Questions to ask a potential GC:
Safety and Security
- What safety or other measures will you take to protect my property from dust, floor or wall damage, and theft?
- How will your employees and subcontractors obtain access to the site if I am not home?
- Will there be a fence around my property for safety and security?
- Will workers enter rooms in my home that are not part of the project?
- What are your procedures if a worker is injured on site?
Cleanliness
- Will a portable toilet be provided for workers?
- Do you allow your employees or subcontractors to smoke on site?
- Will workers protect or clean out ducts and vents if the project creates a lot of dust?
- Will they sweep up and remove debris from the site, walkways to the site, dumpster area, and portable toilet area at the end of each day?
- Will they organize their construction materials and tools at the end of each day so that it is safe for me to walk through the work site?
Comfort
- Is it reasonable for me to stay in my home during the project?
- If I stay off-site during construction, which weeks would be the best for me to be away?
Pro Tip:
- Do your part to protect your belongings: For example, if you have any valuable china or statues that might fall during pounding, put them in storage. Put jewelry or other valuables in a safe place on site or off site. Make sure that the contractor and all the subcontractors take measures to protect your floors and walls from damage during construction.
Payment Schedule
The payment schedule should be clearly outlined in the written contract.
In California, initial down payments (deposits) on home construction contracts are legally restricted to no more than $1,000 or 10% of the total contract price.
Contractors generally request the balance in weekly payments or milestone payments of specific amounts and request payments of larger amounts on days of beginning the project, final inspection, and final walkthrough.
- Is the payment schedule based on project milestones or time (weekly payments)?
- How will any project delays affect the payment plan?
Pro Tips:
- Make sure that the payment schedule is detailed and included in the signed contract.
- Never pay the GC in full before the project is completed. Note that in California, as of January 1, 2026, homeowners are prohibited from witholding more than 5% of any progress payment or a total of 5% of the total contract price upon completion.
The Contract
Look for the following details in the your construction or remodeling contract:
- Contractor Name, Address, Telephone Number, and Website Address
- Contractor License Number
- Contract Date
- Your Name
- Your Project Address
- Scope of Work
- Detailed List of Inclusions and Exclusions
- Terms of Warranty
- Notes on who obtains and pays for finish materials, permits, inspections, land surveys, utility company fees, etc.
- Details about cleanup, removal of debris and materials, etc.
- Total Cost
- Payment Terms
- Statement about payment during any project delay
- Procedure for Change Orders
- Homeowner and Contractor Signature and Dates of Signing
Red Flags
When selecting a general contractor, watch for any of these red flags:
- Has no verifiable up-to-date Contractor’s License or Certificate of Liability Insurance
- Has poor client reviews or lack of references
- Is hesitant to show you past projects
- Does not ask you specific questions about your goals and vision
- Seems inflexible about following your suggestions for the project and does not give reasonable explanations
- Does not respond to your meesages within a reasonable time
- Does not give you a detailed written proposal
- Requests a downpayment of more than $1,000 or 10% of the total contract (in California)
- Wants to start “tomorrow”
- Seems more like a flashy salesperson than someone who knows the ins and outs of construction
Summary
Good contractors want clients to be happy with the construction process and results. Knowing how to choose a general contractor who is the right fit for your project can ensure that it will be completed on time, within budget, and to high quality standards.
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