Which Type of Contractor Do You Need?

A general contractor manages construction execution after design is complete (or after an architect is engaged separately) and coordinates subcontractors, scheduling, and permitting. A design-build firm handles both design and construction under one contract, eliminating the owner-as-coordinator role between architect and contractor. Design-build typically costs 18-28% more than separate design and build, but reduces coordination friction.

Single-trade work within the trade scope (electrical panel upgrade, water heater replacement, roof replacement, HVAC install) typically does not need general-contractor overhead and can be hired directly from a specialty trade. Multi-trade projects benefit from a general contractor who coordinates the trades; coordinating multiple trades as the owner consumes substantial time and produces scheduling conflicts.

An owner project manager (sometimes called owner representative or construction manager) is hired by the owner to manage the project on the owner behalf, coordinating designers and contractors and providing professional oversight without doing the build directly. Common on very large projects (over $2M), multi-phase developments, or for owners with limited bandwidth or no construction background. Typical fee is 3-7% of project cost.

Generally no. Commercial contractors specialize in commercial code, scheduling, and finish standards that differ from residential. Residential contractors specialize in residential code, customer experience, and finish standards that fit residential expectations. Mixing the two routinely produces friction; match the contractor type to the project type rather than to the contractor relationship.

Brutal honesty on right type of contractor produces by far the most useful result. The assessment is structured so that a polished answer pattern lands on a generic recommendation, while honest answers land on something specifically applicable to your real right type of contractor situation. No one else sees the answers unless you choose to share the result, so there is no upside to softening them.

Better Business Bureau and home-improvement consumer-protection research consistently identify five vetting practices: verify state contractor license through the state license board, request and verify certificates of insurance (general liability and workers compensation), check 3+ recent customer references with calls and ideally project visits, search complaints with state attorney general and BBB, and require a written contract with payment schedule, scope, and change-order procedures.

Industry guidance from NAHB and custom-home community resources consistently identifies a tipping point when renovation cost approaches 60-70% of new-build cost for the same square footage on the same lot.

Commercial build-out costs vary substantially by space type and finish level.

NAHB and AGC industry research consistently identifies the timing as when the contractor is consistently turning away work for capacity reasons, has 6+ months of stable cash reserves to absorb steady payroll commitment, has documented operational processes to onboard new crew effectively, and has the administrative capacity (payroll, workers comp, scheduling) to support employees.

JBKnowledge ConTech Report and AGC industry research consistently identify four practices that lift contractor win rates: standardized estimating template or software, professional proposal presentation with clear scope and terms, fast turnaround within prospect-expected window, and disciplined bid follow-up at 48 hours and 7 days after submission.