What Does a General Contractor Do, and What Does the License Allow?

A general contractor runs a construction project from the signed contract to the final inspection. It holds the prime contract with the owner, hires and schedules the subcontractors, pulls the permits, calls for the inspections, pays the subs and suppliers, and answers for the safety of the site and the quality of the finished work. A general contractor license lets a company take on that role for building work, but in every state compared on this page the license stops short of some trade work, most often electrical, plumbing and mechanical systems, which go to a separately licensed contractor unless the company holds that trade license too.

At a glance The role: the general contractor holds the prime contract, hires the subcontractors, pulls permits and schedules inspections. The license: covers building work that needs several unrelated trades, as California Business and Professions Code 7057 defines it. The limits: a Florida contractor must subcontract electrical, plumbing, mechanical, roofing and pool work unless certified or registered in that trade (Florida Statutes 489.113(3)). The size: some states cap the license by job value; North Carolina's limited license covers single projects up to $750,000 (G.S. 87-10). The qualifier: California, Florida, Nevada, North Carolina and Virginia tie the license to a named individual who qualifies the company.

Licensing is set state by state, so start with our contractor license guide for every state. For how a company meets the license rules through a qualifying individual, see what a qualifying agent is or hire a qualifying agent.

What a General Contractor Does on a Job

A general contractor, or GC, is the company responsible for delivering the whole project. The owner deals with one company, and that company answers for every trade on the site.

Planning and Estimating

Before any dirt is moved, the general contractor:

• Reviews the architectural plans and construction documents
• Builds a cost estimate for the entire project
• Sets a schedule with milestones and deadlines
• Identifies which specialty trades are needed and when
• Prepares the bid or proposal for the owner

The accuracy of the estimate decides whether the job makes money, because the GC usually carries the risk of costs it did not foresee.

Permits, Inspections and Code Compliance

The GC is responsible for:

• Pulling the building permits the local jurisdiction requires
• Building to the local, state and national codes the jurisdiction has adopted
• Scheduling inspections at the required stages, such as foundation, framing, rough in and final
• Correcting any violation an inspector writes up
• Obtaining the certificate of occupancy when the project is complete

Permit work is a common reason owners hire a licensed GC instead of managing trades themselves.

Hiring and Managing Subcontractors

General contractors rarely do all the work with their own crews. They hire and coordinate specialty subcontractors:

• Electricians for wiring, panels and fixtures
• Plumbers for water supply, drainage and gas lines
• HVAC contractors for heating, cooling and ventilation
• Framers for structural framing
• Roofers for roofing systems
• Concrete contractors for foundations, slabs and flatwork
• Finish carpenters for trim, cabinets and millwork
• Painters for interior and exterior finishes
• Landscapers for exterior site work

The GC checks that each subcontractor is properly licensed and insured, schedules them in sequence (drywall cannot go up before the plumbing rough in is inspected), and settles conflicts between trades. As the table below shows, the first three trades on that list are the ones a GC license most often excludes.

Budget, Change Orders and Draws

The GC manages the money on the job:

• Tracking costs against the project budget
• Processing subcontractor invoices and scheduling payments
• Pricing and documenting change orders when the scope changes
• Controlling material costs through supplier relationships
• Preparing draw requests when a construction loan funds the project

Quality Control

The GC is the last line of defense for quality. It inspects subcontractor work before it is covered up, checks materials against the specifications, runs the punch list, and coordinates warranty work.

Safety on a Site With Many Employers

A job site with several subcontractors is a multi employer worksite, and federal OSHA can cite more than one employer for the same hazard. OSHA's multi employer citation policy defines a controlling employer as one with general supervisory authority over the worksite, including the power to correct safety violations itself or require others to correct them. The directive's own controlling employer examples use a general contractor, so the GC needs a site safety plan, regular inspections of its subs' work, and a way to enforce corrections.

Contracts, Insurance and Bonds

The general contractor signs the prime contract with the owner and a subcontract with each trade. The GC promises to deliver the finished project, takes the financial risk, and is legally responsible for the outcome.

Insurance and bonding requirements come from three places. The state licensing law may require a license bond or proof of financial responsibility before a license issues. The owner usually requires general liability insurance and often a performance and payment bond on larger jobs, and the state's workers' compensation law decides when the company must cover its employees.

Paying Subs and Suppliers, and Lien Exposure

Paying the trades on time can be a legal duty. California Business and Professions Code 7108.5 requires a prime contractor to pay each subcontractor within seven days after receiving a progress payment, unless the parties agreed otherwise in writing. A contractor that holds back money without a good faith dispute owes the subcontractor a penalty of 2 percent of the amount due per month, and the license can be disciplined.

The bigger exposure is the mechanics lien. California Civil Code 8400 gives a lien right to the direct contractor, subcontractors, material suppliers, laborers and design professionals who provide work for an improvement. If the GC collects from the owner and fails to pay a sub or a supplier, that unpaid party can pursue a lien against the owner's property, which is why owners ask for lien releases with each payment.

What a General Contractor License Allows You to Do

A general contractor license allows a company to contract for, manage and superintend construction of buildings that need several unrelated trades. California's statute is a clear example: a general building contractor's principal business is structures built for the shelter and enclosure of people, animals or property that require at least two unrelated building trades or crafts.

What the license does not allow varies by state. The table shows six states side by side, and the pattern is consistent: the general license covers the building, while licensed trade work stays with a trade license holder.

Notes on the Table

• California B: a prime contract for work beyond framing or carpentry must require at least two unrelated trades other than framing or carpentry, unless the contractor holds the trade classification or subcontracts it, so a one trade job such as electrical alone needs the trade license or a licensed sub; fire protection and well drilling always need that classification or a licensed sub (B&P 7057).
• California B-2: no load bearing changes, and no work that installs, replaces, substantially alters or extends electrical, mechanical or plumbing systems without that classification or a licensed sub; fixture swaps are allowed; fire protection, asbestos abatement and well drilling also need the classification or a licensed sub (B&P 7057.5).
• Florida: the three licenses differ by building size (F.S. 489.105). Electrical, mechanical, plumbing, roofing, sheet metal, pool and air conditioning work must be subcontracted unless the contractor holds that trade certificate or registration (F.S. 489.113(3)).
• Nevada: general engineering and general building are mutually exclusive branches, every license carries a monetary limit, and no licensee may do plumbing, electrical, refrigeration or air conditioning work outside its own classification, even under the small job allowance (NRS 624.215 and 624.220; NAC 624.140 and 624.160).
• Arizona: the excluded work must go to an appropriately licensed contractor (A.A.C. R4-9-102; classifications in A.R.S. 32-1102).
• North Carolina: project values exclude land costs; electrical work needs the electrical board's license, and plumbing, heating and fire sprinkler work a separate license (G.S. 87-10; G.S. 87-43; G.S. 87-21).
• Virginia: the class sets the job size and the classification sets the work; the Home Improvement (HIC) specialty carries the same trade limit (18VAC50-22-20; 18VAC50-22-30).

Job Size Limits and License Classes

Some states license the general contractor by the size of the job as well as the type of work. North Carolina's intermediate license covers single projects up to $1,500,000, and its unlimited license has no cap on a single project, per G.S. 87-10(a1).

Virginia sorts contractors into three classes under Code of Virginia 54.1-1100. Class C covers single contracts over $1,000 but less than $30,000, or total work under $250,000 in any 12 month period. Class B covers single contracts of $30,000 or more but less than $150,000, or yearly totals of $250,000 or more but less than $1 million. Class A covers single contracts of $150,000 or more, or $1 million or more in a year.

Nevada puts a monetary limit on every license: the largest contract the licensee may take on one site for one client. A single project increase must reach the board at least 5 working days before the bid (NRS 624.220).

When a License Is Required at All

Each state sets its own trigger for needing a contractor license. In California, work is exempt only when the whole undertaking is less than $1,000 in labor, materials and everything else and needs no building permit, and the exemption is lost if the person advertises as a contractor or hires help (B&P 7048).

North Carolina defines a general contractor as anyone who builds or superintends a project costing $40,000 or more, with exemptions for an owner building for their own occupancy and for farm buildings (G.S. 87-1). For the trigger in your state, see do I need a contractor license.

The Qualifier Who Holds the License for the Company

A general contracting company usually earns its license through one named person who passes the exam and proves the experience. That person is the qualifier, and the laws below give the qualifier real duties, not a line on a form.

• California: the qualifying individual must exercise supervision and control of the company's construction operations, and may qualify no more than three firms in any one year period (B&P 7068.1).
• Florida: all primary qualifying agents are jointly and equally responsible for supervising all operations of the business, all field work at all sites, and its financial matters (F.S. 489.1195).
• North Carolina: the applicant names a qualifier who passed the exam; if the qualifier leaves, the license stays in force 90 days, and the company may not bid on or take new contracts until it is reinstated (G.S. 87-10). The board's FAQ, citing its rule 21 NCAC 12A .0205(a), says a qualifier may qualify up to two licenses when the qualifier is a managing employee, owner, officer or member.
• Nevada: a company qualifies through its responsible managing officer or employee, who must be a bona fide member or employee of the firm (NRS 624.260).
• Virginia: the designated employee is the contractor's full time employee or a member of responsible management who passed the board's exam on the company's behalf (Code of Virginia 54.1-1100), and the board's rules require a named qualified individual for each classification who is a full time employee or a member of responsible management (18VAC50-22-40).

This is where many growing companies get stuck: the owner runs the business and wins the work but lacks the documented experience or the passed exam the state requires. The lawful answer is a licensed qualifying agent who joins the company as a real employee or officer, supervises the work the license covers, and qualifies the company under the state's rules. Our founders, Marshall Schofield and Jeremiah Jaskulski, built The Licensing Company around that model; read what a qualifying agent is or hire a qualifying agent to see how it works.

General Contractor vs Other Construction Roles

General Contractor vs Subcontractor

A subcontractor specializes in one trade, such as electrical, plumbing, roofing or painting, and works under a contract with the GC. A general contractor hires, schedules and manages multiple subcontractors to complete the entire project. Think of the GC as the conductor and the subs as the musicians. For a deeper comparison, see general contractor vs subcontractor.

General Contractor vs Handyman

A handyman handles small repairs and maintenance: a leaky faucet, a drywall patch, a light fixture swap, minor carpentry. A general contractor manages larger projects that need permits, several trades and structural work. Where the handyman line falls depends on the state; see contractor vs handyman for the thresholds by state.

General Contractor vs Construction Manager

A construction manager usually works for the owner in an advisory role, overseeing the project without holding the trade contracts or the financial risk. A GC takes on the contractual obligation to deliver the project: it signs the contracts, carries the cost risk, and is legally responsible for the outcome.

General Contractor vs Developer

A developer owns the project: it acquires the land, arranges the financing, and hires the GC to build it. A developer that acts as its own GC needs the license the work requires.

When You Need a General Contractor

You need a GC when:

• The project involves structural work, such as additions, new construction or major renovations
• Several trades are required, such as electrical, plumbing, HVAC and framing
• Building permits are required
• The project exceeds your state's threshold for licensed work (check your state)
• You want a single point of accountability for the entire project

You probably do not need a GC when:

• The job is a simple repair or cosmetic upgrade
• Only one trade is involved, such as hiring an electrician to add circuits
• The work falls below your state's licensing threshold
• You are doing the work yourself on your own home under your state's owner exemption

How General Contractors Price a Job

A general contractor's price covers the cost of the work plus its overhead and profit, including insurance, bonds, vehicles, office staff and site supervision. Compare bids line by line rather than by the total, because the lowest number often leaves out scope another bid includes. A good GC can save money through better pricing from subs and suppliers, fewer mistakes, and a faster finish.

How to Choose a General Contractor, Step by Step

1. Verify the license. Use your state's license verification portal to confirm the license is active and the classification covers your project.
2. Check the classification against the work. If the job includes electrical, plumbing or HVAC work, confirm who holds the trade licenses for it.
3. Check insurance. Ask for certificates of general liability and workers' compensation coverage.
4. Ask for references. Talk to at least three recent clients about their experience.
5. Get multiple bids. Three bids is a common standard; be wary of a bid far below the others.
6. Review the contract. It should state the scope of work, the timeline, the payment schedule and the change order procedure.
7. Check complaint history. Many state licensing boards publish complaint and discipline records.

Frequently Asked Questions

What does a general contractor license allow you to do?

It allows a company to contract for, manage and superintend building projects that need several unrelated trades and to hire the subcontractors. It does not automatically cover licensed trade work: Florida requires electrical, plumbing and mechanical work to be subcontracted unless the GC holds that trade certificate or registration, and Nevada bars a general building contractor from plumbing, electrical, refrigeration and air conditioning, and fire protection work without the specialty license.

What does "licensed GC" mean?

A licensed GC is a general contractor that holds the state or local license required for the work it performs. The license is issued in a specific classification, and in some states at a set job size, so check both on the state board's license lookup.

Can a general contractor do electrical or plumbing work?

Only if it holds the trade license or the classification allows it. In Florida, Nevada, Arizona, North Carolina and Virginia, the general license excludes electrical and plumbing work, so the GC must hire a licensed trade contractor or earn that license itself. California's B license is the broadest of the group: B&P 7057 lets it prime a project that needs two or more unrelated trades besides framing or carpentry, but a one trade job such as electrical alone needs the trade classification or a licensed sub, and fire protection and well drilling always do.

Is there a limit on how big a job a general contractor can take?

In some states, yes. North Carolina licenses by limitation level, Virginia sorts contractors into Classes A, B and C by contract value, and Nevada sets a monetary limit on every license. Arizona's B-2 General Small Commercial license covers commercial projects of $2,000,000 or less.

Does the company owner need to hold the license personally?

Not in California, Florida, Nevada, North Carolina or Virginia. Each lets a company qualify through a named individual who carries real supervision duties, so the qualifier must be part of the company in fact, not only on paper.

Talk to Us About Qualifying Your Company

If your company runs the work but needs a qualified individual to hold the general contractor license or a trade license beside it, our team can walk you through your state's rules. Call 615-219-2110 or visit hire a qualifying agent to start the conversation. If you are weighing the career itself, read how to become a general contractor.

Sources

• California Business and Professions Code 7057, general building contractor, retrieved 2026-09-29
• California Business and Professions Code 7057.5, residential remodeling contractor, retrieved 2026-09-29
• California Business and Professions Code 7048, minor work exemption, retrieved 2026-09-29
• California Business and Professions Code 7068.1, duties of the qualifying individual, retrieved 2026-09-29
• California Business and Professions Code 7108.5, payment of subcontractors, retrieved 2026-09-29
• California Civil Code 8400, who has a lien right, retrieved 2026-09-29
• Florida Statutes 489.105, contractor definitions, retrieved 2026-09-29
• Florida Statutes 489.113, qualifications for practice and required subcontracting, retrieved 2026-09-29
• Florida Statutes 489.1195, responsibilities of qualifying agents, retrieved 2026-09-29
• Nevada Revised Statutes Chapter 624, contractors (624.215, 624.220, 624.260), retrieved 2026-09-29
• Nevada Administrative Code Chapter 624 (624.140, 624.160), retrieved 2026-09-29
• Arizona Revised Statutes 32-1102, classification of licenses, retrieved 2026-09-29
• Arizona Administrative Code R4-9-102, commercial license classifications (Arizona Secretary of State, Chapter 9 PDF), retrieved 2026-09-29
• North Carolina General Statutes 87-1, general contractor defined, retrieved 2026-09-29
• North Carolina General Statutes 87-10, license limitations and the qualifier, retrieved 2026-09-29
• North Carolina General Statutes 87-21, plumbing, heating and fire sprinkler licenses, retrieved 2026-09-29
• North Carolina General Statutes 87-43, electrical contracting licenses, retrieved 2026-09-29
• North Carolina Licensing Board for General Contractors, FAQ for Contractors, retrieved 2026-09-29
• Code of Virginia 54.1-1100, contractor classes and designated employee, retrieved 2026-09-29
• Virginia Board for Contractors Regulations 18VAC50-22-20, license classifications, retrieved 2026-09-29
• Virginia Board for Contractors Regulations 18VAC50-22-30, specialty services, retrieved 2026-09-29
• Virginia Board for Contractors Regulations 18VAC50-22-40, Class C license and qualified individual, retrieved 2026-09-29
• OSHA Directive CPL 02-00-124, multi employer citation policy, retrieved 2026-09-29