For customers· 4 min read

Hiring a General Contractor: What to Know & Red Flags to Avoid

Vet general contractors for home additions and remodels. Get referrals, check credentials, review contracts, avoid scams.

Adding square footage to your home is one of the biggest investments you'll make — and the contractor you choose can make or break the entire project. Knowing how to hire a general contractor for a home addition before you start calling around saves you money, stress, and months of delays.

Understand What a General Contractor Actually Does

A general contractor (GC) manages the full scope of your addition — pulling permits, scheduling subcontractors (framing, electrical, plumbing, drywall), ordering materials, and keeping the project on budget and on schedule. They're your single point of accountability. For a home addition specifically, that matters enormously because additions touch your home's existing structure, foundation, and systems all at once.

Define Your Project Before You Start Calling

Before reaching out to any contractor, get clear on what you want:

  • Type of addition: room addition, master suite, garage conversion, second-story addition, sunroom
  • Approximate square footage: even a rough estimate (200 sq ft vs. 800 sq ft) affects bids significantly
  • Timeline: do you have a hard deadline, like a baby on the way or a family move-in?
  • Budget range: home additions typically run $150–$400+ per square foot depending on complexity and your region

Having these details ready means contractors can give you meaningful estimates instead of vague ballpark figures.

How to Find Qualified Candidates

Ask neighbors, friends, or your real estate agent for referrals — word of mouth still carries the most weight for home contractors. You can also use Mercoly to compare and find trusted general contracting and additions providers in one place, which cuts down the legwork of vetting strangers from a basic web search.

Aim to get at least three bids. One bid gives you nothing to compare. Two feels like enough but isn't. Three shows you the market rate and exposes outliers on both ends.

What to Check Before You Sign Anything

Never skip these steps:

  • License verification: Confirm the GC holds a valid contractor's license in your state. Most state licensing boards have a free online lookup tool.
  • Insurance: Require proof of general liability insurance (minimum $1M is standard) and workers' compensation. If a worker gets hurt on your property and the contractor isn't covered, you could be liable.
  • References from similar projects: Ask specifically for references from home addition projects, not just kitchen remodels. An addition is structurally more complex.
  • Permit history: Ask whether they'll pull the permits themselves. A contractor who suggests you pull permits "to save money" is a red flag — it shifts legal responsibility onto you.
  • Subcontractor relationships: Find out who handles electrical, plumbing, and HVAC. Experienced GCs have established subs they've worked with for years.

Red Flags That Should Stop You Cold

Even a polished-looking contractor can be the wrong hire. Walk away if you see any of these:

  • Demands a large upfront deposit — legitimate GCs typically ask for 10–15% upfront, not 40–50%
  • No written contract or pushes you toward a vague "handshake deal"
  • Significantly the lowest bid — if one bid is 30% lower than the others, something is missing from their scope
  • Pressure to decide immediately or claims they can only hold the price for 24 hours
  • No physical business address or a brand-new company with zero verifiable history
  • Won't provide a lien waiver — without this, a subcontractor your GC failed to pay can place a lien on your home

What a Solid Contract Should Cover

Before any work begins, your contract should spell out:

  • Full project scope and specifications (materials, brands, dimensions)
  • Start and estimated completion dates with milestone checkpoints
  • Payment schedule tied to project milestones, not arbitrary dates
  • Change order process — how cost increases get approved in writing
  • Warranty terms on both labor and materials
  • Dispute resolution clause

Vague contracts protect the contractor. A specific contract protects you.

During the Project: Stay Involved Without Micromanaging

Check in regularly but let the GC do their job. Schedule weekly site walkthroughs, document everything in writing (even quick texts count), and don't make verbal change requests — always get scope changes in a written change order with a price attached. Keep a running project file with contracts, permits, receipts, and inspection reports.

Pay attention to whether the crew shows up consistently. An addition that goes quiet for two or three weeks mid-project is a warning sign that your GC may be juggling cash flow problems or has taken on too many jobs at once.


Start comparing vetted general contractors in your area today so your home addition gets built right the first time.

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