General Contractor vs. Handyman: When You Need a GC

What a handyman can do

A handyman handles small, non-structural repairs that do not require permits. Painting a room, replacing a faucet, patching a small section of drywall, installing a light fixture, or replacing baseboard trim are typical handyman tasks. Handyman rates are lower than general contractor rates, typically $40-$80 per hour.

For a single-trade repair under $1,000, a skilled handyman may be all you need.

When you need a general contractor

A general contractor (GC) is needed when the repair involves multiple trades that must be coordinated, when permits are required, or when structural work is involved. A kitchen water damage repair that requires demolition, plumbing, electrical, drywall, flooring, painting, and cabinetry is a GC job. The GC hires and manages the subcontractors, pulls permits, coordinates inspections, and is responsible for the overall quality and timeline of the project.

Licensing and legal requirements

Most states require a contractor license for work above a certain dollar threshold, typically $500-$5,000 depending on the state. Structural work, electrical, plumbing, and HVAC work almost always require licensed specialty contractors. Using an unlicensed contractor for work that requires a license can void your insurance coverage for that work, result in fines, and create problems when you sell your home.

Always verify the contractor's license.

How this affects your insurance claim

When your insurance estimate includes overhead and profitWhat Is Overhead & Profit (O&P) in Insurance Claims?Overhead and Profit (O&P) is a standard markup added to insurance repair estimates when a project requires three or more different types of contrac...
Read more → (O&P), it means the scope requires a general contractor to coordinate multiple trades. If you use a handyman for a job that warrants a GC, you may save money but sacrifice quality, warranty, and code compliance. Conversely, if your claim is a simple single-trade repair and you hire a GC, the insurance company may not approve O&P charges because a GC was not necessary.

What to do

Look at your insurance estimate and count the number of different trades involved. If there are three or more trades, you need a general contractor and your estimate should include O&P. If the repair is a single trade like painting or a faucet replacement, a handyman or specialty contractor is appropriate.

Verify that whoever you hire has the appropriate license for the work being performed. Ask for their license number and verify it with your state's licensing board.