How to hire a general contractor

Keeping the existing footprint and cabinet boxes is one project; moving the sink three feet is a different project; taking out a load-bearing wall and re-routing plumbing stacks is a third project. Layout changes that touch plumbing add $3,000–10,000 to a kitchen. A new structural beam to open up a wall is $4,000–12,000 once you include the engineer, permit, and labor. Anything that requires the foundation to do something new (additions, second-story pops) prices in a different universe entirely.

Lump-sum (fixed price) shifts cost risk to the GC — they include a 10–20% contingency and you know the number. Cost-plus (typically actual cost + 15–20% fee) is appropriate when scope is genuinely undefined, like a gut rehab on an old house where nobody can see behind the plaster yet. GMP (guaranteed maximum price) is the hybrid: cost-plus with a cap, savings often shared between you and the GC. T&M (hourly + materials markup) fits repairs and small unknowns but is a poor fit for a full remodel where everything is designed. A GC who walks you through which structure suits your project is doing the job right.

Allowances are placeholder dollar amounts for line items you have not selected yet — tile, plumbing fixtures, appliances, lighting, flooring. They let you start the project without finalizing every detail. The best practice is to set them together with your GC at realistic levels for the tier you are targeting — for a mid-range kitchen, cabinet allowance should be 30–35% of project cost, appliances 15–20%, countertops 10–15%. If an allowance comes in low, ask what selections it assumes and adjust together before signing rather than discovering it at the showroom.

A residential GC carries 15–25% combined overhead and profit on top of hard costs. That covers PM time, liability and workers comp insurance, vehicle and tools, office, warranty reserves, and the margin that keeps the business healthy enough to stand behind the work. A GC quoting at 8–10% is often undercapitalized — there is a real risk of cash-flow trouble mid-job. A GC quoting at 30%+ is either positioned as ultra-premium (real if their portfolio supports it) or signaling they do not want the job at that scope. Bids in the middle of the range usually reflect a healthy firm.

MA and RI both run IECC 2021 with state amendments. In MA, 59+ municipalities have opted into the Specialized Stretch Code as of mid-2026 — that triggers a HERS rating, tighter blower-door numbers, and sometimes an all-electric requirement for new construction or major additions. RI residential permitting is faster (typically 2–4 weeks) than MA (4–8+ weeks in Stretch Code towns). Permit fees run 1–2% of project cost; a HERS rater for a Stretch Code addition adds $800–1,500.

Anything pre-1978 has lead. Pre-1980 likely has asbestos in flooring mastic, pipe insulation, or popcorn ceilings. Pre-1965 may have knob-and-tube wiring that fails inspection the moment a panel touches it. Pre-1950 may have cast-iron drains that crumble when you breathe on them. None of these are deal-breakers, but they are budget items that should be discussed before demo, not after. Building in a 10–15% contingency for any home over 50 years old keeps the conversation collaborative when something shows up behind the wall.

A GC who can start next week is not necessarily good news. Strong GCs in MA/RI run 8–16 week backlogs because their preferred subs (electricians, plumbers, HVAC, tile setters) are scheduled out. If a GC can mobilize immediately, ask why — sometimes a hole opens in a schedule and it is a real opportunity, but it can also mean they will pull in subs they have not worked with before. Pushing schedule to fit your timeline often means paying overtime or using less-familiar subs; both can show up as cost or quality differences.