Contractor Vs. Home Builder-What Is The Difference?

Clare Louise

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The process of building or renovating a home might seem daunting at first but with the right team behind you, you can get the job done quickly, efficiently, and most importantly, correctly. Now you might be a little bit confused about what the difference between general contractors and (home builders) is. This guide aims to help you clarify that a bit.

General Contractor

General contractors are the professionals that organize various different resources that can aid in helping you build your home. Their business model works by hiring other specialists across the home building spectrum, from drywall builders to electricians, and adding a contracting fee at the top that results in their take home profit.

Home Builder

Home builders, on the other hand, complete entire housing projects from scratch, from the initial architectural design to the final electrical components.

Although they have crews that help them build the home from a foundation, they do sometimes subcontract out to professionals that require a special license to do their work like plumbers and some highly skilled electricians.

Unlike general contractors, home builders bill you per entire project completed or on a “cost of materials” by “time spent completing the project ” basis. The way the billing works might be conducive to how they bill their own employees so it will be important for you to find out how this works before embarking on a project.

After seeing the difference between the two professions, you might be wondering which is better? This question is almost a moot point because the two serve the same purpose of building your home from either subcontracting out or guiding you through the process (as is the case with home builders). It is up to you to decide which works better for your needs and budget and what you are most comfortable with.

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