Licensed, Insured & WSIB Covered

General Contractor

A general contractor coordinates all the trades, pulls permits, and carries the liability for your renovation. They mark up sub costs 15-25% but save you hundreds of hours of scheduling, inspections, and firefighting. Whether you need a GC or can manage trades yourself depends on project size, your time, and tolerance for problems.

Written by Pavel Vysotckii

BCIN-certified building designer & Quantity Surveyor · Updated June 2026

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Project Overview

Timeline

1-2 weeks to get quotes and sign contract, then project duration varies (kitchen reno 4-8 weeks, basement finish 6-10 weeks, addition 4-6 months)

Difficulty

Low for homeowner (GC handles complexity), high if you try to act as your own GC without construction knowledge

Starting at

$50,000

Best Season

Year-round, but exterior work (additions, roofing, siding) typically scheduled May-October to avoid cold weather delays

Fixed Milestone Pricing

You approve each stage before it's paid

Overview

What is general contractor?

A general contractor (GC) is the person or company that takes overall responsibility for a construction or renovation project. They hire and coordinate all the specialized trades (electricians, plumbers, framers, drywallers, etc.), pull necessary permits, order materials, schedule inspections, and manage the day-to-day construction process. The GC is your single point of contact instead of dealing with 5-10 different tradespeople yourself.

In Ontario, there is no provincial licensing requirement for renovation general contractors. The Home Construction Regulatory Authority (HCRA) requires licensing only for builders of new homes or condo units. However, reputable reno GCs carry commercial general liability insurance ($2M-$5M), have a valid WSIB clearance certificate (proving they pay into worker injury insurance), and often belong to industry associations like the Ontario Home Builders Association or Tarion.

GCs make money in two ways: markup on subcontractor labour and materials (typically 15-25% over their actual costs), or a fixed-price contract where they estimate total costs and quote you a single number. The markup covers the GC's time coordinating the project, overhead costs (office, truck, insurance), profit margin, and the risk they take on if something goes wrong. A GC making 15-20% net margin after all expenses is standard. Below 10% means they're cutting corners or will nickel-and-dime you with change orders.

The key value a GC provides is risk allocation and expertise. When the plumber damages the new tile floor the mason just laid, it's the GC's problem to fix and pay for, not yours. When the building inspector fails the framing because a header is undersized, the GC eats the cost of redoing it (if it was their error). When the HVAC sub shows up three days late and delays the drywallers, the GC has to reschedule everyone and absorb downtime costs. You pay a premium for this insurance and for the GC's knowledge of code requirements, trade sequencing, material lead times, and how to solve problems when they arise.

For small, single-trade jobs (replacing a water heater, retiling a bathroom), hiring the trade directly makes sense. For anything involving 3+ trades, permits, structural work, or costs over $50K, a GC becomes worth the markup. Trying to act as your own GC on a complex project can work if you have construction background and 10-20 hours per week to dedicate, but most homeowners underestimate the coordination effort and end up with cost overruns from scheduling mistakes, incorrect materials, or failed inspections.

When you need general contractor

Multi-trade renovation: kitchen reno (plumbing, electrical, gas, HVAC, drywall, tile, cabinets), basement finish, bathroom gut job
Structural work requiring engineered drawings and building permits: removing load-bearing walls, adding second story, foundation underpinning
Projects over $50K where coordination complexity exceeds what you can manage while working full-time
You lack construction knowledge: don't know OBC requirements, proper trade sequencing, or how to evaluate if work meets code
Time-sensitive projects: you need it done in 6-8 weeks and can't afford delays from managing 8 different trades yourself
Risk mitigation: you want one entity carrying liability for the full scope, not trying to figure out who pays when the electrician's work causes a drywall defect
Additions or exterior work requiring coordination with utility companies, surveyors, structural engineers, and municipal inspectors

Step by Step

The Process

What happens from start to finish

Initial Consultation & Site Visit

1-2 hours

GC visits your home, reviews scope of work, identifies potential issues (asbestos, knob-and-tube wiring, structural concerns), asks about budget and timeline. Good GCs will tell you if your budget is unrealistic or if there are scope items you haven't considered (HVAC relocation, electrical panel upgrade).

Detailed Estimate & Contract

3-7 days for estimate

GC provides itemized breakdown of costs: labour by trade, materials, permits, dumpster, contingency. Contract specifies payment schedule (never more than 10% deposit in Ontario), change order process, warranty terms, start and completion dates. Review for red flags: vague scope, no permit language, payment terms front-loaded.

Permit Application

2-8 weeks depending on municipality

GC (or their engineer) prepares drawings and applies for building permit with your municipality. They coordinate any required inspections from Electrical Safety Authority (ESA) for electrical work or Technical Standards & Safety Authority (TSSA) for gas work. Permit approval times vary: 2-4 weeks typical, 6-8 weeks in Toronto or for complex projects.

Pre-Construction & Scheduling

1-3 weeks before construction starts

GC orders long-lead items (custom cabinets, windows, specialty tile), schedules all trades in proper sequence, arranges dumpster and porta-potty if needed. They should provide you with a schedule showing when each trade is on site and key milestones (demo complete, framing inspection, drywall, substantial completion).

Construction & Daily Management

Varies by project size

GC or their site supervisor is on site daily or every other day to coordinate trades, verify work quality, solve problems, communicate progress. They handle deliveries, schedule inspections at correct times (framing before insulation, rough electrical before drywall), document issues, manage change orders. You should get weekly updates minimum.

Inspections & Code Compliance

Inspections scheduled throughout project

GC coordinates mandatory inspections: footing, framing, insulation, rough electrical/plumbing, HVAC, final building inspection. They fix any deficiencies identified by inspectors. For electrical and gas work, separate ESA and TSSA inspections are required before the utility will reconnect service.

Substantial Completion & Walkthrough

1-2 hours for walkthrough

GC completes all scope items and does their own quality check. You do a walkthrough together and create a deficiency list (paint touchups, minor adjustments, etc.). In Ontario, "substantial completion" means the space is usable even if minor items remain. This triggers next payment milestone per your contract.

Final Completion & Closeout

1-2 weeks to finish deficiencies

GC completes all deficiencies, provides you with final building permit sign-off, ESA/TSSA certificates if applicable, warranty documents, paint colors and product specs for future reference. Final payment is due when all work is complete and permits are closed. Ontario new home warranty doesn't apply to renos, but GC should warranty their work for 1 year minimum.

Pricing Transparency

Investment Guide

General contractors charge 15-25% markup on total project costs (labour + materials), or quote a fixed contract price that includes their margin. Small renovations ($50K-$150K) often see higher percentage markups because coordination effort is similar to larger jobs. Large projects ($150K-$500K+) may negotiate lower percentage but GC still makes more absolute dollars. Hourly GC rates ($75-$150/hr) are rare except for small handyman-level work.

Small kitchen reno (new cabinets, counters, backsplash, flooring, paint, no layout change)

$50,000 - $90,000

Depends on: GC markup 18-25% on top of cabinet cost ($15K-$25K), counters ($3K-$8K), flooring ($2K-$4K), trades (plumber, electrician, tile, paint, cabinet installer: $12K-$20K total). Add $8K-$15K if moving plumbing/gas lines or upgrading electrical panel.

Full kitchen gut job (layout change, new plumbing/electrical/gas, structural beam, cabinets, quartz counters, tile)

$80,000 - $150,000

Depends on: Structural engineer $1,500-$3,000, steel beam $3K-$8K installed, reroute plumbing/HVAC $5K-$10K, electrical panel upgrade $2K-$4K, cabinets $20K-$40K, counters $5K-$12K, appliances $8K-$20K, tile/flooring $6K-$12K, trades $25K-$40K, GC markup 15-20% on top.

Basement finish (1,000 sq ft, 2 bed, 1 bath, rec room, walkout or window egress)

$75,000 - $125,000

Depends on: Framing/insulation $12K-$18K, drywall/paint $8K-$12K, flooring $6K-$10K, bathroom rough-in and finish $15K-$25K, electrical (potlights, outlets, panel) $6K-$10K, HVAC extensions $4K-$8K, egress window or walkout $5K-$15K if needed, GC markup $12K-$20K.

Second-story addition (800 sq ft, 2 bed, 1 bath, over existing footprint)

$250,000 - $400,000

Depends on: Structural engineer $5K-$10K, foundation assessment/upgrade $10K-$30K, framing/roof $60K-$100K, windows/doors $15K-$25K, HVAC/plumbing/electrical $30K-$50K, insulation/drywall/paint $25K-$40K, bathroom $20K-$35K, flooring $10K-$18K, permits $3K-$8K, GC markup 15-20%. Major cost variable: does existing foundation need reinforcement?

Whole-home reno (gut interior, keep exterior, 2,000 sq ft, 3 bed/2 bath)

$300,000 - $600,000

Depends on: Essentially rebuild interior: new electrical panel and wiring $25K-$40K, new plumbing stack and supply $20K-$35K, HVAC replacement $15K-$30K, structural work $20K-$50K, insulation/vapour barrier $15K-$25K, drywall/paint $30K-$50K, flooring $25K-$45K, kitchens/baths $80K-$150K, windows/doors $30K-$60K, permits $5K-$12K, GC margin $45K-$90K.

GC markup on cost-plus contract (you see all sub invoices, GC charges percentage)

15% - 25% of total project cost

Depends on: Small projects (<$100K) often 20-25% because coordination time is fixed. Large projects (>$300K) negotiate down to 15-18%. Markup covers GC overhead, insurance, profit, and risk. Below 15% means GC will push change orders to make money. Fixed-price contracts build in same margin but you don't see the breakdown.

Permits

Permit Required

Building Permit$500-$5,000 depending on project value and scope

Electrical Safety Authority (ESA) Inspection$195 basic inspection + $75 per additional hour

Technical Standards & Safety Authority (TSSA) Gas Inspection$120-$300 depending on scope

What Affects the Price

Project complexity: multi-trade coordination, structural engineering, custom millwork increase GC time and risk, raising markup percentageSchedule: tight deadlines require GC to pay trade premiums for priority scheduling, or hire multiple crews to compress timelineYour change orders: every scope change mid-project requires GC to reprice, reschedule trades, sometimes pay cancellation fees. Expect 20-30% markup on change order labour.Site access and logistics: downtown Toronto condo reno with elevator booking, parking restrictions, noise bylaws costs more to manage than suburban housePermit and inspection risk: older homes often uncover code violations (knob-and-tube, asbestos, undersized joists) requiring unplanned work. 10-20% contingency is standard.GC reputation and workload: busy, highly-rated GCs charge more because they can. Off-season (November-February for exterior work) may get better rates.

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Permits & Building Code

Ontario Building Code requirements

Permit / Approval	Authority	Typical Cost
Building Permit	Municipality (City of Toronto, Ottawa, Mississauga, etc.)	$500-$5,000 depending on project value and scope
Electrical Safety Authority (ESA) Inspection	ESA (provincial, not municipal)	$195 basic inspection + $75 per additional hour
Technical Standards & Safety Authority (TSSA) Gas Inspection	TSSA (provincial)	$120-$300 depending on scope
Plumbing Inspection	Municipality (as part of building permit)	Included in building permit fee

GC is responsible for obtaining building permit unless contract specifies otherwise. Permit must be posted visibly on site.

Homeowner is the legal permit holder even if GC applies. Permit stays with property. Unpermitted work can affect resale and insurance claims.

ESA and TSSA inspections are separate from building permit. Licensed electricians/gas fitters notify those authorities directly.

Permit timelines vary by municipality: Toronto 4-8 weeks, smaller cities 2-4 weeks. Complex projects requiring Committee of Adjustment or minor variance can take 3-6 months.

Working without a permit is illegal and common. Good GCs pull permits even when homeowner suggests skipping them. Risk of fines $50K+ and forced demolition.

How You Pay

Fixed Milestone Pricing, Approved by You

Every general contractor project runs on fixed milestone pricing. The plan is signed before work starts, and you approve each stage before it's paid.

Plan Signed Before Work Starts
Every milestone and its price is written into the contract up front — no surprise extras.
Review in the Live App
Daily photos, inspection reports, and spend vs budget land in your client app at every phase.
You Approve Each Milestone
A stage is only paid after you review the work and sign off in the app.

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Project Center

General Contractor

In Progress

Deposit15%

Detailed Estimate & Contract25%

Permit Application30%

Final + Holdback30%

Milestone Progress

Milestone 3 of 4

Approved by you

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GTA homeowners can stack federal, provincial, and municipal programs for significant savings.

Red Flags When Hiring a General Contractor

Unlicensed or no insurance: Ask for Commercial General Liability certificate ($2M minimum) and WSIB clearance. If they claim to be WSIB-exempt, verify on WSIB website. Uninsured GC means you're liable if a worker gets hurt on your property.
No written contract or vague scope: Contract must detail exact scope, payment schedule, start/end dates, change order process, warranty terms. "We'll figure it out as we go" means cost overruns and disputes.
Deposit over 10%: Ontario Consumer Protection Act limits deposits to 10% of contract price for new home construction. While this doesn't legally apply to renos, asking for 30-50% upfront is a warning sign. Standard is 10% deposit, progress payments at milestones.
Pressure to skip permits: "Permits are a waste of money, inspector will never know" means you own the risk. Unpermitted structural work can void insurance, kill resale value, result in forced demolition if discovered.
No references or won't provide recent client contacts: Every GC should give you 3-5 recent clients to call. Check Google reviews but verify they're real (fake reviews are common).
Lowball quote that's 30%+ below others: Either they missed major scope items, plan to cut corners, or will bury you in change orders. If 3 GCs quote $100K-$120K and one quotes $70K, the $70K will end up costing $130K after "unforeseen issues".
Change order abuse: Legitimate change orders happen (you upgrade tile, inspector finds hidden rot). Abusive GCs lowball the contract then claim everything is a change order. Contract should specify what's included and define change order approval process.
No schedule or missed milestones with no communication: GC should provide a schedule and update you when it slips. Disappearing for 2 weeks then showing up saying "supply chain issues" without proof is poor management.

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Related Services

Project Management

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Estimating & Cost Planning

Before signing a GC contract, get an independent estimate to verify their quote is reasonable. Helps identify if scope is missing items or prices are inflated.

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Building Permit Service

While GCs typically handle permits, understanding the permit process helps you verify they're pulling correct permits and not skipping required inspections.

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Framing & Structural

Major cost component of most GC projects. Understanding framing scope (headers, joists, shear walls) helps you evaluate if GC quote is accurate.

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FAQ

Common Questions

What does a general contractor actually do?

A GC hires and schedules all the trades (plumber, electrician, framer, drywaller, etc.), obtains building permits, orders materials, coordinates inspections, solves day-to-day problems, and manages the construction timeline. You deal with one person instead of 8 different tradespeople. The GC carries liability for the whole project and fixes issues that arise between trades (e.g., electrician damages new drywall). You pay 15-25% markup for this coordination and risk transfer.

Do general contractors need a licence in Ontario?

No provincial licence is required for renovation general contractors. The Home Construction Regulatory Authority (HCRA) only licenses builders of new homes or condo units. However, reputable GCs carry commercial general liability insurance ($2M-$5M), have valid WSIB clearance (worker injury insurance), and often belong to industry groups like Tarion or OHBA. Individual trades working under the GC (electrician, plumber, gas fitter, HVAC) must be licensed by their respective authorities (ECRA, TSSA, etc.).

How much does a general contractor charge?

GCs typically mark up total project costs by 15-25%. Small projects (<$100K) often see 20-25% markup because coordination time is similar to larger jobs. Big projects (>$300K) may negotiate 15-18% but the GC still makes more absolute dollars. For example, a $100K kitchen reno with 20% markup means $83K goes to labour/materials and $17K to the GC. Alternatively, some GCs quote a fixed contract price that includes their margin baked in.

Should I hire individual trades myself instead of using a GC?

For small, single-trade jobs (replacing a toilet, painting two rooms), hire the trade directly. For multi-trade projects over $50K, a GC makes sense unless you have construction experience and 10-20 hours per week to manage it. Coordinating 8 different trades, scheduling inspections at the right time, solving conflicts (plumber damages tile floor), and handling permit rejections is harder than most homeowners expect. You save 15-25% by acting as your own GC but risk cost overruns from scheduling mistakes and lack of code knowledge.

What should be in a general contractor contract?

Detailed scope of work (not "kitchen reno" but exact deliverables: demolition, new cabinets, quartz counters, subway tile backsplash, etc.), itemized cost breakdown or fixed price, payment schedule tied to milestones (never more than 10% deposit), start and completion dates, change order approval process, warranty terms (1 year minimum), permit responsibility, insurance confirmation, dispute resolution method. Red flags: vague scope, front-loaded payments (50% upfront), no permit language, missing warranty, no change order process.

What are red flags when hiring a general contractor?

No written contract, asking for over 10% deposit, pressure to skip permits ("inspector will never know"), can't provide insurance certificate or WSIB clearance, no recent client references, lowball quote that's 30%+ below competitors, disappears for days without communication, claims everything is a change order after giving initial quote. Also watch for unlicensed trades working under them (electrician without ECRA licence, gas fitter without TSSA).

Fixed-price contract vs cost-plus: which is better?

Fixed-price (lump-sum): GC quotes $120K for the whole project, you pay $120K regardless of actual costs (unless you make changes). Benefit: budget certainty. Risk: GC may cut corners to protect margin if costs run over. Cost-plus: You pay actual trade and material costs plus GC markup (15-25%). Benefit: transparency, you see all invoices. Risk: final cost can exceed estimate if problems arise. Cost-plus works better when scope is uncertain (old home gut job). Fixed-price works for well-defined projects (basement finish with clear plan).

How do I verify a general contractor's insurance and WSIB?

Ask for Certificate of Insurance showing Commercial General Liability coverage ($2M minimum, $5M better) naming you as additional insured. Verify it's current (not expired). For WSIB, ask for a Clearance Certificate (Form 1234) showing they're in good standing. You can verify WSIB status at wsib.ca using their business name or registration number. If GC claims to be WSIB-exempt, verify this because if they're wrong and a worker gets hurt, you're liable for injury costs.

Can a general contractor start work before the permit is issued?

Legally no, but demolition and some prep work (removing cabinets, non-structural tearout) is often done while waiting for permit approval. Structural work, electrical, plumbing, and framing must not start until the building permit is issued and posted on site. If the GC starts framing or running new electrical before permit approval, the inspector can red-tag the project and force you to tear out work. Permit timelines vary: 2-4 weeks in smaller cities, 4-8 weeks in Toronto, longer if variances are needed.

What happens if my general contractor abandons the project?

If you paid a large deposit upfront, you may lose that money (another reason to never pay over 10% upfront). You'll need to hire a new GC to complete the work, which costs more because they have to assess what's been done, fix deficiencies, and take on someone else's mess. If the original GC pulled permits, the new GC can take over the permit. Small claims court can recover damages up to $35K in Ontario, but collecting a judgment from a defunct contractor is difficult. Best prevention: check references, verify insurance/WSIB, don't front-load payments, use a contract with milestone-based payments.

Where we do this work

Based in Toronto, working across the GTA

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