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What's the difference between general contractor and home builder?

7 years ago
last modified: 7 years ago

I would appreciate if someone explains me the difference between both in the simplest way possible. Plus if I don't have budget problem, is it better to hire a general contractor or a home builder for my new home construction given I have already hired architect and building designer? If you had the option to choose between the best general contractor and the best home builder, who would you choose and why? (assuming you have unlimited budget).
Would prefer answers from pros.

Comments (31)

  • 7 years ago

    Where are you located? The answer to your question may be regional; I ask because I don't want to assume you are in the USA if you live outside of it. :-)

  • 7 years ago
    @ One Devoted Dame. I want to know how it works in the US. I'm originally from another country but a US citizen as well.
  • 7 years ago

    In my area, they are interchangeable terms.

  • 7 years ago
    last modified: 7 years ago

    As noted by bry911, a homebuilder may or may not be a general contractor. I was a licensed homebuilder in Ontario under both HUDAC (Housing and Urban Development Association of Canada) and the ONHWP (Ontario New Home Warranty Plan). As such, I sub-contracted out all work to the trades. My task was choosing and then co-ordinating the trades and suppliers while dealing with all the authorities, lenders, sales and followup service. Not to mention the buyer! In fact, the use of subtrades is how the largest "builders" in North America operate.

    Some definitions try to separate the two terms by defining a "builder" as an
    organization that directly employs all the people putting the house
    together.

  • 7 years ago

    A general contractor can, and will, build other things such as offices, strip malls, post offices, and clinics.

    A homebuilder is legally or by choice, building single-family residences.

  • PRO
    7 years ago

    Many jurisdictions have regulations as to what a person may use for titles, and for the qualifications and standards for using those titles. For example, one may not legally call oneself an architect, doctor, attorney or general contractor if they have not met applicable jurisdictional requirements.

    I'm not sure on this aspect, but "builder" may be like "designer" in many jurisdictions, i.e., there's no applicable regulations and anyone may call themself either of these titles or anything else not restricted by law. But I could be wrong. It happened. Once. Long ago. Bob remembers. \

    That said, "general contractor" is differentiated from "specialty contractor" or "sub contractor" in that the general does all of the organization, coordination and supervision of the many special or sub contractors and others required for a building contract, whether residential, commercial or whatever.

  • 7 years ago

    In my area of rural Louisiana, the General Contractor and Home Builder is typically one in the same. The GC is responsible for lining up the sub contractors and also has a construction crew that will build the home.

    However, our company uses a General Contractor for new construction that is not the builder -- he has a trusted crew that he hires out each time. So in that case, he just lines up all of the sub contractors and makes sure the job gets done.


    Unfortunately, I think the terminology can be somewhat regional.

  • 7 years ago

    We don't know where the OP is. So it's impossible to answer specifically.

    In Ontario, you can call yourself what you want. But if you build/general contract a new home without a license--or an exemption if you're an owner-builder--you are operating illegally and will be subject to fines up to C$100,000.

  • 7 years ago
    last modified: 7 years ago

    Or, you may be in an area that takes the same approach as Massachusetts.

    https://www.statecertification.com/mass/class/faqs.html

    This approach is akin to where plumbing and electrical subcontractors must pull their own permits, except that in this case, ALL subcontractors pull their own permits, and the GC isn't much more than a pencil pusher and money handler with a little more clout with the subs than an average homeowner.



  • 5 years ago

    To be very precise and straight, if you have no budget issues, go for a HOME BUILDER!

    A builder typically handles the construction of your home. This can include setting the foundation, framing, roofing, as well as erecting the log walls. In addition, builders have a contractor license too. This clearly makes a builder, a bigger name than the GC. A general contractor (GC) orchestrates and manages the team of subcontractors. It might be a possibility that the contractor hires them labor from external sources. Seasonal unavailability, work experience, and work standards will get compromised in this case. Therefore, go for a builder than a GC.

    Last year, my brother shifted to Vancouver and was so busy in the office mess that he never found time to supervise his under-constructed house. But who needed supervision when you have an experienced team doing the job for you. He gave the task to a builder firm. Here's their website link: www.vancouver-builders.ca

    Not only they got his custom dream house completed but got it done without any error and within the time limit. I guess, you now have an idea, why builders are better than contractors.

  • PRO
    5 years ago

    Sarah's comments may be applicable to Canada, or somewhere else. They are certainly not applicable to the U.S.

  • PRO
    5 years ago

    A builder is a GC with a PR firm.

  • 5 years ago
    last modified: 5 years ago

    Sarah's comments may be applicable to Canada

    Not applicable in Ontario, where to build a house, other than as an owner-builder, you have to be licensed as a homebuilder under TARION, the mandatory licensing and warranty programme.

    British Columbia mandates that all new homes be covered by a third-party warranty programme. To build a home in B.C., you must be a licensed residential builder.

    (Interesting drive-by posting by Sarah Rose promoting one builder.)

  • PRO
    5 years ago

    Yes, I suspect the answer has to do with the licensing laws, if any, of the applicable local jurisdiction.

  • 5 years ago

    Who is Sarah?

  • PRO
    5 years ago

    Page up: Sarah Rose and her commercial for a builder...

  • 5 years ago

    This must be a joke. There is no difference between a home builder and a general contractor and if you had an architect you wouldn’t need a designer.

  • 5 years ago

    On the other hand, to paraphrase Oscar Wilde: the only two words in the English language that mean exactly the same thing are flammable and inflammable.

  • 5 years ago

    A builder is a GC with a PR firm.


    Say rather, a builder is a GC who's wife offers her "interior design" services while running the social media for the business.


  • 5 years ago

    My bet would be that "she" is the owner of this firm and is spamming the site. First post and a link, dead give away in my opinion.

  • 5 years ago

    I'm sorry, but these negative comments about builders is rude and disturbing. I am a licensed builder, and don't have a wife or PR firm, don't use social media, and don't offer interior design services. Which I suspect is true of most licensed builders in my state, which just so happens to be the same state as Holly Stockley.

  • PRO
    5 years ago

    What negative comments?

  • 5 years ago

    A builder with no sense of humor. Imagine that.

  • 5 years ago
    last modified: 5 years ago

    There is no difference between a home builder and a general contractor

    To repeat the second response on this thread: Vague terms whose definition varies by jurisdiction.

    For instance, as per the British Columbia government housebuilding registration site:


    Ditto in Ontario, where my municipal renovator's license counted for bupkis when I wanted to build a new home for sale.

  • PRO
    5 years ago

    In my experience there is a difference between a general contractor and a general contractor.

  • PRO
    5 years ago

    Is electron a negative comment??

  • PRO
    5 years ago

    Watt?

  • 5 years ago

    Some people consider a home builder to design and build a house and a general contractor to only build it. But the more accurate term is design-build contractor.

  • 5 years ago

    The license in MA is for a construction supervisor. For larger projects the only license required is an architect’s license.

  • PRO
    5 years ago

    I only assume in MI most general contractors and home builders have a driver's license.