Your general contractor is probably the most important person involved in the building of your new house. From hiring subcontractors to obtaining proper building permits, the general construction contractor manages all aspects of the home building process for you.

That’s why it’s critical that you hire the right contractor for your project. Because the contractor has such a hands-on role in building your home, you’ll want to make sure that you find someone who is capable, qualified and trustworthy.

What to Look for in a General Contractor

Before hiring a general building contractor, consider the following:

• Communication: How easy is it to communicate with the contractor? Do you have chemistry with the contractor and do you feel he understands your needs?
• Complaints: If you’re in the US, check with the Better Business Bureau to see if any complaints have been registered against the builder.
• Contract: You’ll want to have a clear contract to avoid conflict and confusion once building begins. Avoid contractors who want to work without a written agreement.
• Financial stability: This can be tricky to verify, but you can contact suppliers to find out about unpaid bills, or contact local banks to check on the contractor’s reputation.
• Insurance: Your contractor needs adequate insurance (including workers compensation and liability), or you risk being held responsible for accidents and damage.
• License: It’s important that any builder you hire has a general contractor license. A fly-by-night contractor may look cheap up front, but will likely end up costing you more in the end.
• Quality: Research the quality of the contractor’s work by speaking to previous clients and looking at other homes the contractor has built. If possible, visit a current job site to evaluate quality of work and safety conditions.

There are a number of ways to find a qualified general contractor, including recommendations from friends and family, referrals from your architect or a real estate agent, and local building associations. Before making a final decision, contact several prospective candidates. You’ll want to conduct interviews and carefully evaluate each contractor’s bid before signing a building contract.

Should You Be Your Own General Construction Contractor?

Some people who are building a new home choose to act as their own general construction contractor. While it may be possible to save money by going the do-it-yourself route, this approach is not for everybody.

Though you may save some money by not hiring a general contractor (about 15 percent of the home’s total cost, according to some estimates), you will likely run into problems if you don’t have experience in construction management. Qualified general contractors have contacts with suppliers and sub-contractors, familiarity with the permitting process and knowledge of local building codes. As a do-it-yourselfer, you probably don’t have those resources. Unless you are interested in devoting a lot of time to negotiating with suppliers and subcontractors, obtaining building permits, overseeing construction and managing other details of the construction project, you’re likely better off hiring a professional.