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How much does residential construction cost?

The average cost to hire a construction worker is $50 to $100 per hour for a general contractor and $50 to $80 per hour for a handyman, plus materials. However, most general contractors charge 10% to 20% of the total construction cost.

• A typical bathroom remodel costs $5,000 to $15,000.
• An average kitchen remodel costs $12,800 to $21,200.
• Adding a new bathroom costs $18,000 to $47,000 for a new addition and $2,500 to $12,500 to remodel an existing space.
• Building a garage costs $7,500 to $42,000.
• The average cost to build a home addition is $22,500 to $74,000.
• A complete house remodeling costs $20,000 to $73,000 for a 3-bedroom home.
• The average cost to build a house is $155,000 to $416,000, while a modular home costs $120,000 to $270,000.
• Finishing a basement costs $22,000 to $46,000.

What do construction companies do?

Construction companies work on remodeling, additions, and new construction. Construction project managers and general contractors manage and coordinate the entire building process, including estimating the job, providing the materials and tools, and hiring subcontractors for the construction work.

How do I find out if a contractor is licensed?

Always ask for licensing and insurance documentation before hiring a contractor. Several websites, such as BRB Publications, Inc.’s database, have links to verify licensing information in every state.

The database for each state indicates the field contractors are licensed to work in, if there are any consumer complaints issued against them, and if their insurance, workers’ compensation, and bonds are up to date. Contractors without employees are not required to carry workers’ compensation.

What are the stages of a construction project?

The main stages of a construction project are:

1. Project concept – Planning the project's location, specifications, and standards.
2. Design – An architect or engineer leads designing, including programming and feasibility, schematic design, design development, and contract documents.
3. Pre-construction – The construction company hired forms a team and assigns a project manager.
4. Procurement – The team orders and obtains materials, equipment, and subcontractors or laborers.
5. Construction – After final planning and organization, the construction begins.
6. Post-construction – The project is finished, is now under warranty, and undergoes an inspection before finalizing the contract.

Do you tip construction workers?

Construction workers bill by the hour or project, so tipping is not expected or required. However, if the contractors exceed your expectations or spend more time than expected, a cold drink, meal, or $10 to $20 tip is appreciated.

How to find local construction companies?

Hiring a small or large construction company requires planning accordingly, asking questions, and learning their work process. To hire the best:

• Get at least three in-person estimates to compare.
• Ask for recommendations from family, friends, and neighbors.
• Verify their insurance, worker’s compensation, and bond guarantees.
• Read reviews and check out their previous work on HomeGuide, Google, and the Better Business Bureau (BBB).
• Pick specialized contractors over general ones if it’s a specific project.
• Consider hiring a general contractor to manage large projects.
• Ask about their warranties and guarantees.
• Ask for a full itemized contract in writing in case of a dispute.
• Avoid making large payments upfront. Come up with a payment schedule for work completed.

What questions should I ask construction companies before hiring?

When looking to hire home construction companies near you, ask them the following questions:

• How long have you been in business?
• How many similar projects have you built?
• Can you provide me with a list of references?
• Can I see a portfolio of your past construction jobs?
• Are you licensed, insured, and bonded?
• Have there been any lawsuits against your company?
• How do you handle damages that happen on the job?
• Who's the project manager, and will you use subcontractors?
• What qualities do you look for in subcontractors?
• What hours do you and your crew work?
• How long will the project take?
• What permits do I need, and will you obtain them?
• What does your warranty policy include?
• Can you provide me a written estimate or contract with a breakdown of all costs?
• What’s your payment schedule?
• Do you offer in-house financing?
• What do I need to provide to get started?