General Contractor vs. Handyman: What is the Difference?

Picture this: Saturday morning, coffee in hand, you stare at the dripping faucet that morphed overnight into a small but annoying geyser. You also know the outdated kitchen must be gutted this winter if you ever want to host the holidays. Two different tasks, two different-sized headaches, and, most importantly, possibly two different professionals. Understanding when to call a handyman and when to bring in a licensed general contractor is not a matter of ego or tradition; it is about budget, liability, permits, and, ultimately, peace of mind.

This guide strips away the marketing jargon and tackles the real-world choices homeowners, property managers, and DIY fans wrestle with every month. We will explore definitions, licensing, scope, costs, insurance risks, and practical hiring checklists. By the end, you will confidently know whether your next project demands a full-blown general contractor or simply a skilled handyman.

Handyman vs Contractor: Basic Definitions

Before comparing apples to oranges, or drywall to structural steel, we need crisp definitions.

What is a handyman? Typical jobs and limits

A handyman (or handywoman) is a multi-skilled tradesperson who tackles small-scale repair and maintenance work. Think leaky faucets, drywall patching, minor tile replacement, door rehanging, caulk touch-ups, and installing new light fixtures that do not require rewiring the panel. In most U.S. states, handymen can work on tasks below a certain dollar threshold (for example, $500 in California (increased to $1,000 in January 2025) or $1,000 in Arizona) without holding a contractor license. They generally:

• Operate as sole proprietors or very small businesses.
• Charge hourly or flat “small-job” rates.
• Provide quick, single-visit solutions rather than extended timelines.

Limits matter. A handyman typically cannot pull permits, reroute plumbing, upgrade service panels, remove load-bearing walls, or subcontract specialized trades. The line is often legal: once a task demands a building permit or crosses the state’s monetary ceiling, the handyman must step back.

What is a general contractor? Role and responsibilities

A licensed general contractor (GC) is the orchestra conductor of larger construction or remodel work. Holding a state-issued contractor license, a GC can:

• Obtain building or trade permits and schedule inspections.
• Hire, coordinate, and pay subcontractors – plumbers, electricians, and framers – through formal bid packages.
• Manage the full project timeline, budget tracking, and code compliance.

Assume liability and carry general insurance plus workers’ compensation for employees.

A GC’s scope scales from kitchen overhauls to additions, full gut-rehabs, and new builds. They translate design plans into reality, manage supply chains, and mitigate schedule shocks caused by weather or materials shortages. In short, they legally own the project’s success or failure.

General Contractor vs Handyman: Key Differences

Before diving into licensing or timelines, it helps to picture how the two business models operate day to day. A licensed general contractor runs a miniature construction firm: project managers build budgets, field superintendents juggle schedules, and trade partners submit competitive bids. In contrast, a handyman business is usually one craft-savvy owner with a van and a phone, thriving on quick-turn service calls. Because a GC must defend a brand and a license, you’ll notice more paperwork – scope sheets, lien releases, and formal change-order logs – while a handyman leans on text messages and same-day invoices. 

Oversight also differs: city inspectors and building departments routinely audit contractor records, whereas a handyman’s work is rarely scrutinized unless something fails. Finally, risk allocation flips. A GC buys robust general-liability coverage and, by contract, absorbs a larger share of on-site danger. A handyman’s lighter insurance means the homeowner tacitly carries more exposure if a task unexpectedly becomes complex.

Licensing, permits, and legal requirements

Licensing forms the backbone of the general contractor vs handyman divide. While every state writes its own rules, most follow the same principles:

• Handyman. No state license for “incidental” work under the dollar cap. Local business registration and a basic liability policy may suffice. Specialized trades – electrical, HVAC, and plumbing – are almost always off-limits without a trade license.
• General Contractor. Must pass trade and business-law exams, prove experience, carry surety bonds, and maintain general liability and workers’ comp coverage. They are legally empowered to pull permits and schedule inspections.

If your job requires a permit, such as structural changes, new circuits, or roof replacement, the law almost certainly demands a contractor. Attempting to sidestep that requirement can void homeowner’s insurance and trigger fines when you sell the property.

Scope of work: small repairs vs full projects

Handyman work is intentionally narrow: one trade, one location, one day. The GC’s world is integrated – demolition, framing, rough-ins, finishes – often running for weeks or months. Overlapping trades introduce coordination risk that the handyman model cannot absorb. A useful rule of thumb: If the task list affects more than two systems of the house (framing, plumbing, electrical, HVAC), pick a contractor.

Project size, budget, and timelines

Handyman gigs rarely exceed $3,000 and often wrap in a few hours. GCs frequently manage six-figure budgets and four-month schedules. Because they plan long timelines, contractors create detailed written scopes, draw schedules (Gantt charts), and predict change-order buffers. The handyman’s simplicity keeps overhead low, and many even streamline operations using handyman software to track appointments, clients, and small-scale project costs.

When to Hire a Handyman vs a General Contractor

Choosing who to call should start with a checklist rather than a gut feeling. Ask yourself three questions: Will the job disturb structural elements? Does the municipality require a permit? Will more than one licensed trade appear on-site? If you answer “yes” to any, the contractor vs handyman decision tilts toward a GC; otherwise, a handyman usually suffices and can be on your doorstep faster. Keep in mind that urgency matters too – if the ice maker leaks on a holiday weekend, availability may trump title.

Common projects for a handyman

If speed and simplicity trump design evolution, a handyman is gold. Typical calls include:

• Replacing a garbage disposal.
• Installing baseboard after new flooring.
• Repairing a sagging fence gate.
• Swapping outdated light fixtures (same wiring).
• Patching small holes after a DIY TV mount gone wrong.

These tasks do not touch structural elements, rarely exceed one business day, and fall below permit thresholds. You want someone with versatile expertise, a compact tool kit, and a van full of fasteners – exactly what a handyman offers.

Common projects for a general contractor

Need to knock down the dining room wall, relocate plumbing, and install an island range hood? Call a GC. Typical GC engagements:

• Whole-bath remodel involving waterproofing, new circuits, and tile.
• Basement finishing requires egress windows and insulation code compliance.
• Second-story additions or structural deck replacements.
• Kitchen overhauls with new gas lines, cabinetry, and hardwood floors.

These jobs create permits, various trade bids, and entire project management. A GC bears responsibility and liability, which a single handyman cannot legally or practically bear.

Cost Comparison: Handyman vs General Contractor

Sticker shock is one of the reasons most homeowners are not very quick to hire a GC but raw hourly rates are not the whole story. In 2025, the national median handyman rate was $85 per hour, while general contractors bill the equivalent of $150-$200 when overhead and profit are factored in, according to HomeAdvisor’s True Cost Guide. On paper, that gap looks dramatic, but the numbers normalize when you consider cost drivers a GC absorbs – permit fees, insurance premiums, coordination time, and supplier markups that can actually lower material costs. 

A handyman’s lean model wins on “single-trade, single-visit” tasks where mobilization and compliance overhead would inflate a GC quote. Conversely, once a project crosses roughly $3,000 or involves three or more trades, the layered labor of self-coordinating often eclipses a contractor’s bundled price. The bottom line: weigh total project cost, including your own time, rather than comparing headline hourly rates.

How pricing usually works for handymen

Handymen charge hourly rates – $50 to $125 is common in 2025, depending on the metro area. Some offer half-day or full-day blocks at a discount. Materials are either homeowner-supplied or invoiced at cost plus a small markup. An emailed estimate may be informal but should reference the state’s limit and exclude permit fees (because none are required). Small, unlicensed operations have lower overhead, which flows to the homeowner in the form of lower bills.

How pricing usually works for contractors

General contractors produce line-item bids. You’ll see:

• Labor for each trade.
• Material allowances.
• Permit fees.
• Overhead and profit (10-25 percent industry average).
• Contingency line for surprises.

Gaps or unclear “TBD” labels become expensive later, so read carefully. Because contractors carry insurance and bonds, their hourly burdened rate is higher. Yet economies of scale mean they often get trade discounts on lumber or fixtures that offset part of the markup. For multi-phase jobs, a GC is the only legal pathway to a permitted build, so direct cost comparisons can be misleading; you’re buying project leadership and risk management, not just labor.

Insurance, Liability, and Risk

Insurance is the invisible safety net that most homeowners only notice after a mishap. A licensed GC carries both general liability (typically $1-$2 million) and workers’ compensation for employees, meaning injuries, property damage, or code violations are handled by the contractor’s policy, not yours. 

Many handymen also buy liability insurance, but coverage amounts vary wildly, and almost none carry workers’ comp if they’re solo operators. If the handyman vs contractor brings in a buddy as a day laborer and that helper falls through your attic, you could be named in a lawsuit. 

Another wrinkle is manufacturer warranty protection – new roofing or window systems frequently stipulate that installation must be performed by a licensed pro or the guarantee is void. In short, the insurance conversation is not paperwork theater; it is a financial firewall that keeps a $500 repair from ballooning into a five-figure claim.

Why insurance matters when choosing between handyman and contractor

Home repair is dusty and occasionally dangerous. If a handyman falls off your ladder and lacks workers’ compensation, your homeowner’s policy may absorb the claim. Likewise, faulty wiring that triggers a fire six months later becomes your problem if no licensed electrician pulled a permit. A general contractor’s umbrella policy and surety bond shield you from such headaches. This is not hypothetical: Many insurance carriers now ask for permit numbers on large claims, and municipalities increasingly spot-check unpermitted additions via aerial imagery.

Ask for certificates of insurance naming you as an additional insured, and verify license numbers against the state database – most offer simple online lookups updated in 2025.

How to Choose the Right Pro for Your Project

Decision-making should be as methodical as the construction process itself. Start by mapping the scope on a single sheet of paper, then invite at least three candidates—whether handyman vs contractor – to walk the site. Evaluate communication style first; shoddy email habits often foreshadow schedule chaos. 

Next, verify the license or business registration number, check that the company name on the insurance certificate matches the proposal, and insist on written estimates with start and finish dates. Pay attention to capacity signals: a reputable GC can speak to current workload and assign a project manager, while an overbooked handyman vs contractor may promise next-day service yet slide you down the queue repeatedly. 

Finally, trust but verify – call past clients, browse permitting databases for closed projects, and Google any litigation history. A morning of homework can save months of frustration and thousands of dollars.

Questions to ask a handyman or general contractor before hiring

Walking into an interview armed with the right questions saves time:

• “What is your state license classification and number?” (GC) or “Do you ever operate above the handyman limit?”
• “Will this job require a permit, and if so, who is responsible for securing it?”
• “Can you provide proof of general liability and, if you use helpers, workers’ compensation?”
• “How do you structure your estimate – hourly, not-to-exceed, or fixed price?”
• “What is the projected timeline, and how do you handle schedule slips?”
• “How many similar projects have you completed in the past 12 months?”
• “Will you personally perform the work, or will subcontractors? If subs, who coordinates inspections?”
• “What payment schedule do you require? Do you accept credit cards or escrowed draws?”

A reputable pro handyman or contractor answers without hesitation, provides references, and supplies clean, itemized paperwork. Run, do not walk, from vague responses or pressure to pay cash up front.

Summary: Handyman vs Contractor – Which One Do You Need?

When the task is bite-sized, contained, and below your state’s licensing cap, a handyman is both economical and efficient. If the job touches structural walls, multiple building systems, or local code compliance, a licensed general contractor is non-negotiable. Balancing budget against risk is the formula: pay less and accept more personal liability, or invest in a GC who manages the entire project and bears that liability for you. Knowing the difference keeps your house safe, your wallet intact, and your future resale smooth.

FAQ

Is it cheaper to hire a handyman or a contractor?

Normally, yes – it is cheaper to engage a handyman to do minor repairs, as he/she has a lower overhead. Nevertheless, a job that has more than one trade or permission can still have a higher charge by a contractor, as it would avoid an expensive violation of code requirements and rework.

Do I need a contractor if my project requires permits?

Absolutely. Most municipalities will issue building permits only to licensed contractors or registered homeowners acting as owner-builders. If you opt for the latter, you personally assume all code, inspection, and liability responsibilities.

Can a handyman do the same work as a general contractor?

Legally and practically, the answer is no. A handyman can overlap on simple tasks, installing trim and hanging cabinets, but cannot manage structural changes, hire subcontractors under one umbrella, or pull mandatory permits. Attempting to blur that line can void warranties and create insurance nightmares.