Builder vs General Contractor Cost Comparison: Who Charges More and Why?
A homeowner comparing bids will often see two very different-looking numbers: a builder's flat per-square-foot price, and a general contractor's percentage on top of costs. Neither number tells the whole story on its own, and knowing why they differ is what actually protects your budget. 01 Builder vs. general contractor: what each title actually means The two terms get used loosely, and plenty of professionals fit both descriptions depending on the job. But the distinction that matters for pricing comes down to scope and specialization. Builder Specializes in new home construction, often production or custom homes, ground-up Manages the entire build under one contract, sometimes including design Owns the trade relationships and material supply chain for the homes they build repeatedly Typically prices the whole build as one package rather than itemized markups General Contractor (GC) Manages construction projects of almost any type: new builds, remodels, additions, commercial ...