GC or Handyman: How to Know Which One Your Repair Needs
Your adjuster's estimate doesn't include overhead and profitOverhead & Profit: The 20% Most People Leave on the TableOn my own claim, I didn't know O&P existed until a contractor looked at my estimate and said, 'Where's the O&P line?' That missing line item was wo...
Read more →. You ask why. They say 'this is a handyman job.' But the repair involves plumbing, drywall, flooring, and painting. That's four trades. It's not a handyman job. And without O&P, your estimate is short by 20%.
What a handyman handles
A handyman handles small, single-trade repairs that don't require permits. Painting a room. Replacing a faucet.
Patching a small section of drywall. Installing a light fixture. Replacing baseboard trim.
Handyman rates run $40-$80 per hour, lower than GC rates. For a straightforward repair under $1,000 that involves one skill set, a capable handyman is the right call.
When the job demands a GC
A general contractor coordinates multiple trades, pulls permits, schedules inspections, and takes responsibility for the entire project. A kitchen water damage repair that needs demolition, plumbing, electrical, drywall, flooring, painting, and cabinetry is a GC job. The GC hires and manages each subcontractor, keeps the sequence right, and ensures the final result meets code.
You can't get that from a handyman, no matter how talented.
| Indicator | Handyman | General Contractor |
|---|---|---|
| Number of trades | 1-2 | 3+ |
| Permits required | No | Usually yes |
| Structural work | No | Yes |
| Typical hourly rate | $40-$80 | $75-$150+ |
| O&P in insurance estimate | Not included | Should be included |
| License requirement | Varies by state | Required in most states |
Licensing is not optional
Most states require a contractor license for work above a certain dollar threshold, typically $500-$5,000. Structural, electrical, plumbing, and HVAC work almost always require licensed specialty contractors. Using an unlicensed contractor for work that requires a license can void your insurance coverage for that repair.
It can result in fines. It creates problems when you sell the home. Always verify the license number with your state board.
The O&P connection
Overhead and profit in your insurance estimate exists because the scope requires a general contractor. O&P is typically 20% (10% overhead + 10% profit). If your adjuster excluded O&P because they categorized your repair as a 'handyman job,' count the trades.
Three or more trades means a GC is warranted and O&P should be included. This is one of the most common and most costly items left off insurance estimates. Don't let it slide.
Right-sizing the contractor to the job
Hiring a GC for a single-trade repair wastes money. The insurance company may not approve O&P charges because a GC wasn't necessary. Hiring a handyman for a multi-trade job sacrifices quality, code compliance, and warranty protection.
Look at your estimate, count the trades, and match the contractor to the complexity. It's that straightforward.
Quick-check your estimate
- Count the number of trades in your insurance estimate
- If three or more trades are involved, your estimate should include O&P
- Verify the contractor's license covers the type of work being performed
- Check your state's dollar threshold for requiring a contractor license
- Never use an unlicensed contractor for work that requires a license
- Match the contractor type to the job complexity, not the price
See how this applies to your property
Upload photos of your damage and get a detailed analysis showing exactly where your estimate may fall short.