Get Quotes from Top General Contractor in Philadelphia, PA

Are You Licensed to Practice as a General Contractor in Philadelphia?

Per Section 9-1004 of The Philadelphia Code, individuals and businesses that wish to perform any construction-related activities within Philadelphia must be licensed as contractors by the city's Department of Licenses and Inspections. Parties that fail to complete this licensing process before offering their services as general contractors to residents of the city are considered guilty of committing a Class II offense. This carries a statutory penalty of up to $1,000 in fines per violation. Note that violators may also receive administrative penalties imposed by the Department of Licenses and Inspections.

Contractor licensing with the Philadelphia Department of Licenses and Inspections can be initiated online via the city's eCLIPSE system. Note that the registration of a user account will be required for this. Alternatively, contractor license applications can be made in person at the department's office located at:

Parties wishing to utilize the in-person option must schedule an appointment with the department before visiting its office location. License applicants will also have to comply with certain requirements before they can be issued the requested contractor licenses. These requirements include:

• Providing proof of compliance with local tax obligations in the form of a valid Business Income and Receipts Tax ID (BIRT)
• Obtaining a city-issued commercial activity license (this is typically issued at no cost)
• Completing an Application for Contractor License Form
• Providing proof of adequate insurance coverage
• Completing mandatory safety training courses
• Paying all stipulated licensing fees

Once licensed, these contractors are expected to follow the Department of Licensing and Inspections' Contractor Code of Conduct during their operations.

Note that general contractors in Philadelphia who perform home improvement services worth more than $500 on existing residential buildings are also statutorily required to register as home improvement contractors annually with the Pennsylvania Attorney General's Office. However, general contractors for whom the total cash value of home improvement services that they offer during the previous taxable year is less than $5,000 may be exempted from this registration requirement.

The state-level contractor registration process can be completed online or by mailing a Home Improvement Contractor Registration Application Form to:

Note that these registrants will be required to pay a non-refundable registration fee and provide proof of adequate insurance and any additional documentation that the Pennsylvania Attorney General's Office may request at the time of the registration.

You can contact the Philadelphia Department of Licenses and Inspections online or via phone at 311 for callers within the city and (215) 686-8686 for callers outside Philadelphia to get information on its licensing requirements and procedures for general contractors. Likewise, inquiries related specifically to state-mandated registration for contractors that provide home improvement services can be directed to the Pennsylvania Attorney General's Office at (717) 772-2425.

Finally, you can confirm that your intended Philadelphia general contractor possesses a valid contractor license by utilizing the Department of Licenses and Inspections' Contractor Lookup portal. Doing this before finalizing any hiring agreements with the contractor is always in your best interest.

How Much Do You Charge Compared to Other General Contractors in the City?

The amount of money that you will be charged by general contractors in Philadelphia is usually dependent on several factors, such as:

• The type of project you plan to undertake
• The nature and scope of this project
• Your location within the city
• Accessibility to the work site
• Site conditions
• The type and cost of materials and supplies needed to be used for the project
• Permit costs
• Labor costs
• The urgency of the project
• The quality of prepared construction and design plans and drawings

While some general contractors in the city may charge hourly rates, many of them utilize a percentage fee structure that involves charging an average of 10 – 20 percent of the project's overall cost. Under this fee structure, the general contractor may calculate their charges via one of the following pricing models:

• Fixed bid/Lump sum pricing: with this pricing model, the general contractor presents a fixed price that is intended to cover the total cost of labor and materials for the project from its commencement to completion. An advantage of this pricing model is that it allows the consumer to have a clear idea of the project's expected cost upfront and helps prevent conflicts between them and the contractor by eliminating unnecessary or unexpected price changes during the execution of the project. Note that general contractors usually include a markup when estimating the costs of labor and materials under this price model to cushion any unforeseen circumstances.
• Time and materials/Cost-plus pricing: under this price model, the general contractor provides an estimate of the total cost of materials required for the project and then sets an hourly rate for the labor needed to execute the job. This pricing model is typically preferable for projects that do not have a definite timeline, as it can help the consumer save costs if the project is concluded earlier than estimated. On the flip side, consumers will also incur additional costs if the project hits any snags or delays during its execution.

You should always get and compare bids and quotes for your building or home remodeling project from at least three different general contractors in the city before settling on any one contractor to handle your project. This is an effective way to avoid being scammed by dishonest contractors. Bear in mind that no two quotes can be the same, so it is always a good idea to ensure that the project details you give each contractor are as similar as possible to enable you to compare their bids properly. Note that costs should not be the deciding factor for your choice of general contractor, and you should never automatically hire the contractor with the lowest bid. Ask them why their prices are lower than the other quotes, and also look out for other qualifying criteria like the contractor's licensing and insurance status, local reputation, and level of experience.

General Contractors in Philadelphia earn an estimated annual average wage of $86,380. The list below compares the average hourly wage of these contractors with those of general contractors in other parts of Pennsylvania and other locations across the United States:

What Kind of General Contractor Services Do You Offer?

General contractors in Philadelphia typically supervise and manage building and remodeling projects in the city. However, the specific nature and scope of services that these contractors offer usually varies by contractor, client, and project. Nonetheless, when you retain the services of a professional general contractor in the city, you can expect them to provide the following key services:

• Creating and managing a project schedule
• Coming up with cost estimates for the project
• Organizing and managing the project site
• Hiring subcontractors and providing necessary labor for the project
• Coordinating material suppliers and vendors
• Pulling all required permits for the project
• Making arrangements for necessary equipment
• Ensuring that relevant construction codes, regulations, and safety standards are upheld
• Overseeing cash flow, worker payments, scheduling, and other administrative aspects of the project
• Keeping proper records of the project-related activities
• Ensuring that quality services are provided on time
• Assisting with actual labor and clean-up where necessary

Nevertheless, you should always verify the types of services that your general contractor is equipped to offer and agree on the nature and scope of these services before signing any contracts with them. You should also make sure that the general contractor specifies which aspects or portions of the job will be subcontracted. Subcontractors are usually hired to work on portions of building or remodeling projects that require a specialized skillset. These include:

• Electrical work
• Plumbing
• HVAC installation
• Demolition
• Woodwork

Oftentimes, these subcontracted works require additional licensing that the general contractors and workers on their crew may not possess, necessitating the need to hire subcontractors. Note that it is possible to handle the hiring of subcontractors yourself. However, it is advisable always to leave this to your general contractor, as they usually have better access to experienced subcontractors. Doing this also reduces your financial and legal liability if something goes wrong during the project.

The following are some significant differences between general contractors and subcontractors who work on building and remodeling projects:

Will You Get the Necessary Permits as Required per the City Code?

Per the provisions of the Philadelphia Building Construction and Occupancy Code, a permit must be obtained for the construction, alteration, modification, and change of use of buildings and structures in Philadelphia, as well as any plumbing, electrical, or mechanical systems in these buildings. Individuals who fail to comply with the permitting requirements laid forth in this code can receive fines of up to $2,000 per offense. Note that permit exemptions may be made for certain types of building and remodeling activities, such as:

• Constructing one-story detached accessory structures for one and two-family dwellings, provided that the floor area of these structures does not exceed 200 square feet.
• Constructing masonry fence walls that are not more than two feet high and non-masonry fences that are not more than six feet high
• Painting, papering, and similar wall and ceiling finishes that do not exceed a thickness of 0.036 inches
• Removing electrical wiring for the total demolition of a structure
• Installing low-voltage wiring in one and two-family dwellings
• Installing cabinets, countertops, and other similar finish work
• Installing carpeting and similar floor coverings, provided that this is not done in exit access corridors, exit passageways, or vertical exits

Permits for building and remodeling activities in Philadelphia are issued by the city's Department of Licenses and Inspections, and making sure that all required permits for your project are obtained before any work commences

• Helps you avoid city-imposed sanctions
• Protects your property's value
• Ensures public safety, health, and welfare
• Makes it easier to sell your property
• Saves you money on insurance
• Limits your exposure to avoidable liabilities

The Philadelphia Department of Licenses and Inspections issues three main types of permits, namely:

• EZ permits: these types of permits are issued for building and remodeling activities that do not require the submission of project plans. These commonly include non-structural interior remodeling in residential buildings, construction of residential decks, and electrical, plumbing, mechanical, and fire suppression trade work.
• Zoning permits: zoning permits refer to approvals that are typically required before the commencement of most building and remodeling activities in Philadelphia. However, these permits will not be required for remodeling work that does not alter the existing structure's area, height, floor area, and current legal use.
• Combination permits: combination permits are typically issued to applicants who wish to streamline the permit application process by allowing them to include trade work along with their building permit application. These permits are mandatory for all new one- and two-family residence constructions but optional for other building and remodeling activities.

Applications for any of these aforementioned permit types can be submitted to the Philadelphia Department of Licensing and Inspections online via the city's eCLIPSE platform. Alternatively, these permits can also be obtained by completing and submitting an Application for Construction Permit Form in person at the department's office located at:

Note that in-person applicants have to schedule an appointment with the department before visiting its permit and license center. Also, the payment of fees and the submission of project plans, pre-approvals, and other relevant forms and documents may be required before the requested permits are issued. The nature of these additional forms and documents that may be required is largely dependent on the specific type and scope of the project in question.

Finally, once the permit application has been submitted, reviewed, and approved, and the requested permits have been issued, permit applicants are expected to schedule inspections for their permitted building and remodeling projects. The required inspections are usually determined during the permit review process and will be communicated to the permit applicant when they obtain their permits. Inspection scheduling can be done online via the eCLIPSE platform or by reaching out to the department via phone number (215) 255-4040.

You can also contact the Department of Licenses and Inspections online or via phone numbers 311 and (215) 686-8686 for callers within and outside Philadelphia, respectively, to inquire about its permitting and inspection process for building and remodeling projects in the city.

Do You Work with Subcontractors?

General contractors in Philadelphia usually have to hire subcontractors on projects that they oversee and manage for different reasons, such as:

• To increase their job productivity and flexibility
• To provide specialized tasks that they are not licensed, equipped, or skilled enough to provide
• To get assistance on diverse, large, or complex projects
• To increase cost efficiency

Some subcontractors that general contractors in the city typically hire for building and remodeling projects include:

• Plumbers
• Electricians
• Demolition experts
• Welders
• Roofers
• Carpenters
• Door and window installers
• HVAC contractors
• Painters
• Insulation installers
• Flooring installers

Philadelphia contractors are typically required to inform the city's Department of Licenses and Inspections of every subcontractor that will be working under permits that they obtain no later than three days after this work commences. It is also a good idea to ensure that your general contractor equally informs you of these subcontractors, preferably before they commence any work. Doing this helps you stay informed on parties involved in your project and also helps you avoid problems and liabilities arising from disputes over matters like shoddy service delivery and late payments. Per the Pennsylvania Contractor and Subcontractor Payment Act, project owners and general contractors involved in building and remodeling activities in Philadelphia have to comply with certain payment obligations, which include:

• Project owners must settle all outstanding payment invoices from their general contractors no later than 20 days after the stipulated billing period in their contracts or 20 days after receiving the invoice, whichever is later.
• General contractors must disclose all due dates for payment to subcontractors, and they must pay these subcontractors when due, regardless of whether or not they have received a payment from the project owner.
• General contractors must pay subcontractors no later than 14 days after reaching each agreed-upon milestone, receiving the final payment from the project owner, or receiving the subcontractor's payment invoice, whichever is later.

Note that the provisions of this act do not apply to residential projects of six units or less. However, the state's Mechanics Lien Law allows unpaid subcontractors and materials suppliers who are directly involved in your project to place liens on your property, regardless of the nature and scope of the project. To avoid the time and stress of dealing with these types of situations, you should always take the following actions before and during your building or remodeling project:

• Proper research and due diligence: do a thorough check on any general contractor that you plan to hire and ensure that they are properly licensed and also have a reputation for paying workers, subcontractors, and suppliers on time
• Preliminary notices: make sure that your general contractor informs you of every subcontractor and materials supplier that will be directly involved in your project and the nature of the services that they will be providing
• Timely settlements: make sure that all necessary payments are made to the general contractor when due
• Written contracts: always get a written contract for your project that includes any agreements reached between you and the general contractor
• Lien waivers: insist on a lien waiver for every payment that is made. This prevents dishonest subcontractors and material suppliers from placing liens on your property.
• Contractor bonds: insist on your general contractor securing a payment bond before commencing the project. This way, claims can be filed against this bond if the contractor fails to pay subcontractors and material suppliers on time.

Do You Carry the Necessary Insurance Policy for General Contractors in the City?

Your intended contractor's insurance status is a crucial criterion to consider when searching for qualified general contractors in Philadelphia. Construction-related deaths accounted for more than 20 percent of the fatal occupational fatalities that were recorded across Pennsylvania in 2020. Workers in this industry face a wide range of on-the-job safety hazards, such as:

• Falls from heights
• Exposure to extreme weather conditions
• Electrocutions
• Injuries from falling, flying, swinging, and slipping objects
• Cuts, tears, and lacerations
• Exposure to loud noises, toxic chemicals, and harmful airborne fibers and materials
• Awkward working positions

To this end, the Philadelphia Department of Licenses and Inspections mandates all general contractors that operate in the city to carry the following types of insurance:

• General liability insurance of at least $500,000 per occurrence
• Automobile liability insurance of at least $300,000
• Workers' compensation insurance of at least $100,000 per accident, $100,000 per employee, and a $500,000 policy limit

Hiring a general contractor that does not comply with these insurance requirements makes you liable for injuries, property damage, or other unforeseen adverse events that may occur as a direct result of your project.

As such, always verify your intended general contractor's insurance status before finalizing hiring arrangements with them by requesting a copy of their insurance certificate and authenticating it with the appropriate insurance provider. Make sure that the general contractor's insurance coverage will be adequate for the scope of your project and that this insurance covers all laborers and subcontractors that the contractor hires for the project. You should also consider checking if the contractor carries professional liability insurance, which typically covers contractor-caused errors and defects.

You can reach out to the Department of Licenses and Inspections at either 311 for local callers or (215) 686-8686 for callers outside the city to get more information on the mandatory insurance requirements for Philadelphia general contractors.

Do You Provide a Warranty for Works Completed?

Warranties are guarantees made to consumers that the products and services they pay for will function as expected. General contractors typically provide two main types of warranties, namely:

• Explicit warranties: explicit warranties are usually provided in writing and are typically included in the project proposal or contract
• Implied warranties: implied warranties are not expressed in writing but are nonetheless recognized by law and are typically included in every type of building and remodeling project, whether or not a written warranty is eventually provided

These warranties can be broken down into several sub-categories, such as:

• Call-back warranties: these warranties give project owners a set amount of time during which the contractor will be obligated to fix any part of their project that was not done correctly
• Material and equipment warranties: these warranties guarantee that new and defect-free items are used for the project and that these items will perform as required
• Vendor warranties: vendor warranties are commonly issued by the manufacturers or sellers of appliances and other similar products used for the project
• Warranty of habitability: these types of warranties are commonly issued for residential projects and they guarantee that the completed structure can be safely occupied and is appropriate for its intended purpose
• Workmanship warranties: these warranties guarantee that all subcontractors and workers involved in the project performed their work optimally
• Design-build warranties: these warranties generally cover services provided by design professionals like architects and engineers that are involved in the project

It is crucial to confirm the kinds of warranties that will be provided for the project when making hiring arrangements with general contractors. There are currently no local or state laws mandating areas of coverage for new construction warranties in Philadelphia or a time frame for covered areas in any provided warranties. Nevertheless, builder and remodeling warranties offered in the city typically provide the following coverage:

• Workmanship and materials on finishes like siding, paint, drywall, stucco, doors, windows, and trim for up to one year
• HVAC, plumbing, and electrical systems for up to two years
• Major structural defects for up to 10 years

Note that you should always find out the specific scope of coverage that your warranties provide as well as their terms and conditions so that you do not void them. Also, per Title 42, Section 5536 of the Pennsylvania Consolidated Statutes, any actions for a breach of warranty for construction-related projects must be filed no later than 12 years after the project was substantially completed. However, this timeframe may be extended by two years if an injury resulting from this breach of warranty occurs between the 10th and 12th years after the project's completion.

Can You Provide References of Clients Served in Philadelphia?

It is common to get recommendations for general contractors in Philadelphia by asking friends and family that have undertaken similar projects, searching online, or reaching out to reputable associations and organizations like:

• The General Contractors Association of Pennsylvania
• The Building Industry Association of Philadelphia
• The General Building Contractors Association
• The National Association of Home Builders
• The National Association of Minority Contractors – Philadelphia Chapter

However, before signing contracts with any general contractors that are recommended or referred to you, always ask them to provide you with references of past clients that they have worked with. This is an effective way to evaluate the general contractor's legitimacy and professionalism. Contact these references to get their reviews and testimonials on the general contractor's services and consider it a red flag if a general contractor is hesitant to provide you with references or cannot offer up to three local verifiable references.

You can also look up reviews and testimonials on the contractor via websites like Yelp, the Better Business Bureau, and Google Review. Likewise, you can peruse the Philadelphia Department of Licenses and Inspections' Revocations and Current Suspensions webpage or contact the Pennsylvania Attorney General's Office to find out the contractor's complaint history, if any.

What Is the Expected Timeline for This Project?

An advantage of hiring a professional general contractor to manage and supervise your building or remodeling projects in Philadelphia is that these professionals can help you come up with a proper timeline for the project's completion. Note that several factors typically affect building and remodeling project timelines, such as:

• The nature and scope of the intended project
• Weather conditions
• Availability of resources like money, materials, workers, and subcontractors
• Permits, inspections, and other regulatory requirements
• Changes to the original project scope or plan

Having a proper timeline for your project allows you to plan for upcoming events like birthdays, weddings, visits from friends and family, relocation, and retirements, and also affords you several other benefits, like:

• Better progress monitoring
• Proper task allocation and execution
• Increased work efficiency
• Better cost control
• Improved communication
• Reduced misunderstandings
• Fewer project delays