Handyman vs General Contractor: Why does it matter?

Are you starting your next home improvement project soon? Is it small like replacing a kitchen sink or larger project such as replacing all your home’s siding? It’s important to hire the right professional for the job. Jobs like these require a handyman or a general contractor. It’s important to review these professionals and check their credentials. I am going to answer:

1. Why you should care about professional credentials for your projects?

2. What are the licensure requirements for a handyman and a general contractor in Idaho, Washington and Oregon?

3. What are the differences between a handyman and a general contractor?

4. What are the similarities between a handyman and a general contractor?

5. When should you hire a handyman versus a general contractor?

When we first started our handyman journey, we did a lot of research on Idaho and Washington’s requirements to become a properly licensed, bonded and insured handyman and general contractor business. (Yes, we take on both types of work.) We quickly found that each state has different requirements and limitations for handyman and general contractors. 

Why should you care about their credentials? 

Insurance

You need to care about your handyman or general contractors credentials for the same reason you care if somebody has car insurance. If something goes wrong during a project, you want to know your home is covered in case of incidentals. A common insurance claim is water damage such as forgetting to double check that all faucets or spigots are turned off when turning the water back on in a house. Working with licensed, bonded and insured professionals would cover damage like this. It would also give you peace of mind during the project.  

Project-Size Limitations

Each state has different legal requirements for a handyman. In some states, handymen are severely limited on the size of jobs they can complete. This also means they can carry less insurance. Less insurance means that there is less coverage on your projects. In other states, there is no legal difference between a handyman and a general contractor. This also means they must carry higher insurance coverage which is good for you as the homeowner. 

Licensure Requirements

Since each state has such varied requirements, this article is going to focus on the tri-state area including Idaho, Washington and Oregon. These three states have a number of cities that sit on both sides of the stateline; thus, many contractors can work in both states if they are properly licensed.  

• Spokane Valley, WA neighbors Post Falls and Coeur d'Alene, ID 

• Pullman, WA is next to Moscow, ID

• Clarkston, WA  is across the river from Lewiston, ID

• Ontario, OR is a short distance from the Boise, ID metropolitan area. 

Idaho

In Idaho, a handyman is licensed as a general contractor. They are required to show general liability insurance and worker’s compensation insurance (if they have employees). There is no contractors exam. All they have to do is fill out the application and file it for $35. 

Idaho Division of Occupational and Professional Licenses

Idaho - General Contractors License Guide

Washington

In Washington contractors have two options.

OPTION 1:  They can specialize as a handyman

1. They have limitations on the type of work they can do including

1.  No employees

2.  Limited to residential repairs and maintenance

3.  The cost of the job cannot exceed $2,000 including labor and materials

4.  They cannot handle tasks that require building permits

OPTION 2:  They can register as a general contractor which has less limitations: 

1. Can perform any work that involves any specialization (excluding HVAC, plumbing and electrical)

2. Can hire subcontractors

3. Can handle both residential and commercial work

4. There is no limit on the size of jobs 

Contractors are required to have a surety bond and general liability. If they have employees, they also need workers’ compensation insurance. 

Washington Department of Labor & Industries

Washington - General Contractors License Guide

Oregon

In Oregon, a handyman is a contractor. All contractors are required to take a 16-hour pre-license training (additional cost) and take (and pass!) the exam. The exam has 80 multiple choice questions. They have 3 hours to complete the exam and the cost is $60. 

Contractors are required to have a surety bond and general liability. If they have employees, they also need workers’ compensation insurance. 

Oregon - Oregon Construction Contractors Board

Oregon - General Contractors License Guide

Other States

If you want to learn about another state outside of the scope of this article I would highly suggest Handyman License Requirements State By State by General Contractor License Guide.

What are the main differences between a handyman and a general contractor? 

Expectations

The biggest difference between a handyman and a general contractor is the expectations outlined by their title. 

General contractors are associated with in-house crews, hiring subcontractors in certified trades, and handling larger remodel projects. General contractors have more equipment and on-hand tools to get the job done. 

Handymen are generally hired for smaller (1-2 day) projects including maintenance and small renovation jobs. They are a great person to hire when emergencies arise to help mitigate property damage. Handymen tend to have smaller crews or are one person. They may not be equipped or have a desire to take on larger or specialty projects. 

Misconception about Handymen

While researching for this article, there was a common misnomer that a handyman may be less skilled or qualified than a general contractor or may not carry insurance. In many states, licensure, insurance and certifications are the same. Thus, the biggest difference is the scope of work a handyman wants to complete compared to a general contractor. 

The term handyman can also be used to describe a “handy”-person. It’s important to know the distinction between a friend who is mechanically inclined and a professional. 

What are the similarities between a handyman and a general contractor?

Both a handyman and general contractor

1. Require business licensing, insurance and bonding.

2. Can be (and should be) skilled professionals. 

3. Requires a General Contractor License or specialty handyman license (Washington specific option).

4. Can hire subcontractors (excluding speciality handyman licensure in Washington). 

5. Neither can complete HVAC, Plumbing and Electrical work. 

Neither handyman nor general contractors can work on electrical, plumbing or HVAC systems. They can change light fixtures and replace outlet plugs, but they cannot run new electrical to wire in new lights and outlets. They can fix faucets and leaks, but they cannot redo the piping for a sink or bathtub. They can clean AC units, replace filters, and install thermostats, but they cannot replace, repair or maintain HVAC. These systems require specialty contractors with the correct certifications, schooling and training. A handyman or general contractor can obtain these specialty licenses to perform this work. It is worth asking if they can complete these jobs or if they will need to hire subcontractors. 

When to hire a handyman vs general contractor?

The size of the project is the best way to decide if you should hire a handyman or a general contractor. 

Handyman tend to focus on small maintenance tasks that require less specialty equipment. They focus on jobs with a shorter time frame (usual completed within 1-2 days).

General contractors focus on larger projects including floor replacement in an entire house, small to large remodels, and deck builds and replacements. They are willing to help acquire permits and equipment (big or small), hire subcontractors and schedule necessary inspections.  

In conclusion…

Handyman and general contractors both have important skill sets that can make home improvement jobs significantly easier. If you have further questions about this article or home improvement in general, please contact us.