Consumers naturally think of calling general contractors to build new homes, construct room additions and do major remodeling jobs. Many contractors and construction firms do indeed specialize in larger projects and primarily coordinate and supervise all subcontractors required, from design and drawings through completion. However, contractors who specialize in small jobs and repairs often need a general contractor's license to handle jobs that include three or more trades, even if they do most or all of the work themselves.

An example would be water damage in a shower stall. If a faucet slowly leaked undetected behind a shower wall and saturated the wallboard until the tiles came loose from the wall, you could hire a plumber to fix the leak, then find a drywall contractor to replace the wallboard, and finally line up a tile setter to install new tile. It would probably be more efficient and economical to hire one general contractor to do the whole job than to try to find and coordinate several different subcontractors.

-- Tips courtesy of HomeAdvisor.com