the difference between Custom Home Builders and General Contractors? The Answer will surprise you…
Many Toronto homeowners regularly pay a premium for identical construction work. The difference? One company calls itself a "custom home builder," while the other markets itself as what it truly is, a "general contractor."
We've spent 25+ years in Toronto's residential construction industry. The reality is that there is a surprising indifference between custom home builders and reliable general contractors, and we are here to explain why!
The Marketing Angle Behind Custom Building
Every custom home builder is actually a general contractor. The distinction exists purely for marketing purposes.
When companies add "custom homes" to their business name, they're targeting a wealthier demographic willing to pay premium prices. The underlying business structure remains identical to any specialized residential general contractor.
We build custom homes at BVM Contracting. We also complete custom renovations, additions, and multi-unit developments. But we don't hide what we actually are: a general contractor.
Ontario's regulatory framework proves this point. HCRA licensing requirements are identical for both "custom builders" and general contractors performing new home construction. Both need the exact same vendor and builder licenses.
The Subcontracting Reality Nobody Talks About
Custom home builders subcontract 90% or more of their projects. General contractors do the exact same thing.
Complex custom builds require specialized skills from electrical, plumbing, HVAC, and finishing subcontractors. No single company performs all this work in-house, regardless of their marketing label.
The business model is identical. Both coordinate the same network of specialized subcontractors. Both charge similar coordination fees. Both follow the same process from design through close-out.
We maintain a reliable network of subcontractors who stand behind their work and prioritize our projects. Every other "custom builder" in Toronto operates the same way.
The Premium Pricing Strategy
Toronto's construction pricing reveals the markup strategy clearly. Basic custom home builds cost $400 to $500 per square foot while high-end custom builds reach $450 to $750 per square foot.
Sometimes homeowners are just paying more for the same thing, period.
Many general contractors possess the same systems, processes, and reliability that custom home builders offer. The "custom" label simply allows access to clients who will pay premium prices for identical services.
The whole process for design, pre-construction, home building, and close-out remains the same. Custom home builders usually just package it into a neater bow to justify higher pricing.
What Toronto Homeowners Should Actually Evaluate
Focus on the fit of the people behind the name rather than getting caught up in marketing labels.
Ask about contract terms, payment schedules, and references. Request to see current projects. Verify they offer a warranty they'll actually stand behind.
Evaluate their pre-construction process. Quality contractors provide thorough planning regardless of their business title. At BVM Contracting, we offer comprehensive pre-construction services at no charge to demonstrate our commitment to project success and to build trust.
Look at their actual track record. Review completed projects, speak with past clients, and assess their communication style during initial consultations.
The Truth About Construction Expertise
Expertise and specialization matter more than industry titles in Toronto's residential construction market.
We aim to be the beacon of hope in an industry riddled with misinformation and poor guidance. Our family-owned approach allows us to properly care for each client because we value the reputation we've built over decades.
The construction process doesn't change based on marketing labels. Quality, reliability, and transparent communication determine project success.
Make your decision based on substance, not marketing packaging. Your project deserves better than paying a premium for identical services wrapped in fancier branding.
About BVM Contracting
BVM Contracting is a full-service General Contractor or Home Builder located in Toronto. We provide home renovation and building services for major home renovations (kitchen renovations, bathroom renovations, basement renovations, full interior renovations, home additions, lot severances, new home construction, multi-unit renovations, garden suite construction, and laneway suite construction). Our goal is to help guide our clients through the process of renovating their home, from concept to completion.
Further than providing General Contracting and Project Management for major home renovations and home building projects in Toronto, we also offer value-added services such as renovation financing, renovation rebate consultations and services, building permit and design services, smart home installation services, and real estate investor services.
To learn more about our offering by visiting our services page.