This article will discuss becoming a successful general contractor. This is a growing position at an incredible pace, as many companies in the United States are trying to find their way as they transform.
The competitive environment is also challenging; other business segments offer significantly greater compensation, marketing services, and management experience. This position is now open, and if you are seeking a career as a general contractor, you need to adapt to rapidly changing conditions.
You also must possess various skills, including pricing expertise, the ability to work with lenders, contractor appraisals, and customer service. The right skills are critical, and success is not guaranteed, but the potential is there, as there are people passionate about this position.
Why builders make great general contractors
A general contractor’s role is significant, as this is a job where you are part of the planning and execution of building a project from start to finish. This role also requires you to have a passion for the job, and it’s important that you love the work and enjoy the variety of roles you may have on the job.
Many people dislike much of the work, as the tasks are often very tedious, and the process can be arduous. However, if you enjoy the work and are also passionate about this type of work, you will find a lot of satisfaction in accomplishing your job as the general contractor.
The last important factor is that you must be able to work hard. There is no room for slackers on a construction site, as the quality and quality of the work can greatly be affected by the general contractor’s commitment.
An important step for getting a construction company contract
Most people think that this position is only open to men, as most successful construction companies have a majority of male workers. However, this is not the case, as there are many female general contractors, and the time is right for you to get involved in this role.
The gender of the owner is not always an issue, as a female owner can also be a success in this role. However, the women involved in this role are usually the very best and most experienced in their industry. If you are an outstanding general contractor, then you must take a moment to meet with a female general contractor.
This is a great way to make contacts and also to pick up tips on this challenging position.
Completing a trade license is key
An important aspect of getting involved as a general contractor is that you need to obtain a trade license in your area, as you will be working with materials that are restricted in this way. It’s also important that you obtain all necessary permits to work in a specific area.
This means that you should visit all government offices in your area so that you can complete the necessary paperwork promptly. You will also need to get insurance, and you will also need to be bonded, so you must research the issue to determine what type of insurance you need and then proceed to get the appropriate bonds.
Be sure you’re ready before you expand
Many successful contracting businesses reach a point where further expansion would require hiring additional people to handle the increased workload. For example, a self-employed IT contractor may have to decide whether to bid on a contract that requires a multi-person team to complete or pass on the opportunity.
Hiring (or contracting) additional personnel is a difficult decision, and many self-employed contractors prefer to remain solo for several reasons:
- The more specialized your business, the more difficult it may be to find qualified people.
- Advertising, vetting resumes, and interviewing are very time-consuming. Once you make your hires, training, supervision, and related paperwork will require more of your time on an ongoing basis.
- Paperwork is particularly problematic with hiring employees rather than contractors, as payroll requires tax (and other) deductions and increases your accounting overhead.
- Unless additional personnel generates more income than the cost of their employment, your profits will not increase.
- The reputation of your business may suffer if whoever you hire does not perform at the expected level.
Many contractors find it easier (and less stressful) to stay small, keep their workload within manageable limits, and maintain a positive cash flow by controlling business costs.
On the other hand, if your ambition is to build a larger business and you have the time and energy to put into expansion, then, by all means, take the plunge.
Searching for the right construction company
A final thing that you will need to do when searching for a construction company is to ensure that you have a specific skill-set. If you are an owner who has experience working with contractors, it will be beneficial to find a construction company that offers similar services.
This may require you to look in a specific area, but you will need to understand the different contractors’ requirements that are out there in your area. This will help you make the best decision about finding the right contractor to work with, as well as the best general contractor to hire.
If you have ever considered getting involved in the construction business, then the above checklist will help you to understand how to find the right company for your needs.
