How to Become a General Contractor
Before starting a general contracting business, you should consider a few factors. Using the internet to research your target audience is a good idea. The key is to determine what areas you plan to serve and what services they are looking for. Combining these metrics will give you an idea of how many potential customers you’ll have yearly. Additionally, you should research your competitors. Researching your competitors’ businesses will help you make the right business decisions at an early stage.
Education and training: Depending on the jurisdiction, you can pursue a degree in construction management or a construction management program. Some of these programs provide hands-on training and even lead to the possibility of owning a construction company. Additionally, you can obtain a license to become a general contractor after completing a college or technical school. Some jurisdictions require that you demonstrate proof of financing before you can work as a general contractor.
Communications: While communication is an important part of construction, it’s essential to communicate well. As the lead for the construction project, the general contractor must manage many tasks, including ensuring that everyone honors commitments. Problem-solving skills are also critical. A construction project is likely to come up with unexpected challenges. This can mean acquiring a first-aid kit, canceling a vendor contract, or ordering supplies. Hence, problem-solving skills are essential.
Budget: Many general contractors charge a percentage of the total cost of labor and materials, whereas some charge a flat fee. If you have a specific budget in mind, a flat-fee bid might be the best option. The general contractor’s time and labor costs must be clearly defined in the bid. You can also consult subcontractors and ask questions about the project. It is imperative to choose an experienced general contractor with proven track record to ensure your project is completed on time and within budget.
There are some state requirements for becoming a general contractor. These include passing an exam, proving competency in specific contracting fields, and having the financial capacity to start a business. Furthermore, it is essential to have on-the-job experience. You may even need a wage bond as well. You must also consider your license and insurance. However, this is not an exhaustive list. There are many resources available to help you with your business license.
Despite these challenges, the job outlook for general contractors is relatively good. While it is not as good as that of solar photovoltaic installers or wind turbine technicians, it is still more stable than many other careers. The job outlook for construction workers is expected to grow by 5% over the next decade. A general contractor should consider this in 2006.
Licensing for a general contractor is a requirement in New Mexico. This license can be obtained from the county’s office of consumer affairs. The license is valid for two years. Applicants must also submit proof of insurance. For instance, if a general contractor does not have a construction bond, the Nassau County Office of Consumer Affairs must license him. Once he has this license, he can begin doing business on the island.