Contractor-General

As a general contractor, it’s important to have the proper insurance. Insurance protects against theft, damages to materials and workers who my get injured on the jobsite. But without general contractor’s liability insurance, a contractor may not be able to even bid on the job. Typically a general contractor needs a minimum of $2 million coverage. But that all depends on how much the project is worth, payroll expenses and plenty of other factors. Use this guide to general contractor’s liability insurance to help you get the big picture when it comes to builders insurance.

Finding the Best Insurance Company

When looking for liability insurance, a general contractor needs to get the most affordable and reliable company to insure against any future claims. Many times, asking another general contractor what company they use is the best way to compare and contrast liability insurance policies. Always check an insurance companies rating to find the best of the best. An A+ rated insurance company might be the more expensive policy, but is well worth the extra cash when it comes to making a claim.

Some liability insurance policies only provide the minimum amount needed to be legal and begin work. Depending upon the construction projects worth, the bare minimum coverage might not be enough. Always check your average project price against your liability policy to ensure you’re more than covered. Other factors like large payroll costs or expensive materials can increase you policies coverage exponentially.

Minimum requirements vary from state to state, so it’s always best to check with your local building department to find out what your states minimum requirements are. Here is an example of what an average liability policy covers:
• Bodily injury claims–$300,000 and up
• Property damage claims–$50,000 and up

Admitted and Non-admitted Insurance

In some states, insurance carriers are required to denote themselves as admitted or non-admitted. What this means is that an admitted insurance carrier must place a portion of the insurance claim money into an escrow account. This is to prevent an insurance company from going out of business and leaving the general contractor high and dry when it’s time to make a claim. Always choose an insurance carrier who carries an A+ rating if you’re using a non-admitted insurance company.

Certificates

Once you have decided upon a reliable liability insurance company to do business with, it’s required by some state laws to post the liability insurance certificate on the job site. All original documents and not copies must be posted. Some states require a general contractor to prove liability insurance to start any project. A certified copy of the original document must be presented to building officials when the permit is being pulled.

Many states allow the general contractor to pull the permits without liability insurance, but cannot start work on the project until the liability insurance certificate has been displayed on the job or presented to the building department. Liability insurance policies are often given out the same day they are purchased, so as to immediately be displayed with the permit and other important jobsite paperwork, so the inspector can sign off on each phase of the project.

Becoming a general contractor is the ultimate level in the construction industry. Overseeing the entire project from beginning to end, a general contractor rules the roost of any construction project. But becoming a general contractor can be tougher than you think. Jumping through the hoops of state agencies can be difficult at best. Use this guide to becoming a general contractor and you’ll be on your way to the road to success.

Choosing your Path

A general contractor is just that—general. That means that they are able to perform a wide variety of building duties. Because a general contractor is such a loose term, many prospective general contractors choose a specific field to enter. Commercial general contractors work exclusively on stores, offices and warehouses. Residential contractors tend to stick with new homes, remodeling and room additions. Industrial contractors work on mechanical-based projects like warehouse freezers, waste treatment facilities and factories. With so many different aspects of general contracting, it’s in your best interest to do what you love and not because you heard they make the most money. A true passion in your general contracting niche is the path to success and happiness in the building industry.

State Requirements

Because each state has a different method for obtaining a general contractors license, it can be difficult to pinpoint an exact method for getting your license. Some states require that the potential general contractor have experience as a superintendent before being able to apply for the test. Other states only need a simple business license. Always call your local building department to find out what your state or local agency requires to obtain a general contractors license.

Contractor Schools

One of the best ways to get the knowledge you need to pass the state contractors exam is by signing up for a contractor’s school. Typically, this crash course in building shows you exactly what you need to pass the test. Sample tests are provided for study, construction books are sold and test information is shared with the class. Usually these courses only last a few days or weeks, giving you a cram session on the basics. While these schools can help you to pass the test, they cannot provide you with the detailed information you may need during a construction project.

College Courses

A great way to get the additional information you need to be a successful general contractor is by getting a few college credits. While there is no degree for general contracting, degrees in finance, business management and mathematics can give you the ultimate base for general contractor knowledge. With such a huge amount of money resting in your hands, it’s a good idea to become well versed in finances and math. Some states require that a prospective general contractor have at least some basic college credits to apply for the general contractor’s exam.

Experience

Of course the best way to become knowledgeable about general contracting is by working in the construction industry. Some states require that an applicant must have a minimum of two years’ experience in the construction field to apply for the exam. Whether you work as a laborer, salesperson or superintendent, experience is the key to getting your general contractors license.

A general contractor is just as the name implies—general. That’s why it’s best to hire a general contractor who is well versed in your particular construction project. If you’re building a new home, remodeling an old one or adding on a new addition, it’s in your best interests to hire a residential contractor for your project. Use this guide to residential contractors to help you get the best general contractor for your construction project.

State Requirements

Since each state has different rules about residential general contractors, it’s best to contact your local building department to find out what type of licensed builder you need to complete your construction project. For instance, in Arizona, a residential contractor license means that the license holder can only build residential buildings. This can really help to narrow down the field of general contractors when you’re choosing a builder. Other states like Texas require only a business license to be able to build a new home. In cases like this it’s a good idea to contact the Better Business Bureau or Chamber of Commerce to help find a reliable local residential contractor.

Licensing and Insurance

Some states have different levels of residential contractor licenses. A state “A” license holder can build any residential structure anywhere in the state, while a state “B” license holder is limited to certain sized structures and a limited building area—usually a county or tri-county area. Always check your prospective residential contractor’s license number with the local building department to ensure they have the right license to do the work.

Insurance is a must have for any builder. Builders risk, liability and workers compensation insurance are all must haves when it comes to building any structure. The right insurance protects you as the homeowner against any claims from negligence, theft, damages or injuries. Most states require that a liability insurance certificate be displayed on the jobsite at all times. Some states even go as far as to prevent any builder without liability insurance from accessing the jobsite with workers or materials until liability insurance certificates have been proven to building officials.

References

Finding the right residential contractor for your building project is all about the right references. At least three contactable references should be given to the homeowner to prove that their work is up to your standards. But besides just pleasing customers and doing good work, a residential contractor should do the right work. A good general contractor might have built the mall downtown, but do they have the experience to build a home? Receiving references from past customers who have had construction projects similar to yours is a good way to ensure your prospective builder is a perfect fit for your particular construction project.

Niche Builders

Niche builders are those who work on specific projects like remodeling or renovating. Since residential general contractors have a wide array of projects they are allowed to work on, it’s in your best interests to find a residential contractor who specializes in your particular building niche. For instance, a residential contractor who specializes in new home construction might not be the best builder to complete your new kitchen addition. Look for a residential contractor who does the majority of their work on projects similar to yours.

Whether you want to build a mini-mall, skyscraper or an office for your business, hiring a commercial general contractor is necessary to getting the job done right. Get the most out of your commercial building project by using this guide to commercial general contractors and you’ll be sure to get the big picture when it comes to hiring a contractor for your commercial building project.

State Laws

Since each state has its own laws regarding commercial general contractors, it’s in your best interest to contact your local building department to find out what licenses and requirements must be met by the state to complete your commercial structure. For instance, in some states, a commercial general contractor is limited to building only commercial structures, while in other states it’s not a requirement at all. That means someone who can build a room addition can also build your office complex. Always verify with local building officials your prospective commercial general contractor’s license number to ensure that they are legally allowed to build your commercial structure.

Licenses and Insurance

Before you get any bids from any contractor, it’s best to find out if they are legal to do the work. By contacting your local building department, you can verify that your future commercial general contractor is licensed to do work in your area.

Having the right insurance is crucial to getting any commercial building project done without any hitches. A $2 million dollar liability insurance policy is the required minimum in most states. Because many commercial building projects exceed that amount, it’s best to get a commercial general contractor who has a larger cap than the bare minimum. Ask to see a copy of the contractor’s liability insurance certificate before receiving any bids to ensure you get a policy that more than covers your projects costs.

References

Any good builder is going to have a few references from past clients to show you that they do good work and please the customer. While your future builder may have built your neighbor’s house and they loved it, they may not have the experience required to work on a commercial structure. Since building residential structures varies so much from commercial buildings, it’s a good idea to search for a commercial general contractor who has plenty of references that are related to your commercial building project. A good portfolio can also help you to get design ideas for your commercial structure you may not have thought of on your own.

Commercial Niches

Commercial buildings can be as simple as a small convenience store or as complex as a giant office skyscraper. That’s why it’s important to find a commercial general contractor who specializes in your particular building niche. For instance, a commercial builder who mostly builds skyscrapers probably isn’t going to be the best choice for building a one story office. Have your prospective commercial general contractor provide you with references that are similar to what you plan on building. This way, you’ll be sure to get a commercial contractor who has the experience and knowledge necessary to complete your particular building project.

A general contractor oversees construction projects from basic finances to swinging a hammer. With so much responsibility, it’s a good idea to learn everything possible to ensure you’re the best in the business. But what are the requirements necessary to become a general contractor? Use this guide to help you get on the right track towards becoming a licensed general contractor in your state.

State Requirements

The first and foremost part of getting your general contractors license is finding out what you need to do according to your state. Your local building department can help you find the right information about obtaining a general contractors license in your state. Because each state has its own rules and regulations for obtaining a general contractors license, it’s in your best interest to find a local institution that can help you get on track to obtaining your license.

Experience

Sometimes, experience is necessary to get a general contractors license. For instance, in Florida, it is a requirement to have a minimum of two years’ experience as a superintendent in the construction industry to even apply for the general contractor’s exam. Other states require a minimum of two years college credits in a related construction field to be able to test for the general contractor’s exam. Always check with state exam officials as to what educational and experience requirements are needed to take the general contractors exam.

Schooling

While a contractors school will certainly help you get on your way to becoming a licensed general contractor, they can’t do everything for you. Some states require a minimum work experience in the field before even being able to apply for a contractor’s exam. Others require a minimum of college credits to apply for the builder’s exam. Schooling systems vary from state to state, so always verify what experience you need to take the general contractors exam in your state.

Specifics

Depending upon which state you are applying for a general contractor’s license, you may need to verify what specifics you plan on using for your general contractor license for. For instance, in Arizona, general contractor’s licenses are divided into categories according to work history and experience. A commercial general contractor cannot build residential homes and vice versa. That’s why it’s important to choose a field of general contracting before you begin testing for them all.

Credit Check

A general contractor performs many duties on the construction site, including ordering and purchasing materials. And that requires a good credit rating. Without a five star credit rating, you won’t be able to order materials in advance of the project, pay workers or get loans for your construction projects. Paying your bills on time, getting loans and taking care of labor costs are just the beginning of the credit that is needed to become a general contractor.

Fees and Costs

Once you’ve been verified as educated and experienced enough to take the exam, fees and costs associated with it are required to apply for the exam. Typically, a state entrance fee is required to take the exam. There are many contractor exam companies that charge a fee to help you study for the questions on the exam. While working with a contracting school isn’t always necessary to pass the test, it can be a big help when it comes to knowing exactly what your state general contractor’s exam has in store for you.

Looking to save a few extra thousand dollars on your construction project? Then being your own general contractor is a savvy money saving move that just about anyone can do. Best of all, you don’t have to know how to shingle a roof or wire an electrical outlet to be your own general contractor. Use these tips and techniques to becoming your own contractor and you’ll be sure to save big when it comes to your next building project.

Financing

This can be the deal breaker for some people who want to be their own general contractor. Many lending institutions will not loan money to a DIY homebuilder. Banks often require a licensed general contractor to do the work, to ensure that their loan money is well spent on quality work. If you’re going to need a loan to get the project done, you may want to consider another loan method.

Pulling the Permits

In many states, it can be nearly impossible for a homeowner to pull their own permits. Jumping through mountains of red tape, rules and regulations can be difficult at best. That’s why it may be in your best interest to use a permitting service to get your building project off of the ground. A permitting service can provide you with all of the information and materials you need to get your permit as quickly as possible.

Creating a Cost Breakdown List

One of the most important tools a general contractor uses during the construction of any project is a cost breakdown list. This is a list that details the entire process of construction, from the first nail to the last brush of paint. By creating a list of what materials you need, when you need them, who’s going to use them and how much they will charge can be the best way to schedule material deliveries, laborers and subcontractors with ease.

Scheduling

It may not seem like scheduling is such an important part of building but in fact, it can be one of the most important parts of your building project. Subcontractors often work on a demanding schedule and are limited to specific times and days for working on your project. For instance, if you plan to hire a block mason on such and such a date, and then you back out at the last minute because the concrete work is behind schedule, you might find that trying to get the block mason to come a few days later is impossible. Some subcontractors are booked months in advance and work on a very tight schedule. Always adhere to a strict scheduling and immediately let any subcontractors know if you’re changing the schedule.

Finding a Subcontractor

Choosing the right subcontractor is much more than picking a name out of the phone book. It’s about finding a professional that can adhere to your schedule and work with you as a beginner general contractor. Besides being licensed and insured, a good subcontractor will also provide you with a list of past clients, so you can contact them or see their work for yourself. Checking with your local building department or building supply store can give you an inside tip towards finding a quality subcontractor for your job.

Hiring a general contractor for your construction project can be in your best interests. But what projects require a general contractor and which ones can you do yourself? Use this guide to general contractor services to find out if you need help from the top construction professional in the field or if your project is something you can handle yourself.

Costs

Initial costs of any building project that exceeds $500 is probably going to require hiring a building professional. When several subcontractors are needed to complete your building project, it might be in your best interests to hire a general contractor to oversee busy schedules, payments and material deliveries. While this isn’t an extremely hard thing to do, it can be a time consuming project. Unless you are retired and don’t have a job, hiring a general contractor to perform the work can help save you time and money.

Permitting

One of the most important reasons for hiring a general contractor is for permitting. Your local building department is required to issue a building permit for most construction projects. By verifying that architects, engineers and general contractors have approved the blueprint, a local building official can then offer you a permit to begin construction of the project.

Insurance

If someone gets hurt, materials are stolen or the work is performed subpar, who’s going to pay for it all? You are as the project manager will be responsible unless you have the correct insurance. A general contractor will have the right insurance needed to protect yourself from liability claims against your project. Workers compensation, builders risk and liability are all necessary insurance policies you or your general contractor must obtain before any work begins.

Banking

Many times, loans are used to finance the building project. A banking official is called in to determine the risks and benefits associated with your loan. Many loans for building won’t be granted unless you have a general contractor already hired for your project. Bank officials need to verify their licensing, insurance and credentials to ensure their money is going to be spent wisely. Many times, hiring a general contractor is necessary just to get a bank loan.

Experience

The biggest factor for hiring any general contractor is experience. Unless you’ve been in the construction industry your whole life, you may not know who to hire, when to call them and why you need them. Experience plays an important role in hiring a general contractor. Without at least three or more contactable references from your prospective general contractors past clients, they probably don’t have the experience needed to get your construction project done right.

Project Requirements

Some construction projects require the use of a certified general contractor. Commercial and industrial projects definitely need the support and wisdom a general contractor can bring to the table. Scheduling, deliveries and hiring subcontractors all need to be done consecutively and flawlessly to ensure your construction project runs smoothly and consistently. Since many general contractors run their own crew of construction professionals, they can offer the knowledge, experience and trust that only an in-house crew can provide for you construction project.