General contractors manage and control the construction of a wide range of different types of projects. Typically these licensed contractor professionals work closely alongside various commercial contractors, as residential builders or as a home improvement contractor. Most general contractors are licensed contractors performing residential or commercial acting as construction managers, managing other construction contractors and laborers, and completing projects in their entirety.
Those interested in becoming a general contractor must develop a business plan. An aspiring general contractor must become familiar with the construction business, including requirements to become a licensed general contractor, local government city or county level building regulations, contracting business and law, business management, and the financial aspects involved.
Understand Contracts
Typically construction companies sign contracts to protect both parties involved in the construction process. These contracts usually cover construction work for a set amount of time, outline a scope of work, and at an estimated cost. The agreement also guarantees that both companies will follow their specific guidelines regarding construction work, equipment use, safety rules, and many other different rules about construction work.
Obtain a General Contractors License
Licenses are required for construction companies to make sure all construction work is completed safely and correctly. You must obtain construction licenses depending on the state or country you live. Each state has slightly different rules regarding construction licensing; it’s essential to be fully aware of your construction licenses before beginning any construction projects, so check with your state’s contractor licensing board.
Often the licensing process has a surety bond requirement to obtain a general contractor license or general building contractor license. These are called contractors license bonds.
Secure the Proper Insurance
It is always good to ensure construction work is completed according to proper construction practices with the appropriate liability insurance. Suppose construction equipment accidentally damages private property or someone gets injured. In that case, construction companies must have construction insurance to cover any medical bills and repairs made to other people’s property damaged during construction work.
A type of surety bond or specialty insurance called a performance bond may be required on larger projects or government-sponsored jobs. These are different from contractor license bonds needed to become a general contractor and are specific to commercial, industrial, or infrastructure projects. Simpli Surety instant issue online bond application can get you bonded now.
Develop Effective Communication Skills
A good construction contractor must communicate well with other contractors and construction companies. Those who want to become construction professionals should always work well under pressure and maintain a professional appearance at all times. Good communication skills and strong leadership abilities are vital traits of a good construction supervisor or general contractor.
Ability to Make Quick Construction Process Decisions
If construction equipment breaks down, the crew must quickly decide what needs to be done next. If construction equipment breaks down on a construction-related job, you must be able to make a quick decision to fix the issue and prevent construction delays.
Know your Numbers
You need to know your construction numbers to complete construction work correctly and on budget. Construction companies must closely monitor their construction costs and expenses; it’s always beneficial if construction companies can handle construction project numbers well.
Construction companies must project total construction costs early in the design stage of a construction project, so owners/developers can have an accurate idea of their overall construction expenses. This is called cost estimation.
Additionally, a contractor must know the numbers in their own business to manage cash flow effectively. This doesn’t require an advanced master’s degree or even a bachelor’s degree, rather only a basic understanding of the financial statement. If you can interpret basic financial statements like the income statement to keep tabs on cash flow and the balance sheet to understand your company’s assets and liabilities, you’ll go much further.
Construction Industry Activities
Some construction professionals start as construction workers or general contractor handyman and work their way up the construction ladder. Some construction professionals attend college or vocational school to learn construction activities, construction mathematics, read construction blueprints, and other construction-related tasks.
Once construction professionals complete their construction education, they can work closely alongside construction companies to get on the job training to learn the ropes about construction management. The more construction-related experience you gain, the easier it will be to become a successful construction company owner.
Wrapping Up
In conclusion, construction professionals must work well with clients and complete construction activities correctly and on budget. They must communicate effectively with construction crews and construction management teams, perform construction mathematics accurately, make quick decisions if construction equipment breaks down during construction work and be good at numbers. Suppose you’re interested in becoming a construction professional or starting your own construction company. In that case, it’s essential to research the general contractor’s license requirements, construction equipment, construction insurance and obtain a basic level of business management education.
