Becoming a General Residential or Commercial Contractor

General residential and commercial contractors can earn a lot, making it an attractive option for those seeking careers. To evaluate whether this is the field for you, we are presenting the responsibilities of general residential and commercial contractors as well as the necessary educational background and other requirements.

What General Residential and Commercial Contractors Do

General residential and commercial contractors work on various types of construction projects such as single detached homes, multi-unit residential projects, office buildings, shopping centers, schools and even roads. They are responsible for the entire project from beginning to end.

They work from the plans developed by an architect, preparing lists of subcontractors required, from builders to finishers, lists of materials and machinery needed, and other costs. From this, they prepare bids. Once a bid has been won, general residential and commercial contractors prepare contracts to be approved by the client. With the contract signed, all necessary permits are secured from local authorities. They then start hiring the builders and other subcontractors. They prepare the work schedule and coordinate everything, oversee actual construction work and quality control, do the final check on the project upon completion, and turn over the finished project to the client.

General residential and commercial contractors pay the subcontractors from the bid price they got. The remaining balance minus the cost of materials and other expenses is their service fee. It is therefore very important that their costing for the bid is accurate, otherwise they may end up not having enough funds left for themselves.

Requirements for General Residential or Commercial Contractors

To become a general residential or commercial contractor, you will need to be prepared through degrees or programs tackling Project Planning, Construction Terminology, Hazards and Safety, Materials Science, Finances and Contracts, and Ethics. Among the degrees commonly associated with this field are Building Construction, Construction Management and Construction Technology. Civil engineers and architects would also be qualified.

Aside from having the appropriate educational background, a general residential or commercial contractor will also need to be licensed to work in a particular state in the United States. Each state has its own requirements and procedures for licensing, including examinations. The basic requirements for all states, however, include being a US citizen or at least a legal resident, being older than 18 years old, and having graduated from high school. If you hold any other occupational license in that state, you should submit documentary evidence. If you have had any citations, violations or liens resulting from construction work, these should be explained in writing. All states require liability insurance and workers’ compensation coverage. To bid on work for state projects, you will have to go through prequalification. If you are a corporation, you should register with the Secretary of State. Depending on the state, you may be required to post a state license bond.

Aside from getting a state license, you might also need to get a separate business or occupation license in some counties and cities.

You should also familiarize yourself with the conditions set by the tax authority of each state.

The Outlook for General Residential or Commercial Contractors

Despite the global economic crisis and the downturn in real estate development, general residential and commercial contractors will never run out of projects. Residential and commercial buildings will always need improvements to stay fit for use and also to comply with changing safety regulations. Disasters such as fire, hurricanes and earthquakes will continue to create the need for new structures.

General residential and commercial contractors may experience lulls between projects but should be flexible enough to accept a wide range of project types and extend their reach to other regions in order to cope.