what does it take to get a contractors license

The construction industry in the U.S. accounts for hundreds of thousands of jobs each year, every bit well equally ample business opportunities for those who want to own a business in the booming industry. Most construction business owners autumn under the category of contractor, but there are several variations of contractors running profitable businesses throughout the country.

However, to join the ranks of successful contractors in construction, it is necessary to respond specific questions including what is a contractor, how to get a contractor, and what are the requirements to become a licensed contractor. This guide offers in-depth answers to each of these pressing questions for individuals who desire to go contractors in the industry.

This guide on how to get a contractor also provides detailed information about what contractors can earn, the career prospects of contractor businesses, licensing requirements, and how to create long-term business concern success. If you lot are considering becoming a contractor in the construction industry, you are in the right identify.

Step 1: Determine what type of contractor you lot want to become
Step 2: Written report the educational requirements
Pace 3: Go through training
Step 4: Create your business plan
Step 5: Obtain a contractor license and surety bond
Step half dozen: Manage your business organization
What does it mean to work as a contractor?
How long does it take to become a contractor?
How much does a contractor earn?
What are the career prospects?
Should I get a contractor?

Step 1: Determine what type of contractor you desire to become

There are several types of contractor positions available in the construction industry today, each with its own set of benefits and drawbacks. Before pursuing your contractor license, it is necessary to make up one's mind what blazon of contractor you want to become. Here are the most common examples of contractor types in structure.

General Contractor

A general contractor is someone who performs structure on new residential homes, on commercial projects, or residential remodeling or renovation work. General contractors may also have part in supervising or overseeing these types of projects, every bit opposed to doing the physical work.

Specialty Contractor

A specialty contractor is an private who performs work that requires the utilize of a modest set of trades, such as carpentry, concrete or paving piece of work, electric work, or masonry. Each state has its own guidelines for what constitutes a specialty contractor.

Mechanical Contractor

An individual working equally a mechanical contractor in construction performs work based on a specific license, such as plumbing, heating, or refrigeration. The contractor license extends only the mechanical work, not installation, as this requires a split up electrical license in about states.

Step ii: Written report the educational requirements

A significant role of becoming a licensed contractor is having the right education requirements met before applying for a license to practise work in your state. You'll outset need a loftier schoolhouse diploma or it's equivalent to become a licensed contractor. Classes throughout high schoolhouse that are focused on algebra, drafting, or geometry are most helpful in pursuing farther education in the construction field. Above and beyond a high school diploma, the following education requirements are often necessary to make yourself the most marketable to prospective customers.

Degree level and field

Some construction contractors opt to earn a caste in order to fulfill experience requirements for obtaining a contractor license. The minimum caste in some states that meets this need is a bachelor's caste program. This may exist focused on coursework in architecture, engineering, project planning and management, or construction direction. Other contractors pursue an advanced chief's degree in construction direction or project planning to further their marketability in the field.

Experience

Instead of an earned higher degree, some construction contractors lean heavily on their experience in the industry to help meet the requirements for a contractor'southward license. Experience minimums for each country vary, but are typically not less than 3 years in a construction-related job or apprenticeship. Experience in the construction industry means working hand-in-hand with licensed contractors on residential or commercial projects, or shadowing licensed contractors as they manage projects on minor or large scales.

Key skills

Whether a contractor applies his or her formal educational activity or industry experience to fulfill licensing requirements, an array of key skills are needed to perform work adequately. Construction contractors sympathize various construction practices and building regulations as well every bit how to appropriately operate construction equipment. In a higher place and beyond the key skills specific to construction, contractors also need soft skills in place if they want to accept a successful business. These skills include communication both written and verbal, analytical and problem-solving skills, supervisory skills, and time management.

Step 3: Go through training

All licensed contractors have some preparation they need to complete beyond experience in the industry or formal education through a trade schoolhouse, college, or university. The first step in this process is the arrive touch with your state's contractor licensing board.

Contact your country's contractor'south license board

Each land has a contractor's license board, but you may be wondering what exactly a construction contractor lath is. The answer to this question is relatively simple: the board is the government trunk that administers licensing for construction contractors in the state, including the exam requirements for each type of contractor license available.

For example, California'due south contractor'south license board offers a vast amount of information about the licensing process, who is required to take an exam, and study guides for the contractor'due south exam online. All states have a contractor licensing board which can be found through a quick online search or by contacting the state's section that handles contractor licensing.

Laissez passer your exam successfully

In one case you take contacted your country's contractor licensing board to determine the licensing requirements, you volition able to quickly determine if an exam is needed or non. Most states require an exam completion when projects exceed a certain dollar amount, regardless of the education or feel obtained by the potential contractor. Passing the licensing exam requires some cocky-study, specifically aimed at understanding current building codes, state laws relating to structure and contracting, and business management teaching. Accept the time to prepare for the exam earlier scheduling it and so you lot tin can pass information technology successfully the first time effectually.

Step 4: Create your business plan

Ane of the most disregarded steps in condign a construction contractor is developing a sound business plan. A contractor's business organization plan includes several components, ranging from the scope of work he or she volition perform to the financial aspects of running a business. In general, a contractor business plan should include the following information to ensure the business side of structure contracting is both feasible and assisting over time.

Identify your differentiation

Contractors in construction tin can take many paths to success in business, but each begins with a decision of what specialty or differentiation volition prepare the contractor apart. For example, contractors with substantial experience in electrical work or mechanical projects should focus on these skills to set up them apart from other contractors in the business.

Similarly, structure contractors tin differentiate themselves past opting to work simply on large commercial projects or modest residential projects. Regardless of which type of work you plan to complete as a contractor, it is important to spell this out in the business organisation plan so you have a clear path of what'southward needed to run the business.

Summate your finances

Another more complex aspect of creating a business organization plan every bit a construction contractor is identifying the sources of capital bachelor to help launch the business organization. There are costs associated with creating a legal business organization construction, like an LLC or an S-corporation, as well as securing the appropriate insurance and surety bond. There are likewise expenses for licensing fees, exams, and grooming that must be added into the mix at the start of the business.

Contractors must likewise consider what is needed in terms of business concern management software, a mobile phone and laptop, and whatsoever equipment necessary to complete projects over time. These costs tin add up apace, then it is necessary for new contractors to gauge relevant expenses and prepare for covering the costs as they arise.

Plan your marketing

Although structure contractors must accept substantial feel in the industry before starting their own business concern, the competition in the contractor world is high. For this reason, new construction contractors must develop a program for marketing their business to residential or commercial clients in the land or urban center where they work. Marketing tin be washed on a upkeep, through outlets like social media or online advertisements, but it often comes every bit a higher price than most anticipate. To keep marketing expenses from getting excessive, consider your options for marketing through print, radio, or word-of-rima oris referrals in addition to online channels to start.

Develop your templates

Before taking on your outset client as a construction contractor, you must take a business template in place that spells out several aspects of each project. This concern template should include a standard agreement between the contractor and the client, the pricing terms, the payment terms, and any information the protects you and your client from legal issues in the future. A contractor template relies heavily on the toll charged for specific projects, so it is crucial to have this information downward earlier working with a new client on a new project.

Step 5: Obtain contractor license and surety bail

Once you have taken steps to gain valuable industry experience or education, put together a sound business plan, studied and passed the licensing exam, your next step is to gather all the information necessary for your country's contractor license requirements. You volition then secure a contractor license bond and and so submit your contractor application, which are different from construction bonds for public jobs. Here are the details for each step.

Determine and meet contractor land requirements

As mentioned, each state has its ain requirements which must exist met in order to qualify for a contractor license. Look up the requirements y'all must meet in your country.

How much is a contractor license?

Cost will vary depending on the contractor license blazon y'all'd like to obtain, and your state (costs generally range betwixt $l-$200 for a license). Most states accept similar requirements which may include a background check, experience and pedagogy minimums, and financial documentation including bonding and insurance. Be sure to accept the time to review these requirements and gather the most recent and authentic data before submitting your application to the country.

Get a contractor license bond

Your contractor license bond has the largest range of costs compared to other items such as your license and application fees. Well-nigh all states require that construction contractors hold a minimum surety bond in order to be licensed. A surety bond is not insurance, but instead ensures you will follow state regulations in construction with each projection y'all consummate.

A contractor license bond protects your clients from financial loss should work not be performed in-line with standards or building regulations. A contractor bail comes at a price, typically charged as a percentage of the full bail needed, and it is required to be in place before submitting your contractor license application.

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Submit your application

When you have determined your state'due south requirements for becoming a licensed contractor, passed the exam, and secured your licensed contractor bond, you lot are ready to submit your awarding to the state. Contractor license applications can accept some time to review, so exist prepared to be patient in the process. Once the state has verified your awarding data and you lot have paid the licensing fee, if applicable, you lot are fix to work as a licensed contractor in your state.

Step half dozen: Manage your business

Subsequently becoming licensed every bit a contractor, you may remember your piece of work is washed. However, you need to consistently manage your business so that you earn a strong reputation for structure work in the state where y'all piece of work. Managing a contractor business requires several steps, including an ongoing review of finances and marketing, and maintaining your contractor license while staying up to engagement with construction regulations and standards. Most chiefly, though, successful contractors in construction take the following two steps seriously throughout the life of their business. Project management software tin also get a long way when it comes to organizing your various projects and their progress.

Approach every project with attention to detail

The smartest step you tin can have equally a licensed contractor in construction is to keep a great eye for details with every project completed. Staying on top of the details as a contractor is necessary to keep bond claims to a minimum, and information technology helps build your reputation in the communities where you piece of work. Exist sure to review piece of work completed past subcontractors, the materials provided by suppliers and vendors, and whatsoever other aspect of a project that you may be supervising. These small steps will lead to a big payoff in your structure contractor business organisation over the long term.

Network with other professionals

Finally, success in contracting is more easily accomplished when you embrace your peers and colleagues, and the expertise and experience they have in the field. Networking with other structure contracting professionals, besides as business concern professionals, helps ensure you are in-the-know near changes in structure regulations or safe problems, business management techniques, and strategies for marketing to new prospects. Networking can be done through a variety of channels, including online give-and-take forums, social media groups, or in-person networking meetings in your local community.

What does information technology mean to work as a contractor?

A general contractor is an individual primarily responsible for the supervision and oversight of construction projects. These projects may exist commercial or residential in nature, and they may be as small as an add-on to a domicile or a full build of an role complex.

Full general contractors manage the entire project from commencement to finish, including determining what work needs to be done, the scheduling of subcontractors, securing building permits when needed, and defining and monitoring the upkeep of the project every bit information technology progresses. Individuals who piece of work as general contractors must take a solid understanding of the construction procedure and the up-to-engagement building codes that dictate the work.

All states crave a general contractor to be licensed, which means yous must have the experience and skills necessary to complete structure projects in-line with current regulations. In some states, a full general contractor is likewise required to laissez passer an test roofing building competencies, and submit to a background check.

Have a look at our detailed state-past-land contractor license guides to chop-chop determine all the requirements yous must run across in your country.

How long does it take to get a contractor?

Becoming a full general contractor takes anywhere from three to 7 years depending on how they gain experience and if they cull to earn a degree.

Some general contractors lean on their work experience to gather the necessary skills and know-how to get licensed, or they will work through a trade school or association to complete an apprenticeship. In these cases, becoming a general contractor takes anywhere from three to five years.

Others interested in becoming a general contractor may follow an academic path, earning a bachelor's or primary's degree instead of or every bit a supplement to work in the construction field. Full general contractors who earn a bachelor's caste in construction management may go a licensed contractor within 4 years, while those who earn a master's may take up to seven to receive their license.

Contractors in construction may besides work toward a certification in their field through an industry certification association, such equally the Construction Management Association of America or the American Found of Constructors.

How much does a contractor earn?

A construction contractor earns an boilerplate hourly wage of $20.twenty according to PayScale. However, as more time is spent in the contractor role and skills meliorate over time, construction contractors tin earn up to $46 per hr. This translates into an annual salary betwixt $59,000 and $108,000.

There may also be bonuses and commissions paid to construction contractors when they run into deadlines or stay within the proposed budget of a project. As a construction contractor who works for him or herself, additional compensation in the form of profit-sharing plans or retirement plan contributions may be lower than working for a construction company. However, construction contractors have the ability to set their own hourly rate on each project.

What are the career prospects?

Now is a corking time to become a construction contractor due in part to the potent economic environment in many states. The construction sector is poised to grow 5% per year over the next five years, giving new construction contractors plenty of piece of work to accept on as they begin or expand their careers.

Additionally, several career pathways exist for those working in the structure business, starting with a contractor position. Once ample skills and experience are earned on the job, construction contractors may transition to project managers or construction superintendents. Contractors may also develop specialties in certain areas of structure work, similar carpentry or commercial projects, which may give them an edge in their contracting business.

Should I become a contractor?

Condign a contractor may exist a smart motility if you take the required experience or education, or simply have a passion for structure work. There are benefits to being your own boss in the construction industry, which many contractors are, including setting your ain schedule, determining how much to charge for projects, and growth in your career over fourth dimension.

Nevertheless, becoming a contractor takes several years of feel first, as well as licensing requirements that can be difficult to meet without the proper grooming. It is important to counterbalance these advantages against the drawbacks before deciding to get a contractor.

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