Action Steps
The best contacts and resources to help you get it done

Watch for pertinent email alerts for construction contractors

Get email alerts, RSS feeds and prime contractor newsletters that will send you news as it happens. You'll need to know which deals are working and which ones fail to help you make your own business decisions. Learn about impending code changes as well as which companies are reporting growth to find additional opportunities.

I recommend: The Associated General Contractors of America offers a variety of newsletters to which you can subscribe. The American Institute of Constructors provides members with the news and information that you need to stay updated on changes in the industry. BidClerk, ConstructionWire, Dodge, SmartLeads and Onvia present news on construction project bid opportunities. Hanley Wood publishes a range of sites aimed at construction contractors.

Join general contracting groups for insider insights from other members

Association with other general contractors will provide you with an inside track to news about who is landing the big deals and what kinds of projects are getting built. Join a building contractor trade association and take advantage of the networking opportunities to develop relationships that could lead to more business for your company. Read the group's publications that provide members with up-to-date news and information.

I recommend: Keep up with the latest news and find trend pieces through the Associated Builders and Contractors. News and information is freely shared by members of the Association of Union Constructors.

Read analysts' reports for detailed independent contractor news and forecasts

Subscribe to reports and magazines that cover contractor listings and trend pieces to help you know where the industry is heading and where the next wave of building will take place. Look for in-depth building reports to keep up with the movement in green building that's taking over much of the industry news.

I recommend: Stay on top of the latest news and the headlines that are affecting the industry through the Construction Industry Roundtable. Get the news you need to make the best business decisions on your utility contracting projects at the Distribution Contractors Association.

Helpful advice for making the most of this Guide

• •  Attend construction contractor trade shows to find out from vendors about the latest construction software products, building equipment and marketing ideas. Go to the seminars and listen to the speakers brought in for the shows who can give you even more updates on the industry's news and trends.

Guide to Working with Construction Contractors

Screening building contractors and writing a solid contract helps projects run smoothly

By Erin Brereton, Owner, Chicago Journalist Media

Action Steps
The best contacts and resources to help you get it done

Find construction contractors

Aside from personal referrals from colleagues and friends, a number of online sources are available to help you find independent contractors. Get estimates from a few building contractors to help you narrow down your pool of construction contractors.

I recommend: Find carpentry, brick, fence-building and other independent contractors by filling out a brief form at Service Magic. Contractors.com and The National Association of the Remodeling Industry will match you with certified construction contractors, or you can post your construction project at Cybertonic’s NeedContractor and receive up to four competitive bids within 48 hours.

Verify your contractor's license

It's important to get references from past clients and confirm potential contractors have the proper contractor's license and insurance. Most states require building contractors to be registered at the state level and sometimes at the local level. Many states also require building contractors to have liability insurance to protect homeowners in case of a worksite injury.

I recommend: At the Contractor’s License Reference Site, you can click on your state to find out if your contractor is licensed in your state. DoItYourself.com offers links to state organizations that can verify a contractor’s license in the Midwest, Northeast, South or West.

Have building contractors sign written contracts

A project contract can protect you if construction contractors fall behind schedule or underperform. The contract should clearly state the project's start and end date, a payment schedule for supplies and work performed, a detailed supplies list, warranties for any materials and workmanship and a clear definition of the work that will be performed by construction contractors.

I recommend: The sample contract at the 411 Referral Network provides a framework for creating your own contract, and The American Institute of Architects offers homeowner contracts for use with independent contractors for around $10.

Make changes to contracts with independent contractors in writing

Construction contractors know that delays can occur due to unforeseen weather, material shortage or other problems. Any changes in the project's timeframe or scope should be handled through a change order, a written approval to change or add to the original work described in the contract.

I recommend: The Minnesota Department of Transportation offers a downloadable sample change order form including verbiage for payment, material and quantity changes that you can customize for your own use.

Make sure construction contractors obtain the proper permits

Before beginning construction, make sure your independent contractor has obtained the proper local building permits for the project to avoid any fines.

I recommend: To confirm building contractors have met the proper building codes, check your local codes via Permit Place.

Hire general contractors for big projects

For large construction plans, such as building a new home or undertaking a massive renovation, hire general contractors who manage entire projects. General contractors' duties can include working with architects, scheduling inspections and hiring and supervising subcontractors.

I recommend: Find general building contractors through the Associated General Contractors (AGC) of America's search engine or via ServiceMagic.

Helpful advice for making the most of this Guide

• •  Be wary of independent contractors who cannot provide references, pressure you to sign a contract immediately or want you to pay for the entire project in advance.
• •  The National Association of the Remodeling Industry recommends staying in close contact with building contractors to avoid delays.
• •  Always check references to see if building contractors meet project deadlines.
• •  Make sure any subcontractors have a contractor's license and are insured.
• •  Most building contractors require a down payment before starting work -- one-third to one-fourth of the total estimated project cost is common.

Action Steps
The best contacts and resources to help you get it done

Look for online entry-level general contracting training

Keep an eye out for the trends that are leading the industry as you begin in your general contracting career. Once you've got your foot in the door with a bachelor's degree in construction management or industry-specific training in estimating, construction safety or building code compliance, you can look for additional training and licensing.

I recommend: Check into the bachelor's degree program in contractor management from ITT Tech to get a good start in an entry-level position. If you don't have a degree and want to get your foot in the door through the human resources end of the business, consider obtaining training from HUD, the government’s office of federal labor standards for contractors.

Take advanced construction contractor courses

An MBA and other advanced business degrees are useful educational tools for general contractors running a business. Collect other certifications that are offered to experienced professionals in the field as you continue to expand your areas of expertise.

I recommend: San Diego State University offers online advanced certificate training in construction supervision, practices and estimating as well as a green building certification for experienced contractors. Look for continuing education that you’ll need to get your license through a state facility such as ProSchools in Oregon.

Join associations that offer general service contractor training to members

Most building contractor trade associations offer continuing education and professional development courses for their members in addition to general contractor listings. You can join the group to build relationships and take the contractor courses it offers. You could also get involved with the association as an affiliate member, such as a subcontractor or equipment vendor.

I recommend: Advance your career with training from the Associated General Contractors of America, or join the association's e-forum to liase on training and development topics. The American Subcontractors Association provides members with a number of professional development opportunities, including web-based training, workshops and access to manuals, forms and CD-ROMs.

Helpful advice for making the most of this Guide

• •  Make sure that any construction contractors' courses you take include training with the latest software applications, such as new estimating tools, that are being developed.

Action Steps
The best contacts and resources to help you get it done

Codes, building codes

Building codes are in place throughout the United States to ensure that all buildings are safe for people to use. These rules govern the use of certain materials and provide contractors with guidelines to follow when planning a project.

I recommend: WiseGeek offers a detailed explanation of building codes, including some examples of what a building code will specify.

Permit

A permit is a written permission from a government agency that states a construction project is legal and meets all codes. It is usually issued by a building department or code enforcement office. Permits are usually issued according to the type of work being done. Plumbing, electrical and building are types of permits.

I recommend: Heimer offers valuable information concerning building permits. It includes information on the various steps from obtaining a building permit to getting a certificate of occupancy.

Certificate of occupancy

A certificate of occupancy is a written statement from a government agency that states a building has been inspected by a licensed inspector and is safe for habitation.

I recommend: The City of Minneapolis, Minnesota website offers information about certificates of occupancy, including information on when one is required.

Gentrification

Gentrification occurs when properties in a neighborhood are upgraded, which causes the property value to increase. This encourages stable businesses into the area. As a contractor, you may be asked to participate in gentrification projects for discounted fees as a way to help a neighborhood increase in value.

I recommend: The Centers for Disease Control and Prevention website provides information about various aspects of gentrification.

Bid bond

A bid bond is a way to ensure that a contractor will complete the work stipulated by a bid. For most bids on government projects, a bid bond is required. These are issued by a third party surety bond company.

I recommend: The Surety Information Office website offers an explanation about bid bonds. This website includes the purpose of the bonds in its explanation.

Green building

When you meet with a client, he may stipulate that he wants a green building. This means that he wants you to use products and materials that don't harm the earth and are safe for use around humans and animals. This limits your options and may result in a higher cost for the materials.

I recommend: You can find information about green building on the City of San Jose website.