Question 1

What not to say to a general contractor?

Accepted Answer

Avoid saying these seven things to a contractor: 1. Never tell a contractor they are the only one bidding on the job. 2. Don't reveal your budget. 3. Never ask for a discount if you pay upfront. 4. Avoid telling a contractor that you aren't in a hurry. 5. Do not let a contractor choose the materials.

Question 2

Why do general Contractors charge so much?

Accepted Answer

The value of a good general contractor lies in their ability to provide high-level service, resulting in a more positive experience, particularly in home improvement projects that entail substantial investments in hidden details, often being costlier due to the need for significant resources such as time, expertise, and money.

Question 3

How do I hire a local contractor?

Accepted Answer

When hiring a contractor, follow these checklist and tips: Get multiple estimates, hire local and licensed contractors when possible, examine their past work, take your time to make a sound decision, verify their insurance and bonding, ensure everything is documented in writing, understand your right to cancel, and avoid paying up-front.

Question 4

How much is a Contractors license in AZ?

Accepted Answer

License and renewal fees for new license applications are as follows: General Residential (B, B-3, B-4, B-5, B-6, B-10) has an application fee of $180 and a license fee of $320; Specialty Residential (R) has an application fee of $80 and a license fee of $270; General Dual (KA, KB-1, KB-2) has an application fee of $200 and a license fee of $480.

Question 5

What do most general contractors charge per hour?

Accepted Answer

The average general contractor cost varies, with fees typically ranging from 10% to 20% of construction costs for large projects and employing a fixed, daily, or hourly rate for smaller jobs, where contractor hourly rates generally average between $50 to $150 per hour.

Question 6

Where is the best place to find independent contractors?

Accepted Answer

To find professionals with the qualifications and reliability you require, consider utilizing resources such as LinkedIn, WorkMarket, staffing agencies, Stack Overflow, Chamber of Commerce, and professional organizations.

Question 7

How do you ask a contractor for a quote?

Accepted Answer

Clearly communicate your needs to the contractor, request their best estimate, and ensure they understand the scope of work, while also providing a detailed timeframe for repairs, noting that most general contractors typically do not provide quotes for projects more than three months in advance.

Question 8

Who is the largest contractor in the US?

Accepted Answer

Bechtel, headquartered in Reston, Virginia, stands as the largest general contractor in the country, consistently ranking at the top of the list with 2021 revenues of $17.5 billion.

Question 9

What can a general contractor do in AZ?

Accepted Answer

For any business intending to engage in building, altering, repairing, adding to, subtracting from, improving, moving, wrecking, demolishing, or performing any part of the work related to buildings, highways, roads, railroads, excavations, structures, developments, or improvements, it is essential to hold a valid contractor's license.

Question 10

What is the markup for a general contractor?

Accepted Answer

As a general contractor, your profit margin typically ranges from 7% to 20% or more, representing the amount remaining after covering all job expenses, and this margin is commonly calculated as a percentage markup on costs.

Question 11

What is the job description of a contractor?

Accepted Answer

A contractor's role encompasses planning, leading, executing, supervising, and inspecting a construction project, with responsibilities spanning from project initiation to completion, regardless of the project's size or scope.

Question 12

How much does a licensed general contractor make in Florida?

Accepted Answer

The average annual salary for a general contractor in Florida is $45,500.

Question 13

What should I keep track of as an independent contractor?

Accepted Answer

Maintain records by taking pictures and organizing receipts, including digital and physical invoices, credit card statements, office expenses, and tax-deductible purchases, while also managing an independent contractor spreadsheet to monitor both income and expenses.

Question 14

What should a contractor quote include?

Accepted Answer

In every estimate, it is essential to include the following elements: a job description detailing the work to be done, a breakdown of materials and labor costs, the total cost, and the contact information for sales and the company.

Question 15

What should a construction quote include?

Accepted Answer

In construction, a quote is a document providing a detailed breakdown of anticipated costs for a proposed project, encompassing labor, material costs, and quantities, typically valid for a limited period, usually around a month.

Question 16

How long does it take to get a Contractors license in AZ?

Accepted Answer

The experience requirements for licenses vary, with some not necessitating prior experience and others demanding 10-15 trade-related projects along with a specified duration of experience, with most cases typically requiring 1-4 years as per the Registrar of Contractors.

Question 17

How much does it cost to get a Contractors license in Arizona?

Accepted Answer

The following table outlines license and renewal fees for new license applications, including application fees and license fees for different classifications: General Residential (B, B-3, B-4, B-5, B-6, B-10) with an application fee of $180 and a license fee of $320, Specialty Residential (R) with an application fee of $80 and a license fee of $270, and General Dual (KA, KB-1, KB-2) with an application fee of $200 and a license fee of $480, with three additional rows not specified in the text.

Question 18

What not to do with contractors?

Accepted Answer

Avoid crossing the legal line by taking actions such as assigning employees to assist the contractor, allocating a dedicated workspace, offering paid time off or other benefits, engaging in long-term collaborations with the contractor, or having the contractor handle core business functions.

Question 19

What is contractor negligence?

Accepted Answer

Contractor negligence refers to acts of gross negligence or willful misconduct that have undergone dispute resolution in accordance with the related Cooperation Contract.

Question 20

What does 25 upfront mean?

Accepted Answer

An upfront payment policy, commonly used by contractors, freelancers, and service-based businesses, entails customers making deposits either before the project commences or upon its completion, with these deposits typically taking the form of flat-rate amounts (e.g., $1,000) or percentage-based sums (e.g., 25% of the total estimate).

Question 21

How do you negotiate with a general contractor?

Accepted Answer

During contract cost negotiations, it's advisable to withhold certain specific details about your situation that could impact the contractor's willingness to negotiate, and instead, focus on disclosing only the work requirements while allowing the contractor to take the lead in discussions.

Question 22

Is there a legal difference between a quote and an estimate?

Accepted Answer

Remember that estimates provide a rough idea of price, serving as an initial guide price, while quotes are legally binding and should only be relied upon when you are certain of the costs involved.

Question 23

What percentage do most general contractors charge?

Accepted Answer

On average, general contractors typically charge approximately 10% to 20% of a project's total construction costs, with larger general contractor companies potentially charging up to 25%, and it's essential to base your markup on what your subcontractors will charge.

Question 24

What is a good profit margin for a general contractor?

Accepted Answer

Industry experts note that although the average gross profit margin typically remains around 20%, the average net profit margin for construction companies typically falls within the range of 2% to 10%, underscoring the fact that construction is a known low-margin industry.

Question 25

What are three responsibilities of the main contractor?

Accepted Answer

The principal contractor's responsibilities encompass planning, managing, monitoring, and coordinating the entire construction phase while considering health and safety risks for all parties involved, including the public, and implementing necessary control measures.

Question 26

What is the difference between a contractor and a subcontractor?

Accepted Answer

The primary distinction hinges on the employer: a worker directly employed by a company is considered an independent contractor, while a worker engaged to complete a particular task for a general contractor is classified as a subcontractor.

Question 27

What do you say when asked for hourly rate?

Accepted Answer

In response to a client's insistence on an hourly rate, you can reply, "I don't have an hourly rate as my focus is on delivering results, and I'd be happy to discuss the price once I'm confident in my ability to solve your problem."

Question 28

Is it better to charge hourly or by project?

Accepted Answer

In certain situations, charging an hourly rate is advisable, particularly when the scope of work is unclear at the start, and you are unfamiliar with the client's feedback process, as it can be a prudent choice to ensure you are adequately compensated for the work you perform.

Question 29

How do I find a good local contractor?

Accepted Answer

To find a general contractor near you, begin by devising a plan, gathering ideas, and seeking multiple bids, then create a comprehensive scope of work, explore referrals from family, friends, and acquaintances, and utilize online resources such as Angi, Homeadvisor, Yelp, and Google.

Question 30

How much can you write off as a 1099?

Accepted Answer

For individuals filing taxes with a 1099, who are subject to a 15.3% total payroll tax, the IRS permits a substantial deduction ranging from 50% to 57% of that amount to be subtracted from their taxable income, representing a significant tax benefit.

Question 31

Is it better to be an independent contractor or self employed?

Accepted Answer

These job categories are generally similar, with the key distinction being that self-employment may not always involve offering services to the general public, while individual contractors may require specific licenses or educational qualifications for their work, although self-employed individuals may not always necessitate such specializations.

Question 32

Which is better w2 or independent contractor?

Accepted Answer

A 1099 worker is usually more cost-effective than a W-2 employee, requiring no additional training and ready to perform tasks immediately, but they often have the flexibility to select their projects, which means they may not always be available for the specific work you require.

Question 33

Should you pay a contractor for a quote?

Accepted Answer

Contractors typically do not charge for estimates, particularly on smaller jobs such as painting, window washing, or lawn services, unless the work involves complex consultation or design requirements, in which case charges may apply.

Question 34

Does it cost money to get an estimate?

Accepted Answer

Estimates are typically free for small, straightforward jobs like bathroom painting, while contractors may charge for estimates on complex, large-scale projects that entail intricate designs and multiple plan revisions, such as home additions.

Question 35

What can a general contractor do in AZ?

Accepted Answer

General Commercial Contractors (B-1) have the flexibility to handle projects of any scale, including large commercial endeavors and small home remodeling tasks, whereas General Residential Contractors are limited to residential work, encompassing construction, remodeling, or repairs.

Question 36

What is the hourly rate for Contractors in Arizona?

Accepted Answer

In Phoenix, AZ, the general contractor salary statistics are as follows: Top earners have an annual salary of $100,816 or an hourly wage of $48, the 75th percentile earns $87,000 or $42 per hour on average, the average salary is $75,814 or an hourly rate of $36, and those at the 25th percentile make $47,400 annually or $23 per hour.

Question 37

How long does it take to get a general contractor license in AZ?

Accepted Answer

You must possess or surpass the license classification requirements for which you are applying, typically necessitating a minimum of four years of relevant experience.

Question 38

How long does it take to get a general Contractors license in Arizona?

Accepted Answer

The Arizona Registrar of Contractors is dedicated to timely license issuance, although applications are processed in the order of receipt, with an average processing time of 20-30 days for license issuance.

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Frequently Asked Questions

What are the risks of being a contractor?

What is the percentage of overhead for a general contractor?

Should you pay a contractor for a quote?

How do you ask a contractor for a quote?

Why do contractors charge so much?