Been framing and doing exterior trim for around seven years now, just asking advice on the best way to get started doing the whole business from the ground up or a remodel. Running the show from start to finish and not just being a framing and exterior sub-contractor. Any advice would be helpful. Any books to read or anything that will get me started on the right track to establishing my company as a general contractor not just a sub. Thanks alot Dakotacnstr. To get in touch with me you can reach me at [email protected] . Thanks Again.
Edited 11/18/2002 10:46:23 PM ET by DAKOTACNSTR
Edited 11/20/2002 7:59:12 PM ET by DAKOTACNSTR
Replies
hell, dakota... same way as the rest of us ...
a dog, a pickuop truck , a skillsaw, and a mortgage....
it'll work out....... mebbe
Mike Smith Rhode Island : Design / Build / Repair / Restore
I thought all you had to do is show up at the lumber yard and ask contractors how to do stuff.
No lie, these two bozo's come up to me the other day and Say "hey Pro-Dek, how do build an elevated spa Pad? This is our first one. I've got to quit answering these guys because they never stop.
The very next day they say " Hey Pro-Dek how long do you let Quickcrete set up"(read the bag stupid)
Where you workin? I tell him, "Hey that's our territory" Now that's interesting since I've worked that area for 15 years and never run into you before.
These are the type of guys that I pick up after, when the Hot tub ends up in a ravine.
Bob
"Rather be a hammer than a nail"
Edited 11/19/2002 11:32:34 AM ET by Pro-Dek
Bob, love the cartoon hammer, how do you do that?? :)
Wood Hoon
LUKA did it for me. I'm clueless on the cut and paste stuffBob
"Rather be a hammer than a nail"
Mike-
In your list of requirements, you forget mounting a level in a gun rack in the back window of your pickup. That seems to be the standard equipment for the GC's around me.....lol.
Bob
I was hoping to find some interesting info in that is thread, being I am currently a college student and been doing remodeling work for about 8 years now(I'm not the average 4 year student, more like 7 but that's a different story) and want to one day run my own remodeling company. Anyway this thread is mostly just flat funny. Anyway getting to the point I always see Insured and Bonded, what exactly does it mean to be bonded. Thanks for any answers :)
in 99% of the time.. insured and bonded don't mean NOTHIN..
if you operate in a bond state.. then practically anyone can get a bond.. but it doesn't say for how much .. or wether the particular job will in fact be bonded.
insured is even worse.. for most guys it used to mean they had auto insurance.. now it usually means they have GL.. but again.. maybe they do & maybe they don't.. and maybe the homeowner will never know..
another catch phrase is "fully insured".. which usually means " i carry all the insurance i'm required to carry by law"..which usually amounts to next to nothing..
any contractor can have his agent issue "certificates of insurance " to the contracted homeowner which will spell out the types and amounts of insurance the contractor is currently carrying
Mike Smith Rhode Island : Design / Build / Repair / Restore
Mike,
Thanks, but my real question what exactly is a bond, or being bonded?
In NY contractors are not required to be bonded. For some jobs bonding is a requirement. In our limited experience these are public sector jobs, though I am sure that bonding is required for any large commercial job. The contractor has to post a performance bond (among other bonds) which guarantees that the job will be done and the insurance company issuing the bond will pay whatever it costs to complete the work. The cost to the bond is determined by the company's financial condition and their experience with similar contracts and with the insurer. The rate is based on a flat fee plus a percentage of the job (less than 5%).
thanks
That Sir, is some good advice.
You guys are right about "Licensed and insured†I’ve got a driver’s license and car insurance, so I'm good to go right?
In North Carolina, "bonded" is similar to insurance. To my understanding, bonded means that you take out a contract with a bonding agency saying, "if I burn down someone’s house, you will pay them $50,000 immediately, and I will then owe it to you on pain of death"
I could be mistaken, it has happened before.
Also in NC you only need a to be a general contractor if the job is more than $30,000, but you always need to have a local privilege license. That is simply the city's way of making sure you pay them taxes. It does not confer any idea of competence.
I did see something yesterday that I didn’t recognize. It was an article telling home owners to ask their contractor if they are a “Certified Remodeler†Or a “Certified Remodeling Specialist†I haven’t heard of these certifications, has anyone else?
I have heard of NARI National Association of Remodeling Industry or something close to that anyway, Guess it depends where you saw it, if you saw it in an add for a local remodeler chances are he's given himself a fancy name for someone who is licenced to do remodeling or maybe he bought one of those on degrees and got it in remodleing lol
I have heard of NARI National Association of Remodeling Industry
I'll look into it, it was actually an article in a fairly credible "relocation guide" it is put out by local buisness and such to help people settle into the local area. (and sell what ever they can)
It was there with the usual questions, do you have insurance, how many projects like mine have you completed recently, can I see them ect.
A bond is merely an assurance by the bonding company that they will LOAN you up to the face value of the bond (against your assets) to enable you to pay for a deficiency in you or your subs performance on a project.
Bonds are pretty attainable for those of us who do remodels or build a house or two every year. Bonding becomes more difficult (requires more attachable assets or net worth) on big projects, like commercial or public buildings where bond requirements commonly exceed 7 figures
in RI, bonds are almost never required, on residential work, because it eliminates about 90% of the potential bidders... most contractors cannot get bonded for the amount of the bond.
Suppose you are bidding a $300,000 remodel and a performance bond is required .
The bonding company ( usually arranged thru your insurance agency, if you have a multi-line company ) will want you to give them access to LIQUID ASSETS equal to the amount of the bond.
Real Estate is not a liquid asset. So you have to pledge bank accounts, or stock portfolios , or the like. Sometimes, if you are a good risk, they will allow you to pledge your house, but your wife has to sign off, and they usually want a 2d mortgage with them listed as the mortgage holder.... at double the usual fee.
Depending on the law and the agency, bonding is not alway required on public projects either.
A roof bond is a little different.. these are usually issued by the roofing mfr. , only for certain jobs, and only to a qualified roofing contractor.Mike Smith Rhode Island : Design / Build / Repair / Restore
We're not picking on you Dakotacnstr- We're just having fun. Go to your local building department and they will get you aimed in the right direction.
Bob
"Rather be a hammer than a nail"
Your Ins. agent should be able to walk you thru the whole process. You gotta make'em work for all that money you'll be giving them.
Dave
Well I dont know where you live but first id find out if a license is required. Then Id go to a lawyer and find out how to protect myself. Also, lets not forget the bonding and insurance also...
At Darkworks cut to size made to burn......Putty isnt a option
I wonder if this guy is gonna come back and look at this thread?
Or does he expect we'll just email him the instructions?Q: What's the difference between a poodle humping your leg and a pitbull humping your leg?A: You let the pitbull finish.
Yeah what does he think? I guess he expects he can just pop in here ask all of you guys and gals (that have worked many years!) for the inside stuff. Meanwhile he is just going to sit back and wait for you to send it to him:-) WHat a HOOT!Tamara
Well, maybe I should cut him some slack. It hasn't been 24 hours since he posted. He just made it sound like he wasn'r planning on coming back.
Guess we'll see..............My girlfriend only has one breast so I got her a part-time job at Hooters.
You Guys and Gals are a tuff bunch! I better help him out with my worldly experiences and get him off on the right foot. Oh! that's the phone, got to go! I'll try later."Don't take life too seriously, you are not getting out of it alive"
Well I'm a little confused because the guy is selling his lumber rack over in the classified section, so how's he going to haul his materials?
First rule of sucess as a general is to buy tools not sell them. :-)Bob
"Rather be a hammer than a nail"
I didn't think anyone else caught that in the classified section, so I did not mention it, I am LMAO.
Dakotacnstr, don't take any of this to heart. It's just that when the wheels start to turn they are hard to stop."Don't take life too seriously, you are not getting out of it alive"
Second rule of thumb buy a bigger truck and get rid of the smaller truck then you can look like you and pretend to actually know something or just wing it like the rest of the world.
Careful not to buy too big a truck and spend all your hard earned tool money on gas. I get 17 mpg with a 1/2 ton GMC 5.7 350 Vortec. You won't fair as well with a 4X but you probably need one in the mile high city.Bob
"Rather be a hammer than a nail"
Smith (bite me!) was on the right track..
1. Listen
2. Keep your promises. Two kinds, first, perform the job exactly as you promised, and promise to always protect your ability to make a profit. Your a businessman. The point, after all the feel good "reasons" why you do this, is to make a profit. There are very few occupations that carry so much risk. Risk deserves profit.
3. Treat your customer as if they are the most important people in your world. (After your family, they are!)
4. Get the work done............a day early. Alway strive to surprise your customer in how the job is performed. Clean.....clean....clean! Answer your phone, return all calls, never be late...........with anyone/anything.
5. Demand payment. Get paid for every piece of material, every Sub that leaves skilled results, anything of tangable value, get paid! Now! Never wait. They didn't! (see step #4)
6. Start small. You can always grow. Shrinking is painful.
7. Be at the right place at the right time.