I know this topic comes up a lot but I have done my research from the archives and I can’t find an exact answer as to what I am looking for.
I am a 30-year-old career changer. I have a goal to be self-employed in the general contracting/building business within the next 7-10 years. In order to reach this goal I first need experience. What I am looking to do is to learn a business as well as the various trades (carpentry, electric, plumbing etc).
I think I have some skills that can transfer to this new career. I have a college degree in business administration and have spent the past 7 years designing, writing and managing software development projects for large corporations.
I am most interested in the designing, managing and construction of remodeling and building of residential homes.
Here are a couple of questions that I have:
Does a general contractor perform all the tasks I mentioned? Or does he hire a designer and subcontract all labor for his clients?
Is there a difference b/w what the general contractor does versus what a builder does?
I assume that a builder and GC do a combination of all three. I just can’t find a clear distinction between the two titles, if there really is one.
I am trying to be specific because I know of a custom homebuilder who I would like to conduct an informational interview with to see if this is a career I would be interested in pursuing. I don’t want to waste his time obtaining information that I should already know.
I appreciate your thoughts and insight
Replies
Ok, I'll take a stab at this. Your question has many answers, it actually boils down to two...yes and no. On the one hand yes, there is a distinction between the GC and builder in that the GC is the coordinater of everything. He supplies and lines up all the phases of the actual construction, the sub contractors, the flow sheets, time lines, the pay etc. In some cases he may even supply the architect or designer, in most cases it's the other way around. Some companies work almost exclusively with one another and even have their own in house designers, these tend to be the bigger ones that would do larger developements or commercial work. A GC does the administrative work, the office work, the wonderful paper work.
A builder is just what it says...he's a builder, the hands on, the one who gets hired by the GC. Now he may hire other subcontractors to do what he needs to be done, and they may hire and on down the line it may go.
That being said, a GC and a builder can also be synonymous with one another. Usually this is true in smaller residential construction. A builder will do all the phases of work that the GC would do on top of the hands on. They usually have a crew of people that do or manage the work (or both) , from foreman on down to the labor and helpers. The builder (owner of the company) will often be right up there with the rest of the crew swinging his hammer. A GC connotates more the person in charge of the entire project, a builder is more hands on.
Now, (and this is important), there are a million combinations of the above. This is the tip of the iceberg. Depending on how big or small or what type of builder or GC you want to be, you have to find out what is best for you. Is it best to subcontract or hire in house. Do you want to work commercial, residential, or both? New construction or renovation or both? Union? If you like old houses and buildings, like myself, then there is the restoration-conservation world to explore.
You're young , you have some business background and you seem relatively articulate and intelligent...that's more than half the battle. You need to learn the ropes of this business. I would suggest that you start working with a GC in whatever capacity you are able and just keep your nose to the ground. Keep working towards your goal even though it may change throughout the course of your learning. When you do start out, keep things small and grow from there. Keep asking questions. Good Luck
Handy,
I'm not sure if Jer made one thing clear.
In residential construction, the GC, the Builder, the Lead Carpenter or Foreman, sometimes the laborer, and often, the person performing several other trades, can be the same person.
The GC is the guy who signs the Contract with the Owner to get something built.
While you're learning, check out JLC Online.
SamT
It is possible that some states employ definitions of these.
But from my frame of reference, a builder is more likely the guy who has a lot, and builds a house on it to sell - one up or dozens at a time., while a GC has a customer who owns a lot and needs someone to build their custom home.
The job is pretty much the same. The guy is RESPONSIBLE for everything pretty much. He might do his own design, hire a designer, or use plans provided by the owners.
A builder might be more likely to be a paper pusher with a suit but there are opaper contractors also.
Ther are builders and GCs who wear the tool belt and perform al or many tasks on site, and there arte those who sub it all out, and those who manage a mixture of the above.
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I always call myself a builder/contractor....just like that.
I build and I contract.
Be whats in the title
andy
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<<I am most interested in the designing, managing and construction of remodeling and building of residential homes.>>
Now is a good time to begin your education and build upon your degree and your experiences.
Many companies are formed by those with trade experience who believe that since they can perform the physical tasks they can parlay this into self employment. Not always so. Much of being in business revolves around staying in business.
Along with developing experiences in the various trades you will be employing or performing you will also NEED to be immersed in the behind the scenes, day-to-day business world. That's one of the reasons the Florida contractors exam is so heavily into finance, business practices, accounting and construction related law. More businesses fail, not because the owner can't swing a hammer or build to code and deal with inspectors, but because they are fish out of water, not understanding or knowing just how deep the pond of "business" really is.
Another part of being in the construction business is sales. There are many, many hammer swingers out there trying to do what you are proposing but no one goes anywhere without customers. Just hanging your shingle after gaining construction experience and some business acumen will lead quickly to the poorhouse. You will need to accumulate a load of seed money from your current employment and start building contacts which will lead to sales contacts (and, hopefully, jobs), which will lead to referrals, which will lead to more jobs. I really, really like that I have progressed to where referrals keep me rolling along.
Each jurisdiction will have requirements for licensed contractors (or not). You must decide your new company's direction and then work toward satisfying those requirements.
In Florida (the only example I can relate) there are 3 levels of state certified contractors. Residential: limited STRICTLY to residential construction; Building: Residential, as well as commercial construction, limited to 3 storeys; and General: Unlimited in both. If you EVER want to take on a commercial job you must hold at least a Building contractors license. Don't know how that would work in your location.
A further example: As a certified GC, I can also do swimming pool structural work, main sanitary sewer collection systems, storm collection systems, water distribution systems, underground utility and excavation and a few other things. Very helpful if I ever wanted to expand my business from what I'm currently doing.
Have at it, enjoy yourself and stick around the BT forum. I think we all would be interested in your progress. Could be educational for all.
I hold the name General Contractor for commercial and industrial and thats the way they are licensed.
A building contractor is registrared under light building. He can be the man holding several titles as was mentioned before. Some work in an office and some do it all nearly. However , he doesnt have a General Contractors license, and does not conform to said responsibilities by law.
Tim Mooney
Edited 12/5/2004 12:11 pm ET by Tim Mooney