Whether you are a Residential or Commercial General Contractor this site is the source for further Training, Licensing or Insurance information focused especially for General Contractors.

If you are in the market to hire a Reliable General Contractor here are a few quick tips:

• Consider only Licensed Contractors or members of a professional group (See Contractors License.org)
• Be specific in the details of the contract. Schedule a start and finish date as well as a payment schedule
• Ask for reciepts after each subcontractor is paid.
  

For More Tips see the Free special Report to the right or check out our General Contractor Resources Page.

1. Assemble a list of all the materials the job will require. Be very thorough and as accurate as you can. A good way is to break the project down into the steps it will take to do the work; i.e., start with site prep, then layout, then installing footings, until you have completed the project and handed the key to the owner. As you complete a project, keep very accurate records of each phase, and then compare them to your estimates. After a few jobs, you can then bid new jobs based on your calculated actual costs per liner foot of footing, for example, or square feet of slab, etc., adjusted for changes in material and labor costs and site differences.
2. After you have completed your actual material cost, follow the same procedure for labor costs.
3. Apply an error percentage, based on your experience and prior job records, to your material costs. 10% is a good place to start, and as you get more sophisticated, you can bring it closer to actual. For example, if you are building 9 foot high walls, you know your cut waste is going to be higher than building 8 foot high walls. And you should be able to calculate cement costs much closer than 10%. Use to the same process for labor costs, then add the two together for a total estimated material and labor charge.
4. Estimate your other costs, such as trash pick up and haul off, utilities, permits, fees, inspections, insurance, travel and delivery charges, etc. Don't forget interest charges for the money you will have invested between draws. Review previous projects to be sure you don't miss anything. Increase this number by an appropriate error percentage, and if you don't have adequate history, start with 10%. Add this number to your material and labor cost.
5. Apply your profit margin to the total of the above. You are the only one who can determine this percentage, but be sure and consider the following: what the market will bear; how much work is in your pipeline; your experience with the particular kind of project and the client you are working with (this is a big factor in your actual cost, and your best protection is going to be in your contract that specifies the timeliness of work progress and the quality standards you will meet).
6. There are things beyond your control that can influence the cost of a project, such as a spike in material costs, a union strike, spot material shortages, and other. Be sure your proposal and contract protects you from these issues. If the client will not agree to this before you present your proposal, increase your bid enough to provide some protection.