What it's REALLY Like to be a General Contractor
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- Опубліковано 22 бер 2024
- Here are a few things to consider if you are heading into the world of contracting. Being
prepared for the unexpected may be your best preparation.
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This is the most wholesome content on UA-cam. This channel should be required viewing for every high school graduate.
I been working with my parents flooring company just over 10 years now. My father the owner passed away 5 years ago. It has been a blessing in so many ways the freedom and self accountability. Its been so challenging, frustrating, out right scary sometimes when invoices go unpaid too long and bills are due. I'm all in. I love what my father created and the life it has been able to provide, I want to continue to grow and improve.
Spot on. I have learned to walk away from jobs if there is too much misunderstanding just getting a proposal done. I just know they are going to be on my back the whole project. I do good work, by the code, no shortcuts. I know what it costs to do things. I'm not going to cut my price just to get the job.
Good for you .. stand your ground! You know in your guts if a client is going to be , well, let’s say not right for you… I try now to always follow that hint… best ! Mr.Tom 🔨
There are to many out there that do cut their price just to get the job, it turns money over so they can pay bills but it drives everyone’s profits down. It’s better to stick to your price that you charge and hope the low baller will get all of the work he needs so everyone else can make a decent living.
The trouble is, there’s always at least one of them out there.
Because too too many are highballers that deliver more in their minds than they do on the job. They take on more work than they can perform and by the time the client is fed up to the point of termination, all of their money is tired up and the job is 6 months behind schedule just like big time commercial contracts. 50% of all contractors large and small are con artists making the other 50% suspect even if undeserving of being thrown into the same lot. Buyer beware, when was the last time anyone had a job finished ahead of schedule, nada.
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As a 25+ year carpenter, I had an old contractor tell me "I can go broke and stays at home" His point was dont chase every job or be low bidder, working yourself to death, ran up excess miles, bought needless costly material and lost your shirt. Or you could stay home and not go threw all that and spend that time on securing the good paying jobs.
I remember pricing a large style renovation in a rather affluent city in my neck of the woods. Over $400, 000. The "potential client" said it was to much and that he knows someone who would do it for half the price...I rolled up the plans left and left them on the table and said good bye! My Architect did the drawings for that project. He called me months later to tell me that the so called "contractor" couldn't even finish the job. The homeowner phoned me and asked if I would be willing to finish it...I said no. He needs to learn the lesson my Grandfather taught me. "The cheap guy and the poor guy, pay double." I dont work for free, and I refuse to work for cheapskates. It's always served me well.
Your comments are the proverbial hitting the nail on the head. I was a very young commercial and residential GC from 1980-1990. Never had to advertise...all word of mouth. Many, many clients, all from affluent areas, were wonderful except two. Subs today are no different from then...like herding cats. I am blessed with the ability to "read" people quickly and cull those that emit chaos. Left the business solely from burnout. Prior clients were calling me up to 2000 wanting me to get back in the business. No thanks. I enjoyed what I did until I didn't. Made lots of money and friends. Today, I urge young people to learn a trade for a lifetime of secure employment. See Mike Rowe. All the best.
The first 5-7 years, working in a construction trade is a blast. Working with friends in what almost seems like competitive sport and what feels like, going to work and getting paid to ‘work-out’. Once the 5 o’clock whistle blows, you leave the job without a care in the world and a genuine sense of accomplishment. Unfortunately the profitability of that kind of mindset is directly comparable. And then, generally the inevitable sets in. Time to grow up and get serious about becoming a reliable provider for those other people you’ve magically found yourself surrounded with. The spouse and those little ones that just seemed to show up and now need all the care you can provide. Fortunately the next stage of your career has an even more rewarding sense of accomplishment in store. It’s just a little harder and more serious now.
I think you’re spot on with the time frame, my first 5-7 years installing architectural window films were filled with exciting new things and people I loved working with. I’m now in year 8 and the difference is huge, I’ve realized most everyone I loved working with have moved on to other things, and the excitement has gone away somewhat as I’ve already faced most every challenge I can face.
What you said is the whole reason why I’m getting my license to go at it solo, definitely more serious and harder, but so much more rewarding to support my wife
A very eloquent elucidation of the life of a GC. I retired 5 years ago after 40 years as a small GC; I went through all the phases of the business you talked about. After 30 years, I couldn't take being an unpaid tax collector for the government any more, laid off my 4 man crew, and went solo. I worked solo as a hands on GC for 5 years, and got the satisfaction back of building things myself with the help of some subs. Then the last 5 years I bought beat up houses, fixed them myself, and flipped them. This was far more lucrative than my years as a GC. Very good advice you gave; as someone once said, the construction life, it ain't no good life, but it's my life.
We did the same, my brother and I took over after 30 years in family GC business. It's just 2 of us down from 12. So much better and happier too. We still do commercial but just smaller jobs. Some residential but I don't look for that.
I’m 31 now and after 6 years of being in business it’s finally starting to be worth it. I’m not sure if the 6 years of losses and sacrifices was worth it and only time will tell.
GC here in Tokyo for 12+ years now, lots of good info here Scott.
One of my mentors told me a long time ago “ I’ve never lost money on a job I did not take.”
Cheers from Tokyo!
Absolutely. Successful general contracting is first, a management business… of sales, contract writing, procurement, finding and maintaining and managing good subcontractors, accounting and cash flow management and a lot of problem solving. Being a good, creative problem solver, and mediator, is the portion of the business where I found the greatest creativity and satisfaction. I’m 45 years in !
absolutely. It's all about putting out fires, not actually building anything.
Retired now but was a GC for 30 years, honestly it was the customers you select that make it good or bad. You should be interviewing your customers at least as much as they are interviewing you and do not take jobs just because of the money. Find the right customers first and guess what, now you will have good customers and the money! Mentally and physically, you eventually reach an age you can no longer keep up with the sever demands of this profession regardless of how good your customers are, one of the toughest jobs on earth for sure.
Thank you! Great insight and articulation of the challenges of being a GC. 5 years ago I “retired” from being a roofing and home improvement contractor for 45 years. It was a good life, an exciting pace of life and I enjoyed the freedom and daily challenge. I too, was not an accountant. I hired a good CPA and we became life long friends.
I found that a “Good Name is Better than Gold”, with a challenge to give my customers a little more than they expected. Now at age 71 my days are as filled as I want them to be. Keeping up my health and staying in the game, doing light solo jobs. It’s like I came 360 degrees.
I’ve been a GC for 22 years. Words of truth and wisdom here. Thankfully a few older guys helped mentor me. Sadly most of the guys I know that are successful now have done bankruptcy at least once before. I wouldn’t trade the experience but it turned my hair white fast! At this point I choose jobs based solely on the clients not the false glamour of a “job”.
No surprise here, yet another spectacular real world talk on GC work. Scott, thank you for your continued mentorship. 3.3 years into my GC adventure and all of the aforementioned ups and downs. At the end of the day, it’s all well worth it!
Scott - thank you for this very transparent assessment of your experience as a GC. I was nodding along with your commentary, as it hits home with me even as a co-owner of an engineering firm. Loved your quote "assuming you can FIND people with strengths" - those people are out there - but yes, it is a struggle to find those needles within the haystacks! Well said, sir!
This year I actually bowed out. Finding quality help without drug issues, personal problems, and or the initiative to show up on time has always been the biggest problem. I feel I can do just as well on my own (free lance). You summed that up very well, Sir. Thank you.
When I started my fence contracting company I read a book that said that "you have to be a business man first and a tradesman second." I can't tell you how much that mindset has added to my growth and success.
If you do quality work, charge enough for the job so you can absorb some small overlooked aspects. It also makes the job go easier with less stress if you are happy knowing you will do well financially on the job. Know your value. It makes the work so much better. If a potential customer doesn't recognize your value, someone else will.
It's because of the huge demands of GC that l stick to working as a sub trade. That has enough challenges for me. An honest assessment, Scott .
Great content and so true and relevant.
I am a Self employed contractor here of 27 years building.
I am awaiting back surgery and won’t be building in the future, take care of yourselves. You only have one back.
Love this! I also thought I wanted to become a GC. So I went to work for a small GC to see what it was all about! Ya, no thanks. What a headache! I did what always wanted to do, SMALL JOBS. I now own my own Handyman Business, and put my skills to work in a much happier, funnier and smaller scale, and couldn’t be more happy about it. This is what I love doing, works great (FOR ME).
You are just like me. I’m now done with the gc thing and work by myself. (I had 12 guys once). My biggest problems were finding employees who can keep working efficiently without ruining things while I’m gone, insurance companies (business insurance infuriates me), cash flow when customers sit on invoices for 90 days, and bidding/estimating work. Now, 30 years later I’m ok with working alone, being straight forward but honest about what things will cost the customer, and being able to know when to say no and walk away and be ok with it.
Too many see a GC and think we stand around with a rake and a pile of money.
Speaking of thank you Scott for your consultation during my first years in business! We’re still plugging away here in NC
My first thought when I read the title was "go to night school for book keeping" and was glad to here you say the same. My father used to say "We do business in a businesslike way" and to do that you need to master the tools and techniques of business, just like you mastered the tools and techniques of your trade.
I’m 2 years into going out as a GC after 6 years as a project manager /forman and my 24th years as a carpenter.
It’s 8:49pm Sunday night and I’m looking at engineering drawings.
Starting to force myself to have free time - but this is the reality.
Scott, you offer sage advice and wisdom. I wish I had heard this when I was starting out. Having lived it all since 1980 as a GC, I thank you for passing on your expertise and experience to those looking at General Contracting as a career. Steve Milovich-
Well said. I was a G. C. for 10 years and my greatest satisfaction was knowing that at the end of the contract, I did a good job and the customer was happy. I would say dont take an accounting course, hire someone. factor that in. Hire someone to design and manage your website. You will go through a lot of subs at the beginning until you find your right crew. Have a good app for estimates, invoicing and payments (Joist). Complete your estimate then add 20%. I shut my business down after 10 years because I did to much and wore myself out. Be a manager not a craftsman. Save that for your shop.
In my 40+ years in the construction and development industries, I have learned one undisputable truth - if the owner of a GC company straps on a toolbelt, then they will most likely fail as a GC. There are too many other tasks to be done, that don't get done, when the owner has his / her head down with tools in their hand. The only exception to this rule is the handyman with only one or two jobs going concurrently, who has a worker(s) who can produce quality work unsupervised.
Yes totally agree. I work for a large family run gc. The vp told us if a field engineer or super was towing material around, we were losing.
If you are a GC, its constant conflict. Constant conflict with, employees, subs, customers, municipalities.
Not to mention, the IRS now can literally steal your money. Last year, we got a bill for $30k, we proved to the IRS it’s not owed, they dont care, they said pay it or they freeze your accounts. They make you pay them and then go to court to get your money back, which is also expensive. So it feels like everyone is against you including the government, and they are.
Ive been rather successful but Im not sure its worth it. I burned out 5 years ago. It’s like im living in a tunnel now and all I can do is move forward because I have to and my employees depend on me.
Conflict management is a really good thing to speak on. Thank u.
The tunnel thing is a very good. I felt that sentence to my core.
Wow this is so relevant to me right now. Fairly new to running my own business and honestly already over it and looking to go back to being employed 😅😅
You Sir are a blessing to the community! Thank you for that!
I appreciate you taking the time to share your perspective. It’s a gift to us all.
Thanks Scott
that was just the pep talk I needed
I retired from being self employed, and managing a small crew. Its hard work, and every thing you say.
Scott, these are great videos.
Articulate, truthful, and packed with insight and wisdom.
Your self reflection on your deficiencies is a good indicator of why you have had such success. Always keep improving!
You have pegged it! Thank you for sharing your wisdom:)
You've nailed it!
So informative man, thank you.
Thank you for these inspiring words. You bring wisdom for many of us.
Love your content EC. I’ve been a G C for 3 years. I’ve learned a lot in that time and still have a lot to learn. Your videos are inspiring and instructive! They help me hang in there on the hard stressful days! Thanks for sharing your wisdom
Wise words Mr. Wadsworth. Thanks!
Amen brother !
You hit the nail on the head.
It's in the word... Contracting... Contract is the root word. If you want to be a carpenter.... Be A Carpenter ! or plumber or electrician.... A general contractor is primarily a paper pushing business. Money and tickets, contracts and change orders, Watch some Tom Reber. Also, watch some Chris Voss.... Negotiation is at the heart of the matter...
55 yrs old. 5 years into my career (2nd) as a contractor. The joy of building is a massive benefit of my work. The narrative here is worth deep reflection and consideration. Thank you for sharing your insights.
Great video. Reminds me of when I was a self employed building designer, now retired.
Thanks for the wisdom!
I’m really starting to think heavily on this topic of starting my own business thanks for sharing!
Thank you so much. This is so right.
Watching your videos brings to mind the old adage “The older I get the smarter my parents get.” You are providing an “Essential” perspective that only lived experiences can provide. Thank you for another excellent video.
Great job. Thank you 😊
I was a GC for close to 40 yrs. Being a GC is not all its cracked up to be. Sure, you can make great money sometimes. But, more times than not it's a grind and hustle. I've enjoyed my work the most when it's just me and a helper working our craft. I'm 59 yrs old now and I just work by myself, because I don't even want the responsibility of keeping a helper well fed, and only take on the jobs that interest me and that I can handle by myself. My customers appreciate that I do a great job and am meticulous. I like to do the fancy more high end jobs now. I'm very good at what I do because I've made all the mistakes and learned all the tricks and tips. Being a GC is not for the faint of heart. I just wish their were more young folks coming into the trades. People complain about the folks coming over the border to work... but, it seems to me that they are the only ones doing the trade work anymore, somebody has to do it, and I have no qualms about that.
In my area the undocumented are building in the developments and the high end renovation is done by the guys I grey up with.
Your comment about the illegals is not true.
The joys and triumphs are real and easy to remember. Scott's accurate narrative took me back to 1981, sitting on a spec home while interest rates were climbing steadily, a point a day it seemed. I was nursing a back injury and spreading topsoil with a shovel and wheelbarrow. The house eventually sold. I kept my license but thereafter worked successfully as a sub. Wear good boots and stay light on your feet.
Great advice!
I'm very encouraged to hear this. You're naming my true gifts, and even though I'm not a dude that can wield a circular saw, I have the money, conflict, and organizational skills to succeed.
As a general contractor I consider my career is actually sales and customer service. I was lucky coming from a job as a superintendent in hydro and utility projects where everything has to be in a report/written/email so I was good at having all eventualities cover(well almost😅)
I was too cheap for the first year but then met another contractor who was doing it a bit longer and and he give me some great advice and figured for what I should be charging and it’s been a pretty smooth for the last 5 years. Love the channel
Man the part you said about the competition dropping off after 40hrs a week. That holds so true.
Im a small landscape and excavating company. ( really small ) but i get so many jobs the other local companies miss out on just because i try to be the first one out in the morning and the last one back in the evening and i work weekends. Its so crazy. You dont have the be the biggest. Just the hardest working. And always work to your highest level. Everything else will just fall in place.
You are right on!
You sir are a craftsman, not a general contractor. In today’s world a GC has no actual experience and only a little knowledge of “creating” or building something. Your content is beyond wonderful, thank you.
You forgot to mention the cost of insurance . As a contractor for forty five years it is one of the reasons that I have closed shop at sixty seven years old.
Well said Sir, well said.
I worked in IT for a long time as a Solutions Architect (contractor). I feel it's the ability to be lead hand and run a project and know the business side that's been the most help in transitioning to a homebuilder. You're 100% right. That's what you spend most of your time doing: the business (scoping, projecting, budgeting, scheduling).
very well spoken.
You have talked me into it.
I work in AV and we are usually the last vendor that comes in before the opening of a business. I pester GC's for photos, written tasks, random scheduling needs, etc. I have it bad, but I don't know how these guys do it.
Great wisdom here. Young men pay attention.
I wish my dad would have heard this 25 years ago. My dad is an artist not a businessman. This was fantastic.
Take it from me as an accountant - Assets let you win the game, cash flow keeps you in the game
Thanks!
I was a general in Calif and pretty much had a clientele handed to me. Got my license and dealt with an attorney. He told me most small businesses fail in the 1st 5 years, usually due to inadequate experience, capital or paperwork. I was afraid to charge enough and didn't make it. The 2nd time I discovered I'm not a businessman. My attitude with others was also off. Your video told the story of my failure perfectly. My son is a much better businessman and I admire him. Thank you for your insight.
How do you become a gc?
100%. 13 years in. 2nd go at owning my own business.
I bet Scott will help many understand the huge responsibility of wearing the hat of GC.
Dad was a project manager turned GC I saw the stress along the years he went through. I chose to be a subcontractor.
I'm currently studying to get my building contractor's license. I'm looking to build rentals for myself. Affordable stuff for the average person in my developing down. Low risk, commodity type stuff. Duplexes and small single family. It's another way to do the GC game. I'm just tired of engineering. I let management break my spirit out of love for the company. Needing something fresh.
Dropped some golden nuggets in this one
The only channel I like the video before I watch out of respect.
Hit at a perfect time. I’m about to jump into something scary but profitable this year. I’ll finally get to work with not for my best friend of 23 years. I’m all in even though it’s the scariest thing I feel I’ll have done.
Thank you
Wise words.
Learning to manage expectations,
Poignant conversation, I am in year 2 of contracting and still struggling to enjoy the business side. I am lucky to have a wife who truly enjoys budgeting and saving so our means are easily attained, and I have had almost entirely favourable clientele. I don’t think if I started a business in my 20s that I would handle confrontation at all, but in my 40s I seem to be doing fine.
I have positioned myself as more of a craftsman than a GC or Handyman, I get to build cabinets in the winter and fences in the summer, and have been able to stay ahead as a one man company, but I think I will be starting to sub some of my work this summer, and that’s a whole new stress hah anyways thanks for the video, it is nice to hear my concerns or doubts voiced.
From a buyers prospective I agree with you. The last 2 homes I have bought, one was custom, the other a tract home. The custom home was architect designed and built by a GC. The home I’m living in now is a tract home. The custom home was already built but never occupied and I made a few decisions at the end. The home was 3750sqft, 5 1/2 baths, 2 story French Colonial, all brick with a 3 car garage, etc. The GC was ok, but I had a laundry list of repairs when we moved in that was 72 items long, the GC only completed hałd of them. We lived in the custom home for 14 years before we sold it. The tract home was a ranch, 2240sqft, 3 baths, 3 car garage, on a cul-de-sac, had $32,000 in upgrades. The laundry list was 6 items long and they actually did 10. The tract home has been the best home we’ve ever owned. We bought it in 2003 and are still living in it. The custom home was stick built on site, the tract home, all the walls and trusses were built in a factory. I had some input with the subs on the tract home. The foundation was modified for 2 masonry chimneys in the same chimney, the walls were reinforced so this could be done later, A wall was moved, 1 wall was added, an additional toilet was roughed in, sewer and water input was changed and 2 windows were moved in the basement.
PS: we enjoyed living in both homes. The tract home is our retirement home, it’s the best home we’ve ever had, with the least amount of problems. It’s our 4th residence, our first was an apartment. We started in 1970 in our first residence. Comments…..
I've been in this trade for 37 yrs now, the last 29 on my own as a home builder & now only remodeling . I'm 55 & slowing down a bit, doing smaller jobs only now like decks, kitchens, bathrooms, etc. . My biggest challenge is getting my estimates exactly right with great detail & finishing jobs within my planned schedule. I tend to be a perfectionist. I can definitely make more $ per hour doing 1-2 day jobs vs 6-8 week projects, scheduling is the tricky part. I plan to retire within 5 years.
As an Electrical Contractor, I would MUCH rather be a sub than a GC ! Shit flows downhill and the GC has to deal with ALL of it. As a sub, I do my small part of the project and walk away. Much less headaches.
All of it! So very true! Thanks for the encouraging words!
Great video. Im 35 yrs in. At times I wish I was a dentist 😂
Spot on. Well said ❤😓😤😌😄
Thanks dad. Love you
Being a General Contractor sounds like fun. It sounds like all the upsides of business with a low barrier for entry/exit.
Yes, Only lasted doing the work I really liked about 12 years. Then worked 20 years doing something else. When I retired and started working on my own projects I remembered how much I liked it. Subs always worked on their schedules not yours. Customers never seemed to remember the conversations the same way. I did work for one lawyer who insisted on a detailed contract. That worked out good. When he wasn't happy I was able to point out on the contract what he had insisted on.
LOGISTICS! I’m pretty sure that’s the word you’re looking for when you pause and think and how to explain what you’re saying. Logistics, encompasses it all so that we can create for the people who hire us and have a successful business motto
Wow. Every word.
As a plumbing/heating contractor we typically stay away from most GC's. Most of them want us to work for wages and then scream when we aren't on the job, or are unrealistic in the time lines. So, we stay with mostly commercial service and repair. We work for manufacturers, trucking companies and property managers that are willing to pay for our services. And my job does NOT include the use of tools. I hire great plumbers and hvac techs, pay them well and treat them right. We get satisfaction everyday by solving problems and creating good working environments. We don't need to argue over the tile pattern - we leave that to others; like an interior designer. Love your thoughts and perspective.
Hey Scott...I'm a tradesman myself... What about the concept of being your own General Contractor for your own home? I had a 95 yo customer (a retired big pharma rep whose hobby was rebuilding player pianos) a few years back who told me he was his own general contractor for the renovation of his own home and he saved one third of the cost of the project...Could you comment on that?
Spot on. I went out on my own 4 years ago. Ive been steadily growing and am at the point to where i may have to expand. My biggest issue is my pricing. My rates have steadily gone up but my overall income has stagnated a bit. Im in a bit of a panic now and not sure what i need to do.
You might need to increase your profit margin? You should pull up the figures of two similar jobs , one where the money was good and one where it wasn’t and you may find the missing piece. My wife is a CPA so I’m very lucky with the figures end of things. You can also look into hiring a business coach or an accountant to help you with this. Best of luck
Went on edge of bankruptcy last year doing renovations, people keep on taking and taking and taking... had to swallow my pride and get full time employment after 15 years of solo entrepreneur...
We recently had our bathroom remodeled, tub to a stand up shower new floor and everything that goes along with it, we had a pretty much independent contractor do it, there wet a few days where he couldn’t come, family issues thankfully we had another bathroom we were very flexible with him knowing that people run into family problems from time to time, he thanked us saying most others would really complain and rush him to finish the job, there was also a small snag in the job, originally we were going up 6 feet in the shower with the ceramic tile, we changed our mind and decided to go 8 feet, up to the ceiling, we amended our order with the tile place coming close to the end we were short and couldn’t figure out why, we looked at the order form the tile place made a mistake and went with original order, well that put job another week out, it was custom order again we were very flexible and again he appreciated our patience, in the end he did an amazing job but it goes to show you this is just one job in many for an independent contractor, life happens and you have to be ready for the challenges
It’s too much work I’ll be honest. Most of the larger general contractors unit costs are so well defined that even the slightest slip up would only cost them pennies in the grand scheme of things. Yet you got these spaz supers running around like everyday is a loss. I’m sticking around for another 4 years and then most likely moving industries. I’ve done it for 10 years and saved every bonuses for my escape out of it. did trades did management nothing was physically or mentally better with each promotion. Salute to anyone that’s made it 40 years.
I wouldn't say almost anybody, because passing code test and business test, checks, there are plenty that can't do that. State to state is different though.
I have an off topic question please. I'm in need of an excavation contractor to do site work for an ag building and 1/4 mi of road gravel refresh and also a pole barn/post frame building contractor. I'm 30 miles from Roseburg OR, the headquarters of the Essential Craftsman. I haven't been able to get a return call from any contractors. Thank you
Please email , check our website for contact details!
I’ll give you Reynolds Excavation contact info!
I know a cabinet guy who installed cabinets twice over the difference between pepper corn grey and dark grey. 😂