Question 1

Why do general contractors charge so much?

Accepted Answer

The value of a good general contractor encompasses high-level service, which is highly likely to provide you with a positive experience, as good home improvement services necessitate significant investments in hidden details, making them often more expensive due to the requirement of substantial resources such as time, expertise, and money.

Question 2

Who is the #1 general contractor in USA?

Accepted Answer

In the 2022 ENR Top 400 Contractors ranking, The Turner Corp. of New York, N.Y., secured the top position, followed by Bechtel of Reston, Va. in the second spot, Kiewit Corp. of Omaha, Neb. in the third place, and STO Building Group Inc. of New York, N.Y. in the fourth position, with 16 additional firms listed in the rankings.

Question 3

How do you tell a contractor their price is too high?

Accepted Answer

During the bidding phase, if the quoted bid appears excessively high, consider requesting assistance from the contractor to explore cost-cutting measures, as they may possess insights on reevaluating the project to align it with your budget, especially in cases where specific materials may significantly impact costs.

Question 4

What is the normal 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 costs, and this typical contractor markup is typically calculated as a percentage.

Question 5

Who is the richest contractor in USA?

Accepted Answer

Bechtel, boasting an annual revenue of $17.5 billion, holds the title of the largest general contractor in the United States, while Turner Construction ranks as the second-largest with an annual revenue of $14 billion.

Question 6

Is it better to be a GS or contractor?

Accepted Answer

Comparatively, contractor jobs are often perceived as offering higher pay, easier accessibility, and improved work/life balance, whereas government positions are generally associated with greater job security, stability, and a stronger sense of serving one's country.

Question 7

What should you not say to a contractor?

Accepted Answer

When dealing with contractors, it's important to avoid saying certain things: never indicate that they are the sole bidder, keep your budget undisclosed, refrain from requesting upfront discounts, avoid mentioning that you're not in a hurry, and don't allow contractors to make material choices, among other considerations.

Question 8

Can I haggle with contractor?

Accepted Answer

In the competitive landscape of contracting, numerous contractors are open to reducing their prices or engaging in negotiations regarding specific contract terms, as demonstrated by a recent Angie's List poll where over 80% of contractors expressed their willingness to lower prices in order to secure a project.

Question 9

How far off can an estimate be?

Accepted Answer

Keep in mind that an estimate serves as a preliminary figure, and it's not uncommon for the final cost to exceed it by approximately 5% to 20%, underscoring the importance of adhering to your budget and allowing for a margin before initiating any project.

Question 10

What do most contractors charge per hour?

Accepted Answer

The average cost for general contractors typically involves a fee ranging from 10% to 20% of construction costs for large projects, while small jobs are charged at fixed, daily, or hourly rates, with contractor hourly rates averaging between $50 to $150 per hour.

Question 11

Why do contractors mark up subcontractors?

Accepted Answer

The markup applied by contractors generally encompasses overhead expenses to secure profitability, while a contractor's fee constitutes the comprehensive charge for their services, encompassing markups, labor and material costs, subcontractor fees, equipment expenditures, and various additional expenses.

Question 12

How do general contractors get rich?

Accepted Answer

Prosperous contractors secure their future by establishing a robust management team, recruiting top-tier talent, cultivating an appealing workplace to attract and retain skilled professionals, implementing efficient systems and structures to replace themselves, diligently monitoring and analyzing financial metrics, and actively pursuing high-margin, negotiated projects with loyal clientele.

Question 13

What is the best company type for a contractor?

Accepted Answer

To mitigate personal risk, a general contractor can opt for the establishment of a limited liability company (LLC) or a corporation, as these entity types maintain legal separation from the business owner, thus safeguarding the owner's personal assets from the company's debts and legal liabilities in most situations.

Question 14

Is it hard to get fired from GS?

Accepted Answer

Terminating a federal employee is considerably more challenging than dismissing a private sector employee, as federal employers are bound by federal laws and regulations, whereas private sector employers often have greater flexibility to terminate employees without specific cause.

Question 15

What is the best degree for a general contractor?

Accepted Answer

General contractors typically pursue education in fields such as business, construction management, or general studies, with 45% holding bachelor's degrees and an equal percentage holding high school diplomas.

Question 16

Should you tell contractor your budget?

Accepted Answer

An esteemed remodeling contractor will inquire about your budget to assist you in maximizing the value of your project, so it's important to be transparent when asked about your budget.

Question 17

What not to do with contractors?

Accepted Answer

Ensure you do not breach legal boundaries by: assigning employees to assist the contractor, designating a dedicated workspace, offering paid time off or other benefits, engaging in long-term collaborations with the contractor, or having the contractor carry out essential core business functions.

Question 18

How do I let a contractor down gently?

Accepted Answer

If you find it uncomfortable to delve into the specifics of why the contractor didn't secure the job, you can politely inform them that you've chosen another company for your project and conclude the message by expressing gratitude for their time, which serves as a courteous and adequate closure.

Question 19

Why are contractors so hard to deal with?

Accepted Answer

Contractors frequently juggle multiple concurrent projects, potentially causing delays in their responsiveness to emails or phone calls, as they may prioritize on-site work over administrative duties.

Question 20

Should I tell contractor other bids?

Accepted Answer

In my view, it's acceptable to disclose the number of bids to all contractors, provided that you maintain equal treatment, and when dealing with contractors, I adhere to certain rules: never indicate that they are the sole bidders for the job and avoid disclosing your budget.

Question 21

How legally binding are estimates?

Accepted Answer

Estimates are typically not legally binding, but it's essential to note that some items labeled as estimates may actually be bids, and bids are legally regarded as offers in contract law.

Question 22

What is the rule for estimating 5 or above?

Accepted Answer

In mathematics, when estimating, a general rule dictates that you examine the digit immediately to the right of the digit you wish to estimate; if it's less than 5, you round down, and if it's greater than 5, you round up.

Question 23

Can you refuse an estimate?

Accepted Answer

An estimate is an informed projection of the anticipated cost for completing a job, which can be presented verbally or in written form, subject to client approval, rejection, or negotiation, while a contract is a legally binding document signed by both parties.

Question 24

Is Angie's List worth it for contractors?

Accepted Answer

Angi serves as a search engine for consumers seeking home improvement professionals, while for contractors, it functions as a potent tool to enhance online visibility, generate qualified leads, and secure more sales, catering to contractors of varying sizes and enabling promotion of their services for major renovations and home repair projects.

Question 25

What is the average markup for a general contractor?

Accepted Answer

The profit margin for a general contractor typically ranges from 7% to 20%, representing the amount remaining after covering all job costs, and this typical contractor markup is typically calculated as a percentage, with the average markup varying from 7% to 20% or more.

Question 26

What percentage of a remodel is labor?

Accepted Answer

The cost of labor in a remodeling project is typically contingent on factors like project complexity, size, and location, with the labor component in a Los Angeles project generally accounting for approximately 25-35% of the total project cost, with some variation.

Question 27

Is contractor a stressful job?

Accepted Answer

In the contracting business, the combination of long hours, stringent deadlines, understaffed teams, and project uncertainties can undoubtedly lead to a substantial amount of stress.

Question 28

What are the tax benefits of being a contractor?

Accepted Answer

Contractors and other self-employed individuals have the opportunity to deduct various expenses, including home office costs, advertising expenses, accounting fees, phone bills, equipment depreciation, travel and car expenses, as well as healthcare and retirement contributions, from their taxable income.

Question 29

Is being a 1099 employee bad?

Accepted Answer

Being a 1099 employee provides increased flexibility and work control, the potential for higher earnings, and the opportunity for tax deductions on business expenses, though it entails self-management of taxes, the absence of employee benefits, and potential income fluctuations.

Question 30

What type of contractor makes the most money?

Accepted Answer

Construction workers and building inspectors rank among the highest-paid professionals in the construction industry, boasting a median salary of nearly $62,000, yet this career path typically demands several years of relevant work experience, making it less suitable for beginners.

Question 31

Which is better w2 or independent contractor?

Accepted Answer

A 1099 worker is typically cost-effective and requires no additional training but may have the flexibility to selectively accept tasks, potentially leading to availability challenges for the work you require.

Question 32

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

Accepted Answer

These job categories share similarities but differ in that self-employment doesn't always entail providing services to the general public, whereas individual contractors may necessitate specific licenses or educational qualifications for their tasks, while self-employed individuals may not always require specializations.

Question 33

How many years do you need to retire as a GS employee?

Accepted Answer

The minimum retirement age varies depending on your year of birth: it's 55 to 57 with 30 or more years of creditable service, 60 with 20 or more years of creditable service, and 62 with five or more years of creditable service.

Question 34

What age can GS employees retire?

Accepted Answer

FERS retirement eligibility is determined by your year of birth, with a minimum retirement age (MRA) ranging from 56 and 6 months for those born in 1967 to 57 for those born in 1970 and after, as outlined in the table.

Question 35

Why is a general contractor an important career to have?

Accepted Answer

General contractors are responsible for tasks including procuring materials and equipment, maintaining records, monitoring schedules and payments, ensuring quality and safety, and engaging subcontractors for specialized tasks.

Question 36

How much more should an independent contractor make than an employee?

Accepted Answer

If you hold a 1099 contractor position, it's important to factor in the additional costs associated with being your own employer, and as a rough estimate, you should consider adding 50% to a W-2 wage to determine its equivalent 1099 wage.

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