Residential General Contractor
Serve as general contractor for residential construction and renovation projects managing subcontractors, schedules, and building from permits through completion
Overview
Residential general contractors manage home construction and major renovation projects - coordinating subcontractors, managing budgets and schedules, obtaining permits, and overseeing projects from planning through completion.
You serve as single point of contact for homeowners.
Project revenues range from $50,000-$500,000+ with 15-25% contractor markup.
Completing 10-30 projects annually generates $200,000-$800,000 in revenue with 15-25% net margins after all project costs.
Target clients include homeowners building custom homes, major home renovations and additions, high-end remodeling projects, real estate developers, architects requiring builder, and property investors.
Services include project planning and estimating, permit and approval management, subcontractor hiring and coordination, schedule and budget management, quality control and inspections, and warranty service.
Success requires construction project management experience, relationships with quality subcontractors, understanding building codes and permits, estimating and budgeting skills, communication with homeowners, and potentially contractor license requirements by state.
Many residential general contractors specialize in project types (custom homes, renovations, additions), build reputation through quality completed projects, potentially perform some work in-house (framing, finish carpentry), work with architects and designers, build long-term subcontractor relationships, and differentiate through project management and communication.
Required Skills
- Project Management
- Construction Knowledge
- Subcontractor Management
- Estimating
- Building Codes
Pros and Cons
Pros
- Large project revenues and fees
- Control over project quality and schedule
- Can build reputation through completed projects
- Scalable through multiple concurrent projects
- High-end residential market opportunities
Cons
- Requires contractor license in most states
- Significant liability and insurance costs
- Managing homeowner expectations
- Coordinating multiple subcontractors
- Cash flow challenges during projects
How to Get Started
- Gain construction project management experience
- Obtain general contractor license
- Build network of quality subcontractors
- Get bonding and liability insurance
- Develop estimating and project management skills
- Get initial projects through network
- Build reputation through quality work
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