Learn · General Contracting
General Contracting
Licensing, estimating, contracts, cash flow and getting paid: the business side of construction nobody apprentices you for.
Learning paths
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Content
Licensing 7 lessons
- How Contractor Licensing Actually Works
What a contractor license actually verifies, why the fifty state systems differ, and the four claims every board checks before it issues one.
- Contractor License Requirements by State
The four kinds of state contractor licensing system, what varies most between them, and how to verify your own state from the board rather than folklore.
- The NASCLA Exam: One Test, Many States
The NASCLA Accredited Examination is a shared trade exam that participating state boards accept, not a national license, and that difference decides what it saves you.
- The Business and Law Exam
The office half of contractor licensing: what the business and law exam covers, why field veterans underestimate it, and how to prepare for an open-book paper.
- Qualifying Parties and Qualifiers
The named individual whose exams and experience the license is built from, what boards require of them, and why their departure starts a clock.
- License Classifications and Monetary Limits
How boards license by scope and sometimes by job size, where the self-perform line sits, and why picking classifications is a business decision.
- Do You Even Need a License for This Job
The dollar threshold below which a state exempts small work, why it counts labor and materials together, and why splitting a contract to stay under it is itself a violation.
Estimating 10 lessons
Takeoff
- Reading Plans and Specifications
Plans tell you where and how much, specifications tell you what and how good, and an estimate built from one without the other loses the expensive half.
- Quantity Takeoff
Measuring work out of the drawings into countable units, with the net, then waste, then round discipline that keeps a takeoff auditable.
- Defining Scope of Work
Writing down what your price includes, excludes and assumes, so the owner compares like with like and your profit survives the award.
Pricing
- Labor Costing and Burden
The wage is not the cost: building a loaded labor rate from burden and real billable hours, then pricing tasks from production rates.
- Material and Equipment Costing
Turning a supplier quote into a delivered cost with waste, tax and freight, and pricing rented equipment by the calendar it sits on your site.
- Overhead, Markup and Margin
Overhead, markup and margin are three different numbers, and the divide, never multiply rule is what turns a cost into a price you meant to charge.
- Estimating Mistakes That Kill Contractors
The boring estimating errors that cost real money, omissions, unit slips and transfer typos, and the checklist and review discipline that catches them.
Bidding
- Bid or Pass: Choosing Your Jobs
Bid or pass is a priced decision: what one bid costs, what a win costs at your hit rate, and the questions that decide which jobs deserve estimating time.
- Preparing a Bid
Rolling takeoff and pricing into one number on the owner's form, with the summary sheet, sub-quote scope checks and bid-day process that protect it.
- Public vs Private Bidding
Public work is bid by rule and private work by relationship: responsive and responsible, bid security, prevailing wage, and what changes in each setting.
Contracts 7 lessons
Fundamentals
- Construction Contract Fundamentals
What makes a construction agreement enforceable, why the contract is a stack of documents with an order of precedence, and how its terms become cost.
- Contract Types: Fixed, Cost-Plus, T&M, GMP
Fixed price, cost-plus, time and materials and GMP are four answers to one question: who carries the risk that the work costs more than expected.
- Contract Clauses That Matter
The handful of clauses that decide who gets paid and who eats the loss: pay-if-paid, retainage, indemnity, liquidated damages, delay and notice.
- Subcontract Agreements
The subcontract is the one document you write: flow-down, scope, payment, schedule and default terms that make upstream promises land on the trade doing the work.
Administration
- Change Orders
Written, priced, signed, then build: the change order sequence that keeps extras from becoming disputed invoices, and why every change states its schedule impact.
- Delays, Claims and Notice Requirements
Sorting a delay into excusable, compensable or neither, applying the critical path test, and why strong causes die on weak notice.
- Dispute Resolution
Negotiation, mediation, arbitration and litigation as a ladder where every rung costs more, and the dispute clause that decides which rungs you may use.
Project Management 8 lessons
Planning
- Construction Scheduling Fundamentals
Activities, durations, logic and milestones, plus the baseline, update and compare cycle and the three-week look-ahead that actually runs the job.
- Critical Path Method
The longest chain of dependent activities sets the end date: forward pass, backward pass, float, and why the critical path moves at every update.
- Sequencing Trades
The interior backbone nearly every building follows, the inspection gate you cannot negotiate with, and why a trade wave finishes faster than stacked crews.
Execution
- Managing Subcontractors
Managing companies rather than crews: the mobilization gate, the coordination rhythm, payment discipline, and backcharges that survive a dispute.
- Quality Control and Inspections
Verifying work against the contract documents while it can still be fixed cheaply: first work in place, cover-up points, and milestone walks.
- Jobsite Safety Management
The GC's safety system on a site full of other employers: hazard planning, the hierarchy of controls, toolbox talks, inspections and real stop-work authority.
- Documentation and Daily Logs
The daily log as the project's contemporaneous record: weather, manpower, work performed and delays, written the same day, factual and unbroken.
- Project Closeout
Substantial completion, the punch list, final approvals, the document package and the financial closeout that finally releases retainage.
Business 14 lessons
Startup
- Choosing a Business Structure
Sole proprietorship, LLC and corporation decide who can be made to pay and how profit is taxed, and the S-corp election is a tax choice, not a structure.
- Contractor Insurance Explained
General liability, workers compensation, commercial auto, tools, builder's risk and umbrella, each answering one question about who gets hurt and whose property is damaged.
- Bonds: Bid, Performance and Payment
A bond is a guarantee, not insurance: the three parties, the four bonds a contractor meets, and why bonding capacity becomes a hard ceiling on growth.
- A Contractor Business Plan That Works
One page of arithmetic that starts from the profit you want and works backward to the number of bids you must send every week.
Operations
- Cash Flow: Why Profitable Contractors Go Broke
Cash flow is the timing of money, not the amount: why a genuinely profitable job can starve you, and the tools that close the gap at both ends.
- Job Costing
Tracking what each job actually costs by cost code while it is still running, and using variance as a steering wheel instead of a history lesson.
- Progress Billing and Retainage
Billing monthly against a schedule of values, and the retainage arithmetic that routinely holds back more than the job's entire planned profit.
- Tax Basics for Contractors
Nobody withholds for you: quarterly estimated payments, the tax set-aside habit, and the deduction concepts worth knowing before the CPA visit.
- Hiring and Employment Law Basics
What switches on with employee number one, payroll taxes, workers compensation, wage and hour rules, and the loaded rate your estimates must carry.
- Employee vs Subcontractor Classification
Classification is a question of fact about control, not a label you choose: the behavioral, financial and relationship factors, and what getting it wrong costs.
- Paying Subs: W-9s, 1099-NEC and Backup Withholding
Collecting a W-9 before the first payment, which payments to subcontractors get reported on a 1099-NEC, and the reporting threshold that changed for tax years beginning after 2025.
Growth
- Winning Work Beyond Word of Mouth
Leads, hit rate and cost per bid: building a pipeline you can point and measure instead of waiting for referrals to arrive at their own pace.
- Pricing for Profit
Building every price up from cost, overhead and a true margin, and the arithmetic showing why a five percent discount cuts profit by more than sixty.
- Scaling From Solo to Crew
The first hire cuts your own production before it adds capacity: the dip, hiring for the bottleneck, and what must be in place before payroll number one.
Law 7 lessons
Payment
- Mechanics Liens
A claim recorded against the property you improved and held as security until you are paid, plus the double-payment squeeze and the four lien waiver types.
- Lien Deadlines and Preliminary Notices
Three clocks in series, preliminary notice, recording, then enforcement, each set by your own state's statute and each fatal to miss.
- Prompt Payment Laws
Statutory clocks on construction money: how the trigger, the window and the interest penalty work, and how they sit beside pay-when-paid and pay-if-paid clauses.
Compliance
- Unlicensed Work: Penalties and Enforcement
Criminal charges, board citations, the civil bar on suing for payment and disgorgement, plus what counts as unlicensed beyond never having held a license.
- OSHA Duties as an Employer
What federal law obligates you to do as the employer of record, and how OSHA's multi-employer citation policy reaches the contractor controlling the site.
- Permits and Inspections
Permits, plan review, the inspection sequence and the certificate of occupancy, and why the inspection has to come before whatever hides the work.
- OSHA Recordkeeping and Severe Injury Reporting
The OSHA 300 log, the 301 incident report and the 300A summary, who is partially exempt, why construction never is, and the eight-hour and twenty-four-hour reporting clocks.