The demand for houses increased after the federal government offered lower interest rates for loans in the middle of the pandemic. The situation resulted in a housing shortage as the supply could not keep up with the demand.
Even though rising home prices toned down demand, the housing supply remains low. This triggered a home construction boom as the market tried to keep up with the demand. It also made the idea of becoming a construction contractor appealing to some people.
Here are some tips you can consider if you plan on becoming a certified construction contractor.
Earn a Degree in the Field
The first thing you can do is to earn a degree in the field. You can opt to get a construction technology degree or a construction management degree. These degrees increase your expertise in the field, which you can use to market yourself to potential clients. You can also opt to get a civil engineering degree to give you more options for earning money.
Earning an associate degree in interior design can also complement your construction degree. The interior design degree gives you another option on the projects you can bid on. It allows you to design the interior of homes or offices aside from working on major renovation or construction projects.
Short-term courses on finance, business practices, local zoning ordinances, and taxation can also increase your capabilities as a contractor.
Gain Experience in the Industry
Before starting a construction contracting business, you can work with a construction company. This work experience increases your chances of obtaining a contractor’s license. You can work with a construction contractor or a general contractor, so you get real-world experience in the profession you aim to join.
Aside from working on domestic projects, you can also work on projects outside the country. But you need to check the requirements in the countries you want to work in. Working in the United Kingdom requires you to book a CSCS blue card. The card makes you eligible to work in the construction industry of the UK. The card also shows contractors that you have the qualifications to work on construction projects in the UK. Getting the card also makes you more credible once you start your construction contracting business in the US.
In addition to gaining experience in the construction side of the business, you will also enhance your verbal and written skills when you work for construction contractors. The work will also allow you to develop your supervisory skills and problem-solving and analytical skills. Moreover, you will learn to manage your time, which is necessary to meet the deadlines of the projects.
Obtain a Construction Contractor’s License
Once you have the experience, you can work on obtaining a contractor’s license. The professional license ensures you can legally work as a construction contractor in the US since some localities and states require them. But some only require a degree and experience to allow people to become construction contractors.
Some states that need licenses will require you to undergo training and pass a test before you receive the license. Due to the different requirements, you should ask your local or state authorities about what you need to practice the profession.
Acquire a Certification
After getting your license, you can also acquire certification from the American Institute of Constructors (AIC) or the Construction Management Association of America (CMAA). While getting a certification from these organizations is not mandatory, it can increase your credibility since it shows your customers that you follow the standards and guidelines set by the industry.
The certification also requires you to have certain educational background and experience. You also need to pass a skill assessment test to get certified. You should make sure to maintain your certification by completing education credits from these national organizations.
Work on a Business Plan
At this point, you should start thinking about the business and work on a business plan. The business plan gives your business direction and shows details about the business, including the finance, scope of work, profitability, and feasibility.
You can also show the specialty of the business, which will set it apart from the competition. For instance, you might want to focus on residential construction, especially with the huge demand in the housing market that the supply is struggling to meet. You can work with developers to meet the demand of the market.
The construction industry paused when the pandemic started. But the increased demand for houses has made the industry an appealing option for people who want to start a business in the middle of a health crisis.
