Question 1

What not to say to a general contractor?

Accepted Answer

Avoid saying the following to a contractor: 1. Never tell a contractor they are the only one bidding on the job. 2. Don't disclose your budget to a contractor. 3. Never ask for a discount if you pay upfront. 4. Don't convey that you aren't in a hurry. 5. Avoid letting a contractor choose the materials.

Question 2

Why do general contractors charge so much?

Accepted Answer

The value of a good general contractor lies in their commitment to delivering high-level service, which greatly enhances the overall homeowner experience through meticulous attention to hidden details and investments in resources such as time, expertise, and money, making it a potentially more expensive but ultimately rewarding choice for home improvement projects.

Question 3

How do I hire a local contractor?

Accepted Answer

When hiring a contractor, follow these checklist and tips: Obtain multiple estimates, prefer local and licensed contractors, evaluate their past work, take your time for a well-informed decision, verify their insurance and bonding, ensure all agreements are in writing, know your cancellation rights, and avoid making upfront payments.

Question 4

Do you need a contractors license in Arizona?

Accepted Answer

A business must hold a contractor's license if it intends to engage in building, altering, repairing, adding to, subtracting from, improving, moving, wrecking, demolishing, or any related work concerning buildings, highways, roads, railroads, excavations, structures, developments, or improvements.

Question 5

What do most general contractors charge per hour?

Accepted Answer

Average general contractor rates typically range from $50.00 to $150.00 per hour, although some may charge a percentage (approximately 10 to 20 percent) of the total construction project cost instead of an hourly rate.

Question 6

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

Accepted Answer

During the bidding phase, if the quoted bid seems excessively high, inquire about cost-cutting measures with the contractor to explore ways to align the project with your budget, as they may have insights on project modifications and material choices that can impact costs.

Question 7

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 markup is usually calculated as a percentage of the total project expenses.

Question 8

Where is the best place to find independent contractors?

Accepted Answer

You can utilize various resources, such as LinkedIn, WorkMarket, staffing agencies, Stack Overflow, the Chamber of Commerce, and professional organizations, to identify and hire qualified and dependable independent contractors.

Question 9

How do you ask a contractor for a quote?

Accepted Answer

Clearly communicate your project requirements to the contractor, request their most accurate estimate, and ensure they understand the scope of work involved, while also providing a detailed timeframe for your repair, keeping in mind that most general contractors typically refrain from quoting prices more than three months in advance.

Question 10

Who is the largest contractor in the US?

Accepted Answer

Bechtel, headquartered in Reston, Virginia, holds the position of the largest general contractor in the country, consistently ranking at the top with recorded revenues of $17.5 billion in 2021.

Question 11

What can a handyman legally do in AZ?

Accepted Answer

For minor repairs and services costing less than $1,000, such as painting drywall and furniture assembly, no license is necessary; however, for more extensive projects, you must obtain either a general or specialty contracting license from the Arizona Registrar of Contractors.

Question 12

Does a handyman need a license in Arizona?

Accepted Answer

In Arizona, a contractor license is solely mandatory for significant projects and work exceeding $1,000 in combined labor and materials costs, and if your handyperson tasks primarily entail minor projects valued below $1,000, you typically fall under the "handyman exemption" and do not require a contractor license.

Question 13

Can I get in trouble for hiring an unlicensed contractor in Arizona?

Accepted Answer

Engaging unlicensed individuals or businesses to perform contracting work on your property is ill-advised, as in Arizona, those caught contracting without a license are subject to fines and surcharges on the work's price.

Question 14

Is it normal to pay 50% upfront?

Accepted Answer

Ensure your upfront payment terms are transparent and uniform; while full advance payment is uncommon, the standard range is typically 25-50%, or you can opt for a phased approach, with portions of the final bill disbursed at different project completion stages.

Question 15

Is it normal for a contractor to ask for a deposit?

Accepted Answer

Offering deposits to contractors is an essential and customary initial step when commencing a renovation project, and the short answer is yes.

Question 16

Is it normal for a contractor to ask for 50 down?

Accepted Answer

In certain instances, such as with non-returnable custom products and supplies, contractors may request a 50 percent deposit from homeowners, which is a standard practice, as it enables the contractor to provide a down payment to the supplier to initiate the production of the custom item.

Question 17

How do I protect myself when paying a contractor?

Accepted Answer

When hiring a contractor, safeguard your interests by ensuring they provide evidence of bonding, licenses, and insurance, making decisions based on factors beyond price, requesting references, avoiding excessive upfront payments, securing a written contract, being cautious of pressure tactics, considering specialized professionals for guidance, and trusting your instincts.

Question 18

What to do if a contractor ignores you?

Accepted Answer

If you're unable to reach the contractor via your phone, consider using a friend's phone to contact them, as they may be avoiding your calls, and if they refuse to honor your agreement, you can inform your acquaintances about your dissatisfaction by sending a written letter.

Question 19

What to expect from a general contractor quote?

Accepted Answer

A general contractor's fee is typically established through a markup percentage applied to the total construction project cost, which encompasses material costs, subcontractor labor, and any additional expenses that may occur.

Question 20

What is a reasonable markup?

Accepted Answer

Although there is no fixed "ideal" markup percentage, many businesses commonly utilize a 50 percent markup, referred to as "keystone," indicating that the price charged is 50% higher than the cost of the goods or services.

Question 21

What should I keep track of as an independent contractor?

Accepted Answer

Maintain a comprehensive record-keeping system, including the documentation of expenses through photographs, digital and physical invoices, credit card statements, office expenditures, and other tax-deductible transactions, while also managing an independent contractor spreadsheet to monitor both income and expenses.

Question 22

What industry has the most independent contractors?

Accepted Answer

The top 10 US industries with the highest employment of contract workers include Computer & IT, Administrative, Accounting & Finance, Customer Service, Software Development, Medical & Health, Project Management, Research Analyst, Writing, and Education & Training.

Question 23

What should a contractor quote include?

Accepted Answer

In every estimate, it's essential to include the following elements: a job description detailing the work to be done, a breakdown of materials and labor costs, the total project cost, and contact information for sales and the company.

Question 24

What is the average hourly rate for a handyman in AZ?

Accepted Answer

The average hourly wage for a Handyman in Arizona is $25.12 as of October 14, 2023.

Question 25

How much can a handyman charge in Arizona?

Accepted Answer

In Arizona, a handyman typically earns around $25 an hour, but if you intend to undertake projects exceeding $1,000 in value or necessitating a building permit, you must acquire a state contractor's license.

Question 26

How long does it take to get a Contractors license in AZ?

Accepted Answer

The requirements for contractor licenses vary, with some licenses not mandating prior experience, while others may necessitate 10-15 trade-related projects and a specific duration of experience, typically ranging from 1-4 years, as preferred by the Registrar of Contractors in most instances.

Question 27

What are typical payment terms for contractors?

Accepted Answer

The terms "Net 10," "Net 30," or "Net 60" as indicated on the invoice signify that the contractor's payment should be made within 10, 30, or 60 days from the date of the invoice, respectively, with generally few associated risks, making it the most common payment term for independent contractors.

Question 28

What is the average markup for a general contractor?

Accepted Answer

A general contractor's profit margin, representing the remainder after covering all job costs, is typically calculated as a percentage markup, with the average markup varying from 7% to 20% or more.

Question 29

What's the difference between a quote and an estimate?

Accepted Answer

When a standard price list isn't applicable, providing a quotation signifies an agreed fixed price, whereas an estimate represents an approximate price subject to potential changes.

Question 30

Do general contractors negotiate?

Accepted Answer

Numerous contractors are open to reducing their costs or negotiating specific contract terms when competing for a project, as demonstrated by over 80% of contractors in a recent Angie's List poll who expressed their willingness to lower prices in order to secure a job.

Question 31

What are the four 4 factors used to determine whether someone is an independent contractor?

Accepted Answer

The law establishes independent contractor status based on criteria such as a worker's substantial investment in the business beyond personal services, self-employment representation, compensation by project rather than time, and control over their work's time and location.

Question 32

How much can I write off as an independent contractor?

Accepted Answer

The qualified business income deduction (QBI) enables eligible self-employed individuals, with "pass-through income" reported on personal tax returns, to deduct a portion of their business income, allowing for a deduction of up to 20% of their business income.

Question 33

Should contractors ask for money up front?

Accepted Answer

Contractors are limited to requesting a deposit not exceeding 10 percent of the total job cost or $1,000, whichever is lower, for any home improvement project, including swimming pools, and it's important to adhere to your payment schedule without allowing payments to surpass the progress of the completed work.

Question 34

Should you pay a contractor for a quote?

Accepted Answer

Contractors typically do not charge for estimates on smaller, straightforward jobs such as painting, window washing, or lawn services, as long as the work doesn't involve extensive consultation or design work.

Question 35

Do contractors give quotes or estimates?

Accepted Answer

Contractor quotes and estimates serve the same purpose of providing clients with cost projections for a project, but the distinction lies in the level of detail, with an estimate offering a broad and straightforward overview of the project's required work.

Question 36

Is it normal for a contractor to ask for 50 down?

Accepted Answer

For relatively small projects such as a $16,000 bathroom remodel, contractors might request a 50% deposit, while for larger endeavors like a $100,000 full-home renovation, a deposit of 10% to 20% is generally customary.

Question 37

What type of work can a handyman do legally in Arizona?

Accepted Answer

Under Arizona handyman laws, unlicensed handypersons can perform minor repairs, basic maintenance, and carpentry work without requiring a building permit, encompassing activities such as replacing light fixtures, drywall installation, window repair, and furniture assembly.

Question 38

What is the hourly rate for contractors in Arizona?

Accepted Answer

In Phoenix, AZ, the general contractor salary ranges from an average of $36 per hour for the typical worker to $100,816 annually for top earners, with the 75th percentile earning around $42 per hour and the 25th percentile earning approximately $23 per hour.

Question 39

Can I be my own general contractor in Arizona?

Accepted Answer

A contractor's license in various forms such as sole proprietorship, partnership, limited liability company, or corporation can be sought if there is a regularly employed individual with the requisite experience, knowledge, and skills serving as the qualifying party.

Question 40

How much does it cost to get a contractors license in AZ?

Accepted Answer

The fees for new license applications and renewals vary based on the classification, with General Residential (B, B-3, B-4, B-5, B-6, B-10) requiring a $180 application fee and a $320 license fee, Specialty Residential (R) necessitating an $80 application fee and a $270 license fee, and General Dual (KA, KB-1, KB-2) incurring a $200 application fee and a $480 license fee.

Question 41

What can a general contractor do in AZ?

Accepted Answer

General Commercial Contractors (B-1) are authorized to undertake projects of any scale, encompassing both large commercial endeavors and small home remodeling tasks, while General Residential Contractors are restricted to residential work, encompassing construction, remodeling, or repairs, regardless of project size.

Question 42

What is the law on unlicensed contractors in Arizona?

Accepted Answer

Engaging in contracting without a license in violation of A.R.S. § 32-1151 constitutes a class 1 misdemeanor under A.R.S. § 32-1164, carrying a maximum penalty of six months in the county jail and a maximum fine of $2,500, along with an 83% surcharge.

Question 43

How long does it take to get a GC license in AZ?

Accepted Answer

The Arizona Registrar of Contractors is dedicated to timely license issuance, processing applications in the order received, with the current average processing time being 20-30 days.

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