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Choosing Your Form of Business

Choosing Your Form of Business

How Do I Get Started?Many builders slide into business naturally as “sole proprietors.” You automatically become a sole proprietor when you contract for your first project. You are now in business, and you are the sole owner or proprietor of the business. What is important to realize is that if you are operating as a sole proprietor, legally speaking, you are the business. The business’ earnings are considered your earnings for tax purposes. You pay social security and income tax on the entire earnings of the business, not just the portion you take for personal use. Moreover, you and your businesses are one and the same before the law. You can be held personally liable for any of its...

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Best Practices

Hiring Subcontractors

Hiring Subcontractors

Hiring Subcontractors  Ideally, your relationship with your subcontractors should be as dependable as your relationship with your employees. One way to ensure that is to have an agreement with your subs that defines your relationship so you both know what to expect.  Your Subcontractor Agreement...

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Building Your Business

Adjusting Your Bid, and Sticking With It

Adjusting Your Bid, and Sticking With It

Adjusting Your Bid, and Sticking With It Regardless of what method of figuring overhead and profit you use, you will find that your charges will have to flex with the times. Some builders would disagree. They will do virtually anything to maintain their markups or margins when times are slow....

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Why Do Builders Do Competitive Bidding?

Why Do Builders Do Competitive Bidding?

Competitive Bidding For some, perhaps most builders, competitive bidding simply comes with their territory. It is often their best avenue into projects. They do a type of commercial or public work for which it is not often possible to win contracts by any other means. Some builders who might be...

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Subcontracts and Purchase Orders

Subcontracts and Purchase Orders

Subcontracts Today, very few general contractors self-perform the construction work that actually builds the structure or facility. General contractors buy trade labor through subcontracts. During the bidding process, various trade contractors offer up bids for various sections of work. These bids...

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Inspection and Procurement in Pre-Construction

Inspection and Procurement in Pre-Construction

The Permitting and Inspection Process Inspection and procurement are probably the most crucial aspects of the pre-construction process. The owner may secure building permits before the project is let out for bids, but in most instances, this task is typically handled by the construction management...

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