For Utah General Contractors, referrals can help supply a steady flow of work. In order to keep referrals coming, however, contractors have to provide their best work every time. The story that follows is true and shows how inconsistency will hurt a company’s reputation and workload worse than obscurity.

If a general contractor is just starting out, than establishing a reputation will take time. If a general contractor develops a bad reputation, they may never be able to recover. A company that provides excellent service the first time but poor service on a separate contract with the same customer can quickly develop a bad reputation that can ruin the business.

A customer hired a local contractor to replace a roof on his home. He was very happy with contractor’s work, and the way his people conducted themselves on site. The work was done quickly and professionally, and the contractors cleaned up the site each day to make sure no one was injured on material left on the grounds. While they were at the customer’s home, the contractors were polite and professional, and made sure that the customer was happy with every stage of the project.

The customer was so satisfied with the work the contractor did he talked about it with everyone who came to his home. When he had another renovation project, the customer didn’t hesitate contacting this contractor again.

The second project didn’t progress as smoothly as the first one had. A project that should have taken only three months dragged on for over six months before completion. The contractor would disappear for months at a time and wouldn’t respond to the customers call demanding to know when the company would return to complete the work. When the job was finally completed, the customer wasn’t satisfied with the quality and unhappy with the contractor’s behavior.

The customer let everyone he knew how unhappy he was with this contractor. Both the contractor and the customer live in a small area where news travels fast, especially bad news. It wasn’t long before the contractor started having difficulty finding new contracts and ended up going out of business a year after his bad performance at the customer’s site.

Consistency is vital to continue receiving repeat business and to gain new customers. It takes a lot of effort to gain a new customer, but it is easier to keep a repeat customer happy, as long as the work is consistent. General contractors should make sure that they treat repeat customers like they are new customers to ensure referrals and to earn a positive reputation in their market. This will help provide an inexpensive form of marketing that can help guarantee a consistent flow of income with little effort on the part of the contractor.

The building season is in full swing, but as you complete contracts, don’t forget to advertise. You don’t want to complete one job, only to find out that when it is over you are out of work. For a Utah General Contractor, the best advertiser is past customers.

Marketing needs to be a consistent business activity. In and out of season, you need to be making potential clients aware of you and what you can do for them. Advertising can be expensive, but there are inexpensive forms of advertising that are highly effective. Word of mouth advertising is one of the traditional forms of marketing that is popular even with the advent of social media.

Past customers are a great form of advertising for three different reasons: authority, niche, and the human touch.

Authority

When a company is new, they have to establish that they are an authority in its field. This isn’t always an easy thing to do and it takes time. There are no shortcuts to building a reputation. References are one way to prove that you are a qualified general contractor. If a previous customer tells friends and family that they know a contractor who provides quality work, it establishes your authority and lends credence to your other marketing efforts.

Niche

Effective marketing includes establishing a target market to pursue. Customers in this target market will know others in this market. This is a form of targeted advertising that will continue long after your other campaigns are over. People talk, and if they are happy about a particular service or product they will let others know. This is true even years after the service is complete.

Human Touch

People want to do business with people. Even with the advent of the Internet and virtual services, people still crave the human touch. When someone needs work done, a satisfied customer often says “I know a guy. . .” they don’t say “I know a company that. . .” This helps establish the human touch that customers want.

Every project is a possible referral, and a general contractor needs to treat every customer this way. If you make every effort to make sure the customer is happy, they will remember you. These customers will think of you first the next time they need work done. They will also mention you when those they know say they need work done. This free form of advertising will keep you busy long after your other work is complete, and may even be able to keep you busy year round.

For contractors in the state of Utah, there is a new way to communicate with their customers. Utah Contractor Licensing Center has created a database for clients and contractors so that those who need contracting work done can find professionals in their area. The Contractor Profiles database was created to help those who are looking to have work completed. It is also opens a new way for contractors to advertise their services.

Marketing efforts need to focus on potential clients to be effective. Niche marketing is more about quality than it is about quantity. Warm leads, those who are interested in specific services and ready to buy, are not easy for businesses to find. However, a few warm leads bring more revenue to a company than a large number of cold leads.

Placing ads in local newspapers, billboards, and television keeps the company’s name in front of consumers. The concept behind this type of advertising is that when people are ready to hire a particular service, they will remember the name of the company they see consistently.

This form of advertising does pay off, but it takes time. Advertising that focuses on those who are already looking to buy, has a higher return on investment in a shorter period. Often these types of advertising are expensive, but companies justify the cost with the revenue they receive with the advertising.

The Contractor Profiles database allows companies to place their information directly in front of interested buyers. Potential customers contact the companies, and this provides them with the opportunity to show consumers why they are the best contractor for the job.

This database also helps relieve some of the anxieties people have about hiring a contractor. People are afraid that when they hire a contractor the job may not be done right. Perhaps, the job won’t be done at all. Contractors have to find ways to prove that they are knowledgeable and reliable.

With the Contractor Profiles database, consumers are assured that the Utah contactors listed are qualified in the specialty they need. This helps contractors show they are experts in their field, the first major hurdle to finding more clients.

For more information on how Utah contractors can take part in the UTCLC Contractor Profiles database, go to our contact page and fill out a form. One of our customer service representatives will contact you to answer all of your questions.

It’s tax season, and now is the time that many businesses look over their deductions. Small businesses owners are often affected personally by the success, or failure, of their business. For those who are on the verge of passing the Utah State Licensing exam, the type of business you form now will affect you next tax season.

Contractors are faced with many different business options. They can be sole proprietors, they can form a partnership, or they can create a corporation. Each of these business types has pros and cons when it comes to taxes.

Sole proprietorship is one of the most common small business types. Many sole proprietors don’t apply a tax ID number; they use their social security numbers when they file taxes. They enter their information on a schedule C, as a part of their 1099 tax return. Depending on the number of deductions individuals can claim for their business and personal lives, people can end up owing money to the state and federal governments.

Partnerships can also affect personal tax statements at the end of the years. In partnerships and sole proprietorships, the money contractors take personally isn’t considered a paycheck, so the normal payroll taxes don’t apply. This means that individuals are responsible for making sure that the government receives their fair share of their income.

Individuals are also personally responsible for any business expenses and liabilities. If a sole proprietor is sued, plaintiffs can attack personal as well as business assets. Many contractors live with the fear that a lawsuit will destroy them personally, even with insurance.

In order to protect personal assets, and to gain certain tax advantages, many Utah contractors form corporations. There are different options that small businesses can avail themselves for corporations: limited liability, Chapter S, and C Corporation.

A limited liability corporation (LLC) is one that is popular for small businesses. It is a scenario contractors consider the best of both worlds, as it shares the benefits of a corporation and a sole proprietorship/partnership. A Chapter S corporation is beneficial as long as the company doesn’t show a profit. Moreover, a C corporation is possible, even if the small business has few or no employees.

UTCLC helps contractors who have passed their state licensing exam create the type of business they want to form as Utah general contractors. We can help we review the advantages and disadvantages of each choice, and complete the paperwork required to form the type of business you choose. Contact us today to find out how we can help you pass your state licensing exam and assist you with company setup.

Utah general contractors often work with construction companies and other entities as a part of a large construction project. Depending on the type of work involved, you may qualify to place a mechanic’s lien against the home to insure payment. However, there are instances where the subcontractors aren’t paid and they can’t pursue the homeowners for compensation. When this happens, lien recovery assistance is available.

The state of Utah understands that there are sometimes two victims in these situations. The homeowner signed a contract with a construction corporation, real estate developer or a retailer of factory built housing. When the work was complete, the homeowner paid the main contractor; however, that contractor didn’t pay the subcontractors or suppliers for the job.

Prior to 1994, the homeowner was responsible for making sure subcontractors and suppliers were paid, even if the paid the original contractor. Utah understood that it was unfair to expect the homeowners to pay for the same work twice, however, the subcontractors also deserved to be compensated for their labor. This is why in 1994 they created the Residence Lien Restriction and Lien Recovery Act. They also created the Residence Lien Recovery Fund.

According to the Residence Lien Restriction and Lien Recovery Act, a subcontractor can’t maintain a mechanic’s lien or file a lawsuit against a homeowner in civil court if the homeowner entered into a valid contract, paid the original contractor, and the home was occupied within six months after work was completed.

The home had to be occupied by either the homeowner, or a renter or lessee to qualify for lien restriction. If the homeowner sold the home during that time and the new owner occupied the home within this timeframe, then the original homeowner didn’t qualify for a lien restriction.
If the homeowner meets these qualifications, then how do Utah general contractors make sure they are compensated for the project if the original contractor doesn’t pay them? One option is the Residence Lien Recovery Fund.

The Residence Lien Recovery Fund was created in 1994 as an alternative way for subcontractors to receive payment for a construction project if the original contractor denied them payment and the homeowner qualified for lien restriction. Between 1995 and 1996, Utah required licensed contractors to participate in the Fund as a condition of maintaining and renewing a license. That ended in 1996, however, and now participation is voluntary.

For more information on the Residence Lien Recovery Fund, visit http://www.dopl.utah.gov/programs/rlrf/index.html. For more information on Utah’s Mechanics Lien Law, you can download more information at http://le.utah.gov/~code/TITLE38/38_01.htm.

If you are looking to apply for a Utah general contractor’s license and need to learn more information about business law for the exam, UTCLC can help. Go to our FAQ page for more information.

General contractors can perform energy audits year round. It is a good idea for homeowners to learn now what they need to do to help make their homes efficient for the next heating season. In addition, you can help them make them homes cooler for summer. With the push to weatherize homes, some people have made incorrect assumptions. One of those assumptions is that owners of older homes cannot do anything to reduce their energy costs.

That isn’t true. There are many options people can take advantage of, even if their home is the oldest in their neighborhood. Moreover, while general contractors may understand this, they need to make sure that the people in their market understand this as well.

Advertising energy auditing services is a great way to educate and inform the public about the options that are available to them. Starting an advertising campaign now is beneficial since the minds of many homeowners are turning to spring chores and improvements. Depending on the type of Internet and Social marketing strategies you have in place, this advertising campaign doesn’t have to be expensive.

If you have a company website and blog, creating an article about energy audits is a great way to start people talking about the topic. You can even offer a free report about the types of homes that qualify for an energy audit. Then place similar information on your company’s Facebook page and twitter account if you have them to encourage conversation and generate leads.

In order to be successful with this campaign, your main goal needs to be to offer information, not generate sales. If you fill the blog post and tweets with sales pitches, you will turn off any potential customers. You even run the risk of alienating customers you already have.

On the other hand, if you offer this information freely with a gentle call to action but not expecting anything in return, people will understand that you are an authority on this topic and are more likely to turn to you for additional information, and perhaps contract your services for an energy audit or other renovation needs they may have.

If your knowledge of energy audits is slim or out of date, UTCLC can help. We have collaborated with AHIT to offer Utah general contractors an Energy Audit and Home Inspections course. Go to http://www.ahit.com/affiliates/utclc to find out more information about this course.

Homeowners aren’t the only ones who need to create to-do lists for spring-cleaning tasks. General contractors should create a list of tasks to complete in order to get ready to help residences with their renovation projects.

These tasks can include office as well as professional duties. This slow time of year is the perfect time to complete office tasks you have been putting off. Creating marketing plans, updating contracts, and organizing files will help you stay efficient as your workload increases.

Catching up on your reading is another beneficial way to spend your down time. If you have trade magazines and e-books that you meant to read but couldn’t find the time, you should go through them now. This will help you understand what to expect in the construction market and your specialty as summer draws near.

Once you have a better understanding of the current building trends, you should look at the tools of your trade. You will need to go through your tools and inventory to determine what you may need for upcoming projects.

Some of your tools may be old and worn. If you can’t repair them, you should replace them to foster a safe work environment for future jobs. Determine if you will need to buy new tools to make sure you can handle the changes in technology and trends in your specialty. This way you can look for bargains instead of being pressured to buy with a project deadline drawing near.

If you have any vehicles or large equipment, you should examine those as well. Make sure they are tuned if they need it in order to prevent inconvenient mechanical issues while on the job.

If you have left over inventory from past jobs, go through it to determine what is still good and what may need to be thrown out. Left over inventory may be a great opportunity to trade with your peers. If you had many painting jobs last year but expect to do more drywall projects this year, you may be able to barter with a contractor who has excess drywall.

If you don’t think you can barter your left over inventory and you don’t think you need it, perhaps you can sell it for some extra cash. This may help you buy tools or supplies you do need when finances are tight due to a lack of projects.

When work is slow, general contractors often get nervous. Completing these projects will help make you feel like you are moving forward professionally, instead of staying still and worrying about your future. If one of the items on your to-do list is a core or professional development class, contact us to see how we can help.

This could be considered a slow period for Utah general contractors who specialize in the residential market. Many indoor jobs are complete, and the weather isn’t decent to do some outdoor projects. In addition, many homeowners wait until they receive their income tax returns before they start major renovations.
This is a great time to do some projects for your own business that you haven’t had time for the rest of the year. One of these important projects can include completing the continuing education classes that you need to maintain your Utah General Contractor’s license.
This important aspect of your professional license is one many contractors put off. It is difficult to find the time necessary to take these courses with all of the other demands on your time. By taking advantage of lulls in your professional schedule, you are making a positive effort to ensure your company’s future.
Even if you have fewer projects to handle, you may not have the time to go to a physical location for your continuing education courses. You can look for webinars or online courses that will adjust to your schedule while still meeting Utah’s requirements.
Spring is around the corner, and soon you will be placing bids and completing projects as you prepare for prime building season. Once that happens, the fact that you still need to take courses to meet continuing education requirements will be the last thing on your mind.
Before that happens, you should research your options for different methods of completing your required professional classes. UTCLC offers opportunities for Utah general contractors to complete their education obligations in a way that meets each individual’s learning needs. Contact us to find out how we can help you cross continuing education classes off your spring to-do list.

Some people become nervous when taking an exam. They may have prepared and thought they were ready, but when they sit down, the test in front of them, they freeze up and find all the answers have left in their time of need. If this sounds like you, you may think that you won’t be able to pass the Utah General Contractor’s license exam. You may have even attempted to take the test once and failed. Hope is not lost, however.

Utah allows individuals to take the test more than once. If you have failed the exam, you can take it again. Before you reschedule the exam, however, you may want to look into some extra help.

UTCLC can assist you in preparing for both parts of the Utah General Contractor’s license exam. We can help you with strategies, practice tests, and provide the support you need to help you feel prepared. If you don’t pass a second time, we will be there to help you again.

Our no pass no pay guarantee shows you the faith we have in our system in preparing people for the license exam. Since 1993, we have helped people prepare and pass the tests required to obtain a Utah Contractor’s license. We have perfected the process and work with each student individually to find a strategy that will work for you.

Many people who suffer from test anxiety know the answers; it is their fear that stands in the way. By taking practice exams, you can become accustomed to the format of the test and working within the two-hour window offered to complete the exam. Once the process becomes routine, you can take the actual exam without feeling anxious because you are no longer facing the unknown.

UTCLC can help you achieve success. Visit our What do I Need page to learn how we can help you gain the experience and confidence you need to pass the Utah General Contractor’s license exam.

If you are a subcontractor who works in the construction field, you may be considering obtaining a general contractor license. In the state of Utah, you must meet certain criteria in order to qualify for a license. If you want to take this next step, make sure that you take control of your future and do what it takes to meet this goal.

One of the requirements is that you have experience in the field. While the amount of experience varies depending on your intended specialty, you need at least five years’ working experience to qualify. This working experience is called verified 1099 experience, and is required by the State. If you have worked off the books, or perhaps had another position but assisted with some construction, such as a dockworker that assisted with remodeling at a business, this doesn’t meet the criteria.

You also need a minimum of two years of management experience. This will help you learn how to oversee a crew, create a cost estimate, make sure a project is hitting milestones as expected, and other business aspects of construction and general contracting. It will also help you gain the experience you need to learn how to handle the intricacies of the many elements that are often included in a project.

As a subcontractor, you need to understand the commitment to your future that will be required in order to obtain a Utah General Contractor’s License. If this is a job you want to turn into a career, take the time to determine where you are on the path to success, and what you need to do in order to fulfill the necessary requirements.

If you don’t have the required 1099 experience, make sure you start working toward that goal by finding general contractors who need extra subcontractors for a project. If you lack the management experience, set a goal to find a way to manage a project.

Make sure you exhibit the qualities a general contractor would look for in a manager. Arrive at the project early, work with little supervision, be willing to help others to make sure the project is complete on time, and show that you are more concerned about the project then your own personal gain.

As you work towards your goal of meeting the field qualifications of obtaining a Utah general contractor license, keep in mind that you will also have to take two different exams. One exam covers the business aspects, while the other covers the general skills requirements. UTCLC can help you prepare for both exams, and will help you with other important facets of starting your own general contractor’s business. Go our FAQ page to find out how we can help you meet the goal of switching from subcontractor to general contractor.