When a sub-contractor becomes a licensed general contractor, they may think the licensing exam is the toughest obstacle to overcome. For many general contractors, however, this isn’t the case. For them it is accurately planning their workload that becomes the downfall of their business.

Too Many Bids

Some contractors bid on many different projects because they know that they may not win every one. While it is true that just because you bid on a project doesn’t mean that you will win it, this policy can sometimes result in too many projects.

Having more work than you can handle isn’t the end of the world, if you can manage your time wisely. Make nbso sure you understand the scope of each project so that you can hire enough sub-contractors and complete each project on schedule.

Too Few Bids

This other extreme happens often during the off season. But some general contractors, especially those who are newly licensed, fail to adequately gauge their workload. This can result in not enough work to carry them through the season and can create financial shortfalls later in the year.

One way general contractors can overcome the issues of too many or too few bids is finding a good mentor. While management experience is part of the requirement for obtaining a Utah general contractors license, not all general contractors are good teachers. Find one who is willing to take the time to work with you so you can learn the basics before you have your own company.

Creeping Projects

Despite a contractor’s best efforts, some projects take longer than original estimates projected. There are times, however, when scope creep and underestimating the scope of a project extends the work past the deadline.

Scope creep is when the client adds extra work to the project and expects the contractor to complete the project on time and on budget. Sometimes this can be done easily. Other times, either the client adds too many extras or the work they want completed is more complicated than they understand.

Scope creep is difficult to recognize. You want to make the client happy and the work they want accomplished seems simple enough. When your deadline is extended too far, however, you are losing money and risk jeopardizing other projects. Learn to recognize the symptoms of scope creep and have strategies in place to handle them.

As a new general contractor, time management is important to help guarantee business success. Consider purchasing project management software to help keep everyone on task. Many software companies offer the ability to sync mobile devices and computers so that you can track your progress when you are at the office or in the field. Don’t let failure to plan be the reason you don’t succeed as a general contractor.