Question 1

What not to say to a general contractor?

Accepted Answer

In dealings with a contractor, avoid the following: 1. Never reveal that they are the sole bidder on the job; 2. Keep your budget undisclosed; 3. Refrain from requesting discounts when paying upfront; 4. Avoid mentioning that you are not in a hurry; 5. Do not permit the contractor to choose materials.

Question 2

What is the hourly rate for contractors in Arizona?

Accepted Answer

The salary for a General Contractor in Phoenix, AZ varies, with top earners making an annual salary of $100,816 or an hourly wage of $48, those in the 75th percentile earning around $87,000 annually or $42 per hour on average, the overall average salary being $75,814 per year or $36 hourly, and those in the 25th percentile earning about $47,400 annually or $23 per hour.

Question 3

Why do general contractors charge so much?

Accepted Answer

The value of a good general contractor encompasses top-notch service, offering a higher likelihood of a positive experience, with quality home improvement services often entailing substantial investment in concealed details, leading to increased costs due to the need for significant resources such as time, expertise, and money.

Question 4

How do I hire a local contractor?

Accepted Answer

When hiring a contractor, follow this checklist and these tips: Obtain multiple estimates, prioritize hiring local and licensed contractors, thoroughly examine their previous work, take your time to make an informed decision, verify their insurance and bonding, ensure that all agreements are documented in writing, understand your right to cancel, and avoid making upfront payments.

Question 5

What do most general contractors charge per hour?

Accepted Answer

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

Question 6

How much does a handyman make an hour in Arizona?

Accepted Answer

As of October 13, 2023, the average hourly pay for a Handyman in Arizona is $25.12.

Question 7

How do you negotiate an hourly rate for a contractor?

Accepted Answer

When negotiating contract rates, follow these steps: Determine your minimum acceptable rate, understand your industry and your value as a contractor, consider location-based pay variations, take into account unique client factors, gather a range of hourly rates from potential clients, initiate negotiations with a higher rate, and ensure flexibility for further negotiation.

Question 8

Do general contractors negotiate?

Accepted Answer

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

Question 9

How do I choose the right contractor?

Accepted Answer

Follow these eight professional tips for hiring a contractor from start to finish: Obtain recommendations, conduct phone interviews, arrange face-to-face meetings, thoroughly investigate credentials, solicit bids after making plans, establish a payment schedule, prioritize factors beyond price, and ensure all agreements are documented in writing.

Question 10

Where is the best place to find independent contractors?

Accepted Answer

Utilize these resources to identify professionals with the qualifications and reliability you require: LinkedIn, WorkMarket, staffing agencies, Stack Overflow, Chamber of Commerce, and professional organizations.

Question 11

Is it normal to pay 50% upfront?

Accepted Answer

Ensure clarity and consistency in your upfront payment terms, with standard industry practices typically involving 25-50% of the total bill or the option to set up a series of installments, disbursing portions of the final payment at different project completion stages.

Question 12

What is the markup for a general contractor?

Accepted Answer

Your profit margin as a general contractor, representing the remaining amount after covering all project costs, is typically determined as a percentage, with the average contractor markup ranging from 7% to 20% or higher.

Question 13

How do you calculate labor cost for a contractor?

Accepted Answer

To calculate labor cost, use the formula: (Hourly Wage + Hourly Labor Burden) * Hours Worked/Needed; for instance, if a worker earns $25 per hour with a labor burden of $7 per hour and is required for 40 hours in your project, the labor cost for that worker would be $1,280 ( ($25 + $7) * 40 ).

Question 14

What can a handyman legally do in AZ?

Accepted Answer

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

Question 15

What is a handyman allowed to do in Arizona?

Accepted Answer

Minor work, encompassing repairs and small alterations not necessitating building permits, can be performed by unlicensed handymen in Arizona, including tasks like drywall installation, furniture assembly, window repairs, door installation, and fixture replacements, with the typical hourly rate for a handyman in Arizona being around $25.

Question 16

What is the rule of thumb for contractor rate?

Accepted Answer

Negotiating a contractor pay rate is relatively straightforward, particularly if you have experience in placing direct hires for the same position, as a common rule of thumb involves dividing the typical annual salary for a direct hire by 2,080.

Question 17

Is it OK to negotiate hourly pay?

Accepted Answer

Negotiation is a skill everyone can employ, with the potential to yield hundreds of extra dollars, as even if the manager declines, it's essential not to forgo the opportunity to maximize your earnings, especially when negotiating salary requirements during a job interview is considered an art.

Question 18

What to expect from a general contractor quote?

Accepted Answer

The fee for a general contractor is typically established as a markup percentage applied to the total construction project cost, encompassing material costs, subcontractor labor, and any additional expenses that might occur.

Question 19

How many quotes should I get for home repairs?

Accepted Answer

Obtaining quotes from potential contractors, while both exciting and slightly nerve-racking, is a pivotal initial step in assessing the ideal general contractor for your project and estimating its cost; it's advisable to seek a minimum of three quotes for your home improvement or remodeling endeavor.

Question 20

How do you interview a general contractor?

Accepted Answer

When interviewing a contractor, ask key questions such as their years in business, possession of licensing and insurance, responsibility for permits and inspections, project timeline, payment schedule, and whether a dedicated team will be assigned to your project.

Question 21

What are five ways an owner may select a general contractor?

Accepted Answer

Various methods of contractor selection include competitive bidding, informal competitive bidding procedures, negotiated contracting, the duration of the bidding period, equal opportunity policy considerations, and best value contractor selection.

Question 22

What is the best company type for a contractor?

Accepted Answer

To reduce personal risk, a general contractor can opt to establish a limited liability company (LLC) or corporation, which legally separates the entity from the business owner, safeguarding the owner's personal assets from the company's debts and legal matters in most cases.

Question 23

What should a contractor quote include?

Accepted Answer

Each estimate should, at a minimum, encompass the following components: a job description detailing the work to be performed, a breakdown of materials and labor costs, the total project cost, and contact information for sales and the company.

Question 24

How many quotes should you get from contractors?

Accepted Answer

In each of these cases, we suggest obtaining three quotes; typically, two of them are closely competitive, while one is notably distinct, with one quote being considerably lower and another significantly higher, possibly indicating a larger construction company's involvement.

Question 25

What should you not say to a contractor?

Accepted Answer

When dealing with a contractor, avoid the following: 1. Never disclose that they are the sole bidder on the job; 2. Keep your budget undisclosed; 3. Refrain from requesting discounts when paying upfront; 4. Avoid mentioning that you are not in a hurry; 5. Do not allow the contractor to select the materials.

Question 26

What are typical payment terms for contractors?

Accepted Answer

The terms "Net 10," "Net 30," or "Net 60" specified on the invoice signify that the contractor's payment is required within 10, 30, or 60 days from the invoice date, with "Net 30" being the most common payment term for independent contractors and involving minimal associated risks.

Question 27

How do you negotiate with a general contractor?

Accepted Answer

When negotiating with a contractor, establish the right tone, communicate with past clients, obtain multiple bids, ensure all details are documented, clarify your budget, seek assistance in cost reduction, explore creative ways to lower costs, and identify the appropriate contact in case issues arise.

Question 28

What percentage do most general contractors charge?

Accepted Answer

The cost of hiring an independent general contractor typically falls within the range of 15% to 20% of the total project cost, which can translate to contractor fees spanning from a few hundred dollars to tens of thousands of dollars, depending on the project's overall price.

Question 29

What is the average markup for a general contractor?

Accepted Answer

As a general contractor, your profit margin, representing the remaining amount after covering all job costs, is typically calculated as a percentage, with the average markup ranging from 7% to 20% or more.

Question 30

How much work can you do without a contractor license in Arizona?

Accepted Answer

In general, contractors are required to be licensed when the combined cost of labor and materials exceeds $1,000 or when a permit is necessary, irrespective of the labor and material costs.

Question 31

What can a handyman do without a license in Arizona?

Accepted Answer

Under Arizona handyman laws, an unlicensed handyperson can perform minor repairs, carpentry, or basic maintenance without the need for a building permit.

Question 32

Does a handyman need a license in AZ?

Accepted Answer

Handymen in Arizona typically earn approximately $25 per 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 33

What is the penalty for hiring an unlicensed contractor 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, which carries a maximum penalty of six months in the county jail and a maximum fine of $2,500, along with an 83% surcharge.

Question 34

How do I price myself as an independent contractor?

Accepted Answer

Calculate your rates by adding your selected salary and overhead costs, then multiply this sum by your profit margin, and divide the result by your annual billable hours to obtain your hourly rate (e.g., $99,000 ÷ 1,920 = $51.56), and lastly, multiply your hourly rate by 8 to determine your day rate.

Question 35

What is the difference between a contractor estimate and a quote?

Accepted Answer

Estimates provide a rough idea, quotes offer a fixed price for a specific time, and bids, common in construction, provide comprehensive details.

Question 36

What is the rule for estimating 5 or above?

Accepted Answer

In mathematics, the general rule for estimating involves examining the digit to the right of the desired estimate; if it's less than 5, you round down, and if it's greater than 5, you round up.

Question 37

What is the easiest way to estimate?

Accepted Answer

The most straightforward method of estimation involves rounding numbers to the nearest whole number, expediting the process of obtaining an approximate answer.

Question 38

What is the most expensive thing to fix in a house?

Accepted Answer

These are the top 10 costliest home repairs: hot water heater repair or replacement, termite damage, water damage, repair or installation of new pipes, heating/AC repair, mold removal, electrical issues, and septic system repair, with septic tank problems being particularly problematic.

Question 39

What are 4 questions to ask yourself when building a budget?

Accepted Answer

When constructing a budget, consider six key questions: Begin with your monthly take-home income, assess your debts, evaluate your expenses, ensure the total aligns, determine your priorities, and explore ways to maintain sustainability.

Question 40

How do I choose a reliable contractor?

Accepted Answer

To find the right licensed contractor, follow these steps: Ensure the contractor holds a license, shop around before making a decision, seek personal recommendations, confirm the contractor's business details, and verify their workers' compensation and commercial general liability insurance coverage.

Question 41

Is it better to be an independent contractor or self employed?

Accepted Answer

These job categories, although similar in nature, differ in that self-employment may not always involve providing services to the general public, and individual contractors may necessitate specific licenses or educational prerequisites for their respective roles, while self-employed individuals may not always require such specializations.

Question 42

What should a contractors estimate include?

Accepted Answer

In addition to the cost estimate, your general contractor construction estimate template should encompass the client's contact details, vendor tracking, status tracking, work description, exclusions, as well as start, duration, completion dates, and insurance information.

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