Birth Of A Contractor

By Author: Unknown Member
Total Articles: 69
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Birth??, Well not literally, sort of metaphorically is how I mean it. I’m trying to make it sound as if becoming a contractor is some grand undertaking when in reality it is sadly quite simple, and perhaps, as I will suggest, all too easy.

In Europe, I have been told that one must become an apprentice, past certain tests of hands on skills in each craft before they can be considered a qualified tradesman. I would think, the qualifications to become a general contractor would be even more difficult as working on and renovating their centuries old structures which were built by artisans would require a very wide range of skills and knowledge. The qualifications in the states that are needed to become a general contractor, at least in Long Island NY, amount to obtaining a minimum level of general liability insurance and paying a fee to the county. There is no written test or physical test of building ability or any proof of intimate knowledge of the different systems (structural, plumbing, electric, HVAC, etc.). In Suffolk county there is a written test that delves into some rules and regulations as it pertains ...
... to an awareness of contract law and other legalities, at least that was the test that I took many, many years ago.
There have been and still are many organizations that a contractor can join in attempt to gain some credibility and some proof of construction knowledge. NARI (National Association of the Remodeling Industry) is one example. NARI offers courses that a member can take that will at least prove that an individual can pass a written test and answer technical questions pertaining to all the different systems previously mentioned and achieve a status as a CR (certified remodeler). It is the opinion of the author that this type of certification (or something equivalent) should be a “mandatory” for one to obtain in order to a registered general contractor. Sadly, the counties that grant the licensing, for whatever reason, ask for no proof of knowledge or experience or ask for any certifications. I recently reapplied for both county licenses due to a name change from True Frame Corp to True Restorations, the main concern was that I had a general liability policy classification that matched the type of contracting that was actually going to be done. Also, Nassau County was diligent in investigating that I would be using licensed subcontractors. It was refreshing and welcomed scrutiny but it falls way short in actually making sure that a contractor seeking a license actually knows what he/she is doing. Is it fair to say that most, if not all homeowners in Nassau & Suffolk Counties think that if their contractor is licensed, he/she “must” know what he/she is doing???

If no proof of construction knowledge or experience by a “licensed” contractor weren’t scary enough, the insurance coverage aspect of each contractor is even more disturbing. I’m not suggesting that a licensed contractors don’t have some insurance, they all have some, a minimum at least, but this doesn’t mean that they have the correct insurance and also doesn’t mean that any subcontractor working under the general contractor has any insurance, or a license for that matter. What I am going to tell you is coming from a 30 years experience as not only a subcontractor but also as a general contractor. Most general contractors & subcontractors (including some of the really big ones), most, like 95% of the companies that you see working up and down every street on Long Island are either not properly insured or are insured but not in the correct classification, or are using non-licensed subcontractors or are not meeting their insurance mandates of having signed contracts or many other shady operational standards, too many to list. My guess is that most have no clue as to what the rules and regulations actually are and that they will swear that they are legit…..and believe it!

The cherry on the top of this nasty, shady, unregulated industry is the rank amateur dealings of a lot of these “businessmen”. Included with the all too easy access into this industry is that with easy access comes low cost. Low cost creates opportunities for the undeveloped and frankly undeserving. I know this because I was one of them. I went into business when I was 23 years old and I had no money, no experience and absolutely no business skills…….like none. Ultimately, this is the biggest failure of our system, having 23 year old know nothings competing against legitimate, experienced and proven contractors. Perhaps, in addition to some real knowledge testing & certifications, the industry is begging to have some ability to demand that a contractor have at least a basic understanding of business finance. Believe me when I tell you, most contractors learn this most basic function on the fly, through trial & error. Most contractors are really good with their hands and probably weren’t cracking homeruns academically during their time in school……if you know what I mean. This is such a big topic that dovetails with the curriculum offered at the high school level and the courses that are not offered and that probably should be. What would contracting look like if some basic “running of a business” courses were more prevalent?

My longtime goal has been to be the best, most professional, caring, efficient & profitable contractor that I can be. I attempt to create some separation from the riff raff in this industry, especially during competitive bids. There is a lot to consider and I will offer some suggestions on how to navigate these waters in a future blog post.

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