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How To Become a Subcontractor

Contractor Tips , Posted by Charlotte Smith on

How To Become a Subcontractor

Getting a job as a subcontractor in the construction industry can be an incredibly profitable career path. Moreover, becoming a certified subcontractor today is easier than ever. Subcontractors enjoy hands-on work, flexible schedules, and various other benefits. 

If you're thinking about becoming a subcontractor but don't know how to start, you've come to the right place.

We've created this neat little guide on how to get your licensing and training requirements out of the way so that you can start your career in construction. 

What Role Do Subcontractors Play In Construction?

Contractors are either an individual or a business that obtains work on a contract-by-contract basis. In short, contractors are essentially small businesses and classified as self-employed. 

That said, contractors must acquire their clients, manage their accounting, and negotiate deals with prospects. As a result, it requires a lot of work to become successful. However, all that hard work pays off with the various benefits a contractor reaps. 

For example, contractors tend to get paid more than employees due to their specialized skills. Furthermore, you can choose who you work with and, more importantly, who you don't. 

Steps To Become a Subcontractor

Becoming a subcontractor is easier than you may think, but it is a process. You'll need to complete all the steps below if you want to obtain your contracting career as quickly as possible. Some of the most vital steps to becoming a subcontractor are:

Get Construction Experience

Learning skills in construction is a must if you want to be a subcontractor. The highest-paid contractors in the field have extensive knowledge and experience in construction. In essence, the more construction-based skills you have, the more contracts you can obtain. 

Some of the best skills that are in demand are:

  • Roofing
  • Carpentry
  • Plumbing
  • Electrical engineering

Obtain Your License and Insurance

Most states require you to have a contracting license to obtain lucrative contracts. If you don't have the correct permit, the company hiring you could face many liabilities. As a result, they'd rather not risk hiring you and go with someone with the proper certifications. 

That said, getting your license will open up more opportunities for you to grow your contracting business. Each state has different licensing requirements, so you'll need to check with your local government to see what you need. However, most states require work experience, training, and passing an exam to get licensed. 

Insurance is another requirement if you want to start a subcontracting business. You'll likely need property damage, liability, and workers' compensation. The insurance is there to protect you and your clients as you work on your projects. 

Set Up a Contract Agreement

A contractor agreement is essentially a contract between you and your clients that showcases the scope of your services. You can hire a lawyer to create a fool-proof contract agreement to avoid any future issues that might arise.

As a subcontractor, you should never accept work without a contract agreement set up. Without it, your clients can make claims and potentially sue you if anything goes wrong. Your agreement should include an outline of your work, expected schedule, and payment. 

You need to remember that these are government-binding contracts and should be treated seriously with that in mind. Always hold up your end of the agreement, and pursue clients that breach the contract. 

Learn Sales and Marketing

Although a subcontractor has specialized experience in construction, you still need basic business skills to be successful. Sales and marketing are critical skills that will benefit you and your business in the long run. 

You'll need to learn how to market and sell your service so that you can be profitable. While you might be able to hire someone in-house to take care of this for you, it's still advantageous if you have a basic understanding of sales and marketing. 

Sales are significant, as it allows you to negotiate more favorable terms and compensation from your clients. 

The Bottom Line

There are countless reasons why becoming a subcontractor is an excellent career choice. For starters, you have an extremely high earning potential and a more flexible schedule. You also get to enjoy doing fulfilling work that benefits the community.

Becoming a subcontractor is easier than ever with all the resources out there. Here at Contractor Training Center, we've helped countless people get licensed and start their careers in construction. 

Contact our team today to learn how we can help you become a subcontractor in your state.