How to Become a General Contractor 

In many ways, general contractors are the heart of the construction industry. They coordinate and oversee the entire construction process, ensuring that projects are completed and delivered to project owners on time, within budget, and according to specifications.  

Are you looking to become a general contractor? Maybe you’re a seasoned tradesperson who wants to turn your skills into a full-fledged business. Or perhaps you’re already a local GC firm looking to get your business off the ground or expand. 

Whatever the case, this guide will walk you through the steps to becoming a licensed general contractor, from gaining experience to meeting legal requirements. 

TABLE OF CONTENTS: 

• Understanding the role of a general contractor 
• General contractor skills 
• Key job roles under a GC 
• Educational and experience requirements for general contractors 
• Licensing requirements for general contractors (by state) 
• Certifications for general contractors 
• How to build your network as a GC 
• The importance of business skills and financial management for GCs 
• Liability protection and legal considerations for general contractors 
• Overcoming challenges and succeeding in the industry 

Understanding the role of a general contractor 

General contractors oversee construction projects from start to finish and their role entails managing people, processes, and timelines to ensure everything runs smoothly. Here are some of the key responsibilities GCs have. 

• Project planning and construction scheduling - The GC maps out the entire project timeline. This includes setting milestones, coordinating teams, and building a plan that aligns with the client’s goals, budget, and deadlines. 

• Hiring and managing specialty contractors - From electricians to drywall pros, general contractors assemble the right crew for the job. They’re responsible for choosing subcontractors, negotiating contracts, and keeping everyone accountable throughout the build. 

• Sourcing and purchasing construction materials - GCs make strategic decisions about where and when to buy materials, balancing cost, quality, and lead times. Their purchasing power can directly impact a project’s budget and timeline. 

• Site preparation and site logistics management - A well-run jobsite doesn’t happen by accident. GCs manage access, storage, utilities, and safety protocols to keep the site organized and efficient, even as work ramps up. 

• Ensuring compliance with building codes - Construction is heavily regulated, and GCs act as the project’s compliance lead. They ensure permits are in place, inspections are passed, and work meets all local and national building codes. 

• Monitoring progress and addressing on-site challenges - Things don’t always go according to plan, but experienced GCs are problem solvers. They monitor progress daily, troubleshoot issues, and adapt schedules and workflows as needed. 

• Facilitating collaboration between owners, architects, and specialty contractors - General contractors communicate across stakeholders, resolve conflicts, and ensure everyone works toward the same vision. 

General contractor skills 

What skills do you need to succeed as a GC? It takes a mix of technical know-how, leadership, and communication to keep projects moving forward. Consider the following. 

• Project management - Ability to plan, schedule, and oversee every stage of a construction project. 

• Leadership - Strong leadership keeps crews aligned, motivated, and productive—even when deadlines are tight or jobsite conditions change. 

• Budgeting and cost control - GCs must estimate costs accurately, manage resources, and track expenses to keep projects financially healthy. 

• Problem-solving - Construction sites are unpredictable. Quick thinking and creative solutions are key to navigating issues that come up.  

• Knowledge of building codes and regulations - Understanding local laws, safety standards, and permit requirements is essential to keeping projects compliant and inspection-ready. 

• Communication - From client updates to subcontractor directions, clear communication ensures expectations are aligned, and tasks don’t fall through the cracks. 

• Negotiation - GCs negotiate with suppliers, subcontractors, and clients to secure fair prices, favorable terms, and productive partnerships. 

• Time management - With so many moving parts, GCs must prioritize tasks and adjust timelines without losing sight of the bigger picture. 

• Technical construction knowledge - A solid grasp of construction materials, methods, and trade practices helps GCs make informed decisions on the jobsite. 

• Risk management - Successful GCs identify potential construction safety and risk hazards and create plans to minimize issues, legal exposure, or costly mistakes. 

Key job roles under a GC 

General contracting companies, large and small, rely on specialized roles to keep things running smoothly. Here are the key job roles that make up a successful GC team. 

• Project Manager - Oversees the entire project lifecycle, from kickoff to closeout. They manage budgets, timelines, and communication across all stakeholders to keep everything on track. 

• Superintendent - Runs the day-to-day operations on the jobsite. Superintendents coordinate crews, enforce safety standards, and make sure work is executed according to plan. 

• Project Executive - Provides high-level oversight and strategic direction across multiple projects. They focus on client relationships, profitability, and ensuring teams have the resources to succeed. 

• Construction Estimator - Develops accurate cost estimates and proposals during the bidding phase. Construction estimators analyze drawings, materials, and labor to build realistic budgets for clients and internal teams. 

• Preconstruction Manager - Handles all things preconstruction on a project. They coordinate design reviews, value engineering, and early-stage planning to set the project up for success. 

• Quality manager - Ensures construction work meets established standards and specifications. They monitor processes, conduct inspections, and implement quality control systems to reduce rework and delays. 

Educational and experience requirements for general contractors 

There’s no one-size-fits-all path to becoming a general contractor. That said, a strong educational background plus relevant experience will go a long way.  

Educational background of GCs 

Most general contractors start with a high school diploma or GED, though many also pursue an associate’s degree or trade school certification. Some go on to earn a bachelor’s degree in construction management or a related field to deepen their expertise and expand their career options. 

Relevant coursework and training programs 

Specialized courses and certifications can help sharpen your skills and boost your credibility in the field. Look for programs that cover: 

• Construction management 

• Building codes and regulations 

• Project scheduling and budgeting 

• Safety and OSHA compliance 

• Construction contract management and administration 

Experience requirements for GCs 

Hands-on experience is the backbone of any great general contractor. While state requirements vary, most require at least 3–5 years of experience in the construction industry before you can apply for a GC license. This time in the field helps you develop the technical skills, leadership abilities, and real-world judgment needed to manage full-scale projects. 

Ideal experience includes: 

• Supervising residential or commercial builds   

• Working across multiple trades (e.g., carpentry, plumbing, electrical) 

• Leading crews or managing subs 

• Reading design plans and coordinating with architects or engineers 

The more diverse your project background, the stronger your foundation. 

Licensing requirements for general contractors (by state) 

Licensing requirements for general contractors vary by state, but most involve a combination of experience, exams, and background checks. You’ll typically need to apply through your state’s licensing board and provide proof of insurance and project history. 

Here’s a table that compares the different general contractor licensing requirements of each state and Washington D.C.

Please note, specialty and trade contractors may have different state licenses and requirements.  

Tips on preparing for GC licensing exams  

Whether taking a GC licensing exam for the first time or renewing your license, here’s how to set yourself up for success. 

• Review your state’s requirements - Most licensing boards offer an exam outline that breaks down the topics covered. This can help you review and brush up on the right areas. 

• Gather the right test resources - Use official handbooks and reference materials provided by your state’s licensing board. 

• Enroll in a prep course and take practice exams - Many community colleges and online platforms offer courses to help you study. And don’t forget to take practice tests to identify weak areas and build confidence. 

• Join contractor forums or study groups - They often have folks who share resources and can answer your questions. 

• On exam day, bring everything you need - This can include approved identification, permitted reference materials, and a calm mindset. Pace yourself, read each question carefully, and trust your preparation. 

Certifications for general contractors 

While not always required, industry certifications can boost your credibility, set you apart from the competition, and open the door to bigger, more complex projects. They send a signal that you’re committed to safety, quality, and professional growth.  

Consider adding these to your toolbox: 

• OSHA Safety Certifications - Show you understand jobsite safety protocols and that you can implement safety initiatives with confidence. Start with the 10-hour or 30-hour OSHA course. 

• LEED Accreditation (Leadership in Energy and Environmental Design) - Ideal if you want to work on green or sustainable building projects. 

• Certified Construction Manager (CCM) - Recognized as a top credential for experienced construction professionals managing complex projects. 

Tips for maintaining certifications and continuing education 

Already have your license and certification? Great! The next step is ensuring they stay active and current. Most states require general contractors to renew their licenses periodically and complete continuing education hours. 

To stay compliant: 

• Track renewal deadlines and continuing education requirements in your state. 

• Sign up for workshops, online courses, or in-person training focused on industry changes, safety standards, or business practices. 

How to build your network as a GC 

Success in construction isn’t just about what you know—it’s also about who you know. Building a strong professional network can lead to better subcontractors, new project opportunities, and valuable industry insights. 

Here are a few proven strategies to grow your network as a general contractor: 

• Join professional organizations - Groups like the Associated General Contractors (AGC) offer networking events, educational resources, and local chapter connections. 

• Attend industry trade shows and conferences - Industry trade shows and events (for example, AU)  are packed with opportunities to meet suppliers, tech providers, and fellow contractors. 

• Get involved in your local business community - Join your Chamber of Commerce or regional builder associations to connect with property developers, architects, and real estate pros. 

• Stay active online - LinkedIn groups, construction forums, and contractor communities can help you stay visible and build relationships beyond your immediate area. Not sure where to start? Check out The Big Room, an online forum that enables industry pros to network with each other, ask questions, and talk about all things construction.  

The importance of business skills and financial management for GCs 

Being a general contractor isn’t just about building—you also need to master the business side of things to keep your projects profitable and your company growing. 

Here are some best practices to implement: 

• Open dedicated business accounts - Keep your personal and business finances separate. This simplifies accounting, builds credibility, and makes tax season way less stressful. 

• Track your cash flow - Know what’s coming in and going out. Use accounting software or hire a bookkeeper to help you stay on top of invoices, payments, and expenses. 

• Establish and build business credit - A strong credit profile can help you secure better terms on materials, equipment, and insurance. 

• Create project budgets and stick to them - Estimating accurately and monitoring costs regularly ensures you protect your margins. 

• Plan for slow seasons - Construction can be seasonal. Set aside reserves and diversify project types to weather any dips in demand. 

Liability protection and legal considerations for general contractors 

As a GC, you must protect your business, clients, and team. Whether you’re just starting out or scaling your general contracting business, the following safeguards can help you avoid costly mistakes and stay compliant.  

Insurance 

Having the right insurance coverage isn’t optional—it’s essential.  

Most states require general liability insurance at a minimum, but you may also need workers’ compensation, commercial auto, and builder’s risk coverage depending on your project type. Proper insurance helps cover injuries, property damage, and legal fees, so you can keep building with peace of mind. 

Contracts and liability considerations 

Clear, written contracts help set expectations and minimize construction disputes. Include payment terms, project timelines, responsibilities, and how change orders will be handled. Limiting your liability through well-drafted contracts can protect your business from legal claims down the line. 

Best practices for working with legal professionals to ensure compliance with local and federal regulations 

Partnering with a lawyer who understands construction law can save you time, stress, and money in the long run. 

• Hire legal help early - Don’t wait until there’s a problem. A proactive review of contracts and licensing paperwork keeps you one step ahead. 

• Get familiar with local regulations - Building codes, lien laws, and licensing requirements vary by state and municipality. Legal counsel ensures you stay compliant wherever you work. 

• Review subcontractor agreements - Make sure your subs are covered by insurance and understand their responsibilities. This reduces your risk and keeps projects running smoothly. 

• Understand lien rights and payment protections - Know how to file and release liens properly to secure payment and avoid legal issues with property owners. 

• Keep documentation organized - From permits to contracts and inspection reports, keeping clean records helps you respond quickly if legal issues arise. 

Overcoming challenges and succeeding in the industry 

Breaking into the general contracting world is exciting—but it’s not without hurdles.  

Common challenges faced by new general contractors: 

• Securing funding - Many new GCs struggle with cash flow and getting financing for tools, equipment, or upfront project costs. 

• Finding reliable subcontractors - Building a trusted crew takes time, and poor-quality work can damage your reputation. 

• Managing client expectations - Misaligned timelines or unclear communication can lead to disputes, delays, and dissatisfied customers. 

• Navigating licensing and compliance - Meeting all legal and regulatory requirements can be confusing and time-consuming. 

• Balancing field work with office tasks - Many new GCs are stretched thin between running the jobsite and handling paperwork, marketing, and admin. 

Here’s the good news: with the right mindset and strategies, you can turn those early challenges into long-term wins. Consider these strategies: 

• Build a strong portfolio - Document your best work with photos, testimonials, and case studies to build trust with future clients. 

• Vet your subcontractors carefully - Start with smaller projects and build long-term relationships with subs who consistently show up and deliver quality work. 

• Practice transparent communication - Set clear expectations from day one. Use construction project management tools to keep clients updated and involved. 

• Work with a mentor or advisor - Connect with experienced GCs or small business advisors who can guide you through licensing, insurance, and operations. 

• Use digital tools to stay organized - Adopt general contractor software that can digitize your workflows around bid management, cost management, documentation, and more. That way, you can streamline operations, reduce manual errors, and keep every part of your project moving forward with greater visibility and control. 

• Focus on reputation-building - Gather positive reviews and referrals. Know that word of mouth and consistent follow-through go a long way in landing repeat business and referrals. 

Final words 

There’s a lot to consider when becoming a general contractor, from licensing to team management. Fortunately, there are plenty of resources that can give you the know-how you need to succeed. And with the right skills, experience, and business foundation, you’ll be equipped to take on bigger projects—and grow a construction business that lasts. 

Looking for resources for general contractors? This collection of articles, videos, and guides for GCs is a great place to start.