Critical Financial Considerations for North Carolina General Contractors

Construction is booming in North Carolina, particularly in the residential sector, due to rapid population growth and a strong economy. The state had the sixth-highest rate of residential construction in the entire United States last year, and over 78,000 homes have been built since 2010, which represents over 18% of the total housing stock.

With great growth comes great responsibility, though, particularly when it comes to business decisions. Whether you’re a self-employed contractor or you work with a team of other general contractors, it’s crucial to protect yourself and your wallet through smart financial choices that will improve your overall career.

Exam Test Prep

The North Carolina general contractor exam consists of 90 questions and is only partially open book. With a time limit of 200 minutes, you don’t have time to flip back and forth through every page in order to find the right answer; you need to know exactly what you’re doing. It gets even harder if you’re trying to become a commercial general building contractor: that exam has 115 questions and a time limit of 330 minutes.

You want to get out into the field as soon as possible, which is why working with a North Carolina general contractor license test prep company is an excellent decision. These companies provide you with all the materials you need to succeed, and they usually have a no-pass no-pay policy that means if you do not get a passing grade, you don’t have to pay them. With a wealth of resources and several packages to choose from, you’ll be able to make the right selection for your needs, whether you require extensive support or just want a study guide to ease your process.

Automatic Savings

Contractors often make great money, but it’s easy to live beyond your means, running into financial trouble should jobs dry up. For example, your old trusty truck may finally break down, and you find yourself unable to get to the site on time. You’ll need funds to repair your car and rent one in the meantime so that you can continue working. Without savings, you may find yourself missing work and frustrating clients who are relying on you to get the job done.

This is why automatic savings are a great option for those who may have inconsistent pay and want to ensure that they are always covered should they have a financial emergency. With automatic savings, you set up auto-deductions into a savings account that you choose, giving you one less thing to worry about when it comes to your finances.

Inland Marine Insurance

This financial investment is more for large-scale general contractors who work across a large area of the state. Don’t be fooled by the name: inland marine insurance doesn’t really have anything to do with North Carolina’s stunning Atlantic coast. Rather, it is for protecting high-value products and equipment when it is transported across large distances, ensuring that you can be compensated should there be an accident.

Take this example. Your company is working on two sites: one in Asheville and one in Wilmington. You finish up with your backhoe at the Asheville site, only to find out that the same equipment has broken down in Wilmington. You decide to transport your Asheville backhoe over to Wilmington in order to ensure that construction continues unimpeded. Inland marine insurance will protect you from losses should there be an accident on the way across the state so that you can get back the money you lost on the backhoe.

There are also other types of inland marine insurance, including builder’s risk insurance that protects equipment and construction materials on a site from losses due to theft or accidents.

Life Insurance

It’s a sad fact of life that construction is incredibly dangerous: you’re often working with caustic substances, heavy equipment, and large materials on a tight schedule. While you may do everything imaginable to protect yourself, adhering to all safety standards, but there still may be an accident. Life insurance is crucial for everyone, but it is especially so when it comes to those who work in manual labor jobs.

The sooner that you sign up for life insurance, the better off you will be down the line, as premiums are cheaper for younger individuals. As soon as you enter the field, find an affordable life insurance policy that will protect your family in case of disaster. This will provide you with peace of mind, taking one stressor off your plate so that you can focus on offering high-quality results to your customers.

Conclusion

North Carolina is one of the best places to open up a general contracting business. While you may consider things like liability insurance and the costs of equipment, there are many other financial considerations at hand, including cost-effective exam prep at the beginning of your career and inland marine insurance when your business has grown significantly. By making smart financial decisions, you can ensure that you’re always protected no matter what the construction industry throws your way.