How To Become A General Contractor: A Complete Guide (2026)

What a General Contractor Does

A general contractor is responsible for coordinating construction projects and seeing them through from start to finish. In practice, that often looks like the following:

• Working with the client to create a project timeline and budget
• Hiring employees and/or vetting subcontractors
• Overseeing day-to-day operations at the worksite
• Verifying that the project is up to code and compliant with other regulations

In most cases, a construction client has a contract with the general contractor. The contractor is responsible for securing all materials and finding the necessary labor to complete the project.

Education and Training Paths

General contractors need to be knowledgeable about building trades, business law and the basics of running a business in general. You don’t technically need a college degree, but some general contractors have a degree in construction management.

Other contractors gain valuable knowledge from specialized trade schools, including North America's Building Trades Unions (NABTU) Building Trades Academy.

Gaining Hands-On Experience

If you’re wondering how to become a general contractor and you already have years of experience working in construction, you may be ready to begin moving toward starting your own business. But if you’re new to the field, the first step should be gaining meaningful hands-on experience.

Before they become general contractors, many people start out in trades like these:

• Carpentry
• Plumbing
• Electrical
• HVAC

In addition to mastering a particular trade, it can be extremely helpful to work under an experienced general contractor before starting your own contracting company.

Meeting State License Requirements

Each state sets its own licensing requirements for contractors. These requirements can vary widely, but they often include some or all of the following:

• Educational requirements
• Experience requirements
• Passing a contractor exam

It’s important to note that even if your state doesn’t require a license, your local jurisdiction might.

Earning Industry Certifications

Some states require contractors to obtain particular industry certifications before they can be licensed. However, even if your state doesn’t require them, these certifications are worth considering. Here are a few examples:

• Certified Construction Manager (CCM)
• Certified Professional Constructor (CPC)
• Certified Associate in Construction Management (CAPM)

Industry certifications show your clients that you’ve gone the extra mile to gain expertise, and they can set you apart from competitors.

Insurance Your Business Needs

Insurance is particularly crucial for a general contractor. Most contractors have several policies, but these are some of the most critical ones to consider:

• General Liability: Covers you if you cause injuries or property damage
• Errors and Omissions (E&O): Covers you if your company performs faulty work
• Workers’ Compensation: Pays for medical care and lost wages for injured workers
• Tools and Equipment Coverage: Replaces equipment that is damaged or stolen
• Builder’s Risk: Covers materials and the project while it’s under construction
• Commercial Auto: Covers you if you or an employee gets in an accident in a company vehicle

Many contractors also have surety (or contractor) bonds. A surety bond will compensate the client if you fail to perform work as promised.

Building Essential Business Skills

Being a successful general contractor requires more than just construction knowledge. Strong project management and budgeting skills are essential, as are communication skills. As a contractor, you will need to communicate with your clients, your employees and any subcontractors you work with.

In addition to building the right skillset, you’ll also need to make sure you have the necessary equipment and tools. For newer contractors, you can save money if you sign equipment leases instead of purchasing heavy machinery outright.

Setting Up Your Contracting Business

Before you start looking for your first clients, you should also take the time to gather some key legal documents:

• Create a construction service agreement for clients to sign.
• Use a construction invoice for clear, professional billing.
• Create a construction subcontractor agreement if you intend to work with subcontractors.

Thorough, customized contracts and other documents can reduce the risk of misunderstanding between you and your clients. They also help build your professional reputation.

Networking and Finding Mentors

Understanding the basics of how to become a general contractor is helpful. However, just like in any other industry, having the support of a mentor, a professional network or both can make a major difference.

If you’ve worked in the field of construction for some time, you might already have a mentor. But if you don’t, there are several professional organizations that can help you find a mentor. Two of these are the Associated General Contractors of America (AGC) and the National Association of Home Builders (NAHB).

The Importance of the Right Documents

Forms, contracts and other documents only make up a portion of any business. However, without the right documentation, you could be at higher risk for payment disputes, legal action and other problems.

ConsumerShield can help you create the documents your contracting business needs to be successful. Take a look at our collection of legal templates and guides today.