A Tale of Two Contractors: The Price of Preparation in the Trades
Rick was no stranger to a jobsite, but he had always played a supporting role. After years of pouring concrete and running a fencing company with his brother, he decided it was finally time to call the shots. He wanted the title of “General Contractor” and he wanted the big residential projects that came with it.
When an opportunity to remodel a basement arrived, Rick didn’t hesitate. He put in a bid for $67,000, and the homeowner agreed so quickly it should have been a warning sign. The client was thrilled, mentioning that every other quote had come in at $90,000+ after they signed the agreement…
Because Rick lacked a license, he started his business on a foundation of shortcuts. He paid a buddy a flat $3,000 fee to pull permits under a different company name, a move that left him legally exposed from day one. The mistakes compounded quickly. Because he didn’t have airtight, professional contracts with his subcontractors, a dispute over scope left him on the hook for an unexpected $6,500. Then, a simple communication breakdown regarding the homeowner’s vacation schedule caused the timeline to slip by three weeks.
The breaking point came just as the project was supposed to wrap up. Rick looked at his ledger and realized he had already spent $55,000 on materials and labor, plus the $5,000 permit fee, leaving him with no profit and no paycheck for himself. To make matters worse, one of his crew members dropped a cigarette on the client’s backyard artificial turf. The resulting burn hole became yet another expense the homeowner demanded Rick pay for. What was supposed to be his big break had turned into a financial and professional nightmare.
Tom was just as ambitious as Rick, but he had spent enough time as a project manager for a large GC firm to know that enthusiasm isn’t a substitute for a system. He had worked as a framer and managed commercial hardscape operations, but he knew that building custom homes required a level of expertise he hadn’t yet mastered on the business side.
Instead of jumping into the first job he could find, Tom decided to build his foundation first. He enrolled in the Contractors of Colorado GC License Exam Prep Program, spending four weeks immersed in the material until he aced his exam and secured his Class C License. Even with the license in hand, Tom remained humble. He knew that passing a test was different from running a profitable jobsite, so he enrolled in the GC 101 Program to learn directly from a veteran contractor with twenty years of experience.
This program gave Tom the pragmatic, “dirt-under-the-nails” insight he needed. He learned the art of defensible estimating to ensure his margins stayed healthy, and he studied blueprint reading, permitting, and insurance risk management to protect his future. Perhaps most importantly, the program connected him with a Verified Affiliate network. Before he even broke ground on a project, Tom already had a dedicated insurance agent, a contract attorney, and a reliable bookkeeping team in his corner.
By the time Tom officially opened for business, he wasn’t just a tradesman, he was a professional. Armed with a valid license, a deep well of knowledge, and a community of experts supporting him, he didn’t have to scramble for work. He currently has three projects lined up, each one properly bid, legally protected, and ready to be a success.
While these two stories might seem like simple fables, they represent the stark reality of the residential contracting world. The difference between a career that thrives and one that collapses often comes down to the work you do before the first nail is even driven.
Contractors of Colorado is committed to professionalizing the trades through practical, local education led by our team of industry experts, ensuring that the next generation of Colorado builders have the technical skill and business integrity to lead our communities.
