Payment Processing and Invoicing

Managing Change Orders and Disputes

Managing Change Orders and Disputes



Managing change orders and disputes is a crucial aspect of smooth payment processing and invoicing, especially in industries with complex projects like construction or software development. Think of it like remodeling your kitchen: you initially agree on a price for new cabinets, but then decide you also want a fancy backsplash. That backsplash represents a change order – an alteration to the original agreement. Without a proper system for handling these changes, you could end up with a nasty surprise at the end, either paying significantly more than expected or facing a dispute with your contractor.

Effective change order management begins with clear communication and documentation. Every change should be documented in writing, outlining the scope of the modification, the associated costs, and the impact on the project timeline. This documentation protects both parties involved, preventing misunderstandings and potential disputes down the line. Imagine trying to remember the verbal agreement you made about that backsplash six months ago. Having a written record avoids this headache.

Once a change order is approved, it needs to be integrated seamlessly into the invoicing process. The invoice should clearly reflect the original agreement, the changes made, and the adjusted total. This transparency builds trust and helps ensure prompt payment. Nobody likes receiving an invoice with unexpected charges, and a well-structured invoice can prevent confusion and delays.

Disputes, unfortunately, can still arise even with the best intentions. Maybe the backsplash wasn't installed correctly, or there's a disagreement about the additional labor costs. A clear dispute resolution process is essential for navigating these situations. This often involves negotiation and compromise, with a focus on finding a fair solution for both parties. Sometimes, a neutral third party might be needed to mediate the dispute.

Ultimately, effective management of change orders and disputes boils down to proactive communication, detailed documentation, and a commitment to fairness. By implementing these practices, businesses can streamline payment processing, maintain positive client relationships, and avoid costly legal battles. Just like a well-planned kitchen remodel, a well-managed payment process contributes to a successful and satisfying outcome.

Managing Change Orders and Disputes

Software and Tools for Streamlined Invoicing and Payments

Software and Tools for Streamlined Invoicing and Payments



Tired of chasing down invoices and wrestling with clunky payment systems? It's a common pain point for businesses, but thankfully, the world of software and tools for streamlined invoicing and payments has exploded in recent years. There's a solution for everyone, from freelancers sending out a handful of invoices a month to large corporations processing thousands. Let's explore some of the key players and what they offer.

For the solopreneur or small business owner, user-friendly platforms like FreshBooks, Zoho Invoice, and Wave Accounting are a godsend. They offer intuitive interfaces, often with drag-and-drop functionality, making invoice creation a breeze. You can customize your invoices with your branding, track expenses, and even accept online payments directly through the platform. Many offer free versions with limited features, perfect for dipping your toes in the water before committing to a paid subscription.

As your business scales, you might outgrow these simpler tools. That's where more robust options like QuickBooks Online and Xero come into play. These platforms offer more advanced features, like inventory management, project tracking, and more sophisticated reporting capabilities. They also integrate seamlessly with other business tools you might already be using, like CRM software or e-commerce platforms. This integration is key for automating workflows and reducing manual data entry.

For even larger organizations, enterprise resource planning (ERP) systems like SAP and Oracle offer comprehensive solutions for managing all aspects of the business, including invoicing and payments. These systems are complex and require significant investment, but they provide a centralized platform for managing everything from procurement to payroll.

Beyond these core platforms, a plethora of specialized tools can further streamline your processes. Payment gateways like Stripe and PayPal allow you to accept a wide range of payment methods, from credit cards to digital wallets. Automated invoice reminders gently nudge clients to pay on time, freeing you from awkward follow-up calls. And for businesses dealing with international clients, multi-currency invoicing software simplifies the process of billing in different currencies and managing exchange rates.

The key takeaway is this: you don't have to settle for manual, time-consuming invoicing and payment processes. The right software and tools can automate repetitive tasks, reduce errors, improve cash flow, and ultimately free up your time to focus on what matters most: growing your business. So, take the time to research your options and find the solution that best fits your specific needs. You'll be surprised at how much easier managing your finances can be.

Best Practices for Payment Compliance and Tax Reporting

Keeping your payment processing and invoicing squeaky clean isnt just about avoiding fines – its about building trust with your customers and keeping your business healthy. Lets talk about some best practices for staying compliant and making tax time less of a headache.


First and foremost, understand the rules. Payment Card Industry Data Security Standard (PCI DSS) compliance is non-negotiable if youre accepting card payments. This means securing customer data, using strong passwords, and regularly monitoring your systems. Ignoring this can lead to hefty fines and reputational damage. Similarly, know your tax obligations. Sales tax, VAT, and other levies vary by location and product/service. Stay updated on these, and consider using automated tax calculation tools to avoid errors.


Accurate and detailed invoicing is crucial. Include all necessary information like your business details, customer details, invoice date, payment terms, a clear description of goods/services, and the total amount due. A good invoicing system can automate much of this and significantly reduce errors. Keep meticulous records of all transactions, both incoming and outgoing. This makes reconciliation easier and provides a clear audit trail for tax purposes.


Choosing the right payment processor is key. Look for one that offers robust security features, integrates seamlessly with your accounting software, and supports the payment methods your customers prefer. Consider features like recurring billing and fraud prevention tools.


Staying on top of evolving regulations is a continuous process. Subscribe to industry newsletters, attend webinars, or consult with a tax professional to keep abreast of changes. Dont be afraid to seek expert advice, especially when dealing with complex international transactions or new tax laws.


Finally, regular internal audits can help identify and address potential compliance issues before they become major problems. Review your processes, check for data security vulnerabilities, and ensure your records are accurate and up-to-date. This proactive approach can save you time, money, and stress in the long run.


By implementing these best practices, you can build a robust and compliant payment processing and invoicing system. This not only protects your business from legal and financial risks but also fosters trust with your customers and contributes to a smoother, more efficient operation overall.

Best Practices for Payment Compliance and Tax Reporting

Optimizing Cash Flow and Reducing Payment Delays

Optimizing Cash Flow and Reducing Payment Delays



Optimizing cash flow and reducing payment delays is the lifeblood of any business, and when it comes to payment processing and invoicing, it's where the rubber meets the road. Nobody likes chasing payments, and late payments can create a real ripple effect, impacting everything from your ability to meet payroll to investing in growth. So, how can we smooth out this often bumpy process?

A key first step is streamlining your invoicing system. Think clear, concise invoices that are easy to understand. Clearly state payment terms, due dates, accepted payment methods, and all relevant contact information. Leaving no room for confusion reduces the chances of customers needing clarification, which often translates to a delayed payment. Leveraging technology can be a game-changer here. Automated invoicing software can not only generate and send invoices promptly but also track their status, send automated reminders, and even offer online payment options. This eliminates manual data entry, reducing errors and freeing up your time for other tasks.

Speaking of payment options, offering a variety is crucial in today's fast-paced world. From credit and debit cards to online payment platforms and even mobile wallets, the more convenient you make it for customers to pay, the more likely they are to do so quickly. Integrating these options with your accounting software can further automate reconciliation and reporting.

Proactive communication is also essential. Building strong relationships with your clients and maintaining open communication channels can go a long way in preventing late payments. A friendly reminder before the due date, or a quick follow-up shortly after, can often be all it takes. This personal touch demonstrates professionalism and reinforces the importance of timely payments.

Finally, don't be afraid to implement clear consequences for late payments. While building relationships is important, it’s equally important to set expectations. Clearly outlining late payment fees in your terms and conditions can encourage prompt payment and protect your business's financial health.

Optimizing cash flow and reducing payment delays isn’t a one-time fix; it's an ongoing process of refinement. By embracing technology, streamlining processes, and fostering open communication, you can create a more efficient and predictable payment cycle, ensuring a healthier financial future for your business.

Renovation (also called remodeling) is the process of improving broken, damaged, or outdated structures. Renovations are typically done on either commercial or residential buildings. Additionally, renovation can refer to making something new, or bringing something back to life and can apply in social contexts. For example, a community can be renovated if it is strengthened and revived. It can also be restoring something to a former better state (as by cleaning, repairing, or rebuilding). Renovation is very common in some places. For example, there are more than twenty thousand home improvement projects every year in Hong Kong, affecting more than a million residents[1] (population of HK is around 7.5 million in 2023).[2]

Truman's renovation of the White House, 17 May 1950

Phases and process of renovations

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The interior of a Victorian building in Lincoln Park, Chicago in the process of being renovated in June 1971. Note the elements of the edifice scattered and sorted about.

The building renovation process can usually, depending on the extents of the renovation, be broken down into several phases. The phases are as follow.[3]

  • [[ |Project]] initiation - The beginning of the project that includes the hiring of construction and design teams, defining the scope of the work, creating a budget, and communicating the needs, expectations, and wants from both the client and building team[4][5]
  • Existing conditions analysis - This includes measuring, drawing,] and analyzing the structure to be renovated, and identifying any major issues with the project that could effect work to be done[5]
  • Initial design - Beginning the design work by testing out concept ideas, designing multiple iterations of outcomes, communicating with the client, and receiving client feedback on the design to make changes[4]
  • Finalizing design - Finalizing the design work by making sure the design is what the client wants, making sure the design works with existing conditions, creating a more detailed design (including specs and engineering), also could include the beginning of construction or demolition work while the design is being finalized[4]
  • Construction and demolition - Starting the physical work by completing demolition needed, structural repairs needed, building new designed conditions, applying finishes, and trouble shooting any problems or unknown conditions that are brought to light during construction[4]
  • Project finalization - The end of the project which includes turnover to the client, punch listing, walking through with the client, and verifying that project scope and expectations were met[4]

Projects involving renovation require not just flexibility, but a plan that had been agreed upon by multiple parties. The planning process will involve feedback from financial investors of the project, and from the designer. Part of planning will also entail the collection of data for the completion of the project and then the project plan will be revised and given consent before continuing with renovations.[6]

Technology has had a meaningful effect on the renovation process, increasing the significance and strength of the planning stage. The availability of free online design tools has improved visualization of the changes, at a fraction of the cost of hiring a professional designer. The decision regarding changes is also influenced by the purpose of basement renovation [1]. Depending on the significance of these changes a professional may be required, especially if any changes other than cosmetic work (paint or finishes) is required. Many local codes require a professional to complete work in the built environment such as structural changes, new walls, new plumbing, or many others. Doing these changes without hiring a professional can result in health effects, safety concerns, damages, fines, and increased cost due to having to hire a professional after self-work.[7] Most builders focus on building new homes, so renovating is typically a part-time activity for such tradespeople. The processes and services required for renovations are quite specific and, once plans are signed off, building a new home is relatively predictable. However, during renovation projects, flexibility is often required from renovation companies to respond to unexpected issues that arise. Renovations usually require all of the sub-trades that are needed for the construction of a new building.

In case of a so-called "fix-and-flip" (repair and resell) objective, an ROI (return on investment) can result from changes to fix a structural issue, to fix design flow yield,[8] or to use light and color to make rooms appear more spacious. Because interior renovation could change of the internal structure of the house, ceiling construction, circuit configuration and partition walls, etc., such work related to the structure of the house, of course, also includes renovation of wallpaper posting, furniture settings, lighting, etc often times an interior designer is required as well.[9]

Reasons to renovate

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Homes

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renovated]] because of the devastations, such as Rovaniemi in Lapland, Finland.[10] Video about the post-war era reconstruction of Rovaniemi in 1949.

Many people renovate homes to create a new appearance. Builders may renovate homes to enhance the home's value as a stable source of income.[11] Homeowners often renovate their homes to increase the re-sale value and to turn a profit when selling. Homeowners may also want to add renovations that make their home more energy efficient, green or sustainable.[12] Also, over time, a homeowner's personal preferences and needs may change, and the home will be renovated for improved aesthetics, comfort, or functionality.

Other properties

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Other types of renovations also can be initiated for similar reasons. The user or owner of a building can change which can effect the needs or wants for the space prompting a renovation. This is becoming more popular as buildings owners are renting or leasing floors or sections of the buildings to companies which have different spacial requirements than the previous users causing needed renovation. Renovations can also occur as companies increase size which could lead to needed additional retail, office, or other types of spaces. Similarly to homes other building owners could also want renovations to increased value, make the building more energy efficient, green or sustainable, or to update the building.[13] Sometimes shopping centres or shops are renovated to raise rent later.

Materials

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Wood

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Wood is versatile and flexible, making it the easiest construction material for renovations, and wood buildings can be redesigned to suit changing needs. Few homeowners or professional remodelers possess the skill and equipment that is required to alter steel-frame or concrete structures.

When looking at embodied carbon in building materials wood is often labeled as the most sustainable. This is because it sequesters carbon which if certified sustainably sourced will significantly reduce embodied carbon of buildings. This makes it a low emitting choice for a building material for an overall building and for renovations.[14]

Forest certification verifies that wood products have been sourced from well-managed forests. Most certification programs provide online search options so that consumers can find certified products—the Certification Canada program includes a search option for all of the certification programs that are in use in Canada.[15]

In North America, most structures are demolished because of external forces such as zoning changes and rising land values. Additionally, buildings that cannot be modified to serve the functional needs of the occupants are subject to demolition. Very few buildings on the continent are demolished due to structural degradation.[16]

The Athena Institute surveyed 227 commercial and residential buildings that were demolished in St. Paul, Minnesota, between 2000 and mid-2003. Thirty percent of the buildings were less than 50 years old, and 6% were less than 25 years old. The four top reasons for demolition were "area redevelopment" (35%), "building's physical condition" (31%), "not suitable for anticipated use" (22%), and "fire damage" (7%). Lack of maintenance was cited as the specific problem for 54 of the 70 buildings where physical condition was given as the reason for demolition.[16]

Plastics

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Plastics are extensively used in the construction and renovation industry.[17] Airborne microplastic dust is produced during renovation, building, bridge and road reconstruction projects[18] and the use of power tools.[19] It is also generated by deterioration of building materials[20]

Materials containing polyvinyl chloride (PVC), polycarbonate, polypropylene, and acrylic, can degrade overtime releasing microplastics.[17] During the construction process single use plastic containers and wrappers are discarded adding to plastic waste.[21] These plastics are difficult to recycle and end up in landfills where they break down over a long period of time causing potential leaching into the soil and the release of airborne microplastics.[22][23] Efforts have been made to reduce plastic waste by adding it to concrete as agglomerates. However, one solution for resolving the problem from the large amount of plastic wastes generated could bring another serious problem of leaching of microplastics. The unknown part of this area is huge and needs prompt investigation.[24]

Around twenty percent of all plastics and seventy percent of all polyvinyl chloride (PVC) produced in the world each year are used by the construction industry.[25][26] It is predicted that much more will be produced and used in the future.[25] "In Europe, approximately 20% of all plastics produced are used in the construction sector including different classes of plastics, waste and nanomaterials."[26]

Others

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A shop under renovation, Hong Kong. The type of dust generated depends on the material being worked on. For example, in the above photo the dust does not seem to be solely wood dust, concrete dust, metal dust or paint dust.
 

Tools and equipment

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While the type of material used will determine the composition of the dust generated, the size and amount of particulates produced are mainly determined by the type of tool used. Implementation of effective dust control measures may also play a role.

Video: An angle grinder is used for cutting through a steel chain. The chain is kept under tension by a second person to avoid a blockade of the grinder. Large amounts of potentially harmful particulates (metal dust) are being generated.)

Use of angle grinder is not preferred as large amounts of harmful sparks and fumes (and particulates) are generated when compared with using reciprocating saw or band saw.[27] Angle grinders produce sparks when cutting ferrous metals. They also produce shards cutting other materials. The blades themselves may also break. This is a great hazard to the face and eyes especially, as well as other parts of the body.[28]

Adverse effects of power tool use

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Use of power tools can cause adverse effects on people living nearby. Power tools can produce large amounts of particulates including ultrafine particles.[29]

Particulates are the most harmful form (other than ultra-fines) of air pollution[30] There is no safe level of particulates.[31]

Many tasks create dust. High dust levels are caused by one of more the following:[32]

A high dust level example.
  • equipment – using high energy tools, such as cut-off saws, grinders, wall chasers and grit blasters produce a lot of dust in a very short time
  • work method – dry sweeping can make a lot of dust when compared to vacuuming or wet brushing
  • work area – the more enclosed a space, the more the dust will build up
  • time – the longer you work the more dust there will be

Examples of high dust level tasks include:[32]

  • using power tools to cut, grind, drill or prepare a surface
  • sanding taped plaster board joints
  • dry sweeping[32]

Some power tools are equipped with dust collection system (e.g. HEPA vacuum cleaner) or integrated water delivery system which extract the dust after emission.[33][34]

Effects

[edit]

Air quality

[edit]

Indoor

[edit]

Outdoor

[edit]

Health

[edit]
 

In the US, “About 75% of homes built before 1978 contain some lead-based paint. The older the home the more likely it is to contain lead-based paint. You should assume that any home built before 1978 contains some lead.”[35]

In April 2010 the U.S. Environmental Protection Agency (EPA) required that all renovators working in homes built before 1978 and disturbing more than 6 square feet (0.56 m2) of lead paint inside the home or 20 square feet (1.9 m2) outside the home be certified. EPA's Lead Renovation, Repair and Painting Rule (RRP Rule) lowers the risk of lead contamination from home renovation activities.[36] It requires that firms performing renovation, repair, and painting projects that disturb lead-based paint in homes, child care facilities and pre-schools (any child occupied facility) built before 1978 be certified by EPA and use certified renovators who are trained by EPA-approved training providers to follow lead-safe work practices.[37]

Careful stabilization of any deteriorated (peeling, chipping, cracking, etc.) paint in a lead-safe manner is also encouraged. Through authority vested in the United States Department of Housing and Urban Development (HUD), lead-based-paint removal by dry scraping, dry sanding, torching and burning, the use of heat guns over 1100°F, and machine-sanding / grinding without a HEPA-filtered vacuum or a HEPA filtered dust collection system, is prohibited, as these methods have been proven to produce significant amount of lead dust during renovation, remodeling and painting.[38]

At the end of any remodeling or repainting job, a dust test performed by an independent third-party professional is also required by HUD for "clearance". Lead evaluations are done using a method called X-Ray fluorescence (XRF), which gives a result in 4–8 seconds with a 95% accuracy at the 2-sigma level.

As of 2018, there are an estimated 37 million homes and apartments with lead paint in the United States.[39]

Sustainability

[edit]

Currently, worldwide 38% of emissions and 35% of energy use come from the building sector, including building construction and operation. This means renovations contribute to emissions and energy use of the building sector. These percentages are the largest portion of the total emissions and energy use globally.[40] This makes buildings have the highest potential for decreasing these percentages as well as the largest need to decrease them. Renovations are also one way to do this.

Renovations decrease emissions as instead of demolishing a building just to build a new one the building is reused. Reuse of buildings is not always desirable as it is often pursued to have a building designed for the many individual and unique needs building owners have but it is not always a necessity. Renovations can take a building and make it completely different from the old building just reusing the structure, which is often the largest contributor of embodied carbon to a building. However, in order to be able to do this buildings need to be design durably and re-use. Designing for durability and reuse is designing for new buildings to be "long lasting, use-adaptable, and culturally valuable"[14] to allow for the building to be kept for longer to minimize emissions from a complete rebuild.

Having these ideas in mind while designing new buildings significantly increases the likelihood for renovations to happen.[14] Buildings are more likely to be torn down because they can not accommodate the new desired use then because the structure is failing.[16] Renovations allow old buildings to fit new needs in a way that outputs less emissions than a complete tear down and construction of a new building which is often a feasible option.

Economic

[edit]
Renovated church, now condominiums, Watertown, Massachusetts

Renovation has several effects on economies, including:[41]

 

Regulation

[edit]

See also

[edit]
  • Solvent – Substance dissolving a solute resulting in a solution
  • Cancer – Group of diseases involving cell growth
  • Concrete – Composite construction material
  • Construction waste – Unwanted material produced directly or incidentally by the construction industries
  • Do it yourself – Building, modifying, or repairing, without the aid of experts or professionals
  • Home improvement – Process of renovating or making additions to one's home
  • How Buildings Learn – Book by Stewart Brand
  • Indoor air quality – Air quality within and around buildings and structures
  • Lead positioning – Poisoning caused by lead in the body
  • Metal swarf – Filing debris or waste resulting from metal manufacturing processes
  • Microplastics – Extremely small fragments of plastic
  • Particulates – Microscopic solid or liquid matter suspended in the Earth's atmosphere
  • Power tools – Tool that is actuated by an additional power source and mechanism other than by hand alone
  • Pollution – Introduction of contaminants that cause adverse change
  • Repair Café – Venues where people gather and repair everyday items
  • Sawdust – Byproduct or waste product of woodworking operations (sawing, sanding, milling, etc.)
  • TVOC – Organic chemicals having a high vapor pressure at room temperature
  • Welding – Fabrication process for joining materials
  • Wood glue – Adhesive made of natural or synthetic raw materials for bonding wood and wood-based materials
  • Wood preservative – Treatment or process aimed at extending the service life of wood structures

References

[edit]
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  36. ^ "Lead Renovation, Repair and Painting Program Rules". Washington, DC: US Environmental Protection Agency (EPA). 2020-09-14. Archived from the original on 14 February 2021. Retrieved 9 February 2021.
  37. ^ "Lead Renovation, Repair and Painting Program". EPA. 2020-10-15. Archived from the original on 6 July 2019. Retrieved 6 July 2019.
  38. ^ "Protect Your Family From Lead in Your Home" (PDF). Archived from the original (PDF) on September 22, 2020.
  39. ^ Schmidt, Charles (2018-03-21). "America's Misguided War on Childhood Lead Exposures". Cambridge, Mass.: Undark. Archived from the original on 22 March 2018. Retrieved 22 March 2018.
  40. ^ United Nations Environment Programme, "2020 Global status report for buildings and construction: towards a zero-emissions, efficient and resilient buildings and construction sector" (Nairobi, Kenya: Global Alliance for Buildings and Construction, 2020). from: https://globalabc.org/sites/default/files/inline-files/2020%20Buildings%20GSR_FULL%20REPORT.pdf . Accessed 8 Oct 2021
  41. ^ "Foundations for future growth in the Remodeling Industry" (PDF). Joint Center for Housing Studies of Harvard University. 2007. Archived (PDF) from the original on 7 August 2014. Retrieved 2 August 2014.

Further reading

[edit]

 

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A contractor[1][2] (North American English) or builder (British English),[3][4] is responsible for the day-to-day oversight of a construction site, management of vendors and trades, and the communication of information to all involved parties throughout the course of a building project.[5]

In the United States, a contractor may be a sole proprietor managing a project and performing labor or carpentry work, have a small staff, or may be a very large company managing billion dollar projects. Some builders build new homes, some are remodelers, some are developers.[6]

Description

[edit]

A general contractor is a construction manager employed by a client, usually upon the advice of the project's architect or engineer.[7] General Contractors are mainly responsible for the overall coordination of a project and may also act as building designer and construction foreman (a tradesman in charge of a crew).

A general contractor must first assess the project-specific documents (referred to as a bid, proposal, or tender documents). In the case of renovations, a site visit is required to get a better understanding of the project. Depending on the project delivery method, the general contractor will submit a fixed price proposal or bid, cost-plus price or an estimate. The general contractor considers the cost of home office overhead, general conditions, materials, and equipment, as well as the cost of labor, to provide the owner with a price for the project.

Contract documents may include drawings, project manuals (including general, supplementary, or special conditions and specifications), and addendum or modifications issued prior to proposal/bidding and prepared by a design professional, such as an architect.The general contractor may also assume the role of construction manager, responsible for overseeing the project while assuming financial and legal risks.There are several types of risks can occur include cost overruns, delays, and liabilities related to safety or contract breaches.

Prior to formal appointment, the selected general contractor to whom a client proposes to award a contract is often referred to as a "preferred contractor".[8]

Responsibilities

[edit]

A general contractor is responsible for providing all of the material, labor, equipment (such as heavy equipment and tools) and services necessary for the construction of the project. A general contractor often hires specialized subcontractors to perform all or portions of the construction work. When using subcontractors, the general contractor is responsible for overseeing the quality of all work performed by any and all of the workers and subcontractors.

It is a best practice for general contractors to prioritize safety on the job site, and they are generally responsible for ensuring that work takes place following safe practices.

A general contractor's responsibilities may include applying for building permits, advising the person they are hired by, securing the property, providing temporary utilities on site, managing personnel on site, providing site surveying and engineering, disposing or recycling of construction waste, monitoring schedules and cash flows, and maintaining accurate records.[9]

The general contractor may be responsible for some part of the design, referred to as the "contractor's design portion" (JCT terminology).[10]

United Kingdom, Commonwealth and Australia usage

[edit]

In the United Kingdom, Australia and some British Commonwealth countries, the term 'general contractor' was gradually superseded by builders during the early twentieth century.[citation needed] This was the term used by major professional, trade, and consumer organizations when issuing contracts for construction work, and thus the term 'general contractor' fell out of use except in large organizations where the main contractor is the top manager and a general contractor shares responsibilities with professional contractors.

General contractors who conduct work for government agencies are often referred to as "builders". This term is also used in contexts where the customer's immediate general contractor is permitted to sub-contract or circumstances are likely to involve sub-contracting to specialist operators e.g. in various public services.

United States and Asia usage

[edit]

In the United States and Asia, the terms general contractor (or simply "contractor"), prime contractor and main contractor are often interchangeable when referring to small local companies that perform residential work. These companies are represented by trade organizations such as the NAHB.[11]

Licensing requirements

[edit]

Licensing requirements to work legally on construction projects vary from locale to locale. In the United States, there are no federal licensing requirements to become a general contractor, but most US states require general contractors to obtain a local license to operate. It is the states' responsibility to define these requirements: for example, in the state of California, the requirements are stated as follows:

With a few exceptions, all businesses or individuals who work on any building, highway, road, parking facility, railroad, excavation, or other structure in California must be licensed by the California Contractors State License Board (CSLB) if the total cost of one or more contracts on the project is $500 or more.

In every state that requires a license, a surety bond is required as part of the licensing process, with the exception of Louisiana, where bonding requirements may vary in different parishes. Not all states require General Contractor licenses - these include Vermont, New Hampshire and Maine, among others.

Licensing qualifications

[edit]

Some general contractors obtain bachelor's degrees in construction science, building science, surveying, construction safety, or other disciplines.

General Contractors often learn about different aspects of construction, including masonry, carpentry, framing, and plumbing. Aspiring general contractors communicate with subcontractors and may learn the management skills they need to run their own company.

Experience in the construction industry as well as references from customers, business partners, or former employers are demanded. Some jurisdictions require candidates to provide proof of financing to own their own general contracting firm.

General Contractors often run their own business. They hire subcontractors to complete specialized construction work and may manage a team of plumbers, electricians, bricklayers, carpenters, iron workers, technicians, handymans, architects and roofers. General Contractors build their business by networking with potential clients, buying basic construction tools, and ensuring that their subcontractors complete high-quality work. General Contractors do not usually complete much construction work themselves, but they need to be familiar with construction techniques so they can manage workers effectively. Other reasons include access to specialist skills, flexible hiring and firing, and lower costs.

General contractor example

[edit]

A property owner or real estate developer develops a program of their needs and selects a site (often with an architect). The architect assembles a design team of consulting engineers and other experts to design the building and specify the building systems. Today contractors frequently participate on the design team by providing pre-design services such as providing estimations of the budget and scheduling requirements to improve the economy of the project. In other cases, the general contractor is hired at the close of the design phase. The owner, architect, and general contractor work closely together to meet deadlines and budget. The general contractor works with subcontractors to ensure quality standards; subcontractors specialise in areas such as electrical wiring, plumbing, masonry, etc.

See also

[edit]

References

[edit]
  1. ^ Davies, Nikolas, and Erkki Jokiniemi. Architect's illustrated pocket dictionary. Oxford: Architectural Press, 2011. 289. Print.
  2. ^ "Collins Dictionary".
  3. ^ "Merriam-Webster".
  4. ^ "Builder vs. Construction Manager". 10 April 2023.
  5. ^ Hendrickson, Chris. & Au, Tung (2000), The Design and Construction Process. Project Management for Construction: Fundamental Concepts for Owners, Engineers, Architects and Builders, chapter 3
  6. ^ "What's the difference between a developer and a builder?". Chicago Tribune. 2005-01-23. Retrieved 2023-07-18.
  7. ^ Shekhar, R. K. (2005), Academic Dictionary of Architecture, Delhi: Isha Books, 69
  8. ^ Department of Defense Appropriations Part 3: Procurement. Washington DC: U.S. Government Printing Office. 1968. p. 224.
  9. ^ Allen, Edward, & Iano Joseph (2009). Fundamentals of Building Construction Materials and Methods. 5th ed. Hoboken, N.J.: John Wiley & Sons.
  10. ^ Joint Contracts Tribunal, Intermediate Building Contract with contractor’s design (ICD), current edition 2019, accessed 7 July 2021
  11. ^ "About NAHB". www.nahb.org. Retrieved 2023-07-18.

Sources

[edit]

 

Merchandise on display in a hardware store
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The concept of home improvement, home renovation or remodeling is the process of renovating, making improvements or making additions to one's home.[1] Home improvement can consist of projects that upgrade an existing home interior (such as electrical and plumbing), exterior (masonry, concrete, siding, roofing) or other improvements to the property (i.e. garden work or garage maintenance/additions). Home improvement projects can be carried out for a number of different reasons; personal preference and comfort, maintenance or repair work, making a home bigger by adding rooms/spaces, as a means of saving energy, or to improve safety.[2]

Types of home improvement

[edit]
Man painting a fence

While "home improvement" often refers to building projects that alter the structure of an existing home, it can also include improvements to lawns, gardens, and outdoor structures, such as gazebos and garages. It also encompasses maintenance, repair, and general servicing tasks. Home improvement projects generally have one or more of the following goals:[citation needed]

Comfort

[edit]

Maintenance and repair

[edit]

Maintenance projects can include:

Additional space

[edit]

Additional living space may be added by:

  • Turning marginal areas into livable spaces such as turning basements into recrooms, home theaters, or home offices – or attics into spare bedrooms.
  • Extending one's house with rooms added to the side of one's home or, sometimes, extra levels to the original roof. Such a new unit of construction is called an "add-on".[3]

Saving energy

[edit]

Homeowners may reduce utility costs with:

Safety, emergency management, security and privacy

[edit]

The need to be safer or for better privacy or emergency management can be fulfilled with diversified measures which can be improved, maintained or added. Secret compartments and passages can also be conceived for privacy and security.

Home improvement industry

[edit]
Screws and bolts in an OBI home improvement store in Poland

Home or residential renovation is an almost $300 billion industry in the United States,[5] and a $48 billion industry in Canada.[6][full citation needed] The average cost per project is $3,000 in the United States and $11,000–15,000 in Canada.

Professional home improvement is ancient and goes back to the beginning of recorded civilization. One example is Sergius Orata, who in the 1st century B.C. is said by the writer Vitruvius (in his famous book De architectura) to have invented the hypocaust. The hypocaust is an underfloor heating system that was used throughout the Roman Empire in villas of the wealthy. He is said to have become wealthy himself by buying villas at a low price, adding spas and his newly invented hypocaust, and reselling them at higher prices.[7]

Renovation contractors

[edit]

Perhaps the most important or visible professionals in the renovation industry are renovation contractors or skilled trades. These are the builders that have specialized credentials, licensing and experience to perform renovation services in specific municipalities.

While there is a fairly large "grey market" of unlicensed companies, there are those that have membership in a reputable association and/or are accredited by a professional organization. Homeowners are recommended to perform checks such as verifying license and insurance and checking business references prior to hiring a contractor to work on their house.

Because interior renovation will touch the change of the internal structure of the house, ceiling construction, circuit configuration and partition walls, etc., such work related to the structure of the house, of course, also includes renovation of wallpaper posting, furniture settings, lighting, etc.

Aggregators

[edit]

Aggregators are companies that bundle home improvement service offers and act as intermediary agency between service providers and customers.

[edit]

Home improvement was popularized on television in 1979 with the premiere of This Old House starring Bob Vila on PBS. American cable channel HGTV features many do-it-yourself shows, as does sister channel DIY Network.[8] Danny Lipford hosts and produces the nationally syndicated Today's Homeowner with Danny Lipford. Tom Kraeutler and Leslie Segrete co-host the nationally syndicated The Money Pit Home Improvement Radio Show.

Movies that poked fun at the difficulties involved include: Mr. Blandings Builds His Dream House (1948), starring Cary Grant and Myrna Loy; George Washington Slept Here (1942), featuring Jack Benny and Ann Sheridan; and The Money Pit (1986), with Tom Hanks and Shelley Long. The sitcom Home Improvement used the home improvement theme for comedic purposes.

See also

[edit]

References

[edit]
  1. ^ https://dictionary.cambridge.org/us/dictionary/english/home-improvement
  2. ^ https://www.collinsdictionary.com/us/dictionary/english/home-improvements
  3. ^ "Add-on". English Oxford Living Dictionary (US). Oxford University Press. Archived from the original on February 21, 2017. Retrieved February 20, 2017.
  4. ^ Use a Programmable Thermostat, Common Sense, to Reduce Energy Bills Archived July 19, 2009, at the Wayback Machine, Brett Freeman, oldhouseweb.com
  5. ^ "Joint Center for Housing Studies of Harvard University, 2007" (PDF). Archived (PDF) from the original on August 7, 2014. Retrieved April 10, 2014.
  6. ^ "Canada Mortgage and Housing Corporation - Société canadienne d'hypothèques et de logement". Archived from the original on October 23, 2007. Retrieved October 23, 2007.
  7. ^ "Canada Homeowners Community - Example of Low-Cost Advices used by Canadian Homeowners (Community) for Home Improvement that boost the sale of your Home". Canada Homeowners Community. January 12, 2020.
  8. ^ Cerone, Daniel (September 17, 1991). "Tim Allen's Power Tools : Television: The comic who had Disney and cable executives abuzz parlayed his luck to develop 'Home Improvement". Los Angeles Times. Archived from the original on June 22, 2015. Retrieved June 16, 2015.

Further reading

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Establish clear payment terms in the contract, send invoices promptly, offer various payment methods, and follow up consistently on overdue invoices. Consider incentivizing early payment and implementing penalties for late payments.
Offer a range of options like checks, credit cards, ACH transfers, and online payment platforms. Choosing methods with lower processing fees can increase your profit margin.
Accounting software like QuickBooks, Xero, or FreshBooks can automate invoicing, track payments, and generate reports. Dedicated construction management software often includes payment processing features as well.
Clearly outline payment terms and scope of work in the contract, document change orders meticulously, maintain good communication with clients, and consider using lien waivers and preliminary notices when appropriate.
Consult with a tax professional to understand the regulations surrounding sales tax, income tax, and 1099 reporting for subcontractors. Proper record-keeping is essential for accurate tax filing.