General contractor question

[ITE]

I need some information on becoming a general contractor for my construction class. Could anyone help me with the business side of how to become a general contractor? What license requirements are required in Indiana, how to become bonded and insured and what that exactly means. What experience is necessary? or could someone direct me to where I could find this information?

Thankyou for any help in this matter.

[Rich]

Indiana itself only requires contractor licenses for plumbers and lead paint abatement contractors. The licenses for general contractors are handled by local authorities - so, of course, for each locality you perform work in you will need to pay a fee and fill out some paperwork.
Bonding is getting more and more difficult. Many bonding companies (at least legitimate bonding companies) have gone under in the last few years. Then it depends on what type of bond you are needing to get - performance and payment bonds, bid bonds, etc. Most likely as a GC you'll only need a Construction Bond or Contract Bond.
Insurance - of course you'll need to have workmans comp insurance (should be able to search an Indian goverment site and find a link to some suggested work comp carriers) and general liabilty insurance. GL can run upwards of 10-20k per million dollars of insurance.

[grumpydasmurf]

Yeah Indiana is very lienent on licensing. Performance bonds and bid bonds aren't common if your doing residential work. The are, however, a must in the commercial world.

WC and GL are fairly affordable for GC's as opposed to sub trades, like roofers. It is especially cheap if you use all subs.

[ITE]

Thanks for the info. I really appreciate it.
Im wondering what wc and gl stand for though. And am I understanding that anyone can start a construction business, no licensing requirements in places such as Indiana?
Can you get licensed if the state doesnt require it? If so how or where would I look for that information. and one more question, what exactly is a bond or what does it mean to be bonded?

[doyle]

wc=worker's comp insurance

gl=general liability insurance

[Rich]

Essentially - Yes - anyone can start a construction company in Indiana. Where the final straw falls will be with your local jurisdiction - either county or city you plan on doing work in. They may require a license.

Here'a a decent list of the different types of bonds.
http://www.jwsuretybonds.com/