Remodeling contractors are builders who specialize in renovating and modernizing existing homes rather than doing new construction. Contractors who do this work have to be flexible and knowledgeable as each job involves different conditions, situations and needs. Remodeling works tend to be slower than new construction, which is why they are more expensive.
How much a remodeling contractor earns depends on their clients, their geographic location, and the quality of their work. Carpenters and remodelers who work for someone else are generally paid by the hour and earn less than a business owner, if the work goes according to plan. However, if something goes wrong and a job takes longer than expected, the employees still get paid and the owner takes a loss. A skilled remodeling contractor can earn more than $ 100,000 a year if he has a large amount of work and runs his own business. Experienced carpenters can earn between $ 30 and $ 40 per hour as employees.
A self-employed remodeling contractor has to make his own profits in the same way that he has to find his own job. Although an entrepreneur who owns his own business does not have free health insurance or a pension plan, he does have the benefit of working freely and self-determination, as well as the ability to make his own decisions about his business. Established remodeling companies often offer benefits to their employees, including health insurance, paid vacations, and sometimes a pension plan.
The running costs of a remodeling business are substantial. Every work team needs a truck, ladders, scaffolding, and a wide range of power tools. Contractors must also be insured for accident and liability protection. Building materials must be purchased for each job. A self-employed contractor has to keep a close eye on all these expenses, because his profit can only be calculated after everything has been paid for. The money a remodeling contractor makes depends largely on their ability to control expenses and get the jobs completely done efficiently and on budget.
Contractors face physical and financial hazards on the job. Insurance premiums are high due to the inherent danger of working on ladders and with power tools. Customers who don’t pay on time can make the financial situation more difficult. The home remodeling field is also notoriously susceptible to economic downturns, which is why remodeling contractors often face the risk of having too little work in trying to cover payments and keep their employees working.