General contractors oversee the nitty-gritty of construction projects, such as the construction site, vendors, business organizations, subcontractors, and all parties involved that involve construction projects. General contractors are also known as project managers or construction managers. Despite all that responsibility, the average salary for a general contractor is higher than the national average general salary. So what do general contractors or construction managers do?
According to the page of the Bureau of Labor Statistics, the mean (average) hourly and yearly figures are $ 46.88 and $ 97,510, respectively. These figures are based on 52 work weeks at 40 hours per week. Personally, I would be surprised if general contractors only work 40 hours a week.
There are a number of elements that affect real wages, so we at GCLG have put together this article to help you understand those elements. In addition, we are going to share information about the salaries of various job areas.
What does the salary of a general contractor depend on?
I’m glad you asked. General contractor salaries vary based on the following:
- Title or titles obtained
- Work experience
- References from previous works
- Certifications made
- Region of employment
Even if it is not required a qualification To be a general contractor, it will provide you with valuable knowledge to be successful in the field. You can also help increase salary by negotiating the salary amount. Degrees provide a level of credibility, beyond simple work experience.
According to any professional area, experience provides better pay But it’s not just your experience as a general contractor, it’s your experience in the construction field. Don’t expect to get a construction management job without spending time in the “trenches.” Oh, and don’t expect a lot of money when you first venture out as a general contractor.
Referrals also play a role in negotiating wages. A portfolio of successful jobs With customer praise you can turn out positive when it comes to salary. What employer or client would want to pay a lot of money to someone with no or bad references?
While the certifications They are not required, like degrees, they provide credibility and provide valuable knowledge in preparation for exams. One can become a certified construction manager through the Construction Management Association of America.
Regional location It also influences wages, not just by state, but also by geographic location in each state. The two highest-paying states are New Jersey and Alaska, with annual median wages of $ 140.00 and $ 122,250, respectively. In Anchorage, Alaska, the median annual salary is $ 128,390, while the non-metropolitan area of Southeast Alaska has a median annual salary of $ 117,540.
What industries pay the best?
According to the Occupational Handbook, the highest paid construction manager fields are:
- Civil and heavy engineering – $ 90,410.00
- Construction of non-residential buildings – $ 89,810.00
- Specialty Business Contractors: $ 83,250
- Construction of residential buildings – $ 78,010
Civil and heavy engineering construction focuses on projects such as highways, dams, and other non-building type structures and ranks in computer systems design and architecture, two other technical fields, in pay. Fields like these are specialized, allowing for higher salaries.
Generally, the variation in salaries is the result of education and certification requirements, clients’ project budgets, and project design. Civil and heavy engineering requires the use of expensive and specialized equipment, as well as academically trained and certified personnel, which increases costs.
The construction of non-residential buildings also requires the use of heavy and sometimes specialized equipment. Many non-residential projects are multi-story and require the use of unnecessary cranes and specialized lifting equipment.
As you move down the list, the size of the project, the expense and expertise of the required equipment, and the certification and education requirements of the staff decrease. Residential construction generally does not use the scope of equipment that each of the other three uses and allows the use of less skilled labor than the other three fields.
Which states have the highest average annual salary?
The Bureau of Labor Statistics identifies the following five states as having the highest average annual wages for general contractors.
- New Jersey – $ 140,000
- Alaska – $ 122,250
- Rhode Island – $ 120,660
- Pennsylvania – $ 115,520
- New York – $ 114,330
You may have noticed that all 5 of these states are in the northern US All but Alaska have fairly dense populations for their size and continued population growth, resulting in more construction and therefore wages. Taller. Alaska, on the other hand, is huge in size and not as densely populated, but it offers unusual environments due to its geographic location. This leads to tougher working conditions and therefore higher wages to attract and retain workers.
Which states have the highest employment numbers?
In contrast, the five states with the highest number of employed general contractors are as follows.
- California – Employees: 29,950; Median salary: $ 108,240
- Texas – Employees: 26,800; Median salary: $ 93,610
- Florida – Employees: 18,020; Median salary: $ 90,310
- New York – Employees: 13,900; Median salary: $ 114,330
- Ohio – Employees: 9,160; Median salary: $ 96,300
You will notice that New York is the only state on both lists. This information could be invaluable if you are looking to relocate to ensure better employment opportunities. New York may not be the best place to try to get a job as a general contractor, as it is one of the top five for salary and employment.
Alaska, the second highest paying state has a lower job number than New York State, which should allow for better job opportunities. If you don’t mind the bitter cold and short winter days, it might be worth looking into.
Although the other four states are not in the top five in terms of pay, they are in the top five in employment. Based on these numbers, competition is probably pretty high, with the exception of Ohio, which has the fewest general contractors employed.
The Department of Labor Statistics does not identify the 5 lowest paying states, however, it does identify the states that have the lowest salary range of $ 62,690 to $ 83,990, which is still above the national average salary of $ 48,098.63, reported by the Social Security Administration. As you can see, General Contracting can be a lucrative business .
Average salary for construction and extraction occupations
Having focused on the information on general contractors, let’s take a look at construction and extraction occupations.
A review of the data from the Bureau of Labor Statistics reveals the large number of occupations that fall under this heading. Some of the occupations may be unfamiliar, such as Service Unit Operators: Oil, Gas and Mining; Hazardous Materials Removal Workers; and mine cutting and channeling machine operators.
Among those, and other unusual titles, you’ll find familiar occupations, such as Electrician, Carpenter, Roofers, Construction Workers and Plumbers, Pipe Fitters, and Steam Fitters, but for now, let’s take a look at the general figures. Note that these numbers are for all jobs that fall under the Construction and Extraction Occupations heading.
According to the Bureau of Labor Statistics page, the mean (hourly) and yearly figures are $ 22.88 and $ 47,580, respectively. Again, these figures are based on 52 workweeks at 40 hours per week. It is not surprising that these means are inferior to those of a General Contractor, since they are not supervisory positions.
These are the 5 states that pay the most for this occupational group:
- Alaska – $ 65,300
- Hawaii – $ 61,930
- New York – $ 61,610
- Illinois – $ 61,070
- Massachusetts – $ 59,630
It is not surprising to see that both Alaska and Hawaii have the two highest median annual wages. The cost of living is high in both states, due to their location on the mainland. Alaska ranks first likely due to working conditions, which require higher wages to attract and retain workers.
When comparing the average annual salaries of general contractors and workers, it is obvious that supervisory positions will pay more, but one cannot just jump into a general contractor position without some experience in the construction industry. You must pay those fees first.
Of course, if you want to dig into the details of any of the construction occupations and extraction occupations, the information is available from the Bureau of Labor Statistics. Just click on the title of the occupation you would like information about and you will find information on the median annual salary, as well as the salaries of the 5 highest paying states and the demographics of employment.
As you can see from the information above, general contractor salaries are definitely above average. Something that you really should look into if you are interested in the construction industry. Unfortunately, you can also see that the wages of construction workers in general are below average, but hey, the industry must have workers, and general contractors generally come from some of those fields. Right?
Well that’s a good amount of information to digest, but at GCLG we felt it was worth sharing. What do you think?
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