Story time from some past mistakes I made. When I first started as a GC, I did lots of smaller work around for friends and family, renos, remodels, etc.
Found out only later that for my first handful of residential jobs, I was basically doing work for free. I’d agree to change orders with the owner/client, have the subs start and finish work, and pay their invoices when they came much later. Then I’d just… forget to bill the owner. Made all these handshake deals, tracked them on one-off notes. Easy to agree to, but extremely easy to forget in all the chaos.
One time after a job, I tried to collect payment, and the homeowner acted like I was trying to scam them. Couldn’t prove anything and took that loss (+ probably more I didn’t realize) on the chin.
I've got systems now so I don't tank my own business, but jc, the amount of money I left on the table because I couldn't manage a spreadsheet is sad.
Hard to learn these lessons without going through them yourself, but if you’re a newer GC, be warned. Keep organized, track all the info on projects, and don’t forget to get agreements in writing.
Stay safe out there!