You have years of construction industry experience and the time feels right to make the leap into starting your own company. This is an exciting time in your career and it can be incredibly fulfilling, despite the amount of hard work involved. Before you get carried away, here are some important considerations for starting a construction company.
Do you have the financial backing to start a company? Going out on your own might feel like a natural progression, but a start-up business not only takes a lot of work, it also requires a lot of expenditure. From outlaying registration costs and equipment purchases to costs for bookkeeping and advertising, there will be a lot of business expenses to factor in to your bottom line.
It is incredibly important to secure the right insurance to protect yourself and your company. Insurance can provide cover for personal injury claims, public liability matters and property damage that may occur involving your company. Look for an insurance policy that caters for potential claims specific to the construction industry, such as those offered by Tradewise Insurance. It’s easy to get a quote and purchase insurance online these days, so there is really no excuse for not having adequate cover for your company.
Before undertaking any work, be sure there is a signed contract in place. This sets out clear guidelines and expectations for both you and your client. It allows you to be upfront with necessary details such as the work schedule and anticipated completion date, payment terms and an outline of the scope of work. To adequately protect you and your workers, a signed contract is essential.
4. Licensing & Permits
To operate a construction company, you need to have the appropriate licenses and construction permits. Obtaining a license is generally a fairly straightforward process, requiring you to register with your state’s building authority or board. Be sure to apply for the construction license that relates to the type of work you will be conducting (commercial building, civil construction work, etc).
5. Quoting & Cost Estimates
Having a clear understanding of the costs associated with your construction work will make the quoting process much easier. Clients will be looking for an upfront estimate or lump sum price that relates to their project. Having a consistent formula and estimating process helps you cover your overheads while also managing your expectations for profit. Most companies work from construction planning software to help with quoting.
At some point, you will most likely need to consider labour hire. Whether you are using sub-contractors or planning to have your own full-time staff, it is necessary to do your research on hiring, training and maintaining your staffing requirements. Thankfully, there are a lot of agencies and labour hire companies that can help you find and secure quality staff for short or long term needs. Most agencies can also give you advice on employee contracts and negotiations as well.
With some careful planning and plenty of commitment, your construction company can be successfully established. These tips can help you on your way to running your very own company.