Running a construction company isn’t as simple as having a pile of bricks, some cement and getting to work.
Considering the nature of construction, there are lots of health and safety regulations you need to get to grips with, as well as the licenses and permits you might need, sourcing reliable suppliers and buying comprehensive insurance.
If you have construction experience or know someone who does, starting a construction business is a great idea and can be very profitable if done right. So, here are some of the considerations you need to take into account before starting your business.
Decide On Your Specialty
There are two main areas in construction work: residential and commercial. As a budding company, you will need to decide on your specialty depending on your experience, overall goals, the demand in your area and profitability.
Residential jobs usually offer a 10-20% deposit and you can usually get to work straight away. What’s more, there is a lot less competition for these jobs, meaning you can run multiple projects alongside each other and get more work easily as and when it is needed.
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The one downside is dealing with choosy homeowners who can change their minds about their requirements at a moment’s notice.
Commercial jobs earn huge amounts of profit but are also notoriously competitive. There are no deposits paid upfront and your first payment could come in 90 days after starting the job.
Health And Safety Requirements
The very nature of construction means that your company will have to have an airtight health and safety policy. Make sure to research the requirements carefully and buy all the necessary equipment, including the basis like goggles, safety masks and helmets.
If your workers get injured under your supervision you might be looking at a big fee if they decide to sue the company. Abide by all health and safety to avoid your company shutting down.
Even if your company complies with the strict health and safety regulations, accidents can still happen. Make sure you have sufficient builders insurance to cover any unexpected events or accidents which can cover construction professionals, trades people and tools.
Licenses And Permits
Finally, it’s crucial to obtain the relevant permits and licences before pursuing any kind of construction projects. Speak to a professional at a local council office to find out which legal papers you need or go online to read more.
Such permits differ from city to city, so make sure you look into the permits that are needed for your area. Sometimes it can be really simple, and you can apply to your building department and they can issue you a licence for a particular project.