Construction industry is one of the industries that are poised to increase their value in the next few years. ( learn more from this post on AWX’s blog) Starting a construction business is therefore a great idea at this moment. The problem though is to understand how to start a construction business. In this article, you will find some simple steps to follow so as to successfully set up a construction business.
1. Get licensed, insurance and Bonds
In order to operate legally, you will need a construction license. It is important therefore to get a license from your local authorities to operate smoothly. Remember that construction permit or license is different from general business permits. On the same note, it is important to get a construction bond. The bond generally assures your clients of payment if you don’t meet your obligations and duties. Finally, it is always important to insure your construction business. Remember that your business is vulnerable to risks such as fires and theft. Insuring your business therefore ensures that your construction business will not crumble down in case of a disaster.
2. Know how the construction industry works
It will be a disaster if you start a business whose regulations and laws you don’t know. It will be good therefore to ensure that you understand all the rules and laws that govern the industry. It is good to note at this stage that various industries have got varying laws and regulations. In addition, laws and regulations differ from one state to another. Where you are therefore will determine which laws and regulations to follow. You need therefore to understand certain things such as occupational health and safety plans for your workers before setting up your business.
3. Hiring Labor
It is no doubt that you will need labor in order to ensure that your construction business is complete. It is good therefore to undertake labour hire exercise so as to undertake the operations of your business without any problem. You will realize that there are four ways you can use to get your labor: independent contractors, subcontractors, hired employees and labor brokers. No matter what method you use to labour hire, it is good to take the right steps. For instance, you may be required to draft a contract which your workers should sign before starting to work. In addition, there are some state laws that you may have to abide to in relation to workers. It is important therefore to understand these laws so as to reduce tussles with the law.
Once you’ve licensed your business, understood how the construction industry works and undertaken labour hire exercise, your construction business is complete. You can now go on and start advertising it for potential clients to see it.