Thanks to humanity’s desire to have more, bigger and taller buildings, construction has remained one of the most lucrative businesses to work in. In fact, with the extensive opportunities in the industry, some construction workers eventually go on to own their own businesses.
If you’re considering starting your own construction business, then this article is for you. Our experts have listed a few crucial tips to contemplate before you take the plunge into construction ownership. We’ll cover the equipment hire Melbourne contractors make use of as well as insurance and potential permits. It’s all here.
Table of Contents
- Expert Tips to Consider When Starting a Construction Business
- Final Thought
Expert Tips to Consider When Starting a Construction Business
While you might have expert knowledge regarding the ins and outs of construction, starting your own business requires a few factors you may not have experience in yet. Keep reading to get the information you need.
1. Get an Understanding of Industry Regulations
All sectors have their own set of regulations to ensure that companies within that industry are held to the same standard. Ensure that you brush up on the regulations for the construction industry as well as legislations that govern each particular state. You can easily find these guidelines on the department of labour’s website.
2. Obtain The Necessary Permits and Licenses
Once you understand the regulations, the next step is to obtain the required permits and licenses. Businesses that don’t have the right permits aren’t compliant and can easily face fines or forced closure. Ensure you have copies of these permits digitally as well as hard copies at all of your sites.
3. Recruit the Right Labour Force
You can have the best intentions for your company, but, without the right people working for you, your construction business will surely fail. You’ll need to consider hiring the following people:
- Independent contractors
- Admin employees to handle payroll, staff and leave issues
When it’s time to start hiring employees, post vacancies via online job sites and social media workgroups. Spread the word among peers in the industry. That way you’ll be sure to get experienced employees.
Tip: be sure to have signed contracts on file for all your employees.
4. Research Tool and Equipment Options
To run a successful construction company you need permits, people and equipment. When you’re just starting out, it can be expensive to invest in heavy machinery and tools. The good news is you can hire every type of equipment you’ll need to complete a project.
Many construction companies prefer to hire equipment because this option has several advantages:
- Only use when needed: Hiring allows you to use the tools only on days when they’re needed. This avoids instances of having the tools stuck in warehouses or storage space waiting for a job.
- Various attachments: Tool rental allows you to hire the exact tool for the job. Some machines use attachments that can also be hired to make the job easier.
- No maintenance responsibilities: Rental companies are responsible for the service, maintenance and repair of the tools. When a machine is being serviced, the rental agency will provide you with another unit to avoid your job progress being affected.
- Latest technology: You can rent the tool or machine with the technology you need for each specific job. With each rental, you can opt for the machine with the best technology to get the job done more efficiently. This will also give your company an edge over your competitors.
- Cost-effective: Hiring is also more cost-effective than buying the machines or tools needed. This is especially the case when you’re not sure if you’ll require a specific machine for the next job.
5. Make Sure Your Business is Insured
Another crucial step to take toward protecting your business is to invest in proper insurance. You’ll need extensive insurance that covers your employees in the event of an accident as well as liability insurance that provides general protection.
When you’re hiring equipment, be sure to take insurance to cover any incidents with the machinery or tools. When you’re checking insurance options, talk to your insurance broker about any government requirements for specific types of insurance.
6. Create a Health and Safety Plan
It’s also crucial to have a health and safety plan to protect employees from potential accidents or injury. The cover needs to be in place for your permanent employees as well as contractors that you might hire for specific jobs.
The health and safety plan should comply with the health and safety standards that are regulated by state and government laws. You can easily download the requirements from the workplace and safety standards website to ensure your plan is Osha compliant.
While starting a construction business can be very lucrative, it takes a lot of work to do it correctly and safely. We hope our simple steps will point you in the right direction and get you started on a profitable endeavour.