Construction is a booming industry. In fact around six of the top ten fastest growing industries are related to construction like contractors, architects etc. So if one has an interest in construction management now is the time to get into it.
The first thing to do is to familiarize with the basic concepts that are required to be understood in order to be a part of any business, such as strategy, registering with government agencies etc. To familiarize oneself with the concept of entrepreneurship, the entrepreneur can get themselves into small business assistance programmes.
Identifying types of companies
There are mainly three different types of construction companies. Small renovation contractors take projects requiring a small amount of capital such as office renovations and home alternations. Many small renovation contractors expand to general contractors later on. General Contractors are those who do building or alternation works. They tend to deal with commercial works on a larger scale and provide trades within their own workforce. Owner builders own the building they build themselves. They rent or sell it after completing the project. So first and foremost the entrepreneur has to decide which type of construction business he or she wants to run.
Cost and Financing
Despite the modest budget, if one does not have much savings or is unable to get loans in traditional ways, they can opt for other financing options like credit unions, community banks or business line of credit.
Most construction companies require some specific licenses for operation. So it should be checked with a business licence office regarding what type of a licence that company needs. For example, if the headquarters of the construction business is at home, then the budding businessman will need to get a home license.
In order to operate legally, a construction business needs construction bonds. A surety bond can be arranged with a third party who makes a promise of payment to the client in case of any failure of keeping up with work obligations, under a contract. Bond regulations vary from place to place; therefore the entrepreneur needs seek help from a bond agent.
Depending on the number of employers and other things, there are broadly two types of business insurance that will be required. One is the general liability; the other is the vehicle and property insurance. There are also other types of insurances that can be considered for the workers.
Rules and Regulations
There are various regulations that are needed to be familiarized with when it comes to construction industries. It ranges from energy efficient standards to workplace safety regulations.
The construction companies generally hire labour from four sources – subcontractors, labour brokers, hired employees, or independent contractors.
Construction is a profitable industry. A budding entrepreneur who is focussed, motivated and driven will thrive in this industry. Register with Bag a Builder and hire recommended tradesmen in few clicks.
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