Investments Every Construction Company Should Make When Starting Out

by Justin on January 19, 2017

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Being a General Contractor today is different than what it used to be a few dozen years ago. Though entering this growing market might not be as easy due to the longevity and good reputation of existing companies, the entrance barrier is lower than what it used to be, especially when it comes to finances.

Construction equipment is large and expensive, however in the last few years there are greater opportunities for renting than there used to be. Though it does affect the profitability of the company and the long-term finances, it allows for new companies to at least venture into the market without an entire fleet of equipment.

However, there are a few things without which a general contractor cannot bid for work, or at least should possess at that point of the game. Wondering what the basics are?

  1. License

In order to legally operate your construction business, you need to have been granted a general contractor license from your jurisdiction. It is what rectifies your education and experience, along with testing your knowledge of local regulations and laws related with the work you would potentially be doing. Getting work without a license is hard, as it should be. Completing any projects without the right paperwork can result in fines, suspension, and a tarnished reputation.

  1. A Truck

Every construction company needs a truck, and there is no way going around it. From transporting irregularly shaped items, to towing additional machinery, having your own truck gives you the ability to get to the job site with your team and your tools. It’s versatile and you’ll find that it’s a worthy investment for someone starting out in the business. Just don’t forget to put a company decal on it! You should be seen and shortly recognized!

  1. A Yard

Though it initially might be the yard on your private property, you will need space in which to park your truck, store equipment, materials, and from where you can go over paperwork, blueprints, and have an office. Just remember to not treat it like your own personal dump. It reflects the state of your business and your managerial style.

  1. Safety Equipment

Safety first is what they say, and rightly so. You don’t want to end up responsible for the loss of someone’s mobility, or even worse, life. Not only is that quite a burden to bear on a personal level, it isn’t a good thing for which to be receiving attention in the press. To avoid situations such as this, make sure all the members of your team are properly trained and informed regarding safety, including when and how to use safety equipment. Apart from helmets, steel-toe bots, and vests, you will have to invest in additional equipment that will keep your team safe in all the projects you take on. Get a set of harnesses and a freestanding protection device that offer the largest installation possibilities on the market so that you can use them over and over in different situations. Depending on the type of contracts you pick up, you’ll have to acquire equipment that will keep you and your team safe and sound.

  1. Insurance

Nearly every business has insurance, and construction is no anomaly. In fact, without insurance, you should not be operating a construction company. There are so many different potential risks, from those involving your own team, subcontractors, passerby’s, to end users. A lot can go wrong and you don’t want to be sued and stuck with a bill that you wouldn’t be able to cover in six lifetimes. Invest in a well-worded insurance policy that offers you maximum protection, and do some research on what is covered by subcontractor unions, etc. so that you how to act if something was to occur. Knowledge is power.

Every company has its own needs when it comes to starting up. Entering the construction market can be difficult, but if you start with these basics and win some small jobs, you’ll find yourself quickly growing and bidding for larger projects with greater profits.

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