Blueprint with tools on top

February 21, 2013 | Startup and Launch

How to Start a Construction Business

So you’ve decided to start a business in construction. Congrats! Despite the ebbs and flows of the real estate industry, there will always be work for you.

While you may have the basics of your business, such as who to hire and what to call your company, here are ten things you may not have considered.

1. Apply for Permits

Construction is a highly regulated industry, and to become a licensed construction provider, you’ll need to apply for a few building licenses and permits. Because you’re involved in so many areas when constructing a building, you may need permits for electrical, plumbing, HVAC, gas fitting, et cetera. Check with your local licensing bureau and make sure you take care of all of this before you start working on a project.

2. Get Insured

Construction is a dangerous industry, and you may be required to carry a hefty amount of insurance coverage for you, your staff, and your equipment, including:

  •  General liability insurance
  • Vehicle and property insurance
  • Workers’ compensation insurance
  • Unemployment and state disability insurance

3. Protect Your Company

Again– this is a dangerous industry, but not just physically. It’s also fiscally dangerous, meaning that if you don’t do a job to a client’s liking, he could sue you. And if you’re not set up as a corporation or LLC, that could jeopardize your personal assets. Start out on the right foot by separating your business self from your personal self.

4. Look into Surety Bonds

Some states require construction businesses to be bonded, which essentially means that a third party will pay your client if you don’t fulfill the requirements of your contract. It’s peace of mind for your clients, and don’t you want that?

5. Consider Becoming a Government Contractor

A lucrative area for construction is in government contracts. Because the government sets aside millions to spend with small businesses, you’ve got a good chance of securing bids…once you’re approved as a contractor.

Look to your city’s licensing agency and find out all the requirements you have in starting a construction business. Don’t start until everything’s processed and approved, or you risk being fined — or even shut down — before you really get started. Remember to stay on top of renewing your licenses and permits so that you’re always compliant with local regulations.

<a href="https://www.corpnet.com/blog/author/spayton/" target="_self">Susan Payton</a>

Susan Payton

Susan Payton is the President of Egg Marketing & Communications, a marketing firm specializing in content writing and social media management, as well as the founder of HowtoCreateaPressRelease.com. She’s written three business books: How to Get More Customers with Press Releases, 101 Entrepreneur Tips and Internet Marketing Strategies for Entrepreneurs, and frequently blogs about small business and marketing on sites including The Marketing Eggspert Blog, AllBusiness, CorpNet, Small Business Trends, Chamber of Commerce and BizLaunch. Follow her on Twitter @eggmarketing.

Related Posts

What Are Payroll Deductions?

What Are Payroll Deductions?

Payroll deductions are monies that employers withhold from an employee’s pay. These deductions include withdrawals such as federal income taxes, state income taxes, local income taxes, FICA tax (Social Security and Medicare taxes), medical benefits, retirement savings...

How to Register a Business in Oregon

How to Register a Business in Oregon

Have you been thinking about making your dream of starting your own business in the beautiful Pacific Northwest a reality but not sure how to begin?  This post will help guide you through the process of registering a business in Oregon. That said, let’s get started...

How Much Does it Cost to Incorporate Your Business?

How Much Does it Cost to Incorporate Your Business?

So you’ve decided to register your business as a Limited Liability Company or C Corporation. Kudos to you for thinking about the benefits of liability protection and possible tax advantages that come with formally establishing your company as a separate legal entity....

Subscribe to Newsletter

Practical business and financial insights, lessons, perspectives, and know-how brought right to your inbox.

Thank you for subscribing!

100% satisfaction guaranteed or we will refund 100% of our service fees with no questions asked!