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Last blog post we spoke a little bit about getting familiar with the industry, licenses, bonds, and insurance.  Today, would like to continue the conversation on starting your own construction contracting business and focus on occupational health and safety as well as finding and hiring labor.

 

Safe Practices of A Construction Contracting Corporation

As a construction contractor, you will need to make sure you provide a safe environment for your employees to work in.  By law, the occupational safety and health act or OSHA, requires it.  By visiting their website at OSHA.gov, you can learn more about the tools and services they provide which ensure that you are in compliance with rules and regulations.  Training and on-site consultation are just a few of the things the OSHA offers.

 

Finding Quality Workers and the Hiring Process

Working in the construction industry, you will find that labor can be secured from a number of different sources.  Referrals, subcontractors, labor brokers and other independent contractors can, and will be, a source of labor for your business.  Keep in mind though that the law indicates how you will be able to work with each of these sources of labor.

When you hire an employee you are in charge of withholding taxes, paying wages, providing benefits, and complying with labor and employment laws.  Although there is no set law indicating how you may work with a subcontractor, you should consider drafting up a contractual agreement and ensure that they too have gone through the proper steps of licensing, bonding, and procuring insurance.  If you decide on going through a broker, you will end up paying him directly and if you go the route of independent contractors, who are self-employed individuals, you will be required to pay them directly as well.  Unlike your own employees though, you don’t have to offer benefits.  Be sure to learn more about the extensive reporting requirements regarding independent contractors as well so that you aren’t penalized.

Hopefully you now have a better understanding of the process to become a construction contracting business.  With these steps in place, we hope to have clarified any questions you may have had.

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