Everyone feels that entrepreneurial spirit every now and again but why not bring these dreams to fruition and start your own Construction Contracting Business? With a projected 12.5 percent increase annually for residential projects, and 13 percent for commercial, over the next 4 years, what better time is there than now to get started. Below are a few tips on how to get started.
Get Familiar With The Industry
The most basic thing you can do is familiarize yourself with business planning, strategy, incorporating and registering with the right agencies. It might be a good time to get to the library and read up on some legislation. You don’t need to become an expert just yet, but learn a little about a lot and it will pay dividends later.
Get Your Licenses, Bonds, and Insurance
Don’t conduct any business without the right documents and insurance. Make sure you are protected at all times. Besides just having a general business license, you will need specific licenses to operate legally. If for example you do work for electrical, plumbing, HVAC, gas fitting, and other construction trades you will be required to obtain a tradesman license. Do research and figure out from local government websites and registries what permit and documentation is necessary for starting your own construction contracting business.
Once you procure licenses to do business, you are going to want to get some Surety Bonds. This is so that in the event you cannot commit to the work obligations you have promised you will be covered by a third party who promises to pay your client for the services you failed to provide. Each state has its own law regarding regulations so be sure to contact a bond agent.
Finally, you’re ready to get your insurance coverage. Three insurances you might want to consider at the get go of your business venture are general liability, vehicle, and property insurance. This will insure that you will be covered in the event of theft or damage to your place of business. In addition to this many states require disability and workers compensation.
Stay Tuned for More information regarding your construction contracting business. Next blog post we will delve into health and safety plans, as well as finding and hiring labor. Here at contractorsinsurance.org, we aim to educate all you aspiring contractors out there. Call one of our agents if you have any questions. We would be more than happy to help.