How to Operate a Construction Business

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How to Operate a Construction Business. Business people who are interested in high-ticket items and a fulfilling position often flock toward the construction business. Construction companies help businesses expand and help build homes for families looking for a comfortable place to live. The construction business is competitive so you need a number of tools in order to operate effectively in the industry.

Create a Successful Construction Business

Think about construction equipment rentals when you are bidding for larger building projects. Your use of a rented backhoe or bulldozer allows greater flexibility when you are bidding for higher paying public works and commercial projects. Utilize an experienced equipment rental company, like United Rentals, that have a wide selection of earth moving machines (see Resources below).

Employ college students and other temporary workers to meet demand during busy periods. These employees can help with excavating, carpentry and dry wall installation on a variety of projects. These periods vary based on region, but summers in the northern United States and winters in the southern and western part of the country are particularly demanding.

Make contacts in city and county planning offices as you operate your construction business. These contacts provide news on upcoming building projects, as well as any regulation changes that may affect your construction processes.

Understand the difference between union and non-union projects when assigning projects to your staff. Union jobs are typically public works projects or interstate commercial tasks that require all workers to be a member of the local building union. Non-union jobs, like home building or local commercial expansion, can be worked on by any qualified employee.

Place your company's logo, name and contact information on your vehicles in order to operate an effective construction business. Developers, potential homeowners and other members of the public in need of construction services can use this data to contact you about new projects.

Consider working in a specific niche of the construction industry to build a strong reputation. General construction companies often struggle to distinguish themselves from the competition. You can focus on hot sections of the industry like green home building and condominium development to corner the construction marketplace.

Tips & Warnings

  • Develop a small group of foremen that you can delegate responsibility to in the field. As your clientele grows, you will need to juggle several construction projects at the same time. Your foremen should be trained to use every piece of equipment on the job site, as well as understand how to read blueprints correctly.

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