Under the right circumstances, starting your own construction company can be a very profitable venture. If you have experience in construction and would like to start your own company, it’s vital that you first research the necessary business considerations, requirements, safety standards and laws before you set about starting your company.

We’ve put together a list of important things that you’ll need to consider before starting your own business in construction.

1. Pricing and estimating

Before you can begin to trade, it’s important to have a well thought out pricing and estimating process in place. Most clients will expect to be given a fixed, lump sum amount for the work that they require doing, so it’s important that you are fully aware of how much your materials, direct labor, equipment and overheads cost in order to make a profit.

2. Completion schedule

Always make sure that you have enough time to complete a project and that your estimated completion schedule is sufficient to cover the amount of work that needs to be done. You should always allow for some contingency time in the schedule in order to cover minor delays, equipment problems, weather issues etc. that may occur.

3. Contract

You should develop a comprehensive contract form that will be used with each of your clients. It’s important to ensure that all of your contracts include a well-defined scope of work, good terms of payment, your available schedule and a clause for claims and other extras. Throughout the course of any project you should be prepared to document any changes.

4. Insurance

Before setting up a construction company it is crucial that you get proper insurance cover. Securing the right business insurance coverage is essential to protect yourself and your company from any claims against property damage or personal injury that may occur.

As in the construction industry the use of specific equipment and machinery is required, it’s important that each and every one of your employees is fully trained and insured to use machinery and safety equipment such as fall protection harnesses.

Without insurance, you are putting yourself at risk of financial loss, business closure, or could even be operating illegally depending on your location.

5. Permits and licenses

Before you begin to set up your new construction business, it’s of vital importance that you apply for and obtain any necessary permits and licenses needed to carry out work. You can find out which permits and licenses you will need by visiting your local council office, or you may be able to search for information online.

Requirements for permits and licenses vary throughout different locations, so don’t just assume that because a certain license or permit is required in another location that it will be the same in yours.

Do you run a successful construction company? What advice do you have for those looking to set up their own construction business? We’d love to hear your story along with any helpful tips that you have learned along the way in the comments section below.

This post was submitted by a contributor. Check out our Contributor page for details about how you can share your ideas on starting a business, productivity or life hacks with our audience.