How is construction business

Economic Resources. Construction Estimating Survival Kit. United States. Categories Follow Us Subscribe. Here are 12 tips to help you successfully grow your construction business: 1.

Build a great team. Manage your business, but lead your people. Invest in your business. Be selective to be profitable. Get the word out. Play to your strengths. Network to earn more work. Quality is king. Change is good. Give great customer service. Be proactive, not reactive. Make smart decisions. Having been issued with a certificate of incorporation, you will need to register your company with the NCA for clearance to legally operate as a contractor.

The regulatory body has 7 classifications depending on the scope of work the company is allowed to undertake starting from NCA 1 which enjoys an unlimited contract value to NCA 7 which can undertake contracts not worth more than sh20 million. The requirements vary depending on category, with a company registered under NCA 1 being required to have at least one director with a degree in a building and construction related field while a director with a trade test is required for registration under cadre NCA 7.

The registration fee as well as the annual license renewal fee also varies across the categories ranging from Sh10, to Sh50, and Sh5, to Sh10, respectively. According to the constitution, all government departments must earmark and award 30 per cent of their tenders and contracts to women, the youth and people living with disabilities.

If you fall under any of these groups and are interested in working with the government you have to register with the Access to Government Procurement Opportunities AGPO for a certificate which prequalifies you to bid in the reserved tenders. Apply for a business permit from your respective county government. For those operating in Nairobi, you can access this service online via the Nairobi City County website.

Sign up for our newsletter. Read Next Connect with us. Whether for a residence, commercial use, industry, or public works, someone has to build the buildings, roads, and systems we all use in our daily lives. In developed countries such as the U. According to the U. Bureau of Labor Statistics, employed an estimated 5. You can build a construction company that is as big and broad or as narrow and specialized as you want.

Typically, the industry is considered to have three main sectors:. Begin with a SWOT analysis, which looks at your strengths, weaknesses, opportunities, and threats.

Assess where you are, where you want to go, and how you want to get there. Since there is always demand for construction companies, it is an industry where there can be lots of players. Some are established and can succeed, and some fizzle and fail. Make sure you understand the local landscape by talking with your local municipal officials, the Chamber of Commerce, trade organizations, and people in the industry.

As you set up your construction company, you will face an important decision about how general to make your operation, or if you want to really specialize in a particular niche. Different companies can make each strategy work. However, your construction company will have a greater chance of success if you identify a niche where you can specialize. Could you build your firm to be another builder of new homes? However, there are other options. Your firm could focus solely on building additions, or in building separate small buildings on a residential property.

You could be a general painter—or you could specialize in mid-century restorations. Make sure you can pivot to new trends, or refocus on a different niche while also retaining some jobs or specialties outside of your core niche. The answer might surprise you. Your customers are not necessarily the end occupier or user of the finished work. Think of it this way: You want to market your services to the people or organizations who will be writing checks to you.

Make sure you understand who will be making the decision on whether to bring on your firm or a competitor. Be sure your marketing and networking efforts target that customer—because they are the ones who will be writing you checks and referring business to you.

You may need to rent or buy heavy equipment, or purchase materials in bulk. A solid business plan can outline your assets, and make the case for your new construction company to access funding from investment sources, from private interests to SBA loans. You usually work on a number of projects at the same time.

As you work on a project in its early stages, it may be years before you see the finished project in operation. The consultant gets contractors to carry out the construction work Once the contractor has won the work from the consultants, construction begins on site.

You work on sites or from a temporary office on site in all weathers. Depending on the project, you might need to work shifts or overnight. Working hours are longer out on site typically 7.

You typically work on one project at a time. Contractors may get help from subcontractors If there is work involved in the project that needs specialist skills or knowledge, the contractor might offer the work to specialist organisations. Typical tasks that might be given to subcontractors include: the reinforced concrete works structural steelwork work on the foundations plumbing and electrical work.

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