Are you a new or aspiring Construction, looking to get started on your first project? Well, before heading to the hardware store and swinging your hammer, you’re going to need to take care of the legal stuff.
It’s not as easy as deciding on a business name and getting your first client. Construction is heavily regulated in the US in order to ensure that only licensed individuals are managing construction projects so that they are built up to code and safe for businesses and homeowners to use.
You’ll need to complete and submit a construction document or two before you are legally allowed to bid on projects.
Wondering what these documents and paperwork are, for starting a construction company? Want to know how to run a construction company the legal way? Read on below to find out now.
How to Start a Construction Company
First off, you need to get your company legalized. Your first step is to choose and register a business name, or a DBA. Then, you’ll need to get your contractor’s license in the state you plan to complete work in.
Each state has different requirements, and an exam may be required. You cannot bid on projects until you receive your contractor’s license, making this one of the most important documents of your business.
With a license in hand, you may want to incorporate your company. By forming an LLC, you can create a layer of protection between you, your personal assets, and your business.
You will also want contractor insurance to cover various aspects of your contractor business.
Have the Right Construction Document
Once your company is up and running, you’re going to need to use construction contracts to actually complete individual projects. The contract for a project is vital to a successful outcome and can protect both parties. Therefore, a contract should not be skipped.
Wondering how to write a construction contract and what to include on a construction contract? You’ll want to include every detail of the project, and be as thorough as possible when spelling it out.
You’ll also include when disbursements are going to be made. Since you’ll need money to cover the cost of the project, you need to know when you’re going to get the money so you plan accordingly.
And as a means of protecting yourself, and ensuring payment, you can place a lien on the property that you are building or working on. You can learn if a conditional loan or an unconditional lien is a better option by visiting getbuilt.com.
You may also have contracts drawn up to use with subcontractors. If you plan to contract some or all of the work, you’ll want these individuals to sign an agreement
Don’t Skimp on Documents
As with any type of business, working as a contractor requires dealing with lots of paperwork. But it’s the construction document, contract, and other forms of paperwork that empower and protect your business.
Never skimp out on contracts, and never overlook the paperwork. All of that stuff is just as important to your business as a successful project.
Looking for more information about running an efficient business? Check out our blog today to find other helpful articles.