Refer to a construction industry overview for help building a successful construction business. Consider several aspects of the commercial construction business including building services and construction service to ensure a project that’s on budget and on time. Whether you specialize in building homes, office buildings, hospitals, bridges, tunnels or another structure or whether you intend to build any structure contracted for, you’ll want to study that industry before beginning operations.

A thorough construction industry overview begins with studying applicable laws. From there, investigate other aspects of the industry that can provide you enough information to get started.

1. Study laws that govern the construction industry.

2. Join construction industry associations.

3. Find tools for managing your construction business.

Action Steps
The best contacts and resources to help you get it done

Ensure your construction company can comply with state and federal law

Many laws apply to the construction industry. Federal laws appear in the Code of Federal Regulations. Some laws apply specifically to construction companies, while others apply to any workplace, such as the Occupational Safety and Health Administration (OSHA) regulations. Each state has also enacted laws that govern the construction industry.

I recommend: The Code of Federal Regulations, 29 CFR 1926, spells out the federal laws relating to the construction industry. These laws set standards for construction employees such as illumination, ventilation, hazard communication, safety belts, respiratory protection and many other topics. The Construction Industry Compliance Assistance Center provides a handy tool for identifying state-specific environmental laws that may impact your construction project. Utilize Construction Web Links for building industry resources at your fingertips. This state-by-state listing gives information related to building codes, licensing, trade organizations, jobs and other information about the construction industry.

Join construction industry associations to keep in touch with the latest developments

A construction business contains so many facets that you must keep informed of industry developments. Beyond the elements that every business has such as staffing and benefits, a construction-oriented business should consider special safety elements such as protective equipment and clothing, union and trade agreements and heavy equipment purchase/leasing. Associations help keep you informed of legal developments in these and many other areas, as well as best business practices.

I recommend: The Construction Management Association of America caters to professionals involved in construction management. The association provides certification for construction managers. The Abacus Construction Index provides a list of construction product associations such as the American Fence Association and the Asphalt Institute.

Prepare your office to manage your construction business

Evaluate purchasing construction software for various tasks such as project management. Look for potential construction projects in your area to get your reputation started. Develop contacts with potential construction services partners.

I recommend: Bid4Build construction software generates bids, creates construction plans and builds cost estimates. Nationwide Construction Leads compiles listings of construction projects for general contractors and subcontractors up for bid.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  How do you make your construction company stand out from all the others in the telephone book or on the Internet? Hiring a marketing firm that specializes in construction companies or contracts can prove itself a wise investment.

Construction companies never go out of style. As old buildings fall into disrepair, construction companies are busy repairing or remodeling them. When the buildings no longer offer a substantial benefit, a new building replaces it.

When you’re thinking about starting a construction company, whether you will be a general contractor or specialize in a trade, there are things you must know in order to be successful. Among them are:

1. Finding start-up financing.
2. Choosing a construction management plan.
3. Locating construction leads and jobs.

Action Steps
The best contacts and resources to help you get it done

Obtain the capital you need for your start-up costs of construction services

Obtaining financing to start your construction company can come from private investors or a bank. Your financial needs will vary depending upon the amount of capital you have to invest and the proposed scope of your construction company. Many makers of construction equipment offer financing terms to builders and contractors. Your credit history is important as well as your equity in the new company when applying for financing. In addition, consider leasing construction equipment to reduce start-up costs, leaving extra capital for project investment.

I recommend: Use construction software to draw up a business plan when showing your ideas to potential investors or lenders. Check out the GoBIGnetwork for information on venture capital firms or register (for a fee) at Capital Vector and let the experts match you with an investor.

Stay on track with a comprehensive construction management plan

Goal setting, budgeting, planning and record keeping is just as important as the time you spend on the jobsite. Thanks to user-friendly software management programs and construction management companies, you can concentrate on the project and turn the paperwork over to the office crew. If your construction company plans are extensive, consider forming a corporation and appointing a board of directors to oversee the administrative duties.

I recommend: Check out the Constructon Management Association of America (CMAA) to find a good construction manager to oversee the daily activities, both on the jobsite and in the office or train a construction manager from within your own company. Purchase construction management software if your company is small. Form a Delaware Corporation online and sign up for extended customer support.

Get the construction services jobs you want

Finding plenty of work for your crew means tracking down leads and bidding on numerous jobs. You won't get them all but you will get some if your estimating process is accurate and you're charging rates competitive with other construction companies in your area.

I recommend: Look for jobs to bid on nationwide if you live in or near, a large community. BidClerk locates residential and commercial construction jobs up for bids. Research state newspapers from around the nation to find jobs in your desired location.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Visit with an accountant when you decide to go into the construction business to determine quarterly payments for taxes and to purchase worker's compensation insurance for your employees.

Construction supplies come in all shapes and sizes, and also require large cash reserves. When it’s time to purchase supplies for construction jobs, comparison shop for construction solutions, keeping in mind that you usually get what you pay for. Some construction supplies are consumables at the job site, while other building construction supplies will be with you for years. Equipment will vary depending on the type of construction projects you will bid on; road projects, such as bridges and exit ramps, require certain supplies, whereas residential, commercial and industrial commercial construction jobs call for different equipment and supplies.

Look also for flexibility, such as renting and leasing equipment. Some suppliers offer used equipment too. Construction supplies come in four main groups:

1. Raw materials needed for your construction project

2. Heavy equipment for lifting and moving

3. Tools and hardware

4. Safety equipment for protection and compliance

Action Steps
The best contacts and resources to help you get it done

Find raw materials needed for your construction project

Commercial construction companies use a variety of raw materials when building. For example, highway construction projects - such as roads, tunnels and bridges - require cement, gravel, asphalt and rebar. Residential and commercial construction projects require wood, cement, brick, glass, shingles, stone and similar building materials.

I recommend: Vulcan Materials leads North America in producing aggregates, particularly crushed stone, sand and gravel. Vulcan also produces asphalt paving materials, railroad ballast and ready-mixed concrete. Wholesale Portland Cement boasts good prices. Ryan's Rustic Railings & Furniture provides construction services for cutting logs and timbers for stairs, rails, trusses and commercial buildings. Ryan's also cuts character logs with unusual grains and knots.

Select construction equipment for heavy duty lifting and moving

Commercial builders require many types of equipment for construction projects. Heavy duty earth moving and lifting equipment move dirt, lift rocks, tear down trees, and many other tasks. This equipment includes cranes, dump trucks, backhoes and other heavy equipment.

I recommend: Manitowoc makes Grove cranes, a range of mounted and all terrain cranes used in the construction industry. Manitowoc also carries used equipment. New Holland manufactures large equipment such as backhoes, loaders, bulldozers and graders.

Select tools and hardware used by construction companies

Construction workers need a myriad of hand tools and supplies. Whether they work on road crews designing highways and bridges or whether they construct high rises and homes, special tools exist for those jobs.

I recommend: Raw Equipment Building Materials distributes materials used in concrete construction, such as forms, grouts, rebar and trowels. White Cap Construction Supply distributes building construction materials for commercial builders. White Cap stocks electrician tools, jacks, hand trucks, hand tools, paint supplies and many other essentials for the job site.

Buy safety construction supplies to protect construction workers

Part of construction management entails keeping your employees safe. Many options exist for construction equipment that protects people from serious injury. Every construction company must comply with OSHA safety requirements or face hefty fines, so make certain to protect your employees and workers.

I recommend: CSP Outdoors supplies construction equipment to protect employees such as hard hats, road signs, flame-resistant clothing, safety glasses, dust masks and many other products. North Safety Products manufactures safety products for construction zones, such as respirators, hearing protection, hand protection and first aid.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Do a cost analysis on heavy equipment supplies and equipment. Compare long-term costs of purchase, lease options or if you're better off subcontracting parts of the job to a construction service or building services company.
• •  Depending on the size of your construction company, you may save money by renting some of your basic equipment, rather than buying it. Many companies across the United States offer equipment rental services of major manufacturer economic such as Caterpillar, Komatsu, Hyundai, Ingersol Rand, and others. Take advantage of rental or lease agreements if its advantageous to do so.

There are many terms that one needs to know in construction. If you want to start working in the industry, it's a good idea to brush up on your vocabulary before the interview to make sure that you understand what the company requires of you. If you have training in one of the skilled trades, for example, you can demand a higher salary than a regular construction helper. However, before doing any large project, you should make sure that you have the proper licensure.

Action Steps
The best contacts and resources to help you get it done

Skilled trades

There's a number of skilled trades in the construction industry. Those that have a skilled trade have received special training in a particular area, such as laying brick and stone or roofing. Often, the skilled trades can be learned through an apprenticeship.

I recommend: At Tradeability.ca, you can view a comprehensive list of skilled trades. Clicking on the job title will bring you to an in-depth description.

Construction managers

Construction managers are in charge of the whole construction project, making sure that everything is done properly and in a timely fashion. Job duties may include supervising employees, planning the project and handling billing issues.

I recommend: Visit the Occupational Outlook Handbook by the U.S. Department of Labor for a thorough description of the job of construction managers.

Bid

Construction companies and managers bid on a project by putting in an offer to the person paying for the project. The offer states how much they are willing to do the job for and how long it will take to do it. Usually, several companies bid on the same job and the client bases his or her decision on price, timing and reputation, among other things.

I recommend: BuilderSpace.com discusses project bidding and when and when not to bid on a project.

Contractors State License Board

The Contractors State License Board regulates the construction industry and sets the standards that all construction companies must follow. They provide licenses for certain workers.

I recommend: Learn more about the Contractors State License Board through its website.

Progress billing

Progress billing allows construction companies to manage their cash flow throughout a project. Rather than being paid one lump sum upon project completion, progress billing is used to receive a portion of the payment upon completion of a portion of the project.

I recommend: Made2Manage describes some of the benefits of progress billing.

Associated General Contractors of America

The Associated General Contractors of America is a professional organization that represents the interests of those in the construction industry.

I recommend: Visit Associated General Contractors of America to learn more about its mission and activities.