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There is no doubt that a well-motivated, business-savvy individual can make a very fine living in construction, as there’s always going to be demand for new building projects. Anyone who knows how to deliver a project on time and under-budget will do very well in this industry, so much so that construction and real estate development have become more or less shorthand for big-money business.
Construction, then, can be lucrative, but it’s fair at this point to underline that this is no industry for someone who is just out to make a quick buck. When you’re entrusted with a building project, the client is putting a big budget and a task of no little importance in your hands; go into it ill-prepared or thinking you can pick it up as you go, and the project will fail; so it’s essential to be on the ball where costs are concerned – and below, we’ll go into the kind of expenses you need to be ready for when working in construction.
Administrative costs
For any business, there will always be some admin to do and some finer points to nail down before a project can be signed off, but a short while in the construction industry will leave you in no doubt that the administrative side is a huge part of the job. Without the right permissions, nothing can move forward, to begin with. Then there’s scheduling the right people to be on-site at the right time – even if one part of the project overruns, those who will be working on the next part may still need to be retained.
Any construction company should have at least one trained lawyer it can turn to at any time, and a number of dedicated planners. It’s a substantial upfront cost, but much more affordable than the costs you can end up dealing with because they weren’t there.
Equipment costs
Sure, it won’t be news to you that bricks and mortar – and all the materials that go into a building project – cost money. You’ll also have figured out that tools don’t grow on trees, but these are just the things that cost you money once. Ongoing costs will also be incurred, from the small things like replacing light tools lost on the job, to bigger things like diesel for the construction vehicles. Thinking ahead and knowing what to ask the likes of New Era Fuels for – and when – is essential for your business to thrive.
Of course, some building materials are cheaper than others, and that’s something you should keep in mind at all times, seeing as this will be your biggest cost on the books. And yet, just because a material is cheaper doesn’t have to mean it’s weaker – for example: steel. Steel is more affordable than materials like wood, simply because it’s easier to maintain over the years. Which is why you should get in touch with some steel commercial builders for your new build or the key extension you’re looking to construct.
Insurance costs
Any business these days will need to meet some insurance thresholds before they begin to operate – and this is more so the case when dealing with a heavy industry such as construction. Just for the most basic of jobs, you’ll need to have public liability insurance, latent defects insurance, professional indemnity and more besides. Handily, there are plenty of specialist companies who deal with all the forms of coverage that you’ll need; just make a point of contacting them before so much as a hammer is lifted on any project.
There is certainly money to be made in construction – and it’s wise to keep in mind that staying on top of hidden costs like the above will mean you get to keep more of it.
