How do I start a Construction Labour Supply Agency?

[ImTryingMyBestInLife]

I would like to start a labour/manpower supply agency in the construction industry. I know many labourers, groundworkers etc, and people who hold tickets for all types of machinery, and I believe I have it in me to help find these guys some work.

I already work as an agency labourer for a large construction company, and I have gotten to know project managers, and site managers etc, so I believe I can maintain positive working relationships with construction companies, should this business come to life.

Effectively, this is a recruitment agency. Moreover, I am not looking to have an office where I require a large admin team or anything, I would like to keep it small and have one other business partner to support me.

I have tried to do my research online, however, I am not finding the specific information I am looking for.

I would like to know:

What insurances do I require?

What type of contracts are required between the agency (ourselves) and the employee?

What type of documents need to be supplied to workers during induction when placed on-site?

Are there any websites or other sources of information that can provide me with the support I need A-Z to help this business manifest? Please note, that all of the information that comes to the top of Google searches are tailored to general recruitment agencies as opposed to labour supply agencies.

Is there anyone who has experience of starting their own labour supply agency that can advise me? Maybe if you can tell me about your experience in this type of business and how you did what you did?

Thanks for reading if you did so!

 

[Uke]

The Recruitment and Employment Confederation do a two day start your own recruitment agency course that includes all of the relevant legislation you need to comply with. Probably worth doing if you’ve never worked in recruitment before.

Great that you know lots of potential candidates but it’s clients that will be harder to come by. Why should they use your agency? Why are you different than the rest? You’re going to need to come up with an effective marketing plan.

Finance is something you’re going to have to deal with. If you’ve got 30 people out on sites, what are you going to pay them with? Your clients may be on 30 day or 60 day terms. What if they pay late? Or don’t pay at all? Your workers still need paying. Lots of agencies use invoice factoring, so it’s worth looking into that through a broker who will undoubtedly deal with lots of recruitment firms so could be a valuable source of advice.

You might want to look at some of the companies that help start up recruiters. For a %, they look after all of your back office requirements and can provide invoice finance services and other support.

 

[Mr D]

May need at least a small meeting place to meet with clients even if not meeting staff.

Can be a shared space / managed office. Not quite as expensive as renting a floor of an office building.

 

[bodgitt&scarperLTD]

The Recruitment and Employment Confederation do a two day start your own recruitment agency course that includes all of the relevant legislation you need to comply with. Probably worth doing if you’ve never worked in recruitment before.

Great that you know lots of potential candidates but it’s clients that will be harder to come by. Why should they use your agency? Why are you different than the rest? You’re going to need to come up with an effective marketing plan.

Finance is something you’re going to have to deal with. If you’ve got 30 people out on sites, what are you going to pay them with? Your clients may be on 30 day or 60 day terms. What if they pay late? Or don’t pay at all? Your workers still need paying. Lots of agencies use invoice factoring, so it’s worth looking into that through a broker who will undoubtedly deal with lots of recruitment firms so could be a valuable source of advice.

You might want to look at some of the companies that help start up recruiters. For a %, they look after all of your back office requirements and can provide invoice finance services and other support.

So a parasite on a parasite?

 

[Darren_Ssc]

So a parasite on a parasite?

Client
Main Contractor
Sub-Contractors
Sub-Contractors of Sub-Contractors
Sub-Contractors of Sub-Contractors of Sub-Contractors
Agency
Factoring Company
Payroll Company
Agency Workers

Not a very efficient business structure and not surprising that many agencies rely upon payment 'mistakes' in order to make a margin?

 

[Ian J]

Client
Main Contractor
Sub-Contractors
Sub-Contractors of Sub-Contractors
Sub-Contractors of Sub-Contractors of Sub-Contractors
Agency
Factoring Company
Payroll Company
Agency Workers

Not a very efficient business structure

Which is probably why not many projects use it. The main contractor will often sub contract certain disciplines to a sub contractor but it doesn't normally go further down the line than that.

The subcontractor and agency are often the same thing and many factoring companies also offer a back office facility too so I've cut quite a few out for you

 

[Darren_Ssc]

Which is probably why not many projects use it. The main contractor will often sub contract certain disciplines to a sub contractor but it doesn't normally go further down the line than that.

The subcontractor and agency are often the same thing and many factoring companies also offer a back office facility too so I've cut quite a few out for you

I worked in construction for 20 odd years. I'll defer to your better knowledge of factoring but the many layers of sub-contracting is definitely a thing. Agency workers sit at the very bottom of a huge pile of poo.

 

[Ian J]

Recruitment in general is the factoring companies' favourite market sector but construction recruitment is one of the least favourite sectors due to the large amount of fraud that has risen to the surface in recent years

 

[Rojoba]

I do not think there is any point in starting such an agency nowadays. I mean, we already have the <edited>, and there is not one that can actually compete with them. They cover the entire UK sector, and they are just going to "swallow" all the new agencies trying to enter their domain. If I were you, I would start a construction company rather than a supply agency in this domain.

 

[Ian J]

I do not think there is any point in starting such an agency nowadays. I mean, we already have the <edited>, and there is not one that can actually compete with them. They cover the entire UK sector, and they are just going to "swallow" all the new agencies trying to enter their domain.

I assume that this is spam as your one and only post is to resurrect a five month old thread in order to claim that a tin pot company with a net worth on it's last published accounts of less than I keep in my wallet is bidding for world domination.

Laughable really

PS. Perhaps the mods could check your IP address to see whether it's the same as the opening poster

 

[Uke]

Oh @Rojoba, that was so lame.

 

[Mark T Jones]

I do not think there is any point in starting such an agency nowadays. I mean, we already have the <edited>, and there is not one that can actually compete with them. They cover the entire UK sector, and they are just going to "swallow" all the new agencies trying to enter their domain. If I were you, I would start a construction company rather than a supply agency in this domain.

Don't give up the day job

 

[Ian J]

Incidentally the sole director of the company being spammed already has one failure behind him and looking at it's statement of affairs it's the first time that I have ever seen Assets 0

 

[Mark T Jones]

Incidentally the sole director of the company being spammed already has one failure behind him and looking at it's statement of affairs it's the first time that I have ever seen Assets 0

.that's what they want you to think

It's global domination by stealth

 

[Ian J]

.that's what they want you to think

It's global domination by stealth

It was actually a very interesting statement of affairs as total assets were zero whilst creditors totalled £12,788 of which HMRC were owed £6,485 but the interesting thing was the liquidator's fee which was agreed at £5,000.

Why would anyone pay £5,000 out of their own pocket to liquidate such a tin pot company when it would either get struck off for non filing or else HMRC would wind it up