Starting a construction company

[K91]

Hi all, glad to of found this forum, looks like there is some great advice and insight on here.

I am after some
advice/ critique on my idea to start a construction company.

To give you some background I am 30 years old, a qualified electrician with 4 years experience and I have been a site manager for a local house developer for the last 2 years. I am currently at college part-time completing a HNC in construction and level 4 NVQ in site management of which I have 2 years left.

I plan to start a construction company offering everything from refurbs & extensions through to building houses for clients. However, initially, all the tradesman I would use would be subcontractors (people I’ve made relationships with through the years). I would basically be acting as a project manager.

The only niggle I have is how it would look to the customer if I have no-one ‘in-house’ carrying out the works and relying on external subbies. I would eventually love to employ a few trades in house to take the reliance off of using subcontractors when established and I can afford to.

Apologies for the long post! Hope that makes sense and would love to know what you guys think (good or bad)

 

[Mark T Jones]

It's entirely normal for main contractors to rely on subbies to varying degrees - sometimes entirely.

What you do need to focus on is contractual, financial and practical aspects of the business there are a lot!

 

[JEREMY HAWKE]

You need a strategy for getting new business in
Spend the time between now and the potential start up date to build up a data base of all your contacts so that you can get on the phone to them nearer the time

A website seoed or adworded to your target area is also a must !

 

[K91]

It's entirely normal for main contractors to rely on subbies to varying degrees - sometimes entirely.

What you do need to focus on is contractual, financial and practical aspects of the business there are a lot!

Thanks Mark, that’s reassured me slightly, still struggle with the thought of me not physically being there all day at the customers house and how that would look.

During the next 2 years in my current job I hope to progress to the role of contracts/ project manager to hopefully gain an insight into the contractual and financial side of things.

 

[K91]

You need a strategy for getting new business in
Spend the time between now and the potential start up date to build up a data base of all your contacts so that you can get on the phone to them nearer the time

A website seoed or adworded to your target area is also a must !

Thanks for taking the time to reply Jeremy. I’m currently doing exactly that, building my contact database, I won’t be starting the business until I’ve at least finished college so it gives me time to build relationships.
Yes I will definitely be getting a website built, as well as being active on the social pages.

 

[Mark T Jones]

Thanks Mark, that’s reassured me slightly, still struggle with the thought of me not physically being there all day at the customers house and how that would look.

During the next 2 years in my current job I hope to progress to the role of contracts/ project manager to hopefully gain an insight into the contractual and financial side of things.

A friend if mine runs a construction business pretty much along these lines

His route to market is somewhat unusual in that he spends most if each day in various pubs, getting to know people and generating business

Loads of on-site hassle though. He's not a subtle or gentle person

 

[Jass T]

Most customers want the job done at the price quoted, the time schedule agreed, to a good standard and little mess as possible.
If you can do that, they won't care whether the workers are subcontractors or your in house employees.

 

[Frank the Insurance guy]

still struggle with the thought of me not physically being there all day at the customers house and how that would look.

You just need to make sure your customers know you are available on a mobile at any item, even when you are not on site.

Pretty normal to use sub-contractors so no need to worry about how that will look.

However, you need to understand that you are responsible for the sub-contractors work/actions - your customer is contracting with you, not the subcontractors, and therefore you are responsible for what the subcontractors do.

 

[Bob Morgan]

I am currently at college part-time completing a HNC in construction and level 4 NVQ in site management of which I have 2 years left.

Make a request to your College asking WHY! - You pay them fees - What do you get in return?

 

[K91]

Make a request to your College asking WHY! - You pay them fees - What do you get in return?

My current employers are paying for the courses. I think when it comes to quoting for work it should stand me in good stead and provide confidence.