The construction industry has been booming for the first few years after COVID-19 hit. However, the sector is recovering because of a surge in remodeling and home improvement projects.
Moreover, the housing shortage is at an all-time high. So people need to build more homes, and construction for homes has increased by 22% this year. It looks good for the construction industry but can also lead to various problems.
However, a business owner must be careful before taking on too many new construction projects. Taking on too many projects is not good because you can quickly get over-extended. This could lead to lower-quality work, missed deadlines, and unhappy customers. Here are five things to do before getting a new construction project.
Consult the Law First
Some construction projects might be more complex than others. The law can dictate how a project can go, and if you’re not aware of what’s happening, this can lead to some big problems.
You should note various laws, such as the National Environmental Policy Act, the Clean Water Act, and the Endangered Species Act. Not being up-to-date on these laws can get you into hot water with the government.
This is why it’s good to have a construction lawyer by your side. They can help you understand the project’s legalities and ensure everything is in order. Moreover, they can prepare a contract to protect you and your workers.
Get Insured
Construction is a risky business. So many things can go wrong, such as accidents, fires, and weather damage. This is why it’s so important to have insurance. Insurance will protect you from financial ruin if something goes wrong. Here are some essential policies you should get.
Worker’s Compensation Insurance
Your workers will need constant attention when they’re on the job. If they get injured, you are responsible for taking care of them. Worker’s compensation insurance will help you cover their medical bills and lost wages.
General Liability Insurance
This type of insurance will protect you if someone sues you. For example, if a worker gets injured on the job and decides to sue you, your general liability insurance will help cover the costs.
Product Liability Insurance
This type of insurance is essential if you’re selling a product. For example, let’s say you manufacture construction materials. If one of your products is defective and causes damage, your product liability insurance will help cover the costs.
These insurance policies can determine how much you can lose from a project. By getting them, you’re likely to lose less than you expect.
Estimate the Project Cost
One of the most important things to do before getting a new construction project is to estimate the cost. This will help you determine if the project is worth your time and money.
There are various ways to estimate a construction project’s cost. You can use software to help you, or you can use more manual methods. Software-based methods are more accurate, but they can be expensive. On the other hand, you might want to use manual methods if you’re on a tight budget. These methods are less accurate, but they’re also cheaper.
Here are three ways to estimate a construction project’s cost manually.
Materials Cost
The first way is to estimate the cost of materials. This is the easiest way to assess a project’s worth, but it’s also the least accurate. Next, add the cost of all the materials you’ll need for the project.
Labor Cost
The second way is to estimate the cost of labor. This is more accurate than calculating the cost of materials, but it’s also more complex. You need to know how much each worker will charge per hour and how many hours they’ll work.
Overhead Cost
The third way is to estimate the overhead cost. This is the most accurate estimate of a project’s cost, but it’s also the most difficult. You need to know how much money you’ll need to cover your expenses,
By getting a reasonable project cost estimate, you can avoid financial problems down the line.
Hire a Good Contractor
A good contractor is essential for any construction project. They will ensure the project is completed on time and within budget. They will also be responsible for hiring workers and ordering materials.
When hiring a contractor, you should do your research. Make sure to read online reviews and check their references. You should also meet with them in person to better understand their personality and work ethic.
Hiring a good contractor can avoid many problems during a construction project.
Create a Schedule
The last thing you should do before getting a new construction project is to create a schedule. This schedule will help you keep track of the project’s progress and ensure it’s completed on time.
To create a schedule, you should use construction scheduling software. This software will help you plan and track the project’s progress. It will also allow you to make changes to the schedule if necessary. Creating a schedule can avoid many problems during a construction project.
These are five important things to do before getting a new construction project. Doing these things can avoid many problems and ensure the project is a success.
