Tag Archives: Construction Business

Don’t let contractors put lien on your construction property

If you are thinking to not pay your contractors for their job for whatever reason, you should think twice about it. You may find their work to be of poor quality but when you see the progress of the construction, you can let the contractors know that you do not like their work and they need to focus more on the quality part. Just not paying them their dues can drive you into serious problems. The contractor can place a lien on the construction property and can make the entire thing quite messy for you. It is better to counter them upfront and tell them you do not like their work rather than not paying them their dues.

Let us first understand what a lien on a property is all about. Having first lien on a property means that it completely belongs to you and in case if you want to sell it off and go back home with all the cash you are free to do so. Now if someone puts a lien on your property, it means that if you sell the place you can’t get away with the entire cash amount. You have to first clear the dues of the person/entity that has put the lien on your property and then whatever is left belongs to you. It eventually means that you do not have the absolute right on the property.

This is perhaps just the tip of the iceberg. You may be further entangled with more such complications that will act as a big distraction in your business. Your credit rating goes for a toss. You are also not able to refinance the property with any financial institution. This means that you can’t even keep this place as LAP (Loan Against Property). Moreover, when you are letting you the construction work to a contractor and if he sub-lets it to another contractor, you need to ensure that the contractor pays all the dues to the sub contractor or else that particular person will place a lien on your property. It simply means that whosoever person who has any interest in your property can place a lien on it if their dues are not paid.

In case you come across a contractor who does not carry a good record and you unfortunately give the work to him. In this case, you got to be absolutely sure that you keep records of your payments to him. Such people can create nuisance even after they have received all their dues. In case you are clean, you hire an attorney who will take such guys to task. But before you hire any contractor, it is important that you do a research on their conduct. You can check things like how long they are into this business and how their relations have been with other construction companies. You can check with people in your business circles and hire someone who will not unnecessarily put liens on the property to create problems for you.

 

When you are a part of the construction industry always have a role model

When life gets tougher you seek for an inspiration and in case you have a role model in life it becomes easy for you to come out of that difficult situation and face the challenge with open heart. When you are part of the construction industry, you will time and again come across situations that you will find to be quite challenging and there will be numerous occasions when you will feel like giving it up. In situations like these, it is important that you seek help of the person whom you believe to be your role model. A role model can be a person either living or dead and therefore you may not necessarily get to speak to him in time of distress. But you can certainly read up his works and get inspired to know what sort of challenges he has faced during his times which may be tougher than yours and perhaps then you will get some courage to deal with things.

Female works can be exceptional role models as they have to go through a lot than men do. They have a family to take care of and they can’t shrug off their responsibility by saying that they have too much of work in office. So women who have successfully managed to tackle both the fronts have turned out to be better role models and the world look at them with respect and honor.

If the role model is in your reach, it benefits you more than anything else can. Ideally, we have role models who are well established and it may not be easy to reach to them every time we need their help. However, if you idolize a person for his hard work and the person work right in your office then it becomes simple to approach him anytime when you feel like talking to him. For most people, their parents are their role models and if your father or mother is from this industry then you always have them for a short discussion. You can sit with them and talk about the issues you are experiencing and they will show you some way that might be the best for you. You will never find yourself short of good people around you. It is just you got to be equally good to everybody around you.

There are few people who adore men belonging to an industry different from the construction. You need not have your role model from the area of your business but can have from any profession and from any walk of life. Every person has a story that can inspire you and the guy from the construction industry frequently find the needs of such stories as they are often haunted by difficult times. It is these stories and the lives of such people that help them in rough times and show them the way to get over it.

 

Mid-sized heavy equipment are highly beneficial in the construction business

The heavy equipment industry includes machines such as the backhoe, crane, wheel loader, grader, forklift, bulldozer, tractor pulled scrapers and excavators. These are the workhorses of any construction industry and they make the job easy and quicker. Due to the increased competition these are offered as superior products to the users in construction industry. They are embedded with new technologies for increased safety, comfort, and reliability.

This equipment is available in various sizes as mini, midi and large. Depending on the nature and type of construction work, suitable size is chosen by the commercial user. Selection of right type and size of equipment affects the time and effort and productivity of the project. Hence, on site managers and construction workers must be familiar with features of each equipment.

Some of the factors that affect the selection of an equipment

  • Size of a job: the larger the job requires large equipment.
  • Job to be completed in less time: requires mini or midi sized equipment.
  • Space constraints: less space can allow only mini or medium sized equipment to operate
  • Speed of the machine: smaller the machine it can move faster.
  • Soil, weather and temperature conditions affect the operation of equipment.

 

Today a great amount of construction activity is confined to small places. For such construction activity medium sized equipment are used. Also they are many medium sized construction firms which prefer mid-sized heavy equipment. They are less expensive, quick to move in less space, have better fuel efficiency and not very high on maintenance costs. The operators can operate these machines with less difficulty as compared to the large sized machines. This enables to complete work quickly by meeting the deadlines. Thus medium sized equipment are highly beneficial.

 

Although this being the case one should choose appropriate size of heavy equipment depending on the nature of work.

Blowing your own trumpet is essential in construction business

In order to become a successful businessman, it is quite essential that people know about you and the business that you are into. Also it is important for others to know about the nature of your business. For instance, if you own a bar or a joint that provides nutritious food or anything that involves your dealings with the end user, it is important for you that others know you well and also that you have a good reputation in the market. So when people talk about you they talk mostly good. This is perhaps the most important ingredient that is required to sustain in the service industry. Construction business to a larger extent is connected to the end user and in order to grow the business in your area or in your city, it is quite instrumental that you blow your own trumpet so that people know about you and the kind of work that you are into. Your success in the business becomes your portfolio and so are the existing projects that you have under your belt.

When we talk about blowing your own trumpet we specifically mean that you market your business more aggressively than never before. Reach out to as many people as you can and talk to them about your success story. However, do not ever try to blow things out of proportion or you will get caught. You have to speak what is true. The only difference will be that you will be more vocal than before and mention about all the feathers on your cap to the person with whom you expect some business to come. If needed hire ace marketing guys who knows about the industry and let them do the talking business. You have to get the stuff ready for them so that they can do the talking and get business for you.

You can get guys who are simply exceptional when it comes to market things. They are basically freelancers who do not work on one particular company and can work for any company at a given point of time. All they need is some material and facts to speak on. So when you give them some solid facts and figures that your company has been able to achieve, it becomes simple for them to go and perform. Right from cold calling to fixing an appointment and then meeting the person and turning him into your client, they will get everything done for you. You probably have to go for final meetings as you are the face of the company and people will be ultimately dealing with you.

Social media is one more way to spread the word at a shorter time to a larger crowd. Many construction companies are using Facebook as a tool to promote their business. They also have accounts in other social media websites that are meant for professional use. Here they mention almost everything about their company, right from the inception to the values and the projects that they work on. Many have found them to be quite useful to promote their business and take it to the next level.

Hard work and dedication is all needed for the growth of construction business

We generally believe that construction business is a highly profitable one and people who are associated with it know the secret of making quick money. Well as a matter of fact, first and foremost there is nothing like easy money. It may be quick money but one can’t guarantee how long does the quick money last but there is definitely no easy money. People belonging to whatever industry have to work hard all day to earn money and they do not want to emphasize that as neither quick nor easy money. Same goes with the men in the construction domain. Right from the person who owns a construction company to the one who work in that company, all of them have to go through rigorous hardship day in and day out to achieve success and the money that comes attached with the success.

There are basically 2 most important attributes that is required to form or to transform a small construction company to a giant organization and these attributes are something that we have been doing all our lives without knowing the importance of it. The first one is hard work and the second is dedication. As you spend more time in the construction business, you keep on learning new things that were completely unknown to you or is probably unknown to many in this domain. However, you get to know those things only if you are dedicated towards your business. One who gets knowledge is the one who seeks it. Therefore, you have to keep your dedication intact irrespective of whatever challenges comes up in your life. Difficulties are part of our daily life and they come and go often. If they start bothering you, it will be tough for you to take things ahead in life.

Dedicated towards your work will also keep you focused towards what you want to achieve in life. It has been often witnessed that people after having started their construction business plan to wrap it down in few years time. This happens because they have entered the sector thinking that life here is a bed of roses where challenges are rare to come. They can make good, easy and quick money and will still rich forever. Things are not what these men contemplate it to be. It is indeed absolutely contrary to their imagination and they fall flat on their face when they see the industry is giving them several blows without anytime to recuperate.

Dedication and hard work goes hand in hand. In fact, it is dedication that gives rise to hard work. You will not work hard on things that you are not dedicated to do. You will find the work monotonous and after some time you may lose interest from it. Stories of ace construction companies should be read to know the pain they have gone through to reach the place they are in. That will motivate you to work harder and extend your limits of persistence.

Veterans should focus on new entrants and guide them throughout

In every industry the role of veterans in nurturing the business cannot be ruled out. They play a pivotal role in shaping up the future of the company and also the career of many individuals who learn from them. At the same time they also earn a special place in the company and if ever the company goes through a rough patch, it is the veterans in the company that secures their place in the company. They are probably the last one to be kicked out. The experienced ones however have to make this place for themselves by giving their time and paying attention on the new guys. It is the experienced lot who can train the new guns about the systems in place and the process of work along with the culture that is followed in the company. In a nutshell they have a big role to play irrespective of what industry they belong to.

Veterans have a stronger role to play when it comes to the construction sector. This sector being quite vast in nature, it takes years for a person to learn things and to master them. People commit lot of mistakes when they are new to work and with every mistake they take a step forward in learning something new. Veterans can make things a bit simple for them by providing them with proper guidance and showing them the correct way to get the assigned work done. Construction business is not only a vast one but also quite complex and the newcomers will for sure find it difficult to comprehend things in the beginning. They need someone who can walk them through the initial phases and be with them whenever they need their advice.

Try to become their mentor:-

The newbie who get into the construction sector look for people who can turn out to be their mentors. They may come across many people who will help them. The new guys will try to pick a mentor out of the many people whom they feel is able to guide them in the most appropriate manner. The work of a mentor is undoubtedly a difficult one as he will be bothered with all sorts of questions. It will be a real test of his patience and he needs to prove his credibility by being calm and answer their queries as and when it shows up. After spending anytime between 8-10 years in an industry one becomes a veteran but you need special qualities to become a mentor and not everybody can become one. It is only those who have sound knowledge about his work and can calmly impart it to their juniors and subordinates can ultimately possess the quality of becoming a mentor.

Be a problem solver:-

Day in and out the new guys will come across new things and that will indeed riddle them and compel them to ask questions. Now if they turn up to you, they come to you with believe that you have the potential to answer them. This is when you also need to do your best and try to solve the problem they are in. Try to be a problem solver. This will mean a lot to them.

Do not just jump into construction business without prior experience

Getting into a new business is never an easy task. It takes lots of guts and encouragement from others to take such a mammoth step. When you get into a business you will get to see how difficult it is to sustain in a competitive environment where everybody is running to make profits. Well there are few who are not only there in a business for money but they sincerely like that part of work which is why they got themselves into it so that they can pursue their dream work and can make good money from it. This means that they will love every part of their job and will never feel agonized by the pressure that they will probably feel coming from outside. People who are in a business solely for money will not be able to take it for long and there will be a time when they will feel saturated and will want to end it up there.

Other than love for what you do the next most important part is how experienced you are in what you are doing. Your experience will matter a lot when it comes to generating profit out of your business. If you see yourself to be a part of the construction business then having prior experience in this stream is of utter importance. You have to know about stuffs that are important for your business and that will help you to take correct business decisions. A person who has absolutely no experience in the construction sector will be completely dependent on advices coming from others. He will not have even the slightest of ideas if the advices are correct or not. He might take implement those ideas at face value and the repercussions could be drastic.

No doubt that one learns from his mistakes but simultaneously it is also important that they should gather some information on the subject that they would be starting their business. When you are in the construction business you are required to know a lot of things concerning to the business. For instance, you need to know how much to pay to whom. You have to know the industry standards and simultaneously should pay your employees. This is perhaps the most basic thing that one must know before he gets into any form of business.

It is advisable that you should first work in a construction company for few years and try to learn the tricks of the trade. You should have a fair deal of knowledge about how various department functions in tandem with each other. Other than that, heavy equipment play a crucial role in any construction jobsite. Learning few tricks of the machine will also help you a long way. People who get a construction business as legacy are also expected to learn the business first and then be a part of the tenured guys. First he needs to get some experience and learn the business well to make his place amongst the big names in the company.

Not getting enough business should not be the reason to wind your company

Every business has both ups and downs and so one must ensure that he takes all possible measure to try to keep his business afloat during the downs and try to save as much as he can during the ups. This is perhaps the most common phenomenon of probably every successful businessman all around the world. This phenomenon is not limited to just one particular industry but is accepted in any kind of business. We have witnessed the same instance in the construction industry many times.

People belonging to this industry often see it to be the ever blooming one and does not pay much attention to the fact that it can also have a downward trend which can appear anytime sooner. So they simply lack to take any precaution and happy making more expenses. But there also comes a time when you stop getting business. This could be due to several reasons. There has been a sudden increase in the price of raw materials or the policies of the government as such that it does not favor the construction segment. These could be few reasons why the business may take a dip and it becomes imperative for the business owner to take necessary steps in advance so that he can eventually save his business from completely winding up.

There are few tips that one should follow to keep his business floating and not think about winding it up.

Maintain a contingency fund:-

Maintaining a contingency fund is quite crucial when you are part of a business that is highly volatile. While you have set up the contingency fund, it is also imperative that you add some amount on a monthly basis and increase its corpus. At the same time, you should invest that amount is some debt funds where you averse from taking risks and are also content with the little returns that it is able to give you. What is important for you is to accumulate funds for the bad time keeping aside the intention to achieve good returns. So when you see the business is on its down, you can depend on the money that you have in the emergency kitty. Likewise you can also maintain a separate fund for business expansion which can be used for purposes related to the expansion of your business.

Cut down your operational costs:-

Cutting down your operational costs will help you big deal at times when the business is not doing to its potential. You have to give a clear instruction to the various levels of departments that they need to reduce the operational cost or they may have to face expulsion. Construction business being a volatile one does not stay put at one juncture for a long time and therefore there is every chance for it to bounce back real soon. If at all things get worse, then you might even take the decision to do away with assets that are no longer worthy to the company. These are few things that can be done to keep your business alive.

Challenges most small contractors experiences

Like many other industries, construction industry is one such sector where beginners have a tough time while they give a start to the business. They got to understand the tricks of the trade and then play the game keeping its rules into consideration. Apart from this, there are always big companies that are waiting to eat up the small budding ones. They do want much competition to their set business. However, it is not always that you experience a direct threat from the old players but many have bitter experiences as well. Small contractors who are primarily fresher and do not know how to run the business can face horrendous situations due to their inability to tackle them.

We will be talking about some generic challenges that most newcomers experience and what can be done to do away with those challenges and end up becoming a successful entrepreneur.

Knowing the business:-

It is very crucial that you know your business well before you get into it. This does not imply that you should know everything about it. This may not be virtually possible for someone to know everything about his business first and then get into it. We all learn while we do something but before we start doing something as important as getting into the construction business, we should know the pros and cons of the business. You can talk to industry specialists about it and take guidance from people whom you can trust. Try to generate contacts with people who have been for a while in this industry. You can expect some good advices coming from them which might help you to steer your way in this business.

Do not overspend on anything:-

You need not have a swanky office if you intend to become a contractor. A normal office will do. Clients check your work history to give you contracts and not the sort of office you have leased. Also, do not go on a buying spree for heavy equipment. They form an integral part of the business you are getting into but your selection should be on the basis of your requirement. You can also take machines on lease. So you do not have to necessarily buy heavy equipment to work. You can take them on rent and fulfill your purpose. Many budding contractors seem to do this mistake and repent later.

Do not fall for offers that are unethical:-

If you are new to this business, you will meet people who will give you offers that may not be ethical but definitely alluring. You might be in desperate need of work and may consider it to be a wonderful offer. But this can be a trap and might end your career as a contractor. By no means should you accept any offer that goes against the norms of the law of the land how enticing it may be. You got to patient to get business. Showing any form of desperation can go against you and can lead you into serious trouble.

Being customer centric will help you grow in the construction business

Customers are considered as king of the market. The makers of products produce goods on the basis of the wants and demands in the market and the wants and demands are of the customers. This means that they have to produce items that are in trend and are liked by people at that time. Though trend keeps on changing so once the trend changes the makers also have to switch to the next trend that making buzz in the market. They always have to be on their toes to meet the needs and demands of the customers. While they are meeting the needs of the customers they also need to pay good deal of attention to the fact that they provide them with exceptional quality or else customers always have a choice and they can move on to the next provider. You will only end up in losing business simply because you did not give much importance to the quality of the product.

In the construction domain, the voice of the customer plays a very crucial role in the growth of a company. They may have the best heavy equipment and may use top notch materials to build the buildings but at the end of the day they also need to check that whatever they are constructing, is it as per the wants of the customer and does it goes with the trend of the time.

Knowing the pulse of the customer is important:-

For the survival and steady growth of the construction company, it is very important that they first try to read the pulse of the customer. Check what they can do to make things better for them and accordingly build something that should not be less than exceptional. Customers should feel that they have got the worth of their money and you in turn build reputation from your good work. Getting new businesses in this domain becomes difficult when you do not have goodwill backing your company. If you are into building apartments for people to live, your reputation will speak about you and therefore people will book the apartments right from the period the building is getting constructed. You can achieve this reputation only if you can read the pulse of the customer properly.

Provide them with state of the art amenities:-

When you sell apartments that have state of the art amenities, it sells faster. You can market the apartments on the basis of the amenities that you will offer to the general public. Knowing on what you will offer, people will be interested to book their apartments in your building. This also acts as a brilliant marketing strategy that will drive many to go for apartments constructed by you. You can also charge them for the luxury but that should not be exponential. You should not be money oriented but should be more customer centric. You should quote the amount that gives you your profit. If you try to become greedy and quote higher amount, people will look for someone else.