Starting a construction company in another country

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Starting a business in your home country may not be a bigger problem as compared to doing it in an alien country. You know the rules and regulations that is required to follow if you want to start a business in your country but the rules changes when you move out of your country to some foreign location and think about starting your business there. Though it may sound difficult but there are many companies who have managed to successfully set their base in a foreign land and are doing really well out there. Starting a construction company may sound to be a difficult job but as a matter of fact many countries want foreign enterprises to come to their nation and be a part of their success journey. In return you can get to use their resources and also make good money out of the deal.

Before you think of setting up your venture in some foreign land, there are few things that you should know and implement it in your strategy.

Importance given to the construction domain:-

It is important to know the government’s determination and thoughts about the construction industry as a whole. Governments in some countries may focus on agriculture more than anything else. So it will be futile to set up a construction business out there. So try to know the government’s agenda for the nation before you try to set up anything out there. Some countries are rich in minerals so setting up a mining company makes lot of sense. For that you need to have a bit of experience in the mining industry or you know someone on whom you can vouch and can make inroads in that country. Many African countries are rich in minerals and they can prove to be a great destination for mining companies. They can see a lot of potential out there. As far as construction is concerned, there are many Gulf nations where you can set your business and can expect you go a long way.

Employment opportunities to their people:-

Getting permission may not be difficult if you can manage to convince the government that by allowing you to establish the construction business on their land, it will create lot of job opportunities to its people. It will also lead to the usher of other sectors. For instance, you can construct a pharmaceutical company or a commercial complex which will further employ more people. It is a kind of win-win situation for both of you. The government will for sure take this point and you will get the sanction to start up your company out there. You should also consider the taxation laws of the country and check if you can get any sort of concessions on it.

Legal advice is important:-

Every country has its own legal hassles when it comes to setting up a business. So you need to hunt down a competent attorney who can guide you through the different laws and advice you on how to avoid hiccups that may come your way.

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Second hand machinery

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Buying heavy equipment has always been a challenge for guys who are new to the construction industry. They may have big dreams but when it comes to procuring the basic they start feeling the pinch. Due to their sheer inexperience, they tend to take some incorrect steps that make matter worse for them and eventually things get out of their control. One of the most common decisions taken by newbie’s that falls flat on their face is buying new heavy equipment that can be used on the jobsite. They understand that it is too expensive and will severely hurt the budget of the company. But they somehow see no other option and go for the purchase. Well, they are certainly not out of option when they think they are. One of the most convenient options available with them is opting to buy second hand or used machineries. Such machines are pretty inexpensive and work great on jobsites. They will not find themselves in loss if they go for this sort of purchase.

How does one go about a second hand purchase? Firstly it is important to identify the heavy equipment that is being sold by a seller. Well for this, one can make use of online websites that are into buying and selling of heavy equipment on the internet. All you got to do is register yourself on one such website and browse through the site. You can specifically check the seller’s profile and the kind of machines he is selling. Concurrently, you can also put few of them at keep it in your cart. This means that you can review that item later and continue your search for more such machines.

These websites can provide you with ample of options and machines listed by several sellers at different prices. However, before you go ahead with the purchase there are few things that you might want to follow. Please read the description mentioned on the listing very carefully. It states all about the machine and these are things that you will find important for taking a decision. If you are new to heavy equipment, it is advisable that you get help from some experienced guy and then move forward.

After having gone through the description carefully, if you feel that this is the one you were looking for, try to generate contact with the seller. Since this is a second hand machine there may be few things that you may want to know. Things like fuel efficiency, productivity, reliability and stuffs make a huge impact on your business and you should make sure that the machine is providing you with all these features.

It is prudent to go and personally check the item once. You can do this if the seller belongs to the same state or else you have to judge by what the seller says and take a discreet call. Nowadays, most of the seller who lists their machines on online platforms ensures that they repair the machine or replace any faulty parts with new ones. This is why online selling sites have become a huge success.

Backhoe loaders used to remove snow from roads

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Probably after few months from now that it will start snowing in many parts of the United States and it will be a gruesome task for different construction companies to clear the snow from the roads. This has apparently become a big problem that people are facing every year. They are not able to move out of their homes due to heavy snowfall and it covers the entire road so it becomes almost impossible for the cars to move easily. The only option left is to get the snow removed and clear the roads so that people can get going.

The work to remove the snow is often given to private contractors who with the help of heavy equipment try to complete the work. But it is never an easy job to clear off the roads from snow. Operators working on the heavy equipment find it extremely difficult to balance the machine on the slippery icy road. Controlling the movement of the machine in itself becomes a horrendous task and only the experienced operators are being put to work. It has been witnessed that these experienced operators trust no other machine but a backhoe loader.

Backhoe loaders stand on tires that have high grip and can stand firm in slippery paths. It has also been named as the snow fighting machine due to its capability to clear snow in comparatively lesser time than other forms of heavy equipment. All you got to do is simply detach the loader that is installed in the machine and attach a snowplow in its place which does the trick for the operator. The buckets that are originally installed with the loader are for some reason not the right choice when it comes to clearing snow. For other things like clearing dirt, that may be the best option but it does not go well with snow. This is the reason people have felt the need to attach a snowplow in its place.

As stated that this work is supposed to be done by experienced operators who have worked many times in the past clearing snow, they know when to use which attachment. So if you see snow covering the road outside your house, it is better that you call up the authorities who can get the work done for you rather than jumping with your loader if you have one. Backhoe loaders can also dump the snow into a high sided truck with ease. It can also drill deep into the hard snow, breaking it into pieces first and only when it has developed cracks, hammer it with snow plow so that it breaks further and can be pulled out right from the bottom. You may probably not need any other heavy equipment for this purpose if you have an advanced backhoe loader and perhaps a truck on which you will load the snow.

Clearing snow with difficulty was an issue of the past which no longer exists as long as you are putting a backhoe loader to use.

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What are the key market trends impacting the growth of the construction industry

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The prosperity and decline of any industry is directly co-related to the market trends. It has a direct impact on how the industry as a whole is performing. The industry may do exceptionally well if the market trends that positively impact the growth of the industry are on an upward trend. However, the same industry with the fall in the market trends can perform disastrously. Therefore it is quite important to understand the ever changing circumstances of the industry and try to foresee them well in advance so that necessary steps can be taken to make the most during good times and save the business from crippling during the bad times. The growth of the construction industry is also completely dependent on the various market trends that in fact govern the industry. Construction houses take most of their decisions keeping in view these trends and act swiftly if they feel that the trend is now in their favor.

The fall in the oil price:-

The oil price plays an important role in the growth of the construction industry. If there is a fall in the oil price, it affects the industry both positively as well as negatively. The positive part is that the companies can now manage to save good chunk of money not buying oil at higher prices to operate heavy equipment. They can utilize the money to meet other operational costs. However, the negative part is that they are experience a sudden rise in the price of heavy equipment. So if a construction company wants to buy some construction machines, they may have to shell out more money for that purpose. The heavy equipment manufacturing companies increase the price of their product so that they can sustain in a market where the oil price is relatively lower.

Fall in interest rates:-

The rise and fall of the interest rates also has a greater impact on the growth of the construction industry. When the interest rate takes a dip, people flock in to banks to avail home loans. This means that the market for apartments and individuals houses is on the rise. The construction companies who build condominium and houses for people to stay see this as a great business opportunity and increase the pace of their work. If they can manage to construct the apartments till the time the interest rates are down they can mint good money out of it.

Government policies:-

The policies of the government also play a crucial role in determining the market trend and which way the industry will move for the next few years. For instance, the government of the state is keen on developing the construction sector then it is evident that all the sectors pertaining to the construction sector will do well. The hurdles that one usually experience like getting proper licenses are all dealt smoothly. Positive government policy will define the overall trend of the market and the industry will blossom if things fall right in place.

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Administrative and finance are two crucial departments of a construction company

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Every company has few very crucial departments without which the functioning of the company is unthinkable. Like ways, the two most important departments of a construction company can unarguably be the administrative and the finance department. It is perhaps after the consultation from the head of these 2 departments that the company can take any major decisions. If either of these departments does not give their nod, there are high chances of non-happening of an activity. If heavy equipment and construction laborers are two vital parts of a construction company on the field then the admin and the finance departments are another two vital departments off the field.

A person who wants to establish his own construction company needs to understand the workings of these two departments thoroughly and once he/she is confident that he/she can take vital decisions after understanding the functioning of both the departments, he/she should go ahead. Rest of the important parts like knowing about heavy equipment, what machine is needed for which purpose can be advised by other professionals but there is no expert per say when it comes to the finance and the admin departments. No one can guide you accurately when it comes to the finance section as they do not know your business plan and the capital you have for investment.

If only someone knows about your business plans, they will be in a position to guide you. This work is ideally done by the Head of Department of the finance section since he/she knows about most of the projects the company is working on. However, if you are the owner of small sized or medium sized construction company then you probably not be able to afford an expert and qualified person who would be heading the finance department. It is perhaps you who have to take the lead and take all the important decisions. You will definitely be having few men working under you but they can only help you with data, the rest will be your call. Therefore it is necessary to understand how both these departments work so that you have a fair idea as to where the company is heading.

The work of the admin team is primarily restricted to taking care of the employees by providing them with all the necessary means that will enable them to work in a safe environment. In case, if the employee has any problem, the first point of contact he will approach is the admin team who in turn will check how to get that resolved.

If there is any monetary involvement in sorting out the problem then they might then get in touch with the finance team and check what can be done. If it pertains to any other issue that doesn’t seek the requirement of the finance team, then the process may become a lot simpler. However, it has been witnessed in most of the cases the admin team has to work in sync with the finance team and vice-versa making them the 2 most important pillar of the construction company.

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Heavy equipment should be checked well before taking it on rent

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We normally have the tendency to check the in and out of the stuff before buying it. We do this to ensure that we buy a worthy stuff and not a waste. Now when we are buying something for our business we need to be double sure that it is of good quality and will last for years. But do we have to check the quality of a product that we will be taking on rent. There should be no question that whatever we take related to our business should be of ultimate quality irrespective of us buying it or taking it on rent.

In the construction industry, companies often take heavy equipment on rent. Taking machines on rent is not a practice that is followed by the small construction companies or small time contractors but even big companies on many occasions have rented different types of equipment. They do it for a very simple reason. Construction companies deal with different types of projects for which they require different types of heavy equipment and it does not make any sense to any matured construction company to spend their money in buying heavy equipment when they have the option to get them on rent.

One of the fundamentals that one should follow before taking construction machines on rent is to check the machine well. If only the machine is in good standing that the company should be going ahead with the deal.

Locate the heavy equipment:-

Primarily you have to locate the heavy equipment that you need for your business. You can check with people in your business circle if they know anybody who is renting heavy construction machines. You can also try to get a review of the person so that you know the quality of machines he gives on rent. You can then call up the person and check if he/she has the machine that you need and if he/she has what you have been looking for then ask him to give you a time to inspect the machine. Do not give any commitment before you have seen or examined the machinery.

Check the working condition of the machine:-

The heavy equipment the person is showing you may look good from outside but you do not know its worth as long as you have not worked on it. Therefore, if you are a person who know to work on heavy machines should take a trial and check if it is working smoothly. Just in case, you do not have the technical know-how of heavy equipment it is advisable that you go along with a mechanic and an operator who will examine the machine and will give you precise suggestions. You should also check with the owner of the machine if they have recently changed any of its parts and has there been any issue with the machine that has been fixed by any mechanic. It should not happen that after you have taken it on rent and some problems resurface and you got to face the music.

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Do not lose out any opportunity to get more business

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Generally, entrepreneurs launch their business after identifying the opportunities which are feasible, commercially viable and environmentally sustainable. Most of the entrepreneurs begin their business with a small customer base and become successful. Although small in initial stages, it helps to build a loyal relationship with the customers. This also gives confidence to the businessman that the products are satisfactorily serving their purpose. The success gained at local markets enables the idea of further expansion of business to a serve a large population and to yield more profits. However, it requires the ability to identify the right opportunity and using marketing tactics, creativity along with good networking to increase the customer base. New business-building practices with a clear cut plan are a need for further industry expansion.

Following are some of the ways in which the locally established business can expand their growth to the global markets:

  1. Building trust: Businessmen should avoid narrow focus and use more tactics to obtain potential new customers. Trust building is one of the major ways to achieve the same.
  2. Increasing the network: After having established trust one should leverage it. Entrepreneurs should be in contact with existing network of businessmen and determine who can be most suitable for their product. The customers themselves can be referrals.
  3. Construction of a relationship map: This map of identified relationships will guide in the direction whom to approach for further expansions. Example: recognizing and having a suitable partner with good contacts with clients will help to increase business.
  4. Speaking at events or hosting a workshop at a business level: Whenever a businessman gets an opportunity to deliver a speech or host a workshop it helps to demonstrate a product in front of a wider population, and helps to increase the number of customers. This effort explains the value the product or service provides so that the customer understands it usefulness. However, speeches should be short and concise.
  5. Advertising: Speeches, blogs, newsletter, an instagram post, will engage the customers in understanding the product.
  6. Offer free trail of samples of the product: Free samples of products are good way to get new customers, to obtain their reviews and testimonials. This method gives more feedback on new products and allows improvements to be made. This practice instils the value of the product and how it is better that any other product.
  7. Conducting a case study: The case study” or providing a detailed account of the benefits of your service can be a great way to get new clients. It helps to built new business, since it assumes that the service works and that the customers are happy. It increases the brand exposure, builds trust and credibility within your field.

 

Overall, it is necessary to overcome thinking in old fashioned way and generate new ideas to grow exponentially in market. There is need to stretch and increase capabilities with current

Know the different types of construction tape for jobsites before buying

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In a construction site, a number of tools and equipment are required. They not only aid in the construction process, but are also important in making the construction perfect. Though the heavy equipment or construction vehicles such as the heavy trucks, haulers and bulldozers are considered the most important ones, the smaller tools like construction tapes are equally important. When you use the construction tape for jobsites, they help in the construction process, making sure that the task is done easily and more effectively.

There are a number of benefits that you can enjoy with these tapes. These include –

  • Fixing minor mistakes
  • Protecting the damaged areas of a jobsite by covering them with these tapes
  • Controlling dust deposition on plastic sheets.

However, before you proceed on to buy these tapes for your construction site; it is a must that you know about the different options.

  1.  Painter’s masking tape:

 

Painting constructors are most widely seen to be using these tapes. The temporary dust barriers that are used in making sure that the painting surface remains dust free can be held up by using these tapes. Many a times, there are individuals, who do not take the help of professional painters while painting their house. In those DIY projects and cases, the painter’s tapes are used. They are very good in making sure that no paint residue is left on the surface. In fact, the best quality tapes can ensure that the paint does not come off, when the tape is applied on the painted surface or wall.

2.  Duct tape:

 

These are the most commonly used construction tapes. They vary in quality and thickness and also the adhesive levels also vary. Therefore, whether the tape will hold on for a long period or not; rather its durability largely depends on the quality.

3.  Stucco tape:

 

Amongst the many construction tape for jobsites, the stucco tapes of the red polyethylene tapes are very important ones. These are used during stucco application and they help in holding the plastic around the window up. With the help of these tapes, there is no need for post-stucco application cleaning of the windows.

4.  Caution tape:

 

The caution tapes do not have any adhesives. However, they are very useful in meeting with the RRP compliance laws. These tapes are used to indicate lead hazards in those construction sites, where asbestos and lead, are present.

5.  UV-Resistant Threshold Tape:

 

During construction, many a times, there can be surfaces that are exposed to the direct sunlight for a long period. In that case, the surfaces can flake down due to the exposure to UV rays of the sun. Hence, the UV resistant threshold tapes are used to protect them.

Now that you have known about the different kinds of construction tape for jobsites, it will be easier for you to know about the right type of tape that is suitable for a construction purpose. In fact, a construction company must have all these different kinds of construction tapes in their possession, so that there is no trouble encountered during the construction.

Renting your heavy equipment can fetch you good money

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Big construction companies are always in search of state of the art technology machines and the ones that are redundant; they have to take the call to either sell it off or to give it to somebody on rent. Selling could be a good option but at times it becomes real tough to get buyers. Not everybody has enough money to spend in buying used heavy equipment and that too when they know that their project is only for a limited period of time and thereafter they may not need the equipment for the next many months. The big companies can’t sell their used machines to another big construction house. They have to look for small companies or contractors who ideally take machines on rent and once the work is over they give it back to the owner.

This ideally leads to two things. Since the owner do not require the machine and also does not want to keep it idle can make full utility of it and in turn can also earn some descent money and the taker in other hand also fulfills his requirement. Therefore it serves the dual purpose and makes life simpler for both the parties. However, there are few things that is needed to be taken care before you put the machine on rent.

Check if the machine is in good order:-

Since the machine was lying idle for days, there are high changes that the machine is not functioning as it should have been and therefore it becomes your priority to check if it is in good working condition. In case you see the equipment has become non-functional, take help of an expert mechanic to fix the machine. Try to replace all the faulty parts with new stuffs and ensure that you give the equipment in the same condition you would like to take had you been the taker. It is also important to paint the machine or remove any dents to give it a new look. Add some stickers on the dent to cover it.

Making an agreement is a must:-

When you are renting your equipment, it becomes very crucial to make an agreement putting every possible clause that keeps you on the safe side and also ensure that your equipment will be in order. You should state in the agreement that if anything goes wrong with the machine then you have full authority to charge penalty. An agreement will protect your rights and also the right of the taker. Hire an attorney who has experience in making such agreements. They may know what all clauses should be there in the agreement and will prepare the draft keeping in mind the interest of both the parties into consideration.

Make a quarterly visit to check your equipment:-

You must clearly state that you would like to make a quarterly visit to check your equipment The person who will be taking your equipment on rent will realize that you give lot of importance to your machine and this will compel him to take good care of your machine.

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Challenges are part of the construction industry. Learn to tackle them

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When you think of starting a business you should also be prepared to take on new challenges that will come along with it. Challenges are part of anything that you do for the first time. Even driving a car is a challenge for you when you are learning it. You got to learn about the gears and brakes and also need to have good control over all its functions. This can be a real challenge for you if you are first timer but once you are in practice it becomes a cake walk. Similarly starting a new business can throw a lot of challenges but it is up to you how to take them. If you take them positively and see them as a learning curve, you will learn a lot from it and will also incorporate it in your business but if you feel irritated or scared then it will take you down and there may be a time when you have to complete wind up your business.

Construction industry is in many terms a highly rewarding industry but at the same time it will equally make your life difficult. Life becomes more difficult during the beginning. You have to foresee many things that you have never tried before and also have to take your chances. You got to be a bit brave in your effort and while you are dealing with different situations. First and foremost you will have difficulties in understanding the construction business as a whole. You have to learn how the business works and that will take good deal of time.

It is important that you do not run out of patience because if you do then you have lost it forever. You got to remain as calm as you can and analyze how things turn out. You may find people who are close to you leaving you for better opportunities and you can’t do anything to hold them. Though you need them more than they do, you are unable to retain them by offering more money. This is one of the challenges that you have to encounter and got to successfully win. Attrition has been a big problem for many construction companies. So you are not the only one who will experience this. You should be ready for it and keep a back-up ready.

Marketing your company can be another challenge that you need to tackle especially when you are new to the business. Since people do not know you, you will find hard to get work. So be ready to see no work for few days and do not get frustrated. That will lead you nowhere. Form a marketing strategy where you deploy a team who will be actively marketing your company and the business activities you can perform. Take suggestions from the marketing team and provide them with all the necessary help they require. Start it from taking up small work and once you see money rolling in you can eye for bigger projects.