Factors to Evaluate Before Forming a Construction Company

Preparing for a successful construction company is a complex process. Whether you are stepping into the construction industry or want to be the next big general contractor in your region, you will have to follow some steps to avoid mostly glitches on the way.

As a new construction owner, you will have the training, licenses to apply for, buying equipment, insurance coverage, and much more. But once you prepare a solid business plan and comprehend your strategic direction, the path will be more transparent. If you need help with your construction plan, you should contact a construction attorney in Olympia, WA. 

Factors to evaluate before forming a construction company

• Permits and licenses

Before seeking any construction jobs, make sure to obtain the necessary licenses and permits. Remember that license and permit requirements vary from one jurisdiction to the next. In Olympia, every contractor must be licensed by the Department of Licensing. Failure to be authorized and bonded makes all contracts unenforceable, which means it is lawful not paying an unlicensed contractor for their work. Your attorney will help you determine the credentials required to start your company. 

• Insurance coverage

It does not matter how careful you are; accidents can happen at any time in the workplace. It is common in physical sectors like construction. Before launching any assignment, secure every necessary insurance for your business and project. Two primary essential insurance coverages are worker’s compensation and liability insurance. In Olympia, liability insurance is a must for contractor licensing. 

• Contracts

Oral contracts are enforceable and lawful; some notices must be provided in writing under the Washington contractor licensing law. “Notice to the customer” is one of them. Failure to provide “Notice to the customer” when required can violate contractor licensing law, violating the Consumer Protection Act, and a misdemeanor, exposing contractors to substantial losses from incomplete paperwork. Having a written contract can avoid such problems. Written agreements also have other benefits, including resolving and avoiding foreseeable issues. 

• Legal, trade, and regulatory requirements

Every construction company is regulated, and it is essential to know the laws, OSHA (Occupational Safety and Health Administration), and insurance requirement regulations that you must concede with. 

• Health and safety requirements

Every construction company must have the highest level of health and safety standards. Before undertaking operations, ensure your venture observes every safety rule related to your business and location. Conduct thorough research and understand what health and safety laws are available and how to apply them in your construction business.