Category Archives: Construction

Starting an utility company

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Though construction business is considered to be the most rewarding business but there are few businesses that are associated with it which are equally rewarding. One of them is the utility business. What we understand from the word utility business is a business that covers the work of installing sewer mains, pipelines, gas pipelines, communication lines and things thereon. If one is intending to start a business that involves installing the utilities, he/she will find it to be a rewarding business. It is definitely not as simple as it sound but it is definitely not an impossible task to start a utility company. Once you have started an utility company, you can expect businesses coming from all spheres. You can expect getting contracts from government as well as from private concerns. The job of a utility company also includes installing traffic signals, street lights, power lines and things of that sort. So this means that you got to have the right people for the job.

Hiring competent workforce:-

Once you have a utility company, you start dealing with many things and therefore you need to have people who are competent in doing many things. If at all, they are expert in one particular field then you got to search for guys who can take care of some different department. For example, if you have guys who are excellent workers when it comes to installing sewer mains or pipelines but they do not know much about communication lines or power lines. This means that you need to hire people who know about that stuff as well. Once you are in this business you tend to get all types of work and you can’t say “NO” to any of them. Therefore, having the right men by your side is of uttermost importance.

Hunt for clients:-

By no means should you feel that you have lot of clients from whom you can get enough work. You never know when you will be short of clients. Therefore, you better keep your hunt on for more clients. More clients definitely means more business and more business will only benefit your company. There are some good opportunities in installing gas pipelines as there are natural gas companies who are also in hunt for utility companies that have experience in laying gas pipelines. So that sounds to be a good deal. Similarly, there are more such business opportunities that you will get in you keep your hunt on.

Have good knowledge of the regulatory policies:-

In a utility company you would be dealing with crucial things that need sanctions from the concerned authorities. There are lots of policies in place which one needs to be aware of. So people who things that anybody can start a utility business needs to think all over again. You got to know most of the regulatory policies so that you do not go wrong when it comes with the law of the land. You can also hire an able attorney who will take care of the legalities but you should be ready to pay them a heavy price for their service.

Different departments should work in tandem

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The success of any business lies on how collectively different departments of the company are able to work. To work as a team is quite a crucial component for the success of any business and when it is about the construction industry, team work becomes all the more important. A big construction industry has a lot of things to take care of and all needs to be in sync with each other for smooth functioning of the business. If any of the department lags then it will have a hard impact on all the other departments and they will face a tough time to deal with the shortcomings of that one department. This is the reason why if at all a department lags behind or is not able to cope up due to some issues that needs to be addressed then and there so that it does not lead to any further complication.

Collective effort from Admin and payroll team is needed:-

The Admin and Payroll team of a construction company plays a big role in managing the office expenses as well as ensuring that all the employees are paid fairly and correctly at the end of every week or bi-weekly as they receive the amount. The payroll team has to be very stringent with records keeping and stuff so that they do not overpay or underpay anybody. Problems and confusions do happen in a big company and if any employee experiences such an issue then that should be cleared at the earliest. Also steps should be taken to ensure that such mistakes do not happen again. To avoid mistakes or confusions, these 2 departments have to work very closely with each other. It becomes the responsibility of the head of the departments to check that things are moving smoothly and if there has been problems check the steps taken by the team to resolve it.

Growth of construction business:-

Growth of construction business largely depends on effective communication between several departments and effective communication is possible when people from different departments know each other. For instance, the operators who are in-charge of heavy equipment should know people from the support team (heavy equipment mechanics) as they are dependent on a large scale on the support team. Simultaneously, the support team should also provide quick response to any issue that has come up in the site. Heavy equipment are bound to fall sick. The mechanics should provide their help by getting things right on the machine.

Loopholes if any should be weed out:-

Any type of loophole that a department experiences should be taken care of in the first level itself. It should not be allowed to creep any further. If there is a situation that can’t be controlled in the first level and needs involvement of guys from another level then that should be informed to them in advance. They should be aware of the situation so that they can take necessary steps and be prepared to deal with it. This kind of collaboration is required the most in a construction segment.

Collaborate with giant construction companies to get exposed to big projects

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Owner of every construction company dreams to grow and take his company to a point where it will not be a problem for him to get projects after giving proper introduction of his company. Just the name of the company should be enough for entities to give work to him. Well, if a person works hard he will definitely find his place but just working hard will not do the trick for him. He also needs to be smart enough to grab opportunities coming from all corners. He should be in a position to understand his capabilities and based on that take up as it comes on his way. As and when he becomes more experienced and develops his portfolio to an extent that he can now move to the next level. The next level is to get into collaboration with giant construction companies. There you will get the exposure to work in big construction projects and develop your company’s portfolio even further.

Big companies need small companies to work for them:-

You may have heard a giant construction company bagging a huge project and you may wonder how on earth they have so much of resources to work on such a massive construction project. Well, these guys play smart. They definitely do not have so much capital and other resources to manage such a magnificent work but they still manage to do it by collaborating with small construction companies. It would be prudent to say that they incorporate other small companies and contractors and use their resources to work on the project. These small companies are paid in phases. Once they complete a phase of work they are paid their dues and then a review is done on the quality of work. If the company finds it to be satisfactory then they continue with them or else they do away with them. At times, they also review the work during the mid of the project so that things do not go out of control and they can make some changes if the construction work looks shabby.

Keep an eye on the market and meet companies quite often:-

Small construction companies who dare to dream big should constantly keep an eye on the market and check the latest happenings in the construction world. They should be aware of any upcoming project and also keep the names of the company handy who all are vying for it. Once that is known the companies should be contacted and quotations should be given to them. Now the ball goes to their court. They will check your credentials and see if you fall fit for the job. Ensure that you meet the companies quite often so that you do not go off their minds.

Do not get disheartened if you are not given the opportunity in a mega project. You can eye for the next one for settle for something less for the time being. Take your time to develop your name in the construction sector and once companies start knowing you they will invariably give you work.

Market your work to big companies

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In the construction sector it is all about getting new projects one after the other. The moment you are done with one project you should ensure that you have another one in hand or else your labor will be idle. Although most of the labor force comes from the union but at times you hire the cream and make them a part of your company. So you can’t afford to be out of project at any given point in time. If you are a small construction company and have always taken up small projects, it is perhaps the time that you begin to try to get work from big companies.

Big construction companies usually require small companies and contractors to work on their project. They deploy very few of their labor force at work and give contracts to other small companies. It makes sense to take up work from them. This will give you the much needed exposure that you need to grow as a company.

Create a strong profile of your work:-

Before you approach to any of a giant construction company, you need to make sure that you have a strong profile of your company to put across. These big companies do not give contracts to any lay construction company. After all it is a matter of their reputation and they will not do anything to put it at stake and hence will acquire the best resource to complete the project. Now you have to prepare your profile in such a way that by having a glimpse of it they should appreciate it and should feel proud enough to have you as a part of their institution. You will ideally go to them with a Power-point presentation where you will mention the key projects that you have completed and your role towards the completion if you were not the sole player. Also talk about the types of heavy equipment you have at your disposal or can acquire them if you come across a bigger project.

Your experience should talk about you:-

If you are a company that is into the business for the last few years then you should talk about your experience and the different types of work your company has got into. If you specialize in a particular genre of work then that should be highlighted and spread it across the board that they will not find anyone doing the same work better than you. Design a website that looks professional and speaks volume about the construction world and also about the projects that you have been associated with. These big companies need you. All they want to make sure is that you are the right guy for them and this is exactly what you also need to pass it across to them.

The project undertaken by these giant companies last long which means that you are in business for that long. By the time you are associated with one such company, try to reach out to other companies by displaying your role in the current project. It will really help you to get new work.

 

Expert opinions matters a lot when it comes to safety of heavy equipment

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When you are dealing with an important thing that can make or break your business, you should depend on the advices of the experts. When it comes to heavy equipment, you got to be all the more cautious while dealing with it. Heavy equipment are highly expensive items and you need to be double sure before you do anything that you have not tried afore. It is always advisable that you take the opinions of an expert for everything that you are not sure of. The real problem is how we know a person is an expert in the field of heavy equipment. We can’t really determine that but there are few things that we can follow.

Take advice from experienced people:-

People who are dealing with heavy equipment for the last many years will be in a position to understand your issue and may give you a valuable suggestion. They may have seen several instances and have found a way to get pass through those issues. These experiences of theirs really counts and it will be prudent to put your queries to them. In case, if they do not know the answer, they will at least not misguide you by giving incorrect details. On the other hand, they will check about the particular scenario from someone else and then will get back to you. Alternatively, if you have a mentor in the construction industry or a person who is an expert mechanic can also come handy.

Post your question on the net:-

This is another option you can avail to get your answer on heavy equipment. Here you will get multiple suggestions and opinions of people belonging to this industry for years. All you have to do is put your question on your site (if you have one) and then wait for people to comment on it. You can also ask people to register on your site so that they can often come to your site and give their say on a new topic. In case you do not have your website, you can become a member on someone else’s website and post your question there. The effect will be the same. People who know about the subject will speak on it and shall also provide a link of a website for you to go through. This will save your time to browse the net and search for the topic of your interest. You directly can go to the site and get your queries answered.

Operators can be a big help:-

In case you are having an issue with your equipment and you do not know whom to reach for help, you can take help from the operator of your machine. Operators are the one who work all the time on your machine and therefore can offer you a piece of their mind. Simultaneously, one should also upgrade his knowledge on heavy equipment if they have to regularly deal with it. Nevertheless, an expert opinion always matter in keeping the heavy equipment hearty and healthy.

How profitable the construction industry is

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Many people are willing to be a part of the construction industry knowing how difficult it is to sustain in such a competitive environment. The reason that is flocking people to this industry is the chance of earning good income in comparatively lesser period of time. Today people are ready to take chances. They feel that in order to earn more you got to take some amount of risk in life and construction industry is all about risk and high income. However, a person should know his risk taking appetite or else he can land into a big mess which can even result him in winding up his business. There are numerous such instances where people have lost whatever they have earned by taking one miscalculated move which proved to be very costly to them. For some it resulted to selling their business assets and removing employees through means of cost cutting and for the rest it was more terrible. They had to shut down their business and were looking for something new.

For people who are ready to take the challenge and the various ups and downs of the business, they are in the game. You should know to strive and survive in this business. You will be hit by lot of forces that may compel you to back off but it is ultimately your character that will keep you going. There are also stories of individuals who had started from scratch and are now in the riches of the industry. They took the challenge after carefully scrutinizing if they will be able to take it on. They also took their chances but their chances were more calculated than others who failed miserably in this business. The one who were able to survive the tide made enormous wealth for themselves and also for their stakeholders.

Invest money for new projects:-

You can make millions if you hit the right note at the right time. For instance, buying repossessed heavy equipment at a comparatively lesser price, buying raw materials from guys who are new to the business and constructing a building on a land that has clear title are few of the facts that one should indulge in to earn more. By buying heavy equipment and raw materials at a lesser price you simply lessen the operating cost to the company and constructing apartments in a clear title will ensure smooth functioning without any legal hassles coming your way. Apparently, you will be able to invest your money that you earned through profits on newer projects. The thumb rule is never keep the money idle. It is advised to reinvest the business profits into expansion by keeping aside a sizable portion as contingency.

Try to maintain a profit percentage of 9% to 11%:-

Ideally for contractors who take contracts to build homes for buyers, they should assume a profit of around 9% to 11%. The profit percentage is excluding all other operating cost that goes into building a house. In other words, it is the net profit that one should expect to earn after paying all legal charges and fees. The contractor should have this figure into consideration while giving a quote to the buyer.

Highway construction with excavators

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Construction industry requires different types of heavy equipment for various types of works. They can’t limit their use to just one kind of machine for all the work. They have to bring in different heavy equipment that are capable of doing certain specialized work. For instance, you can’t make use of a loader for grading purpose. You have to use a grader for that work. Simultaneously, you can’t use any heavy equipment other than a water truck to spray water on the jobsite to contain the dust on the site. In the same way, when you are constructing a highway there are few heavy equipments that you need the most; without which you just can’t get the act right. You need a roller to crush the stuffs and make the road smooth and plain. Similarly, you also need an excavator at the beginning of the highway construction. Perhaps it all starts with an excavator which comes in handy for lot many activities.

A crawler excavator is perhaps the best heavy equipment that a contractor who engages in highway construction can have. A crawler excavator is quite similar to any other excavator which is exclusively used for excavating earth and rock and then loading them onto dump trucks. It basically has a boom which is attached to the front of the machine. At the end of the book, you will have a bucket with or without claws which is extensively used to pull out mud. The cabin in which the operator sits and operates the machine is just right above the undercarriage and is set on a rotating platform. The undercarriage of the machine has wheels or tracks which help the machine to move without losing grip. The attachment in a crawler excavator can be changed as per the requirement of the business. This means that you can now select from a range of options of attachments that you feel will get the work completed in lesser time.

The operator working on the excavator should be highly skilled and experienced as you can’t have someone who has little or no experience in highway construction. Operators who have worked for at least 5 years in constructing small roads can be signed up for highway construction. They should be under the supervision of senior operators who have loads of experience in constructing highways. Constructing highways is a tough job and it takes years for operators to clear the ground for the next level.

A contractor who has taken up the job of excavating should have more than 3 excavators working at a time on the site. They should set up a point till where the excavation work will be carried out and also a deadline should be given to the operators to make sure that the work is done within the given timeframe. Excavating work should be done in a phased manner and not dig up the entire place at one go. Once the excavating work is done, it should pave way for other machines to complete their part of job.

Periodical trainings may help employees to perform better

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It is perhaps not heavy equipment but the human resource that plays a pivotal role in the making of any successful business. The employees of a company can shoot their productivity to a new level if they are happy and content with the treatment that they get by the company and also by their bosses. The role of the management will be to ensure that the employees are well trained and can complete their work with utter accuracy. In an industry like construction, the role of the workers is very crucial. Right from the laborer to the civil engineer, they all require adequate training to understand what they are doing and how crucial their role is in the company. This also gives them a sense of importance and they take up their responsibility quite seriously. Even the guys who sit at the top require training on how to handle the labor force. The guys in the management have a bigger role to play in the overall performance of the company.

Construction laborers once they go skilled get ample of opportunity in almost any construction company. It therefore becomes the responsibility of the management to ensure that the guys do not leave the company for trivial reasons. Now to lower the attrition is a challenge that many top level managers find difficult to counter. In a construction business, it is not just the labor but there are many other people who hold such important departments that make the job of the top level managers tougher to hold them back. This is where their training comes into picture. These guys should be trained on a periodical basis on how to handle the vast labor force and ensure that they do not leave the company and stay productive. Keeping everybody happy is a difficult task and also requires lot of skill. The top level managers should be trained to acquire those skills and keep the guys happy.

Training the staff is another crucial segment that should not be skipped at any cost. The people from the Admin, HR and other such crucial departments should first understand the importance that the department holds and the positive impact that they can have on the people belonging to other departments. They should then be trained on how effectively they can make the working atmosphere in the company livelier. Organizing a small function or a health camp right on the jobsite can have a huge impact on the workers. The guys should be trained to come up with innovative ideas and put them to effect.

Lastly the laborers should be trained regularly on issues like health and safety. These are probably the most neglected areas that should be addressed. The trainings should be scheduled once every fortnight or once in a month and the attendance of all the employees should be mandatory. The employees will learn many things in this process that will help them to grow as a person and also in their career.

Your construction website should be catchy

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In order to have your presence felt in the construction sector, you need to have a website. Without a website, your company does not truly exist. Well it does exist on papers though but for people to know you, they can only do it with the help of internet. You can’t expect them to go to government office to know more about your company’s existence but have to create a portal where people can find everything they want to know about your company. Now the most important question is why they will see you when they have plenty of other options available. How are you different from others that you will manage to catch others attention towards you. For that you got to play a bit smart. In order to reach out to the mass, you need to have a catchy website. Now catchy does not mean that you go casual in your approach while you design the website but it means that you try to make it as attractive as you can. Bring in innovative ideas that were not used by others but make a lot of sense if it forms a part of your website.

Post pictures of your work:-

Put as many pictures of your work as you can on your website which will allow people to know the business you are in. However, while you pose pictures on your website, you got to be clear with one thing and that is you make your website look like a construction website and not something that gives a different meaning to it. The pictures that you put on your website should speak aloud about your work and your achievements. Also it should speak about the benefits of people who invest their money in your work. For instance, you are developer who constructs buildings and sells apartments. What will make your website attractive is how you market your products and what benefits you have for the end users. This makes a lot of difference and works as the attraction part in your website.

Easily noticeable on the search engine:-

Ideally there are two ways by which you can be easily noticeable on the search engine page. The first one is you got to be exponentially famous to come up on the first page of the search engine and the second is the content, phrases or keywords that you put on your website should be quite common one so that when people enter those words, it also throws your website on the search page. In case, you do not fit in the first option, the second one should be for you and you got to work things out to fall in the second bracket. You have to put those keywords and phrases that pulls the attention of the search engines and it throws your website to the viewer. Rest your website should be catchy enough to take it from there. The viewer should find it interesting enough to not to leave it after having a single glance.

Tips to retain construction workers

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Like many other industries, the construction industry too faces a lot of trouble regarding retaining their employees, especially the workers. There is always a demand and scarcity of construction workers, especially the skilled ones. The problem of construction worker shortage is something that the owners always try to cope with.

Why is there a worker shortage?

Construction worker shortage is a persistent problem in the construction industry and there are many reasons, why this takes place. These include –

  • Lack of advancement and growth
  • The fear that this is a dangerous job
  • Being displeased with the job or the company and employers.

Some of these causes are general that any other industry would encounter and some of these are specific to this industry. Whatever the cause or type of cause may be, the employers need to take specific measures to retain the construction workers to the company.

Things to do to retain construction workers:

In order to retain the construction workers to do the construction work, the employers need to –

  • Offer Job Training:

 

The workers must always be offered job training. Job training is important for any worker in any field as it offers the employees and workers the peace of mind and confidence about their capability. This also gives them the chance of growth in the years to come. Without training, they will lack confidence.

Besides, the training – both practical and software related training, helps the workers to feel safe in the construction working environment. Otherwise, they feel vulnerable to work in this industry.

  • Offer Effective Communication:

 

In most cases, the construction workers have to work in the field. Hence, they often feel that their needs and demands are not being heard of. Hence, the employers need to make sure that the workers get to communicate with them. The managers and team leaders should be open to listening to their needs and demands.

Using monthly newsletters to communicate with the employees and welcoming representatives of the workers to be a part of the project meetings will help the employers to feel that they too are a part of the company and understand the projects well. There are various tools and devices that help in the communication and as an employer; you need to offer these things.

  • Pay Them Well:

 

There is no alternative to this tip. Regardless of the industry the workers are working in, good pay is the single basic thing that will help you to retain your workers and employees. Along with the monthly salary, you need to benefit the employees with bonus. This will keep them happy and satisfied and they will not think of leaving your company. In fact, pay time and attention to the other financial benefits like insurance.

If you keep these things in mind, you will not face trouble in retaining your workers. All that you should be careful about is that the recruitment of the employees is proper and you choose only the best, trained and qualified employees. This will help in the outcome of the construction job.