Tag Archive | "construction industry"

Hiring Or Buying Machines: Which Is Best For Construction Companies?


High overheads are one of the biggest challenges that construction companies, especially new ones, face. The cost of materials and equipment is exceptionally high and a lot of construction companies run into cash flow problems because they can’t manage those overheads. Staying on top of your costs is one of the most important things when you’re trying to build a successful construction company and the major issue that you have to deal with is your machinery. If you are going to start taking on bigger contracts, you’ll need a lot of heavy machinery like excavators and bulldozers and they’re not cheap. The biggest decision that you have to make is whether you’re going to buy that machinery outright or hire it out for each job. There are benefits and drawbacks either way so you have to consider your own situation and decide which option is best for your business. These are some of the pros and cons of hiring building equipment. 

Initial Costs 

Hiring equipment can be more cost effective in some situations but it can also be more expensive in others, depending on how much you use the machine. For example, you don’t often use a bulldozer, especially if you’re doing more residential work, so dozer hire is usually your best option. But there are certain things like excavators that you’ll use a lot more often. In that case, it might not be as cost effective to keep hiring them and as long as you can afford the initial investment, buying may save you money in the long run. 

Maintenance 

Maintaining machines can be incredibly expensive and that’s something that you need to factor into your decision. If you’re hiring machines, you don’t need to worry about maintenance because all of that will be handled and paid for by the plant hire company. But if you buy the machines, you’ll have to deal with all of that yourself. You can reduce maintenance costs by looking after machines properly and performing routine maintenance like changing the oil and lubricating parts. 

Storage 

Another big problem with purchasing machines is that you’ll need somewhere to store them and that can be expensive. If you’re taking on larger contracts and you’re running multiple jobs at once, it’s likely that you’ll need a yard of some kind to store materials. However, you’ll need a much larger plot if you’re also storing all of your own machines there as well, and that’s another big cost that you have to bear. What you need to consider is whether the cost of hiring that land is outweighed by the savings that you make by owning your own machines or not. 

Insurance 

Building equipment is a common target for thieves because it’s worth a lot of money. Storing it securely is important but there is always the risk of theft, which is why you need proper insurance. If you hire machinery, you don’t need to deal with that but if you’re buying your own machinery, you need to factor that extra cost in as well. 

It all depends on your business and your specific needs but often, hiring equipment is best if you want to manage your costs effectively. 

Posted in Business & FinanceComments (1)

3 Things You Need To Build A Successful Construction Company


The construction industry is an incredibly lucrative and fairly safe industry to get into. Even in tough economic times, there are usually opportunities for construction companies and if you can expand enough to start landing those big contracts, you stand to make a lot of money. But starting a successful construction company is easier said than done, especially when there is so much competition out there. It’s going to cost a lot of money to start your own construction company so if you get it wrong and the business ends up failing, you could land yourself in some serious financial trouble. To stop that from happening, here are some of the main things you need to consider when you’re starting your own construction company.

Safety

Health and safety is a concern in any business and it’s up to you as the boss to make sure that you’re creating a safe work environment. That’s not too difficult in an office setting, for example. But on a construction site, it’s a lot harder. You’ve got all sorts of dangerous equipment lifting incredibly heavy loads. There is a lot of hazardous chemicals to deal with as well so there is a huge list of health and safety regulations you’ve got to stick to. When you’re first starting out, it’s best to get some help in this area. There are some great companies like Ranger that offer good safety equipment and they’ll also be able to carry out inspections to make sure that everything is in good working order and you’re not breaking any health and safety rules. If somebody gets injured and it’s a result of poor safety on your part, you’re going to be in a lot of trouble.

Sustainable Materials

There is a huge focus on sustainability as people are more concerned about their impact on the planet. That’s why sustainability is important in all businesses, but particularly construction. A lot of public projects also have very strict guidelines about their impact on the local environment. You need to focus on using sustainable materials and building methods in all of your work. If you don’t, you’re going to get overlooked in favour of other companies that have a stronger focus on sustainability.

Core Customers

The best way to build a construction business that works is to focus on a core group of customers to start with. Word of mouth is one of your best marketing tools, especially when you’re first starting out. That means you need to offer a great service and, most importantly, get the work done in a good time frame. If you keep taking on loads of jobs and you don’t have the manpower to get them done in a reasonable time, your customers aren’t going to be happy. They’re not going to recommend you to their friends and they certainly won’t use you again in the future.

Remember these 3 key things when you’re trying to start your own construction company and you’ll be a lot more successful.

Posted in Business & Finance, Money, PropertyComments (1)


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