Open Your Own Construction Company? Four Steps ro Help You Avoid Costly Problems
Posted on: 9 November 2018
When you've recently opened your own construction business, you can't afford to take chances, especially when it comes to dealing with your clients. When you're starting out in the construction business, it's easy to make mistakes. Unfortunately, some mistakes can end up being quite costly. To help you avoid costly mistakes, here are some steps you should follow.
Have the Right Insurance Coverage
When you run a construction company, it's crucial that you have the right insurance coverage at all times. It's not enough to have coverage that protects your office and equipment; you also need to have coverage that protects your company against liability claims.
Workers Compensation
If you don't have adequate workers compensation coverage for your employees, you need to update your policies. One work-related injury that isn't properly protected with workers compensation coverage can put you out of business. Not to mention the fact that the lack of coverage may do lasting damage to your injured worker—both physically and financially.
Contractor Liability
Before you take on another construction contract, it's important that you have contractor liability coverage. This coverage protects you and your company from issues that might arise during the performance of your duties for the client. This includes protection against issues with workmanship or construction delays.
Have a Detailed Contract
When it comes to performing construction projects for clients, never start construction until you have a detailed contract that has been signed by all parties. Working without a contract may put you at financial risk, especially if the client has issues with the performance of your work. If problems arise with the contract, sit down with a business attorney as soon as possible.
Stop Work When an Issue Arises
During the construction process, issues may arise that involve the design or implementation of the project. When those issues arise, stop work as soon as possible. This may extend the completion schedule, but it's better to delay construction while you work out the details than to end up with additional costs when you need to replace items that are already installed.
Know Your Crew
When you own a construction crew, you're responsible for the people who work for you. This is particularly true when it comes to protecting your clients. Before you send a crew into a client's home, make sure you know who's working for you. Knowing the background of your crew will help you avoid liability issues with your clients.
Don't take chances with your new construction company. The tips provided here will help you avoid mistakes that can interfere with your business and lead to client dissatisfaction.
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