How can I Start a Construction Company?

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  • Written By: J. Beam
  • Edited By: Niki Foster
  • Last Modified Date: 31 July 2018
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Starting a construction company can be a profitable venture under the right circumstances. Construction is an industry that will always be in demand and will not yield easily to automation. If you have experience in the field and want to start your own company, be sure to research requirements, laws, and business basics before taking the plunge.

One of the first things to consider before starting your own company is financing. If you do not have available funds to purchase materials, tools, and labor, you will need to arrange financing for the start up. You also need to make sure you have a contractor’s license and bonding insurance to protect you.

The amount of financing you need will vary greatly depending on the size of the projects that you intend to start out with. If you are performing small jobs, such as remodels, additions, or decks, you might be able to purchase materials and tools on credit. Remember that interest eats away at your profits so be sure that you can meet a completion date and collect your fees from your clients in a timely manner.


It is extremely important to have an understanding of cost estimation when you bid a project. Underbidding yourself to get jobs will soon eat away at your profits and eventually doom your success. If you bid too high, however, your more established competitors will beat you out. If you do not know how to bid competitively, you should either develop the skill or hire someone who is knowledgeable about construction estimation.

With funds available for purchasing materials, insurance to cover potential accidents, and clients, you will have to turn your attention to your craft force. If you plan to be on site at all times overseeing things, you can easily manage your craft force. If you intend to work hands off, you’ll need to hire someone experienced at leading a crew of workers to make sure the job is done right and according to schedule.

Start with small jobs and advertise by word of mouth. Do a good job for your initial clients, and they will spread the word. Ask to place temporary signs at a completed site for advertising purposes as well. Make sure you have someone available to provide estimates for potential clients without holding up current projects. As your company grows, you can hire additional personnel to assist with certain jobs.

Be sure to develop a good relationship with building inspectors in your area and to have both a business attorney and an accountant at your disposal should you need their services. Careful planning and attention to detail will help ensure that your construction company stays afloat during the roughest first two years of operation. With a qualified craft force and a desire to succeed, you may be able to grow a solid small to mid-sized company within five years.


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Discuss this Article

Post 59

Construction is a very good business in South East Asia. If anybody is interested to invest here he is most welcome. With a very small investment like USD $1 million, you can comfortably double it within three years at the maximum.

Post 57

I am a quantity surveyor intending to open a construction company.

Post 56

I am A Civil Engineer with one year of experience in Cement industry. Now I want open my own firm related to construction in Nepal. How can I start my firm?

Post 55

I have recently received my degree in civil engineering from a London based university. I would like to know how to get a construction company license in Dubai. Could you please provide me with sufficient information to start the business in Dubai?

Post 54

I am a civil engineer, and now I want to start my own construction work. Please give me some information on how I can start my own business with minimum money. And how can I get tenders for construction work? What basic certified papers do I need for construction work?

Post 53

I am a geotechnical and material engineer and I want to establish a construction company. What is the way to success?

Post 52

I am starting a construction company, but not sure how much to charge per house about 1800 square feet.

Post 50

I have a masters degree in construction engineering, and now i want to open my construction company in Australia. So, how can I open it? What do I need to do to open it?

Post 46

I am pursuing civil engineering. A few years before, my father had his own construction company, but in 2001 he had closed that company. Now I have decided to open that company again with the help of my father, but I need an investor, so tell me how it is possible to do this again.

Post 44

my boyfriend is starting a siding and windows business and tends to forget little things to put in his bids. does anyone have a checklist for estimates?

Post 43

I want to start a construction company. I have worked for various companies, and I have been a personal assistant to the provincial Engineer. How do I go about this.

Post 42

I am an Electrical Draftsman. Currently I am have a job with a contracting company. I want to leave the job after this job. What should I do in the same field. Please give me some advice about this.

Post 41

I am studying ND Accounting first year. i have started a few businesses and none of them became successful and now I want to start a construction company. what basic requirements do i need to start a construction company?

Post 38

I am a Btec civil engineer, and i need to start my own construction work. please give me some information about how can i start my own business in minimum money? And how can i get tender for construction work? what basic certified papers do i need for construction work.

minimum capital required for starting a company?

Post 37

I have done Accounting and Post Graduate Certificate and a couple of Certificates in Accounting. I have been in the work place for 5 years now and want to start my own construction company in South Africa. I already have an extensive knowledge of projects from their inception up to the end. Can you help me as to what will be the first step.

Post 35

I am studying MBA (finance and marketing) and want to start my own construction company with minimum amount of money. what basic paper certificate do i need for construction work? what is the basic knowledge i require, and how can i get a tender of construction work?

Post 34

I am pratyush and i want to start a construction company for maintenance and industrial projects like pipeline work, civil construction, electrical and boilers. please can any of you guide me in starting my own company? i am a graduate in bbm degree and have no idea about the industrial projects.

Post 31

I have a maintenance company, my company has been successful for many years and steel it is. However I am leaving my company to be managed by other guys, due to my decision to move to another country. How much money do I need to invest in order to legally start a maintenance company in the states?

Post 30

I am 30 years of age with 15 years in the workforce and 9 in construction, that includes limestone works and steel fixing. I need advice on starting up a company in one of my trades.

Post 26

I am an experienced utility employee and have several years of experience with renovating offices, to include, furniture, electric, HVAC and plumbing modifications. I want to start my own construction company. I've worked for an architect and engineering firm for several years also. I have the fundamentals of the construction industry but want to get into the nuts and bolts of it all. Need help!

Post 25

I have completed MCA 2009, and I want to start with an IT company. what is the basic requirement for any company?

Post 24

I am currently working as a nurse but i want to quit the job and start a construction and maintenance company and i seek advice. i also want to know what basic knowledge i need to direct a construction company.

Post 23

I have done MBA (finance) and want to start my own construction company with minimum amount of money. what basic paper certificate do i need for construction work and how can i get tender of construction work.

Post 19

i am diploma civil engineer, and now i want to start my own construction work. please give me some information that how can i start my own business in minimum money? And how can i getting tender for construction work? what basic certified paper do i need for construction work.

Post 18

i want to start my own business. i have done BBA and want to start a construction company. what should i do?

Post 17

could you share with me what are the requirements to get a license and the permits required? Also, the guidelines to hire employees? Thank you very much.

Post 16

I am planning to start a construction company in Kabul, Afghanistan.

I am a graduate civil engineer.

Post 15

I'm a 20 year old student and I'm currently studying financial accounting in my second year. I want to start my own construction company, so can you please give some advice about this field?

Post 14

Do I need qualifications to start a construction company.

Post 13

for those of you wanting to be subcontractors: as long as you aren't doing any plumbing or electrical work, you will be riding off the license of the primary or general contractor who hired your company and do not need one in most states. But check your local laws and codes to make sure.

Post 12

i want to know the procedure to start a construction firm. what's the documentation needed for this?

Post 11

what is licensed?

Post 10

I was wondering if anyone knew what the basic most basic fees would be to run an hvac small business office? insurance, one office employee, overhead, office space, computers, etc. ball park figure. thank you.

Post 9

As usual, or maybe not, I'm just trying to start my own business, with a lot of ideas and abilities to work but not enough money.

I'd like to start as subcontractor. I did small jobs on basements and houses in general. can you please tell me if I need a license and how or where can I start?

Post 8

how can you guide me to manage a newly started construction company in oman?

Post 7

i want to start this construction work. so how much money will i have to invest in these tools, labor and other things? And how much money do i need to get any authority to start it.

Post 6

i want to start a construction company. how can i get the licences?

Post 5

could you share with me what are the requirements to get a license and the permits required. Also, the guidelines to hire employees and required equipment? Thank you very much.

Post 4

what basic qualifications do i need to run a construction company?

Post 3

could you share with me what are the requirements to get a license and the permits requiered. Also, the guidelines to hire employees? Thank you very much.

Post 1

i am a female who intends on opening my very own maintenance company please i seek your advice in doing so i need a business strategy in concept of a construction company, how do i go about getting my finance and assistance in the opening of my business which i like to be accredited under BEE.

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