More and more entrepreneurs are turning to the property market to make money, and property development businesses have never been as popular as they are today. While small-scale developers focus on increasing the value of real estate through interior renovations, larger firms can increase profit margins by working on property projects from start to finish. To do this, property development companies need to form links with construction companies. But with such an abundance of construction and plant hire firms to choose from, here are a few factors to consider to ensure you partner with the right company.
Size
Plant hire and building companies come in all shapes and sizes. They could be one person and their machine or they could be global organisations that are responsible for the employment of thousands of workers.
The size of the company you require will likely be dictated by the size of your own company and how many properties you are working on. Small construction companies won’t be able to meet your demands while global organisations will likely only work on larger-scale projects.
It’s best to start with the companies in your local area and reach out to them to see what kind of projects they work on. This should help you gauge if they are a good fit for your project in terms of size.
Cost
Cost is a crucial part of your property project, and finding a construction company that works for your budget is vital to making a profit. You’ll find that the cost of a project can vary greatly from one company to another, so it’s important to shop around and compare a variety of quotes.
While cost is important, you should never compromise on quality just to make sure your project comes in under budget. Seeing as cost is often reflective of quality, the company that charges the lowest price isn’t always the best option. There may be a reason that a construction company is able to charge a lower fee, such as a plant hire company using older machinery.
To ensure you are getting value for money, compare any quotes against testimonials and reviews.
Experience
Not all construction companies work on the same type of projects. Some may focus on real estate while others may specialise in landscaping or demolition. Property developers will obviously want to partner with construction firms that have experience developing real estate, which most likely will.
However, you may also want to prioritise companies that have a wider skillset so they can work on more areas of your project. As previously mentioned, some construction companies may specialise in landscaping or demolition, both of which could be a part of a property development project.
Finding a company that can work on your project from start to finish will save you from hiring different companies for different parts of your project, which will likely work out more expensive.
Equipment
As the old saying goes, a worker is only as good as their tools. You’ll want to ensure that any construction company you choose to work with is working with the best possible equipment when completing your project.
As already pointed out, a lower price could easily be a sign of old or poor-quality equipment. Studies show that poor equipment is still a concern in construction today which will likely impact a firm’s productivity levels.
If you are not familiar with construction equipment yourself, it can be hard to know if a firm is using satisfactory tools and machinery. However, you should recognise many of the top construction manufacturers such as JCB, Caterpillar and Volvo. You should be seeing at least some of these brand names if comparing plant or dumper hire companies.
Ethics
Something you may not have considered when choosing a construction partner is ethics. Nowadays, various stakeholders within the property market are particularly concerned with sustainability and partnering with firms that are conscious about the planet will likely impress future partners, clients and buyers.
It’s also important to consider more general ethics such as the treatment of employees and any previous ethical concerns. It’s important to remember that working with companies that have poor reputations will see this negativity passed on to your own company.
In summary, there is no one-size-fits-all approach to selecting the right construction company for your real estate project. As pointed out in the article above, there are a range of factors that will influence your decision including the size of the company as well as their experience and the cost to hire them. However, with such obvious risks in the building and construction world, it’s crucial you get this decision right. Working with the wrong construction company may not only make your project work out more expensive but could actually cause your real estate project to become dangerous.
