Home renovation television shows are currently a household favourite in Australia, prompting many of us to claim, ‘I could do that!’ from the comfort of our couches. If your interest in renovation persists beyond the 12-week show schedule, a business in the renovation industry may be for you.
The Australian renovation industry is experiencing a boom at the moment and generates over $8 billion in revenue each year. Establishing a renovation contractor business will allow you to tap into this revenue stream and has the potential to be a very profitable venture.
You can also check out our online guide for more lucrative business ideas.
1. Business Registration
To operate as a renovation contractor, you will need to register your business. Registering as a business will allow you to offer your renovation services to customers in the marketplace.
You will need to be eligible to register on the Australian Business Register to acquire an ABN (Australia Business Number) When registering, you will need to decide which business structure will work best for you: either a sole trader, partnership or company. Each structure has advantages and disadvantages that need to be considered before making your application.
If you intend on registering as a company, you will need to acquire an ACN (Australian Company Number). LawPath can help you with expedited ABN and ACN registrations.
2. Licensing
You will need to acquire licenses before starting the project. Licensing laws differ between States and Territories. Generally, you will be required to have a general contractor license which will allow you to hire sub-contractors and advertise your services to the public. It is best to check directly with the regulatory body for your State or Territory what type of additional licenses are required for your business.
If you hire sub-contractors, they will also need to be properly licensed. Hiring unlicensed sub-contractors may expose you to liability. Make sure to check their licensing status with the relevant State or Territory regulatory body before engaging them through a sub-contractor agreement.
3. Insurance
It is a good idea to take out insurance to ensure that any accidents or injuries that may occur in the course of business are covered. Examples of the various types of insurance you may need include:
- contract works insurance;
- public liability insurance;
- indemnity insurance; and
- work cover.
If you intend on hiring employees, you will also need to consider workers compensation insurance.
4. Sub-Contractor Agreements
The nature of renovation involves many trades and types of specialist work. Certain works require additional qualifications and can only be carried out by a holder of a license for that particular type of work. Whilst you may consider yourself a ‘jack of all trades’ it is a good idea to sub-contract tradespeople to ensure your projects are completed to the highest standard.
You will need to set up sub-contractor agreements with each individual sub-contractor that you hire. This document should clearly outline the rights and obligations of each party to ensure that there is no confusion about what is expected from each party. LawPath can provide easily-modifiable agreements through our document database, and if you need further advice, can connect you with a lawyer through our online network of expert lawyers.
Conclusion
These simple tips are a good place to start in setting up your renovation contractor business. If you require more personalised advice, you can contact Lawpath’s marketplace of business lawyers for fixed-free quotes.
