If you’ve been wondering how to start a formwork business? Then this post is for you!
To start the formwork business you have been dreaming of, you will firstly need to consider a few key things. When starting a new business you must ensure you meet all the administrative, financial and legal requirements.
You will want to ensure you have covered everything from your business structure to insurance to attracting customers. This post covers everything you need to know for your formwork business and formwork salary to thrive.
What is a Formwork Business?
A formwork business is a type of business that forms a part of the construction process. Typically they provide the moulds needed for concrete to cure. This type of the business is the foundation of building and needs to be sturdy and reliable so that no defects arise later in the construction process.
Getting Started: The Pre-Planning Steps
Research
To run a formwork business you firstly, will need to do some research on what you are going to need in terms of equipment. You must organise a supplier who will provide the basics such as concrete and other materials which you will use for each customer.
You must also consider the type of fixtures and equipment you will need to operate your business. You should do comprehensive research to find the best deals to optimise the profitability of your business.
Location
It is important to choose an appropriate location where you can operate your business. This will affect who the clients you are able to serve.
Develop a Formwork Business Plan
Excellent planning will often lead to success. Using your research, you should develop a formal business plan to guide your business. This might include your:
- Business objectives and goals
- Business structure
- Target market
- Competition
- Marketing strategy
You can always seek assistance from a professional accountant or business lawyer to assist you with this, if you aren’t confident in developing a business plan yourself. It’s important to revisit and review your business plan regularly.
Determining a Business Name
Now you need to decide on a business name. Once you decide on your name, you can check the availability of the business name you have chosen.
If the name is available, you can then register your business as a trademark to ensure that you have the exclusive rights to your business name throughout Australia.
Determining your Business Structure
You will need to decide on a business structure to establish your business plan. Consider whether you will operate as one of the following.
- A sole trader is someone who owns and operates a business under their personal name.
- A partnership is when two or more people come together to form a business.
- A company is when you register your business as a separate entity from your personal affairs.
You should contemplate which structure will work best for your business goals. It is important to know what the legal ramifications are of each structure and how they can affect how you operate.
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Registering your Business
You need to register for a few things in order to make your business official. For instance:
- A business name
- An Australian Business Number (ABN) to help the Australian Tax Office (ATO) and customers identify your business.
- It would be good practice to also register your business as a company (ACN) so you can benefit from limited liability.
- Register your Tax requirements.
- Ensure that all relevant licences or permits are valid.
Source Formwork Insurance
Insurance is arguably the most important step when setting up your business. It is vital that you protect yourself and your business from any legal action. Public liability insurance with BizCover can help you protect your property and your employees from damage or injury.
Like with any construction work, formwork has a high rate of accidents, therefore it is important to be covered.
Firstly, you will need a type of public liability insurance, this will be beneficial for you and your business when customer or staff experience injuries. Additionally, you will want to ensure you have workers compensation set up for these instances.
You will also want a form of property insurance to protect against any damages to your customers properties. Finally, you will need a form of coverage for all your equipment to protect against loss, damage or theft.
Hire Employees
To ensure that your business runs smoothly as it expands you will want to consider hiring additional staff.
You will need to decide how many employees you are looking to hire and what type of employment they will receive. Will they be full time, part time or casual workers? You will then need the appropriate employment agreements drawn up and signed.
Marketing your Formwork Business
One of the final steps for a successful business is gaining customers. The use of a strategic marketing plan will allow you to gain insight into your target market. It will also help you understand what is the most effective advertising method to reach your target market.
Some marketing methods you may choose to use include starting a social media page or putting an advertisement in your local newspaper. Another simple and effective approach to reaching new customers is through word of mouth.
Having an online presence is important even for construction companies. Using websites like Shopify or GoDaddy can help you create a well-established business so that your customers can easily find you. Additionally, you should set up and maintain a website which means you need to consider any website terms and conditions to ensure that your customers are safe.
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Considering the Law
When starting any business you should always check if you require any licences or permits. You will also need to acquire a formwork contractor licence or qualified supervisor certificate to operate your formwork NSW business.
Formwork failures can be catastrophic and can result in serious injury or death, this is why it is incredibly important to consider any legal requirements that are in place to keep you and everyone around you safe.
High Risk Construction Work
If the work involves high risk construction work, a safe work method statement must be developed in consultation with workers and their representatives who are carrying out the high risk construction work as defined under the Work Health and Safety (WHS) Regulations. Further information on high risk construction work is in the Code of Practice: Construction work.
Formwork Safety Tips
Here are some tips to keep in mind when running your formwork business. It is important to use the SafeWork NSW Formwork Safety Checklist.
- Having open communication with principal contractors, site supervisors and formworkers;
- having adequate planning prior to formwork activities commencing and that the safe systems of work align with the design/plan;
- having safe work methods;
- the formwork is erected on solid foundations;
- having edge protection and covers to prevent falls;
- having exclusion zones;
- having a competent and trusted person sign-off any concrete pour;
- having workers that are adequately trained, instructed and supervised on site safety and safe work systems.
Your Duty as a Formwork Business Owner
A person conducting a Formwork business has the primary duty to ensure workers and other people are not exposed to health and safety risks in the course of their employment.
This also included ensuring that the design, provisions and maintenance of safe formwork is guaranteed. As a formwork business owner safe erection, alteration, dismantling, use of formwork,handling, storage and transport should be considered.
The Work Health and Safety Regulations include specific duties for a person conducting a business or undertaking with management or control of a construction workplace.
Legal Documents you will need
To get up and running, you should consider these legal documents so that you can protect your business. Some documents you should consider include:
- A Services Agreement can outline the service you provide so that your customer can know what to expect.
- A Employment Agreement can outline your employee’s responsibilities and their obligations to your business.
- A Sub-Contractor Agreement can be useful if you need to employ another business or sole-trader when operating your business.
How Lawpath Can Help
At Lawpath, we can help guide you through starting your own formwork business. One of our Experienced Construction Lawyers can provide you with all the legal information and requirements necessary for your business to succeed.
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