Diversity into construction - times are hard

[Chasingmytail]

Had to let 2 boys go recently absolutely gutted both were the best we had and the one was very gifted we relied on him to get on with it. He could start and finish a job without us getting involved.

Ive had a chat with fellow business and they are quiet too. Trouble with the small business is the competition, so many one man and mini digger doing £100 cash jobs, insurance whats that? Yes, put prices in but these have been twice as much as the cheapest. Lucky that many clients opt for the quality, likeability and professional outfit.

On the plus side we are one man and many diggers now which does mean we can put in lower prices and cream off better profits, when we had the two boys our overheads were around £5k per month but we werent making enough on many jobs and seemed to be on the slippery slope.

Just a little more turmoil in our lives....work harder. For me husband off farm a lot more meaning I am having to take on more responsibility. On coffee break now.

Struggling to balance children, after school clubs, animals, processing, household chores.....endless really!

 

[TomB]

Had to look up where you are. About an hour over the bridge? All trades seem to be flat out around here, would it be worth travelling a bit for work?

 

[Chasingmytail]

what we do wouldnt work - ie using the M4 and severn bridge with tractors and trailers with diggers - nope. Again plenty of work but at what price? Also taking into account travelling expenses & bridge tolls its not feasible. Once you start travelling outside the area there are overtime charges which have to be priced in. No brainer. Typical - have a number of jobs coming up now and no labour!!! As anyone knows finding reliable good labourers is a nightmare. Yes, you can find handful of sit on their arse digger drivers but finding grafters with tickets - rocket horse.

 

[suffolksmallholder]

There's not as much money to be made in construction as was in the past. Unless you are an established and well known contractor. You could well be in for a shock with non-payers and wearing your machinery out for less than its replacement. All this has been said in the past too. HS2 and local road projects are the ones to get youre teeth into. Otherwise tread really, really carefully. I'm only doing work for those whom I can trust and who I know will pay my rates, otherwise I'm doing car deliveries. Simples.
SS

 

[Chasingmytail]

Wouldnt touch the big boys - we couldnt dont have the turnover, the H&S or the endless certificates that are needed now. Working for the big contractors are always been a nono as the rates are rubbish. We have been stuffed in the past by non payers and even with a signed contract its not worth pursuing through the courts - the costs are too high and the judge just goes to mediation. One thing you have to do is price in major contingencies as every job becomes a nightmare and pricing close to the knuckle just to win it probably means you'll make a loss. Hence the reason why we dont win jobs as not the cheapest.

 

[Lincs Lass]

Couple of guys here have mini diggers ,,cant get any work themselves but hirring out on self drive pays for the machines .
Plus they dont have the H&S paperwork or insurances to bother with

 

[Thick Farmer]

If you haven't got the certificates in place to work for the 'big boys' then what makes you any better than the 'one man and machine' guys that are undercutting you?

 

[Chasingmytail]

If you haven't got the certificates in place to work for the 'big boys' then what makes you any better than the 'one man and machine' guys that are undercutting you?

Like I said you cant work for the big boys if you havent got the cashflow and less than £250k turnover pa isnt giving you much kudos. Unless you totally understand the construction industry its very difficult to get yr head around the endless bureaucracy - certificates include CHAS endless others - you cant afford to be affiliated with them all for once a year job. We had QMS that only got us on the approved contractor list (cost us £3k + in total to get on this) have never won any work through having it. We are on the HA approved list - put in a few tenders waste of time as silly cheapo contractors are putting in prices half the amount whether they provide a quality service is immaterial they go for price. Acclaim is the new one running in conjunction with Constructionline again the H&S just doesnt work for a small business with a handful of workers. How many courses can you attend without working. Having a H&S consultant means paying £100pa just so you can say you've got one whether they do any work with you or not. We have all the tickets.

You dont need to work with the big boys - all you end up doing is being a subby of a subby of a subby meaning you are offered silly rates. While you can do a nice slab for a small builder with no hassle and no paperwork exercises come away with a good profit. In the past we did endless work for utility companies but they have gone for one national company now.