Mon. Oct 2nd, 2023

Starting up a construction company can be a rewarding business venture. But it’s important to note how much it will cost before investing. Starting a company is no small task or cheap venture, but could pay off in the long run.

So, how much does it cost to start a construction company? Let’s find the answer here.


Average Cost of Starting a Construction Company

The average cost for starting a construction company can vary depending on fleet size, overhead, and geographic region. Generally, it costs anywhere from $30,000 to $100,000 or more to get a construction business up and running. Here are some of the initial expenses that should be evaluated.

Business License and Permits

The cost to acquire a business license and permit can vary depending on the location and the type of business. Common permits include:

  • building permits
  • zoning and property permits
  • environmental permits

Typically, a building permit can cost between $500-5000. A zoning and property permit costs between $50-500. An environmental permit depends on the complexity of the project.

Additionally, other permits may be needed depending on the business and its size. For example, if the company uses hazardous materials, special permits and certifications may need to be obtained.


General liability insurance is necessary to cover potential damages to third-party property or other injury costs associated with the projects. Workers comp insurance is a legal requirement and can range in cost depending on the services your company provides.

If your construction company requires vehicles, you must have commercial vehicle coverage for all vehicles used in company operations, which can also vary in cost.

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Construction Equipment

The cost of construction supplies and equipment depends on the size and type of projects a company intends to undertake. Heavy machinery, such as bulldozers, cranes, and excavators, can cost hundreds of thousands of dollars for each piece.

Other equipment includes tractors, loaders, and dump trucks. They may be necessary for larger projects and can also be very expensive. Businesses may also need to set up portable bathrooms for their workers. To save up on this expense, get the best deals on this website to rent a portajohn.

Employee Labor

It is essential to be competitive in the market when hiring employees. A good range for construction workers in the area is typically worth around $18/hour.

Having employees means paying for more than just salaries; benefits, such as health insurance and vacation days, must also be factored into the cost. Depending on the specific roles that must be filled, it may be beneficial to consider hiring subcontractors occasionally.


Marketing is essential to the success of a construction company. Price out the costs of:

  • developing a professional website
  • purchasing a domain name
  • investing in social media marketing

Tailor your budget to hire a marketing agency that specializes in the construction sector or explore do-it-yourself options, such as using an online platform to design ads targeting the local area. Invest in company branding materials such as flyers, brochures, business cards, and promotional products.

How Much Does It Cost to Start a Construction Company? Get the Answer Here

Starting a business in the construction industry is costly, but the rewards can be very rewarding, given the proper execution. There are many factors to consider and liabilities to be aware of, but ultimately, it all comes down to having the right business plan and budget.

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When finding the answer to “How much does it cost to start a construction company?” Remember not to let the costs intimidate you. Get started today with a business plan that will take your construction company to the next level.

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By Rockey