What Does a Construction Company Do?


Construction companies like Talbon require a large team of people to come together and finish a project. Each person must know their role and know how to get the job done correctly.

Construction projects involve many components, but the people at the heart of it all are the general contractors, construction managers, material suppliers and equipment lessors. Without their efforts none of it would happen – these key players make all the difference in making it successful.


Construction companies are unique among other types of businesses due to the nature of their work – working with independent contractors, frequent relocations, equipment rentals and labor costs – which makes their overhead expenses unique.

Indirect construction company expenses encompass accounting services, marketing costs and legal fees. They also include travel costs for managers and employees traveling to job sites.

Tracking these costs with online expense reporting software makes it effortless to stay informed.

Employee wages and benefits for your construction team will determine how much you spend on labor. On average, construction employees make $36,000 annually; however, it’s essential that you take into account which type of worker you hire.

When it comes to hiring contractors or full-time staff, the decision should be based on your construction business size and scope. Generally, hiring contractors allows you to focus on growing the business rather than worrying about paying employees.


Construction companies specialize in creating structures that meet the needs of clients, from residential to infrastructure and industrial builds.

The business sector necessitates a variety of skills, including those necessary for safety management. This involves identifying potential hazards and mitigating them, selecting suitable materials and guaranteeing that the end product is free from environmental and structural hazards.

Another essential role in project management is scheduling work according to a schedule. Requirements for this position typically include a bachelor’s degree in engineering, construction management or civil engineering as well as extensive work experience within the field.

Construction companies also need licensing and insurance in order to safeguard themselves in the event of an accident or injury on the job site. While this can be a time-consuming and overwhelming task, it’s necessary for protecting the business against lawsuits.


In many states, construction companies must obtain a license in order to operate. Displaying your license to prospective clients demonstrates your professionalism and adherence to local laws.

Furthermore, having the proper licenses helps you avoid fines that could negatively affect your bottom line. Depending on where you live, these may include building permits and construction industry licensing.

Specialty contractors like carpenters, painters and roofers each have their own licensing requirements. Check out our state-by-state guides to determine if you need a license for your particular specialty, and if so, where to obtain it.

In addition to the standard business licensing requirements, you will also need to submit a financial statement, evidence of bonding and worker’s compensation insurance. Depending on the type of license, you might even have to pass an exam. These regulations can be complex for new contractors so do your due diligence before applying.


Construction industry carries with it many inherent dangers. From heavy machinery and hazardous power tools, to employees working high above the ground, accidents can happen at any time.

It is essential to safeguard your business against these potential dangers with the appropriate insurance coverage. Workers’ compensation insurance is one of the most popular policies for construction companies, but there are other options available too.

General liability is an essential coverage for contractors. It shields your business from claims of bodily injury or property damage caused by third parties.

Contractors working on large projects may need to invest in an umbrella policy with a higher coverage limit. This helps mitigate financial risk and can also help secure larger contracts by demonstrating to prospective clients your adequate insurance. The cost of this coverage will depend on your situation and license type; it’s wise to get quotes from multiple providers so you can compare their coverages and limits available.

Related: What Are Construction Companies: A Comprehensive Guide