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Starting a demolition company isn’t just about ruthlessly destroying things (and getting paid to do it). There’s a lot more to starting a demolition company, such as equipment, licences and legal factors. More often than not, you’ll need to take a lot of care when dismantling a structure, despite the violent nature of the task.
The same applies for starting your own demolition company. Before you step foot on your first site, it’s important to carefully set up your demolition company. Taking the time to properly form a company properly with expert guidance can make a big difference. So, unlike an old building, your demolition company cannot be taken down when a wrecking ball comes swinging.
What Is A Demolition Company?
A demolition company is tasked with knocking down buildings and structures that no longer need to be there. Most of the time, something new is going to be built in place of the old structure.
There’s a number of different types of demolition companies. Certain demolition companies may focus on smaller structures, such as homes. Other demolition companies might specialise in knocking down bigger buildings. If you’re going to start your own demolition company, then it’s imperative to figure out what kind of demolition company you will be running and the type of services it will offer.
Doing your research and putting everything down in a business plan is a good way to go. That way you have all your information in one place, helping you stay organised as you navigate the somewhat complex world of starting your own company.
How Do I Start My Own Demolition Company?
To start your own demolition company, the first step you need to take is to register your company. In Australia, every company is registered with the Australian Securities and Investments Commission (ASIC).
It’s important to get the help of a legal expert when registering your company with ASIC. The process for registering a company can be a bit tricky – you’ll need to determine matters such as the type of company you will register, who your officeholders will be and how your company will be governed. These are some hugely important decisions that will play a significant role in your demolition company’s future, so it’s important to have a legal expert guide you through them.
Setting up a company is a little more time consuming and costly than other business legal structures (such as sole trader or a partnership). However, a company has the benefits of being a legal entity on its own. This offers you much more legal protection which is better for your company’s future growth opportunities. So, if you’re feeling a little overwhelmed by the prospect of setting up a company, then chat with one of our legal experts. They’ll be able to guide you through the process and ensure everything gets done quickly and smoothly.
Remember, you will also have ongoing obligations with ASIC, such as annual fees or letting them know when there’s been a change to your company’s details. A legal expert can help fill you in on everything you need to know!
What Do I Need To Start A Demolition Company?
Once you have officially registered your company, you can move on to gathering the necessary documents and materials you will need to run your demolition company. While we can’t help out with getting the necessary materials, we can be your go to for all your legal documents.
When you start a demolition company, your legal documents will play a role in securing all aspects of your company’s future. From clients agreements, employee rights and even your company’s website – the strength of your legal agreements will determine how well your demolition company is protected.
The exact legal agreements required will depend on your demolition company’s specific operations. So, you’ll need to chat with a legal expert to get advice that’s catered to your company. For now, we’ve listed some legal documents that a demolition company would commonly require:
Service Agreement: When you provide a service to others, then it’s imperative to have a service agreement between you and the other party. A service agreement covers important matters such as scope of work, payments and how disputes are settled. Having these details cemented in a well drafted agreement is crucial for protecting the interest of both parties.
Employment/Contractor Agreement: There’s a very good chance you won’t be conducting the demolition work singlehandedly. Whether you’ll be hiring internal employees or external contractors to help out with business, it’s important to have a contract between you and them. Employment and contractor agreements set out expectations right from the start so there’s no misunderstanding and everyone can be on the same page.
Website Privacy Policy: Nowadays, most companies have a website. It makes it easier for clients to find and book your services. However, if your website collects any kind of information from its users (such as an email or phone number) then you are legally required to have a privacy policy in place. A privacy policy needs to be drafted to a particular standard to be acceptable, so it’s best to have a legal expert help you out with yours.
Do I Need A Licence To Start A Demolition Company?
Yes, you will require a licence to start a demolition company. However, that’s not the only regulatory compliance measure you need to take into consideration. There’s a number of laws your demolition company will need to follow to be a legally compliant organisation. Let’s get into them below.
Licences and Permits
As we noted above, yes you will need a licence to start a demolition company. The exact licence you will need to attain will depend on your state as well as the type of demolition activities your company will be undertaking. It’s important to have your demolition licence, as well as any other licences and registration all sorted out before conducting any type of work. A regulatory compliance expert can let you know exactly what licence and permits you’ll be needing, that way you don’t accidentally miss one.
Workplace Health and Safety
Demolition is not for the timid, there are many ways someone can get hurt. Workplace health and safety is especially important if you’re running a business that is open to higher risks. As an employer, it’s your legal duty to take reasonable measures to ensure the wellbeing of anyone that works in your demolition company.
An expert in employment law can help you determine whether or not your actions are helping keep your employees safe and if there’s anything more you should be doing. Moreover, you can chat with them about getting professionally drafted Workplaces Policies or Staff Handbooks. That way, your staff are well informed on safety procedures and requirements.
Australian Consumer Law (ACL)
The ACL doesn’t just protect consumers, it’s also there to help small businesses as well. As such, getting familiar with the ACL won’t just make sure your demolition company knows how to treat clients, it means your business is well aware of their own rights too.
As a demolition company, you’ll need to make sure all your practices are in line with the ACL’s requirements. This means matters like pricing, refunds, warranties, quality of work and transparency should be addressed in a way that ensures your company is correctly following the rules.
When it comes to things like standard form contracts, the ACL has specific protections in place to make sure small businesses aren’t taken advantage of. As a newly formed demolition company, you’ll likely be engaging with bigger businesses at some point – understanding your rights when it comes to contracts can ensure your demolition company isn’t caught in an unwanted situation.
The ACL is an important but somewhat overwhelming area of law – after all, there are a lot of different regulations. An expert in consumer law can single out the rules that apply to your company and help ensure your demolition company is legally compliant with the ACL at all times.
Next Steps
To properly start a demolition company, it’s important to take care of the legal factors such as registration, contracts and compliance. To summarise what we’ve discussed:
- Starting a demolition company involves more than just tearing down buildings; it requires careful planning, legal registration, and understanding the types of demolitions and services offered
- Registering the company with the Australian Securities and Investments Commission (ASIC) is the first step, and it’s advisable to seek legal guidance to navigate the registration process and company structure decisions
- Legal documents are crucial for protecting all aspects of the company’s operations, including service agreements, employment/contractor agreements, and website privacy policies
- A specific licence is needed to operate a demolition company, along with other permits depending on the state and the type of demolition activities planned
- Workplace health and safety are critical in the demolition industry, requiring appropriate measures and policies to ensure the safety of all employees
- Compliance with Australian Consumer Law (ACL) is necessary to ensure fair business practices and protect the rights of the company and its clients
- Overall, starting a demolition company requires careful attention to legal details, regulatory compliance, and thorough preparation in business planning and safety protocols
If you would like a consultation on starting a demolition company, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
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