When you’re running a construction business, you have to manage everything from projects to finances to outside issues that can influence your operations. Although there are constant challenges, being your own boss does come with many perks; however, to grow your business and prosper, you must avoid many of the pitfalls that have plagued construction businesses for decades.
In this five-part article, Sarasota construction attorneys are discussing several of the reasons why construction firms fail. In the first and second part, we covered businesses that don’t manage their finances, fail to execute projects well, or neglect to develop a long-term strategy. In this part, we will discuss companies that violate Department of Labor (DOL) and the Occupational Safety and Health Administration (OSHA) laws. When you are issued costly infractions, this can significantly set your business back.
5) You’re Breaking the Law
As a Sarasota construction law firm, one of our primary tasks is to make sure that our clients are compliant with federal, state, and local laws. The industry has a reputation for contractors that try to cut corners and often violate labor laws in the process including:
- Misclassification of workers
- Failure to pay overtime
- Performing work in a state you’re not licensed in
- Failing to pay workers’ compensation for your workforce
- Hiring unlicensed contractors
- Violating child labor laws
- Not keeping required business records
- Hiring undocumented workers
- Not providing medical leave
- Failing to pay minimum wage
If the DOL investigates a jobsite and determines that willful infractions occurred, the construction firm will be issued significant fines and, in some cases, other penalties. Moreover, the reputation of the construction business will be impacted. It’s critical that construction business owners consult our Sarasota construction attorneys to ensure that they are within the rules and regulations set forth by federal, state, and local government agencies.
6) You’re Not Practicing the Best Safety Procedures
Sometimes a business can be so concerned with reaching their contractually obligated deadline that they overlook practicing the best safety measures to complete the job. Just like breaking federal, state, or local laws, when you try to cut corners on the jobsite, this can lead to an audit by OSHA. Excessive fines can eat away at the cash flow issue we discussed previously and bankrupt a business. Another issue is the health and wellness of all of your workers. If injuries or even fatalities occur on your jobsite because of your negligence, this is not only a terrible situation to be in, you will also have to deal with the legal ramifications. To ensure that you are OSHA compliant, consult a Sarasota construction law firm.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.