In the business world, construction companies are considered as one of the fastest-growing companies compared to other industrial sectors, especially in developing countries such as Indonesia.
The level of demand and market conditions that continue to change dynamically make construction companies a business that requires reliable skills and management. The role of construction services in Indonesia is even increasing, although it has not been fully utilized.
From an economic perspective, construction companies have also demonstrated the ability to make a significant impact.
Definition of Construction Company
Construction company is a business organization that is engaged in the construction, infrastructure, facilities, and physical infrastructure for the benefit of the community according to applicable regulations, plans, and laws.
As one industrial area is further developed, construction will help create jobs and can distribute income for each social level. In addition, construction companies also play a very important role in national development and development. It is the same as the construction company Bali, which will be discussed at this time.
Construction Company Characteristics
As one of the industrial sectors, construction companies have a number of specific characteristics or features that are different from other industrial services. Various characteristics can be characterized by several things below.
1. Full of Uncertainty
is a company whose business activities always contain very high risk and uncertainty, as well as very low profits.
2. Buyer Influence
The market dominated by construction companies is strongly influenced by buyers because the interests of buyers are highly protected by the existence of insurance companies, supervisors, and banking institutions that will continue to force companies to continue to comply with the needs of their customers.
3. Budgets and Schedules Fluctuate
Contract values and selling prices are conservative but there are no significant fluctuations in costs or production budgets. The progress of work and quality standards must always be determined by the customer.
4. Compulsory implementation of OHS policies
K3 is an obligation and must also be considered before starting various development-related processes. This is done to protect workers from the risk of accidents or other risks that lurk in the work environment. Thus, HRD can arrange and require every employee to take K3 training courses in the company.
In starting a construction business, there are several things that need to be considered, namely:
1. Business status
Construction company Bali qualifications can be used as the first reference for future construction company entrepreneurs. The rules regarding these qualifications have been regulated in Article 20
Law Number 2 of 2017 concerning Construction Services Business or UUJK, includes qualifications for small businesses, qualifications for medium businesses, and qualifications for large businesses.
2. Business License
Each construction service company will provide construction services to have a trade permit, which is granted by the local authority in the area in accordance with the law. This business license is valid for operating construction business services in Indonesia. Regarding this business license, it has been stipulated based on Article 26, Article 28, and Article 29 (1) (1) UUJK.
3. Company Entity Certificate
This service certificate is issued with a certificate and departmental registration process. These service certifications include the type of business, a commercial nature, business classification, and the level of trade. To obtain a service certificate, a construction company must apply for a ministerial application with a business entity formed by an association of business entities that were previously accredited.
4. Signup experience
In order to gain recognition of company experience, every mid-level and large-level construction service company must be able to register with the relevant Minister. This experience registration must be proven by an experience-registration certificate. At a minimum, this experience certificate must include the name of the work package, the person using the service, the year of execution of the work, the value of the work, and the performance of the service provider.
5. Selection of Business Type
Based on Article 12 of Law Number 2 of 2017 concerning Construction Services (UUJK), there are three choices of types of businesses that can be used as a reference for consulting documents in the construction of a construction company, namely construction consulting companies, construction companies, and general construction companies.
This is about the understanding and characteristics of construction companies such as construction company Bali. If you want to use building-construction services then you can use Contractor Architect Bali.