Starting as a freelance worker in construction

There is a lot involved in being self-employed. Not only are you carrying out your construction work, but you are also an entrepreneur. For example, you must keep records and comply with laws and regulations. If you sort out the things described in this article, you will be on the right track.

Decide how you want to work

How do you want to work? Alone, together with other self-employed people, or via an employment agency? Research the pros and cons, decide what is most important to you, and choose the form that suits you best. Working with others or via an agency gives you more security for earning an income. But how you work also determines how you find clients and which entrepreneurial tasks are your responsibility. For example, an agency can do administration and invoicing for you but if you work alone, you must do this yourself.

Determine your hourly rate

As a self-employed person, you determine your own hourly rate. Calculate how much you need to live on. Then make sure that amount remains after you deduct your costs as an entrepreneur from your turnover. These costs include taxes, insurance, and building up a pension. Use the KVK tool for calculating your hourly rate to help you decide. Your desired net income is the starting point. Also search online for the average rates for self-employed construction workers and adjust your hourly rate if necessary.

Decide how you want to use your vehicle

The van or car you need for your business can be used for business or private purposes. The costs differ and you can calculate these in the company car calculation tool (in Dutch). Please note, in some Dutch municipalities you will no longer be allowed to enter the city centre after 1 January 2025 with a diesel, petrol, or LPG-fuelled van. Read more about the new zero-emission zones.

Set your general terms and conditions

Draw up your general terms and conditions.  These should include, for example:

• Payment term. Within how many working days do you want your customers to pay? Tip: find out what you can do to get your customers to pay on time.
• Delivery time from suppliers. How long is the delivery time and when does force majeure apply?
• Extra work. What qualifies as more work than was agreed in your quotation? What costs do you charge for extra work and how do you deal with it?
• Contingencies. These are the costs in your quotation which you are not yet sure about. For example, they depend on the price of raw materials. How do you deal with them?

Take out insurance

If you are starting out in construction, consider taking out the following insurances:

• Business liability insurance. This way you avoid high personal costs.
• Disability insurance. This is important for high-risk occupations where there is a risk of accidents causing injury.  
• A legal expenses insurance. To deal with a customer who does not pay, for instance. If necessary, ask your sector association whether they offer this.

Also, you might also consider taking out inventory-goods insurance, contents insurance for your vehicle, and construction all risks (CAR) insurance. Read more about important insurance policies for starters. 

Arrange your administration, taxes, and finances

Make the following arrangements:

• Open a business bank account so your finances are clear.
• Consider digital bookkeeping with accounting software.
• Keep business records. You are legally obliged to do this. Read more about business administration and bookkeeping.
• File an income tax return and possibly a VAT return.

Are you a subcontractor and do you lend out another employee or hire a company to do part of your job? In that case, you are subject to chain liability. Find out how self-employed people can limit the risks of chain liability, for example by opening a G-account. As a subcontractor, also make sure you know about VAT rules within the construction industry. For example, you can transfer VAT to the main contractor.

If you need help, consult an accountant or financial adviser. Or ask the Belastingdienst (Netherlands Tax Administration) for advice.

Arrange your pension

Freelancers are entitled to a basic state pension, but you must arrange extra pension benefits yourself. If you work in the following professions, you must join a sector pension fund:

• Painters and decorators, glaziers (in Dutch)
• Natural stone specialists, terrazzo and floor specialists, and plastering and construction specialists (in Dutch)

Check laws and regulations

Find out what regulations you need to comply with. For example, do you need a Safety Checklist for Contractors certificate (VCA)? What health and safety or environmental regulations apply to you? You also need to make sure your tools and equipment are safe. Read more in this step-by-step plan for getting started in construction. 

Register at KVK

Register at KVK as an entrepreneur and choose your trade name and legal structure. If you have any questions, you can ask them during your appointment with KVK, or contact the KVK Advice Team.