Construction site set up checklist: Steps for a safe, smooth start

Published Tuesday 6 January 2026

Table of contents

• Pre-construction planning and permits
• Site security and boundaries
• Health and safety requirements
• Budgeting and expense management
• Planning your approach
• Required documentation and signage
• Welfare facilities setup
• Executing and monitoring
• Managing your construction site finances
• FAQs on construction site setup

Key takeaways

• Secure all necessary permits and approvals before beginning any construction work, as this prevents costly delays and ensures full legal compliance throughout your project.
• Establish comprehensive site security by installing robust perimeter fencing and clearly marking entrances and exits to protect equipment, materials, and public safety.
• Implement a detailed health and safety plan that includes thorough risk assessments, proper PPE for all workers, and clear emergency response procedures before any work commences.
• Create and monitor a realistic budget using past expenditure data and job costing software to maintain healthy profit margins and ensure sustainable cash flow throughout the project.

Pre-construction planning and permits

Before any work begins, you need to get the right permits and approvals for your site. This can take time, so it's best to apply as early as possible.

Check with your local council to understand which planning permissions, building regulations approvals, and other consents are needed, as the Building Regulations 2010 cover the construction and extension of buildings. Getting this sorted upfront helps you start work on time and stay fully compliant.

Site security and boundaries

One of the first physical tasks is to secure the site. This protects your equipment and materials, and keeps the public safe.

Set up robust fencing around the entire perimeter to prevent unauthorised access. Clearly mark entrances and exits for workers and deliveries, noting that regulations require loading bays to have at least one exit for the exclusive use of pedestrians.

Health and safety requirements

A safe site is a productive site. Before work starts, you need a solid health and safety plan. This includes conducting a thorough risk assessment to identify potential hazards, and if an inspection finds work cannot be carried out safely, a report must be provided within 24 hours of the inspection.

Make sure you have the correct personal protective equipment (PPE) for everyone on site and a clear emergency response plan. Your plan should cover what to do in case of fire, injury, or other incidents.

Budgeting and expense management

Construction budget management controls project costs from day one to protect your profit margins. Strong budget control helps you keep cash flowing smoothly from month to month.

Why budgets matter:

• Cash flow protection: Overspending on one project reduces funds for future work
• Business sustainability: Budget overruns are a leading cause of construction business failure
• Profit preservation: Staying on budget maintains healthy margins

So a realistic and well-managed budget is key. You can create a fair budget by using your past spending data. Look at your expense records and factor in any changes in supplier and contractor pricing. Use these figures to calculate your project costs.

Once your budget is set, you need to keep an eye on it throughout the project. Track your costs and expenditures with job costing software, so you don't have to tot the numbers up yourself.

Xero's software also allows you to generate quotes on the go, based on past figures, so you can always charge your worth.

For even more functionality, try the Workguru app. You can manage everything from inventory and project roadmaps to quoting, invoicing and forecasting. Customiseable project templates mean you can send professional-looking quotes and invoices without spending hours on them.

Planning your approach

Project planning transforms your roadmap into actionable steps for site execution. While your roadmap defines what needs doing, your plan details how to accomplish each task.

Key planning elements:

• Delivery methods: How you'll complete each project phase
• Resource management: Coordinating materials and subcontractors
• Regulatory compliance: Meeting all legal requirements

Pre-construction planning prevents costly delays and safety violations by addressing these critical elements:

• Workforce scheduling: Determine when and where subcontractor support is needed
• Material procurement: Create equipment and supply lists for each project phase
• Permit acquisition: Secure all required approvals before work begins, staying aware of future changes like the Building Safety Levy for certain residential buildings starting in October 2026.
• Risk management: Establish clear safety protocols for the entire workforce
• Quality standards: Define inspection and testing procedures
• Environmental compliance: Meet all local environmental regulations
• Communication protocols: Set up reporting channels and stakeholder updates

Mapping each task on a Gantt chart helps you build a realistic timeline and see which tasks to tackle first in your building projects. For example, you may discover you need a team of subcontractors to clear and prepare the site, and rent diggers and forklift trucks for the entire duration of this phase.

Planning your approach means you can see when and where equipment, materials and people are needed. Sometimes, it helps to work backwards. Start with the delivered project and note the stage before it. Keep working backwards until you reach the first stage.

Let's recap the planning stage of your construction project:

• Include key elements in your plan, such as workforce, materials, permits, risk management, and health and safety
• Use a Gantt chart to build a realistic timeline and see what needs to be tackled first
• Work backwards from your delivered project to figure out each step

Required documentation and signage

Your site needs to display important information for your team and any visitors. Set up a notice board in a visible location with key documents, including your Health and Safety Law poster, valid insurance certificates, a copy of your fire and emergency plan, and any safety inspection reports, as you must keep the report available on-site.

Clear safety signage, like warnings for hazards or directions for traffic, is also essential to keep everyone informed and safe.

Welfare facilities setup

Providing proper welfare facilities is a legal requirement and essential for your team's wellbeing. You must provide access to clean toilets, washing facilities with hot and cold running water, and a supply of drinking water. Set up a designated area where workers can rest and eat their meals away from the work zone.

Executing and monitoring

Project monitoring tracks ongoing activities and costs to ensure successful completion. Construction costs fall into two main categories that require different tracking approaches.

Cost types to monitor:

• Hard costs: Equipment, materials, and labour directly related to physical construction
• Soft costs:Project management, permits, and inspections that support the overall project

To support your profit margin, compare your budget with your actual expenses. Use cloud-based accounting software to create cash flow forecasts based on live expense data, so you have a clear view of the financial health of your construction business.

Setting up a payment schedule with your client can help with your cash flow management. A payment schedule is a timeline of payments between construction businesses and clients. Instead of paying one lump sum, clients pay a percentage of the project cost at each phase or milestone, depending on your agreement.

Some other aspects you'll want to monitor are:

• Inventory, so you have the right materials ready at the right time
• Legal and regulatory compliance, to make sure you're delivering the project in line with laws and guidance
• Performance metrics, so you're on track to deliver a successful and profitable project

Monitoring doesn't always need to be manual; you can automate it with accounting software and project management software. Track inventory and expenditure in Xero, or try one of our construction apps like ServiceM8 to track project progress and outstanding tasks.

Let's recap this construction project start-up stage:

• Track hard costs and soft costs, inventory, legal and regulatory requirements, and performance metrics for a complete view of your progress
• Compare your budget to your actual spending and use a cash flow projection to prepare for future cost overruns
• Set up a payment schedule with your client to help with cash flow management
• Automate monitoring activities to save you time and improve accuracy

Managing your construction site finances

Construction cash flow management protects your business from payment delays and unexpected costs. Effective financial tracking helps you maintain steady cash flow so your construction business can grow over the long term.

Cash flow benefits:

• Payment security: Faster invoice processing reduces waiting times
• Cost control: Real-time expense tracking prevents budget overruns
• Business stability: Support for ongoing operations through consistent cash flow

Construction accounting software automates cost tracking and budget management, saving hours of manual work each week. Modern payment systems also speed up collections significantly.

Financial management benefits:

• Automated tracking: Real-time cost monitoring prevents budget overruns
• Faster payments: Multiple payment options reduce collection times
• Better insights: Live financial dashboards support informed decisions

Ready to streamline your construction finances? Try Xero for free and see how automated accounting can transform your business operations.

For more tips, explore our selection of guides covering all aspects of managing your construction business.

FAQs on construction site setup

Here are some answers to common questions about setting up a construction site.

What is required to set up a construction site?

Setting up a construction site involves several key steps. You'll need to secure the perimeter, arrange for welfare facilities like toilets and water, put up required safety signage and legal documents, and ensure you have all the necessary permits and approvals before any work begins.

What are the first things to do on a construction site?

The very first tasks are usually to establish a secure boundary with fencing, set up site access points, and install basic welfare facilities for the workforce. You should also post all mandatory health and safety information and signage.

How do you ensure a construction site is safe?

Ensuring safety starts with a detailed risk assessment and a clear health and safety plan. This includes providing the right PPE, training workers on safety procedures, displaying emergency plans, and regularly inspecting the site for new hazards. Clear signage and a secure perimeter are also crucial.