Starting a Construction Company in Maine 2024: Complete Guide

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How to Start a Construction Company in Maine

Are you considering starting a construction company in the bustling and opportunity-rich Maine? If so, you’ve come to the right place. This comprehensive guide will walk you through the essential steps to start an LLC in Maine, covering everything from research and planning to registration and funding. By following this roadmap, you’ll be well on your way to turning your entrepreneurial dreams into reality and capitalizing on the thriving construction market in Maine.

The construction industry is a vital component of Maine economy, with a constant demand for new projects and infrastructure development. At LLCBase, we understand that forming a business can be an overwhelming experience, so we are here to help you every step of the way. Discover the key steps to start a construction company in Maine, and prepare to make your mark in this dynamic and ever-growing industry.

What is a Construction Company

A construction company is a business that specializes in constructing, renovating, or demolishing buildings, infrastructure, and other projects. They provide project management, design, engineering, and material procurement services, working with clients from initial planning to project completion. A construction company can operate in various residential, commercial, industrial, and civil engineering sectors.

Why Start a Construction Company in Maine

The first advantage of starting a construction company in Maine is the strong and prosperous economic condition that the state prides itself on. The state’s robust economy ensures that businesses, organizations, or individuals are always ready to invest in construction projects. With a flourishing economy, construction companies in this state enjoy a constant flow of projects and business opportunities. The state’s favorable business climate makes it an incredibly lucrative option for entrepreneurs looking to start a construction company. The legal, economic, and institutional arrangements

The growing population in Maine is another significant advantage that drives the demand for new construction projects. Soaring housing needs due to population growth provide a steady demand for residential construction projects. Similarly, the population increase also translates into the need for more commercial and infrastructure projects, hence a constant stream of work for construction companies in the area. It’s important to note that the state’s population is growing and becoming more urbanized, presenting even more opportunities for construction companies in urban development.

Finally, Maine is home to diverse industries such as energy, technology, and agriculture, each presenting unique construction needs. These industries continually require new facilities, upgrades to current buildings, and maintenance work, providing ongoing employment opportunities for construction companies. In particular, the energy and technology sectors can offer opportunities to specialize in niche markets, such as constructing highly profitable renewable energy facilities or tech hubs.

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Starting a Construction Company in Maine: A Guide

The initial step to launching a construction company involves conducting a market search and devising a detailed business plan that outlines your financial projections, target market, and marketing strategy. Following this, you need to register your business with the relevant authorities, attain necessary licenses and permits, and ensure you comply with any laws and guidelines in the construction industry. Lastly, secure the necessary funding, hire a competent team, purchase essential equipment, and promote your business to attract clients.

Step 1: Conduct a Market Search

Before embarking on your journey to start a construction company, it’s crucial to thoroughly research the market in Maine to gain insight into the unique needs and opportunities within the region. To do this effectively, consider the following resources and strategies:

  • 1. Visit the Maine Revenue Services: The Maine Revenue Services can provide valuable information on industry trends, tax requirements, and other regulations that may impact your construction business in Maine.
  • 2. Consult Local Government Websites: In addition to the Maine Revenue Services, explore other local government websites to gather information on zoning regulations, building codes, and permit requirements specific to Maine.
  • 3. Analyze the Competition: Investigate potential competitors in the Maine construction market by using the Maine Secretary of State Corporate Name Search business search tool. This will help you understand the competitive landscape and identify any gaps in the market that your company could fill.
  • 4. Network with Industry Professionals: Attend local industry events and join construction associations in Maine to network with other professionals in the field. These connections can offer valuable insights into the local market and provide potential partnership opportunities.
  • 5. Research Training and Certification Programs: Familiarize yourself with available training programs and certifications in Maine to help you and your employees stay current with industry best practices and safety standards.

By thoroughly researching the construction industry in Maine, you’ll be better equipped to identify opportunities, navigate regulations, and create a strong foundation for your construction company’s success. We also compiled the list of the best LLC formation services in Maine to help you start a successful construction company.

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Step 2: Develop a Comprehensive Business Plan

Creating a well-thought-out business plan is a crucial step in securing funding and guiding the growth of your construction company. To ensure your plan effectively covers all the essential aspects, consider incorporating the following components:

  • Executive Summary: Provide a concise overview of your construction company, including its mission, vision, and objectives. Highlight the unique selling points that set your business apart from competitors in the Maine market.
  • Market Analysis: Conduct a thorough analysis of the construction industry in Maine, including market size, growth potential, and target customer segments. Identify your company’s opportunities and challenges and outline strategies to address them.
  • Organizational Structure: Define your company’s management hierarchy and describe the roles and responsibilities of each team member. Include an organizational chart to illustrate the relationships between different positions within the company.
  • Marketing Strategy: Detail your plans for promoting your construction company in Maine, including advertising channels, public relations efforts, and networking opportunities. Outline strategies for building a strong brand presence and engaging with potential clients.
  • Financial Projections: Provide realistic financial forecasts for your construction company, including projected income, expenses, and cash flow. Include a break-even analysis to demonstrate when your company will become profitable.
  • Compliance with Regulations: Outline your plans for complying with state and federal regulations, such as obtaining the necessary licenses, permits, and insurance coverage. Research and include information specific to Maine, such as the Maine Secretary of State requirements and any relevant local ordinances.

By developing a comprehensive business plan that addresses these key components, you’ll be better positioned to secure funding, attract investors, and guide your construction company toward success in the Maine market.

Step 3: Register Your Business

Starting an LLC (Limited Liability Company) is essential in setting up your construction business. To successfully register your company as an LLC in Maine, follow these steps:

  1. Choose a Unique Company Name: Select a distinctive name for your construction company that complies with Maine’s LLC naming guidelines. Ensure the name is available using the Maine Secretary of State Corporate Name Search business search tool.
  2. File Articles of Incorporation: Prepare and submit the Articles of Incorporation to the Maine Secretary of State. This document outlines essential information about your company, such as its name, purpose, and management structure.
  3. Pay the Initial Filing Fee: Along with submitting the Articles of Incorporation, you’ll need to pay the $175 initial filing fee to the Maine Secretary of State.
  4. Obtain an EIN (Employer Identification Number): Apply for an EIN in Maine from the Internal Revenue Service (IRS). This unique identification number is required for tax purposes and allows you to hire employees.
  5. Set up an Operating Agreement: While only sometimes required, it’s a good idea to create an operating agreement that outlines the rules and procedures for managing your LLC, including ownership percentages, profit distribution, and decision-making processes.
  6. Comply with Annual Reporting Requirements: As Maine LLC, you must file annual reports with the Maine Secretary of State and pay the $85 annual fee. Ensure you adhere to the 1 year (1st June)-year reporting schedule to maintain your company’s good standing.

By carefully following these steps, you can successfully register your construction business as Maine LLC and benefit from its limited liability protection and tax advantages.

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Step 4: Secure Licenses and Permits

To operate a construction company in Maine, you must obtain the required licenses, certifications, permits, and insurance. This ensures regulatory compliance and protects your business and employees. Follow these guidelines to acquire the necessary credentials and coverage:

  • Contact the Louisiana Workforce Commission: Reach out to the Louisiana Workforce Commission to obtain information on general contractor licenses, trade-specific permits, and other required certifications for construction companies in Maine. They can guide application procedures, fees, and renewal requirements.
  • Obtain Trade-Specific Licenses and Certifications: Depending on the services your construction company offers, you may need additional licenses or certifications in areas such as plumbing, electrical work, or HVAC. Research the specific requirements for your trade-in Maine and complete any necessary training or examinations.
  • Apply for Local Permits: Depending on your location, you may need to secure local permits for building, zoning, or land use. Please consult your local government office to determine the necessary permits and their application processes.
  • Register for State Taxes: Register your construction company with the Maine Revenue Services to ensure compliance with Maine tax laws. This may include 8.93% income tax, 5.50% sales tax, and other applicable taxes.
  • Obtain General Liability Insurance: Secure general liability insurance to protect your construction company from potential claims arising from property damage, bodily injury, or other liabilities. Consult with an insurance agent experienced in construction industry policies to determine the appropriate coverage for your business.
  • Purchase Workers’ Compensation Insurance: As a construction company in Maine, you must provide workers’ compensation insurance. This coverage protects your workers in case of work-related injuries or illnesses and safeguards your company from potential legal claims.

By obtaining the required licenses, certifications, permits, and insurance, you can ensure your construction company operates legally and responsibly in Maine while also protecting the interests of your business and employees.

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Step 5: Secure Funding

Launching a construction company often entails substantial initial equipment, materials, and personnel investments. To obtain the necessary capital for your startup, consider exploring a variety of funding options tailored to your business needs:

  • Bank Loans: Traditional bank loans can provide significant capital for your construction company. Research various banks and lending institutions in Maine to find the most favorable interest rates and terms. Prepare a strong business plan and financial projections to present to potential lenders.
  • SBA Loans: The Small Business Administration (SBA) offers loan programs designed to help small businesses secure financing. Check if your construction company qualifies for an SBA loan, and explore the different loan programs available, such as the 7(a) Loan Program or the CDC/504 Loan Program.
  • Grants: Investigate the availability of grants for construction companies in Maine. While grants may be more competitive and challenging to obtain, they offer the advantage of not having to be repaid. Look for grants from federal, state, and local government agencies and private organizations.
  • Private Investors: Attracting private investors or venture capitalists can provide your construction startup with the necessary funding in exchange for equity in your company. Prepare a compelling pitch highlighting your construction business’s potential return on investment and growth opportunities.
  • Crowdfunding: Consider leveraging crowdfunding platforms like Kickstarter or Indiegogo to raise capital for your construction company. These platforms allow you to showcase your business idea and attract small investments from many individuals.
  • Family and Friends: Reach out to your personal network of family and friends to seek financial support for your construction startup. Ensure you have clear terms and agreements to avoid potential conflicts or misunderstandings.

By exploring diverse funding options, you can secure the necessary capital to launch and grow your construction company in Maine. Remember to weigh the pros and cons of each option while considering your business’s specific needs and financial goals.

Step 6: Strengthen Your Business

After successfully launching your construction company, it’s essential to concentrate on growth and forge strong relationships with clients, subcontractors, and suppliers. To establish your company’s reputation and create new business opportunities, consider the following strategies:

  • Prioritize Customer Service: Deliver exceptional customer service by being responsive, reliable, and transparent. Satisfied clients are more likely to recommend your construction company to others, leading to increased referrals and repeat business.
  • Build a Solid Network of Subcontractors and Suppliers: Cultivate relationships with reliable subcontractors and suppliers, ensuring your construction projects are completed on time and within budget. A strong network can also help you secure better pricing and more favorable terms.
  • Attend Industry Events: Participate in trade shows, conferences, and networking events within the construction industry in Maine. These gatherings provide opportunities to meet potential clients, stay informed about the latest trends and technologies, and learn from other professionals in the field.
  • Develop a Strong Online Presence: Create a professional website and use digital marketing strategies, such as search engine optimization (SEO), social media marketing, and email marketing campaigns. A robust online presence helps increase your company’s visibility and reach a broader audience.
  • Seek Partnerships and Collaborations: Partner with other construction companies or complementary businesses in Maine to tackle larger projects or expand your service offerings. Collaborations can lead to more significant opportunities and increased revenue.
  • Continuously Improve and Innovate: Stay current with industry advancements, and invest in training and development for your team. Continuously seek ways to improve your company’s operations, services, and overall efficiency to maintain a competitive edge in the market.

By focusing on these growth strategies, you can expand your construction business in Maine, establish a strong reputation, and generate new business opportunities that contribute to long-term success.

Startup Costs for a Construction Company

The costs of starting an LLC  in Maine can fluctuate based on the size and scope of your business. To help you estimate the startup costs for your construction company, consider the following factors:

  • Equipment Purchases: Depending on the services your construction company offers, you’ll need to invest in equipment such as trucks, excavators, cranes, and power tools. Consider whether you will buy or lease equipment and factor in maintenance and replacement costs.
  • Initial Inventory: Your construction company will require an inventory of materials, including lumber, concrete, steel, and other building supplies. The cost of these materials will depend on the scale of your projects and the suppliers you choose.
  • Office Space: Establishing a physical office location for your construction company will incur rent, utilities, office furniture, and equipment. Alternatively, you may operate your business from home or utilize a co-working space to minimize expenses.
  • Marketing and Advertising: Allocating funds for marketing and advertising efforts is essential for raising awareness of your construction company in Maine. Costs may include website design, digital marketing, print materials, and participation in industry events.
  • Licenses, Permits, and Insurance: Factor in the costs of obtaining your construction company’s necessary licenses, permits, and insurance coverage in Maine. These costs may include $175 application fee, $145 for filing in person and by mail incorporation fee, $85 annual report,  examination fees, and insurance premiums.
  • Professional Services: You may need to hire professionals such as attorneys, accountants, or consultants to assist with legal, financial, or operational aspects of your construction company. These services will incur additional costs.
  • Employee Salaries and Benefits: Consider the costs of hiring employees, including salaries, benefits, and payroll taxes. These expenses will vary based on the number of employees you hire and their roles.

By evaluating these factors, you can better understand the potential costs of starting a construction company in Maine. This information will help you develop a realistic budget and make informed financial decisions as you launch and grow your business.

Advantages of Starting Maine Construction Company

  • Thriving Market for Construction Services: With a growing population and booming economic development in Maine, there is a high demand for construction services. As more businesses and residential areas emerge, construction companies have ample opportunities to secure contracts and projects, making it an ideal environment to start your construction company.
  • Access to Skilled Workforce and Training Resources: Maine is home to a diverse and skilled workforce, providing construction companies with a pool of qualified professionals to hire. Additionally, numerous training resources and programs are available to help your employees stay up-to-date with the latest industry advancements and safety standards, ensuring your company maintains a competitive edge.
  • Attractive Tax Environment: Starting a construction company in Maine also offers tax advantages, with competitive 8.93% income tax and 5.50% sales tax rates. Additionally, the No franchise tax franchise tax fee ensures a favorable tax environment for businesses, contributing to a more profitable bottom line.
  • Efficient Business Registration and Licensing Processes: Maine has streamlined its business registration and licensing processes, making it easier for entrepreneurs to start a construction company. With the 120 days name reservation time, Not available online name reservation fee, and $20 mail name reservation fee, registering your company is a hassle-free experience. Plus, the state ensures a smooth registration process.

By understanding the advantages of starting a construction company in Maine, you can decide to launch your business and enjoy the numerous benefits this thriving market offers.

FAQs

What is the process of starting a construction company in Maine?
To start a construction company in Maine, you need to register your business with the Maine Division of Corporations.
What are the fees associated with registering a construction company in Maine?
The fees for registering a construction company in Maine vary depending on the type of construction work you plan to do.
What certifications do I need to start a construction company in Maine?
You may need to get certain certifications to start a construction company in Maine. For example, if you are working on asbestos abatement projects, you may need to obtain an asbestos abatement contractor license.
What are the requirements to start a construction company in Maine?
To start a construction company in Maine, you need to have a business plan, a license from the Maine Division of Licensing and Inspection, a registered and inspected office, and insurance coverage.
What type of insurance do I need to open a construction company in Maine?
Most construction companies in Maine require two types of insurance
Can I operate a construction company in Maine without insurance?
No. You must have general liability and workers’ compensation insurance to operate a construction company in Maine.
What regulations do I need to be aware of when starting a construction company in Maine?
You need to comply with the regulations set forth by the Maine Department of Labor, the Maine Department of Environmental Protection, and the Occupational Safety and Health Administration (OSHA), as well as the standards set forth by the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE).
Are there any tax breaks for starting a construction company in Maine?
Yes, there are tax breaks for construction companies in Maine. You may be eligible for a state or federal tax credit related to hiring, training, and an investment for starting a new business in Maine.
What is the process of getting a business license to start a construction company in Maine?
To get a business license to start a construction company in Maine, you should first register your business with the Maine Division of Corporations and then get a business license from the Maine Division of Licensing and Inspection.
Is it easy to start a construction company in Maine?
Starting any business is not an easy thing to do. However, it can be relatively straightforward if you have a clear business plan, legal and tax advice, and knowledge of the relevant regulations and certification requirements to operate in Maine.
Is the Maine government supportive of small construction businesses?
Yes, the Maine government supports small businesses. There are numerous state-level programs and initiatives that help small businesses through loans, crowdfunding campaigns, or tax breaks.
Where can I access to business loans for a new construction company in Maine?
You can apply for business loans in Maine from alternative lenders, traditional banks, the Maine Business Development Corporation, and the Maine Technology Institute in Maine.
What should I include in a business plan if I want to start a construction company in Maine?
You should include the following elements in your business plan for A construction companies in Maine – Executive summary, Company description, Market analysis, Service description, Marketing and S ales, Management and labor description, Financial analysis.
Are there any federal permits that a construction company in Maine needs to obtain before starting work?
Some construction businesses are required to obtain permits from the US EPA or other federal agencies depending on their activities, such as painting or powerwashing coating near water bodies.
Can non-US citizens start a construction business in Maine?
Yes, non-US citizens can start a construction business in Maine. However, they must obtain a Work Visa to operate legally.
Is it possible to open a virtual or online construction business in Maine?
Yes, There is no need to have a physical office to start a virtual or online construction business in Maine, but you must register as a business entity with the state and must derive income from the activities.
What services can a contract employee provide a construction company in Maine?
The contractor employees can offer a variety of services to construction companies in Maine, including electrical, plumbing, carpentry, and concrete work, designing, contract building, etc.
What is the accreditation process for construction-related programs in Maine?
The Maine Department of Education and the Maine Technical Career Center provide accreditation for construction-related programs in Maine.
Can I hire apprentices for my construction company in Maine?
Yes, you can hire apprentices in your construction business in Maine. ApprenticeshipME through the Maine Department of Labor can help you in this regard.
What are the construction requirements in Maine?
Each municipality in Maine has its own construction requirements. However, it may reference some international standards such as the International Building Code.
Who can conduct Maine plumbing inspections?
Plumbing inspections in Maine have to be conducted by either licensed plumbers or certified plumbing inspectors appointed by the state.
Are there any safety regulations for electric wiring in Maine?
Yes, As per Maine regulations, there are specific safety regulations for electric wiring in Maine. Certifications can be at local or statewide. Inhabitants of Maine’s unincorporated territories should follow state-level guidelines given by the Maine State Fire Marshal’s office.
What percentage of the building prices should be on materials and labor costs in Maine?
The material cost and labor cost depend greatly on the type of work performed. According to a report from First Research, On average, around 45%– 50% of construction costs on residential buildings belong to material costs and the remaining 50%–55% covers labor costs.
Are there any additional construction permits required within municipalities in Maine?
Yes, Some municipalities require additional construction permits than state-level to conduct activities in certain townships.
Can I operate heavy machinery right upon opening my construction business in Maine?
Yes, You are required to have safety training and OSHA certification for the operation of selected heavy machinery and vehicles.
Who is responsible for creating infrastructure regulations in Maine?
The department of Transportation in Maine is responsible for creating infrastructure regulations in Maine.
Are there resources for women who want to start their construction business in Maine?
Yes, Women Business Centers support women entrepreneurs with the New Beginnings Scholarship Program in Maine.
Is it essential to carry insurance for a home construction contractor in Maine?
Yes. It is essential for every business, and home construction contractors in Maine can compensate them to alleviate any financial impact when accidents or damages occur.
What are some lucrative construction niches in Maine?
Commercial building construction, interior renovation, Solar power installation, bridge construction/repair, roads, or strcture fixes are lucrative construction specimens in Maine.
Can I start a construction company in Maine without a license?
No, you need to obtain a valid builder’s license from the Maine Department of Professional and Financial Regulation.
How much does it cost to obtain a construction license in Maine?
The application fee is $200 and the license fee ranges from $105 to $625 depending on the type of license you are applying for.
What type of insurance do I need to start a construction company in Maine?
You need general liability insurance, workers’ compensation insurance, and commercial auto insurance.
Do I need a state tax ID to start a construction company in Maine?
Yes, you need to obtain a state tax ID number from the Maine Revenue Services.
Are there any Maine-specific construction regulations I should be aware of?
Yes, Maine has specific regulations for building codes, zoning, and environmental permits that you should research and comply with.
How can I register my construction company in Maine?
You can register your construction company with the Maine Secretary of State’s office.
How do I obtain a commercial driver’s license (CDL) in Maine for my construction company?
You can obtain a CDL through the Maine Bureau of Motor Vehicles.
Can I hire subcontractors for my construction company in Maine?
Yes, but you must make sure they carry valid licenses and insurance.
How can I comply with Maine’s environmental regulations?
You can contact the Maine Department of Environmental Protection for guidance and information.
Do I need to obtain any special permits to operate heavy equipment in Maine?
Yes, operators of heavy equipment should obtain a Maine class A – hoisting and a restricted Maine Crane license if applicable.
What types of zoning regulations are there in Maine for construction businesses?
Each of Maine’s municipalities enact zoning regulations, subdivision regulations, and land-use ordinances independently. Township officials are responsible for regulating development and land use within the limits of state and federal statutes.
Are there any Maine-specific labor laws that apply to construction companies?
Yes, construction companies in Maine need to comply with minimum wage laws, workers’ compensation laws, and safety regulations.
What are some common marketing strategies for construction companies in Maine?
Word of mouth is important for contractors, different social media platforms and building relationships on all levels. Having display photographs and testimonials on the website has proven to be effective in marketing.
Do I need any special certifications to start a green construction company in Maine?
You do not need any special certifications, but pursuing a Leadership in Energy and Environmental Design green building rating may be beneficial.
How can I find clients for my construction company in Maine?
You can join professional organizations, participate in local community events, and advertise in local publications.
Can I start a home-based construction business in Maine?
Yes, as long as your municipality allows for such uses and permits your home-based build. However special considerations must be made such as zoning regulations.
How long does it take to obtain a construction license in Maine?
It takes about 4-6 weeks to obtain a construction license in Maine following the submission of the appropriate forms.
Do I need to establish residency in Maine to start a construction company there?
No, you do not need to be a resident of Maine to start a construction business there, but it will be helpful.
What is the minimum age requirement to start a construction company in Maine?
You must be at least 18 years old to apply for a contractor’s license in Maine.
How long does it take to fully set up a new construction company in Maine?
The timeline for setting up a new construction company is predicated on the volume of the work requested but usually takes several months or 6 –12 months.
How can I obtain financing for my construction company in Maine?
You can opt for your local lender. the Small Business Administration, and private investors are becoming secure options.
What are the registration requirements for a construction business in Maine?
To Start the Business
Can I work as a general contractor in Maine without a license?
No, Maines’ lawfulness insist it to be obtained in the obtained in the general contractors.
How can I obtain a Special Inspections Agency license in Maine?
The Maine Boiler and Pressure Vessel Safety Program issue registrationss.
Can I obtain a license to operate a crane in Maine?
Yes, you can obtain a restricted crane-rated license in Maine by passing a written and practical test developed specifically for Maine.
What specific types of training must staff members at a construction entity in Maine complete?
It’s mandatory for first responders or OSHA trained employees or even supervisors should complete Regulation 29CFR, 1910, 1915 standard, or 1926 toolset training program, employee substance abuse. post workplace hazard regarding COVID-19.
What certifications must a Maine construction company obtain to bid on state projects?
To conform entitled State requirements an entity should be a current vendor on vendor search database, public entity which is Contract compliant particularly with Maine state required certificate of insurance and certificates regarding educational levels.
Where can I get additional guidance on how to start a construction business in Maine?
The Maine Department of Professional and Financial Regulation handles licensing affairs and can guide people about the regulations, department of economic and rural development also comply directives to businesses that caters operating companies for ease.

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Conclusion

Starting a construction company in Maine presents an exciting and rewarding opportunity for entrepreneurs looking to capitalize on the region’s thriving market. By carefully following the steps this guide outlines, you’ll be well-equipped to navigate the challenges and complexities of establishing a successful construction business in Maine. Remember to stay focused, continuously adapt to industry advancements, and prioritize customer satisfaction to ensure long-term success and growth.

Take the first step toward building your construction company in Maine. Visit LLCBase for even more resources and information to help you on your journey to success. We’re here to support and guide you every step of the way as you turn your construction business dreams into a reality. Let’s build a brighter future together in The Pine Tree State!

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