THE four-year slump in the construction industry has seen more than

500,000 jobs lost, cut-throat competition forcing building prices down

to suicide levels, and there are forecasts that a further 110,000 will

go by the end of next year.

But such desperate circumstances have not deterred people from setting

up in the industry, which should be leading the country's investment

recovery.

Back in the Thatcherite year of 1987, bored trainee bank clerk Graeme

Kane wanted a change. House prices were soaring and building projects

springing up all over the UK. He decided to switch careers.

He started a four-year degree course at the then Glasgow Polytechnic

to obtain a BSc (Build). But before he was even halfway through his

studies, output in the construction industry had collapsed.

Nevertheless, on completing his degree in 1991, Kane was still in the

enviable position of being offered two jobs with major construction

firms -- Tarmac and Henry Boot.

He chose the latter. Just one month before starting, he was told his

services would not be required because of the recession. On calling on

Tarmac, he was informed the position was filled.

Two years on, Kane is running Beta Builders 2000, based in Old Mearns

Road, Mearnskirk, Newton Mearns, its Greek name a tribute to ancient

master craftsmen.

Founded in March, it is now tendering for contracts up to #100,000,

mostly house extensions or refurbishments and office alterations.

After his jobs blow in 1991, Kane filled in time while writing to

about 50 construction firms by working for a friend, Peter Dalglish, of

wholesale plant suppliers Blue Acre Nursery in Newton Mearns.

His applications were rejected, usually on grounds of ''hard times'',

despite his degree grounding in subjects ranging from maths and

chemistry to practical building, embracing construction techniques,

materials, and pricing.

Dalglish finally asked him to oversee an extension to his

two-bedroomed bungalow. The work included adding five bedrooms, a sun

lounge, games room, double garage, and stables.

Dalglish was so impressed by his handling of the project that he

offered to finance a new construction company, with Kane, now 25,

managing contracts from start to finish.

Kane says: ''We were well aware of the state of the building industry,

and that the possibility of work was limited. Despite the industry's

pessimism, and with few signs of a pick-up, I jumped at the chance --

because the work is still out there to be won.

''It was a risk, but one worth taking. Business exists, even if it is

harder to find than in the boom years of the mid-eighties when profit

margins were much higher.

''Competition is fierce -- a lot of big companies are taking contracts

at cost price, just to keep ticking over, and I have been surprised at

the number of medium-sized firms now tendering for even the smallest

jobs. Everyone -- and that includes the 'cowboys' -- is fighting to stay

in business.''

He believes preparation and patience, coupled with an experienced,

reliable workforce, will prove the keys to success.

''It is a recipe for disaster to take on too much work, no matter the

desire. I cannot be in more than one place at a time as project manager,

so groundwork is important.

''A lot of time is spent preparing for any problems that could arise

before going on site, especially with regard to prices of materials and

their supply.''

Kane is confident expansion will follow naturally, based on the firm's

reputation and close liaison with clients and their architects.