Professional Documents
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The construction industry can comfortably boast to be responsible for the infrastructural
development of the world. As such, the development of any country or city can be said to be
the handiwork of construction companies and other stake holders. In other words, all the
edifices, bridges, dams, roads, estates, campuses, shopping malls, office complexes,
skyscrapers and massive structures that you see around are all products of the construction
industry.
Starting a construction business is capital intensive simply because of the type of heavy
duty equipment that is required to carry out a construction project and also the cost of
managing a large workforce. Despite the fact that the construction industry requires huge
start – up capital, the industry is highly profitable, especially if you have the expertise and
capacity to deliver quality jobs. The major clients for construction companies are
governments and the private sector.
Construction giants all over the world head towards developing countries, because they
know that they are going to get juicy construction contracts there. Unlike in advanced
economy, in developing countries and undeveloped world, there are loads of construction
works to be done. The fact that they have infrastructure deficit means that the government
must be up and doing in terms of road constructions, bridge construction, public facility
construction (hospitals, schools, office facilities and estates et al) and dams constructions.
After a war, the construction industry is one of the major stakeholders that contribute in the
rebuilding of a country. In so doing, they work with governments in ensuring that basic
infrastructures are restored and of course it will always ends up a win – win situation for
both parties. The government gets what they want and the construction company and
contractors get good returns for delivering the projects.
Over and above, the success of a construction company to a larger extent depends on their
relationship with the biggest clients in the industry; the government of any country. No doubt
there is always enough construction contracts to go round as long as a construction
company is competent and well positioned. They won’t lack construction contracts from
both the government and the private sector.
Road Construction
Bridge Construction
Dam construction
Seaports Construction
Skyscrapers construction
Estate construction
Public facility construction (hospitals, schools, shopping malls, office complexes and
industrial facilities et al)
At Shannon Berg Construction Company, our mission and values are to help governments,
the private sector and individuals in the United States of America and throughout the world
realize their dreams of building a world class structure that can compete on a global stage
with the best in the construction industry.
Business Structure
Shannon Berg Construction Company intend starting small from Grand Rapids, Michigan,
but with a vision of growing the business to becoming a global construction brand with
presence in all the continents of the world. In order to achieve this vision, we just have to
position our company for growth and ensure that we hire dedicated and highly competent
employees at all levels.
Shannon Berg Construction Company will ensure that we build a team that will work
together towards achieving the company’s vision. We will build a business that has the right
structures and process in place that can support growth; a business that runs on auto pilot.
In view of the above, we have made provisions for the following position in our organization
based on the size of the company we intend starting but as the business grows, we will
create senior level positions and also create a structure that will support the business
growth at every growth and expansion stage;
Project Manager
Civil Engineer
Structural Engineer
Quantity Surveyor
Land Surveyor
Business Developer
Accountant
Project Manager
Responsible for the planning, management and coordinating all projects on behalf of
the company
Supervises projects
Responsible for overseeing the accounting, costing and billing of every project
Ensures that project desired result is achieved, the most efficient resources are
utilized and different interests involved are satisfied.
Civil Engineer
Responsible for preparing bids for tenders, and reporting to clients, public agencies
and planning bodies
Ensures that sites meet legal guidelines, and health and safety requirements
Responsible for judging whether projects are workable by assessing materials, costs
and time requirements
Discussing requirements with the client and other professionals (e.g. architects and
project managers et al)
Responsible for managing, directing and monitoring progress during each phase of a
project
Architect
Responsible for creating building designs and highly detailed drawings both by using
the hands and by using specialist computer – aided design (CAD) software
Adapting plans according to circumstances and resolving any problems that may
arise during construction
Responsible for applying for planning permission and advice from governmental new
building and legal department.
Land Surveyor
Responsible for producing and advising about construction plans and drawings
Responsible for advising about technical matters and whether the construction plans
are viable
Responsible for drawing up contracts and other legal documents for the company
Consult and handle all corporate legal processes (e.g. intellectual property, mergers
& acquisitions, financial / securities offerings, compliance issues, transactions,
agreements, lawsuits and patents et al)
Responsible for overseeing the smooth running of HR and administrative tasks for
the organization
Identifies, prioritize, and reach out to new partners, and business opportunities et al
Responsible for supervising implementation, advocate for the customer’s needs, and
communicate with clients
Develops, executes and evaluates new plans for expanding increase sales
Documents all customer contact and information (manage the company’s CRM
system)
Accountant
Responsible for preparing financial reports, budgets, and financial statements for the
organization
Handles enquiries via e-mail and phone calls for the organization
Strength:
Shannon Berg Construction Company can confidently boast of having a competent and
highly experienced management team who are regarded as some of the best hands in
Michigan. Although we are a new construction company, but our president and board of
trustee are respectable people in the United States of America who have served the US
government in various capacity; we are a construction company that has the right network
that is suitable for the kind of business we are into.
Weakness:
Well the fact that we are a new construction company could count as a weakness. It is
normal for clients to think twice before awarding construction contracts to newbies in the
industry. Another weakness that can count against us in the industry is the fact that we may
not have the financial muscles to drive the business the way we ought to drive it. We require
huge financial base to be able to acquire some of the latest heavy duty construction
equipment.
Opportunities:
Our business concept, our mission and vision puts us at an advantage in the industry. We
will start small to build trust within Grand Rapids, Michigan and there are loads of
opportunities for us there simply because we are well positioned to work with both the state
government and the highly organized private sector.
Threat:
Generally in the construction industry, both the already established construction companies
and start – up construction companies are subject to threat from government policies, global
economic downturn and unforeseen natural disasters (disasters that may cause setback).
These are the threats that we are likely going to face as a newbie construction company in
Grand Rapids, Michigan. Another threat that we are likely going to face is the arrival of a big
construction company in the location where our business has strong presence.
Sample Construction Business Plan Template – MARKET ANALYSIS
Market Trends
The trend in the construction industry is that construction companies are always coming out
with processes that will help them achieve more within a short period; construction jobs can
be time consuming especially the construction of massive infrastructures. Most players in
the construction industry are fully aware that the government of any country or state is the
biggest clients they can get and they do all the lobbying and horse trading to ensure that
they get government contracts.
No doubt there are loads of big time investors that have stakes in the construction industry,
but one thing is certain, there is room big enough to accommodate both the big construction
companies and the small construction companies. What smaller construction companies
need to do to survive in the industry is to concentrate on developing estates, schools,
hospitals and hotels et al before bidding for big construction contracts like road construction,
bridge construction, dam construction and skyscrapers et al.
Another obvious trend in the construction industry is subletting of contracts. It is now
obvious that construction giants leverage on their brands to win contracts and in some
cases after they have won the contract, they will go ahead to sublet the contract to smaller
construction company that they trust can deliver to execute the project at an agreed fee that
will be good enough for both parties to make profits. Smaller construction companies
position themselves to be able to leverage on such opportunities once it present itself.
Target Market
Our target market cuts across governments at all levels and countries, the organized private
sector and people of different class and from all walks of life. We know that our selling
points will be our excellent and timely delivery of construction projects using global best
practices.
We will start with the local market, people, organizations and the government in Michigan,
but we hope to spread our nets to clients from other states in the US and thereafter other
countries of the world. Shannon Berg Construction Company will be known for working with
smaller clients (various individuals) as well as working for bigger clients (various
governments and organized private sector). Below is a list of the people and organizations
that we have specifically designed our services for;
Families
Land Owners
University Campuses
Foreign investors who are interested in owning properties in the United States of
America
Competitive Advantage
We are quite aware that there are big – time investors and construction companies who are
well recognized in the construction industry, and we maybe have to compete with them
when it is time to bid for juicy government contracts. It might be challenging competing as a
newbie in the construction industry, especially in a highly organized market like that of the
United States of America, which is why we were deliberate in choosing our board members.
Our competitive advantage is not limited to the crop of highly experienced professions that
are members of our management team but also our board members.
Our board members are highly respected professionals in the United States who have
served the government of the United States at various capacities; people who are
accomplished business gurus and people who have the right connections and experience to
make things happen with little or no struggle. For us, it is indeed part of the competitive
advantage that we are bringing to the market.
Another positive for Shannon Berg Construction Company is the fact that our Chief
Executive Officer / President is a renowned Civil Engineer, he has robust experience in the
construction industry and he has worked extensively as a senior project manager for one of
the world’s leading construction companies. He is sure going to bring is experience,
expertise and network (connections) to make Shannon Berg Construction Company one of
the leading construction brand in Grand Rapids, Michigan and also active player in the
global construction market.
Sample Construction Business Plan Template – SALES AND MARKETING STRATEGY
We have been able to clearly define our target market and have documented this in our
construction marketing plan. We know how to get them to hire our services which is why we
have decided to adopt some of the winning formula that construction giants utilize to win
major construction contracts.
We know that it will take different marketing and sales strategies to win small clients and
bigger clients. For example; there are requirements a construction company would hate to
meet before they can be awarded a government contract. We have put all these factors in
place before creating a workable marketing and sales strategy for Shannon Berg
Construction Company.
Shannon Berg Construction Company is fully aware of the bureaucracy and horse trading
that exists in bidding for construction contracts from the government and even the
organized private sector, which is why we were able to put protocols in place to hire some of
the best business developer to handle our sales and marketing.
No doubt, our sales and marketing team will be recruited based on their vast experience in
the construction industry and their ability to fit into our business model. We are going to pay
more emphasis in the training of all our employees so as to give them all they would need to
help the company achieve its aim and objectives. Our goal is to become one of the leading
construction companies in Grand Rapids, Michigan and we know we can achieve this by
ensuring that our sales and marketing team are delivering on set targets. Shannon Berg
Construction Company will adopt the following marketing and sales strategies;
Introduce our business by sending introductory letters alongside our brochure to all
the corporate organizations and government offices in Grand Rapids, Michigan and
other States in the US.
Create different packages for different category of clients in order to work with their
budgets and still deliver quality housing/ property to them
Leverage on the internet (social media platforms and our official websites) to
promote our business
Sources of Income
Shannon Berg Construction Company was established with the aim of maximizing profits
through delivering quality and standard construction works for our highly esteemed clients.
We will ensure that we generate income from every available means within the construction
industry. Below are the sources we intend exploring to generate income for Shannon Berg
Construction Company;
Road Construction
Bridge Construction
Dam construction
Seaports Construction
Skyscrapers construction
Estate construction
Public facility construction (hospitals, schools, shopping malls, office complexes and
industrial facilities et al)
Construction of residential apartments
Sales Forecast
It is important to state that our sales forecast is based on the data gathered during our
feasibility studies and also some of the assumptions readily available on the field. We have
relationship with major stake holders in the real estate and construction industry in Grand
Rapids, Michigan and also in order states in the US and we are sure of getting key
construction contracts to kick start of business. Below are the projections that we were able
to come up with for the first three years of Shannon Berg Construction Company;
N.B: This projection is done based on what is obtainable in the industry and with the
assumption that all things that will facilitate easy flow of construction contracts. From our
calculations, we are likely going to make a minimum of 30 percent profits after task from
executing key construction projects.
Pricing
Part of business strategy is to ensure that we work within the budget of our clients to deliver
excellent and world class construction projects. We are quite aware that there are major
players in the construction industry in the United Stated of America who are not interested in
small business deals and that is why we have positioned Shannon Berg Construction
Company to take on such contracts.
Although our prices may not be outrageously lower than what is obtained in the industry, but
we are hopefully that whatever price we bill our customer will be amongst the lowest they
can get in the industry. The fact that we are going to be billing our clients lower than what is
obtainable in the industry does not in any way going to affect the quality of our construction
projects.
Payment Options
Our payment policy in Shannon Berg Construction Company is all inclusive because we are
quite aware that different people prefer different payment options as it suits them, but at the
same time, we will not accept payment by cash because of the volume of cash that will be
involved in most of our transactions. Here are the payment options that we will make
available to our clients;
In view of the above, we have chosen banking platforms that will help us achieve our plans
without any itches.
Sample Construction Business Plan Template – Publicity and Advertising Strategy
We have been able to work with our consultants to help us map out publicity and advertising
strategies that will help us walk our way into the heart of our target market. First and
foremost, we want our brands to be visible and well communicated, which is why our
publicity strategy have been well crafted to help us achieve our aims and business
objectives. All our publicity materials and jingles are done by some of the best hands in the
industry. Below are the platforms we intend to leverage on to promote and advertise our
property development business;
Leverage on the internet and social media platforms like; Instagram, Facebook
,Twitter, LinkedIn, Badoo, Google+ et al
The Total Fee for incorporating the Business in New York: $750.
The Amount needed to acquire a suitable Facility with enough space in Grand
Rapids, Michigan (Re – Construction of the facility inclusive): $500,000.
The Cost for equipping the office (computers, printers, fax machines, furniture,
telephones, filing cabins, safety gadgets and electronics et al): $15,000
Going by the report from our research and feasibility studies, we will need about $7,000,000
(7 US Million Dollars) to set up a construction company in Grand Rapids, Michigan. It is
important to state that most of the heavy duty construction equipment that we will work with
will be leased. This necessary because some of these equipment are really expensive and
it won’t be economical for us to acquire them from the start.
Generating Funding / Startup Capital for Shannon Berg Construction Company
The Chief Executive Officer / President Engr. Shannon Berg will generate 20 percent
of the start – up capital from his personal savings and sale of his stocks
30% of the capital will be generated from key partners (Nani David, Lois Scotland
and Christopher Parkston)
Purchase of the Needed furniture, office equipment, electronic appliances and facility
facelift: In progress
Establishing business relationship with key players in the industry (networking and
membership of relevant construction bodies): Completed