A Sample Construction Company

Business Plan Template

Okay, so we have considered all the requirements for starting a construction business. We
also took it further by analyzing and drafting a sampleconstruction marketing plan template
backed up by actionable guerrilla marketing ideas for construction businesses. So lets
proceed to the business planning section.
When you talk about property development business, loads of aspiring entrepreneurs may
want back off because they know that it is indeed a business that involves huge start up
capital. Nonetheless, it is one business that assures massive returns on investment, when
one is able to raise the startup capital involved. As a matter of fact, one can boast of being
wealthy. This is because of the lucrative nature the business is structured. Those who
started as rookies years ago have successfully seen their businesses grow from height to
height.
Just like any other business, there are steps that have got to be taken in order to be
adjudged being on the right track. There are various steps that are involved and they
include renting a space for the business, getting the vital trainings for the trade, procuring all
that is needed to start the business with, and more importantly writing a business plan. The
big question therefore is, how possible it to write one is. This might not readily come easy,
as there are some grey areas that may need more attention.
There are a thousand and one consultants who are out there looking for clients whom they
can write business plans for with a fee involved. These consultants know all that it takes
and requires to write a business plan. However, it is very expedient to state that this fee
might not be a cheap one. It costs quite a lot to write a comprehensive business model. It is
for that reason that there is a short cut through which you can write a business plan and get
it done rightly/.
One of the ways through which you can readily do this is by using a sample of a business
model to write yours. This would entail that you research in order to come about a sample
business plan that is related with your line of trade. After that has been done, then you will
need to make some projection and calculation, so that you can arrive at those things that
are exclusive to your business.

Good news is that you will not need to do any research as here is a sample construction
company business plan that you can use to deal with yours.

A Sample Construction Company Business Plan Template

The Construction Industry Overview

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 wont lack construction contracts from
both the government and the private sector.
Sample Construction Business Plan Template Executive Summary

Shannon Berg Construction Company is an international construction company that has its
headquarters in Grand Rapids, Michigan USA. The fact that we are based in the United
States does not in any way restrict our scope of operations to the United States of America.
We are an international construction company and we work for our clients (governments
and private sectors) in any part of the world.
Shannon Berg Construction Company will be specialized in the constructions of
skyscrapers, bridges, stadiums, roads, dams, Office complex, shopping malls, schools,
campuses and estates et al. As a matter of fact, we are going to be known for delivering
world class structures all over the globe. Creativity, excellence and timely completion of
construction projects will be our signature.
We intend starting our construction business on a small scale in Grand Rapids, Michigan,
but we have a bigger picture to have our presence in any part of the world that our clients
wants us to work. We hope to achieve this feat within the first 10 years of launching the
company.
As part of our plans to make our highly esteemed customers our number one priority and to
become a global construction brand, we have perfected plans and strategies that will enable
us work with our clients in delivering projects that can favorably compete with the best in the
industry at an affordable and reasonable price within the stipulated completion date barring
any unforeseen circumstance.
Shannon Berg Construction Company is fully aware that starting a construction business
requires huge capital base, which is why we have perfected plans for steady flow of cash
from private investors who are interested in working with us. We can confidently say that we
have a robust financial standing and we are ready to take on any construction project that
comes our way, as long as the project is duly commissioned by the required authority.
Shannon Berg Construction Company will be owned by the principal partner; Engr.
Shannon Berg and other partners (Nani David, Lois Scotland and Christopher Parkston).
They also have plans in the pipeline to sell the shares of the company in the nearest future

to interested investors who would want to be part owners of the company. Shannon Berg
who is the principal partner has well over 25 years of experience in the construction
industry. Before starting his own construction company, he was a senior project manager
and consultant with one of the worlds largest construction company based in Germany.
Engr. Shannon Berg, Nani David, Lois Scotland and Christopher Parkston will be the major
financier of the company. Nonetheless, we have made a concerted decision not to limit the
number of investors with similar investment ideology that may want to invest in the
business. This is necessary in order for us to be able to retain financial flexibility. Ideally, our
plan is that no investment will be less than $1,000,000, which would purchase a 1 percent
equity position. It is our desire that all equity partners be limited partners.

Our service offerings

Shannon Berg Construction Company is a construction company that is set to undertake
both small construction projects and massive construction projects for governments, private
sectors and for individuals which is why we do not intend to place limitations of the scope of
the projects we handle and what we do. We know that if we are good at what we do, it will
make it easier for our brand to grow beyond Grand Rapids, Michigan to other parts of the
United States of America and the rest of the world. Our business offering are listed below;

Road Construction

Bridge Construction

Dam construction

Airports and Helipads Construction

Seaports Construction

Skyscrapers construction

Estate construction

Public facility construction (hospitals, schools, shopping malls, office complexes and
industrial facilities et al)

Construction of residential facilities

Property Makeover Services

Construction Consultancy and Advisory Services

Our Vision Statement

Our vision is to build a first class construction company that will have active presence in
North America, South America, Africa and Asia.

Our Mission Statement

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 companys 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;

Chief Executive Officer (President)

Project Manager

Civil Engineer

Structural Engineer

Quantity Surveyor

Land Surveyor

Companys Lawyer / Secretary

Admin and HR Manager

Business Developer

Accountant

Front Desk Officer

Roles and Responsibilities
Chief Executive Officer CEO:

Responsible for providing direction for the business

Creates, communicates, and implements the organizations vision, mission, and

overall direction i.e. leading the development and implementation of the overall
organizations strategy.

Responsible for the day to day running of the business

Responsible for handling high profile clients and deals

Responsible for fixing prices and signing business deals

Responsible for signing checks and documents on behalf of the company

Evaluates the success of the organization

Reports to the board

Project Manager

Responsible for the planning, management and coordinating all projects on behalf of
the company

Supervises projects

Ensures compliance during project executions

Provides advice on the management of projects

Responsible for carrying out risk assessment

Using IT systems and software to keep track of people and progress of ongoing
projects

Responsible for overseeing the accounting, costing and billing of every project

Represents the organizations interest at various stakeholders meetings

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

Assesses the environment impact and risks connected to projects

Responsible for judging whether projects are workable by assessing materials, costs
and time requirements

Draws up blueprints, using Computer Aided Design (CAD) packages

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

Works around constraining factors such as town planning legislation, environmental

impact and project budget

Writes and presents reports, proposals, applications and contracts

Adapting plans according to circumstances and resolving any problems that may
arise during construction

Works with project team and management to achieve a common goal

Responsible for applying for planning permission and advice from governmental new
building and legal department.
Land Surveyor

Responsible for undertaking land surveys / measurements using a variety of

specialist technical equipment such as theodolites, laser alignment devices and satellite
positioning systems et al.

Responsible for presenting data to clients

Responsible for producing and advising about construction plans and drawings

Responsible for advising about technical matters and whether the construction plans
are viable

Companys Lawyer / Secretary

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)

Develops company policy and position on legal issues

Researches, anticipate and guard company against legal risks

Represents company in legal proceedings (administrative boards, court trials et al)

Plays a part in business deals negotiation and take minutes of meetings

Responsible for analyzing legal documents on behalf of the company

Prepares annual reports for the company

Admin and HR Manager

Responsible for overseeing the smooth running of HR and administrative tasks for
the organization

Defines job positions for recruitment and managing interviewing process

Carries out staff induction for new team members

Responsible for training, evaluation and assessment of employees

Responsible for arranging travel, meetings and appointments

Oversees the smooth running of the daily office activities.

Business Developer

Identifies, prioritize, and reach out to new partners, and business opportunities et al

Responsible for supervising implementation, advocate for the customers needs, and
communicate with clients

Develops, executes and evaluates new plans for expanding increase sales

Documents all customer contact and information (manage the companys CRM
system)

Represents the company in strategic meetings with government agencies, private

sectors and contractors

Helps increase sales and growth for the company

Accountant

Responsible for preparing financial reports, budgets, and financial statements for the
organization

Responsible for financial forecasting and risks analysis.

Responsible for developing and managing financial systems and policies

Responsible for administering payrolls

Ensures compliance with taxation legislation

Handles all financial transactions for the company

Serves as internal auditor for the company

Front Desk / Customers Service Officer

Receives Visitors / clients on behalf of the organization

Receives parcels / documents for the company

Handles enquiries via e-mail and phone calls for the organization

Distributes mails in the organization

Handles any other duties as assigned the line manager

Sample Construction Business Plan Template SWOT Analysis
Surviving in the business world as a construction company requires more than knowing how
to deliver standard projects but also how to network with key people that matter; decision
makers that can decide who a project is given to and all that. We know that it will be a bit
difficult to compete with already established construction companies in the United States
especially because we are new in the industry. In order to properly position our company for
growth and to favorably compete in the construction industry, we engaged the services of a
Dr. Joe Whyte, a renowned HR and business consultants in the United States of America to
help us run a SWOT analysis.
It is important that we know our strength, our weaknesses, and the opportunities that we
can leverage on in the industry and the threats that we are likely going to be confronted
with. With that, we will be able to map out strategies that will not only help us to survive in
the industry but also to build a global construction brand. Here is a summary from the result
of the SWOT analysis that was conducted on behalf of Shannon Berg Construction
Company;

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

Organized private sector (Corporate organizations)

Land Owners

Businessmen and Businesswomen

University Campuses

Foreign investors who are interested in owning properties in the United States of
America

The government of the United States of America (Government contracts)

The governments of other nations of the world

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 worlds 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.

Promptness in bidding for contracts

Advertise our business in real estate / properties magazines and websites

List our business on yellow pages

Promote our business on satellite TV stations and radio stations.

Attend expos, seminars, and business fairs et al

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

Airports and Helipads 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

Property Makeover Services

Construction Consultancy and Advisory Services

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;

First Year-: $2,000,000

Second Year-: $3,500,000

Third Year-: $5,000,000

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;

Payment by via bank transfer

Payment via online bank transfer

Payment via check

Payment via bank draft

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;

Place adverts on both print and electronic media platforms

Sponsor relevant TV shows

Utilize our companys website in promoting our business

Leverage on the internet and social media platforms like; Instagram, Facebook
,Twitter, LinkedIn, Badoo, Google+ et al

Install our Bill Boards on strategic locations

Sample Construction Business Plan Template Financial Projections and Costing

The Total Fee for incorporating the Business in New York: $750.

The budget for Liability insurance, permits and license: $5,000

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

The cost for acquiring heavy duty construction equipment: $2,000,000

The Cost of Launching a Website: $600

Additional Expenditure (Business cards, Signage, Adverts and Promotions et al):

$5,000

Working capital (investment fund): $3,000,000 (3 Million US Dollar)

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 wont 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)

50% of the capital will be sourced from banks

CONSTRUCTION BUSINESS GROWTH: Sustainability and Expansion Strategy
Shannon Berg Construction Company was established with the aim of building a company
that will outlive the founders and partners; a construction company that will have active
presence in major cities in the world. Part of the vision of the company is to handover the
baton of the company from one generation to generation; hence we have perfected our
plans to put the right structures in place that will aid our succession plan.
In order to position of company for growth, we have been able to create strong partnerships
with the government of the United States of America, organized private sector and
construction giants. We are optimistic that we will continue to execute construction contracts
for our clients. Our marketing team will continue to get the needed support and
encouragement that they need to be able to deliver on set goals and targets for the
organization, and we will continue to improve our processes and structure to meet up with
the changing trend in the construction industry.
Lastly, we will not relent in taking calculated business risks when it comes to bidding for
bigger government contracts and taking on new business challenges and new business
frontiers.
Check List / Milestone

Business Name Availability Check: Completed

Business Incorporation: Completed

Opening of Corporate Bank Accounts various banks in the United

States: Completed

Opening Online Payment Platforms: Completed

Application and Obtaining Tax Payers ID: In Progress

Application for business license and permit: Completed

Purchase of All form of Insurance for the Business: Completed

Renting of Office Facility in New York City: Completed

Conducting Feasibility Studies: Completed

Generating capital from the CEO and Business Partners: Completed

Applications for Loan from our Bankers: In Progress

Writing of Business Plan: Completed

Drafting of Employees Handbook: Completed

Drafting of Contract Documents (Tenancy Agreements et al), and other relevant

Legal Documents: In Progress

Design of The Companys Logo: Completed

Graphic Designs and Printing of Packaging Marketing / Promotional

Materials:Completed

Recruitment of employees: In Progress

Purchase of the Needed furniture, office equipment, electronic appliances and facility
facelift: In progress

Acquiring of heavy duty construction equipment: In progress

Creating Official Website for the Company: In Progress

Creating Awareness for the business (Business PR): In Progress

Health and Safety and Fire Safety Arrangement: In Progress

Establishing business relationship with key players in the industry (networking and
membership of relevant construction bodies): Completed
Related Posts