1.

STEPHEN’S MJENGO CONSULTANCY GROUP

P.O BOX 4
KISUMU
PRESENTED BY: ONYANGO STEPHEN YOUNG
CENTRE CODE 737101
INDEX NO:
COURSE DIPLOMA IN CIVIL ENGINEERING MOD 3
PAPER CODE 2707/305
CENTRE NAME RAMOGI INSTITUTE OF ADVANCED TECHNOLOGY
SUPERVISED BY:MADAM MELISSA OCHIENG
PRESENTED TO: THE KENYA NATIONAL EXAMINATION COUNCIL IN PARTIAL FULFILMENT
FOR THE AWARD OF DIPLOMA IN CIVIL ENGINEERING.
EXAM SERIES:JULY 2024

DECLARATION
Declaration by the candidate.
I declare that this business plan project is my original work and has not been submitted to
examination or any award of diploma in Civil Engineering or in any institution of higher
learning or the Kenya National Examination Council.
Name: Onyango Stephen Young
Index No
Signature:
Date:
Declaration by the supervisor.
I declare that this business plan project has been submitted for examination to Kenya
Examination Council with my approval as the supervisor of the Institute.
Name: Melissa Ochieng
Signature:
Date:
DEDICATION
I'd like to dedicate this project to the Kenya Examination Council and my lecturer for their
support and all those who were involved in its development. Their personal and combined
efforts are highly appreciated. I also dedicate my success to my Institution.
ACKNOWLEDGEMENT
First I would like to give my sincere gratitude to God for the much that I have achieved in
this project. I also thank my Lecturer and the entire RIAT fraternity for their support through
all this tremendous work and also for their guidance, support and advice throughout the
making of this project, and also my parents, friends and family for their motivation and
support. May God bless all dearly.
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LIST OF TABLES
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TABLE OF CONTENT

Contents
DECLARATION........................................................................................................................................1
DEDICATION...........................................................................................................................................2
ACKNOWLEDGEMENT...........................................................................................................................3
EXECUTIVE SUMMARY.........................................................................................................................10
1.0 BUSINESS DESCRIPTION.............................................................................................................10
3.0 ORGANIZATION AND MANAGEMENT PLAN...............................................................................10
4.0 PRODUCTION PLAN....................................................................................................................10
5.0 FINANCIAL PLAN........................................................................................................................10
CHAPTER ONE..................................................................................................................................11
Business Description........................................................................................................................11
1.0.1 Sponsors Background..............................................................................................................11
1.2 Location and Address.................................................................................................................11
1.3 Form and Type of ownership.....................................................................................................13
1.3 Ownership structure..................................................................................................................13
1.4 Products and services................................................................................................................14
1.5 Justification of opportunity........................................................................................................14
1.6 Industry......................................................................................................................................14
1.6.1 Sizes of the Industry................................................................................................................14
1.6.2 Key characteristics of the industry..........................................................................................14
1.8.2 Growth Strategy......................................................................................................................17
CHAPTER TWO.................................................................................................................................18
2.0 Marketing Plan...........................................................................................................................18
2.1 Customers..................................................................................................................................18
2.2 Market Share.............................................................................................................................18
2.3 Competition...............................................................................................................................19
2.3.1 Description of Potential Competitors..................................................................................19
2.3.2 Comparison of the proposed product with those of potential competitors.......................19
 Table 2.3.2.1 Competitors Analysis table.....................................................................................19
2.4 Method of Promotion and advertising.......................................................................................19
2.4.2 Promotion Strategy.................................................................................................................19
2.5 Pricing Strategy..........................................................................................................................20
2.5.1 Cost plus strategy................................................................................................................20
2.5.2 Penetration pricing.............................................................................................................21
2.5.3 Demand oriented pricing....................................................................................................21
2.5.4 Credit terms which will suit your services...........................................................................21
2.5.5 Preterior used.....................................................................................................................21
2.6 Sales Tactics...............................................................................................................................22
2.6.1 Sellng methods...................................................................................................................22
2.6.2 People involved in business sales........................................................................................22
2.7 Distribution Strategy..................................................................................................................22
2.7.2 Distribution problems anticipated......................................................................................22
2.7.3 How to solve the problems.................................................................................................22
CHAPTER THREE...............................................................................................................................23
3.2 Managers and Qualifivations.....................................................................................................23
3.2.1 Marketing manager.............................................................................................................23
3.2.1.1..........................................................................................................................................23
3.2.1.2 Responsiblities.................................................................................................................23
3.2.2 Human Resource Manager..................................................................................................24
3.2.2.1 Qualifications...................................................................................................................24
3.2.2.2 Responsibilities................................................................................................................24
3.2.3 Admnistrator.......................................................................................................................24
3.2.3.1 Qualification.....................................................................................................................24
3.2.3.2 Responsibilities................................................................................................................24
3.2.4 General Manager................................................................................................................24
3.2.4.1 Qualifications...................................................................................................................24
3.2.4.2 Responsiblities.................................................................................................................24
3.2.5 Project Manager.................................................................................................................24
3.2.5.1 Qualifications...................................................................................................................25
3.2.5.2 Responsibilities................................................................................................................25
3.2.6 Logistics Manager................................................................................................................25
3.2.6.1 Qualifications...................................................................................................................25
3.2.6.2 Responsibilities................................................................................................................25
3.2.7 Tender and contract manager.............................................................................................25
 3.2.7.1 Qualification.....................................................................................................................25
3.2.7.2 Responsibilities................................................................................................................25
3.2.8 Architect.............................................................................................................................25
3.2.8.1 Qualifications...................................................................................................................25
3.2.9 Contractor...........................................................................................................................26
3.2.9.1 Qualifictaons....................................................................................................................26
3.2.9.2 Responsibilities................................................................................................................26
3.2.10 Quantity Surveyor.............................................................................................................26
3.2.10.1 Qualifications.................................................................................................................26
3.2.10.2 Responsibilities..............................................................................................................26 3.3
Personal, Number and duties.................................................................................................26
Figure 3.3.1..................................................................................................................................26
3.4 Recruitment,training and promotion.........................................................................................30
3.4.1 Recruitment........................................................................................................................30
3.4.2 Training...............................................................................................................................30
3.4.3 Promotion...........................................................................................................................31
3.5 Remuneration and Incentives....................................................................................................31
3.6 Licences,Permits and By laws.....................................................................................................32
3.7 Support service..........................................................................................................................33
CHAPTER FOUR....................................................................................................................................34
4.0 Operational Plan........................................................................................................................34
4.1 Product and service design and development...........................................................................34
4.2 Production facilities and capacity..............................................................................................34
4.2.2 Product/service capacity table................................................................................................36
4.2.3 Repairs and maintenance of facilities for operation/production............................................36
4.2.4 Features of proposed premises...............................................................................................36
4.3 Production/operation strategy...................................................................................................36
4.3.1 Description of Monthly production/operation expenses........................................................36
4.3.2 Monthly labour requirement..............................................................................................37
4.5 Government Regulations...........................................................................................................38
CHAPTER FIVE......................................................................................................................................39
5.0 Financial plan.............................................................................................................................39
5.1 Objectives..................................................................................................................................39
5.2 Pre operational costs.................................................................................................................39
5.3 Financial Requirements.............................................................................................................39
5.4 Working capital..........................................................................................................................40
5.5 Pro-Forma income statement....................................................................................................41
5.6 Projected cash flow....................................................................................................................42
CASH FLOW 2026.............................................................................................................................42
CASH FLOW 2027.............................................................................................................................43
5.7 BALANCE SHEET OF FINANCIAL POSITION.................................................................................44
5.8 Performance Ratios....................................................................................................................45
5.9 Contribution statement.............................................................................................................45
5.10 Financial challenges.................................................................................................................45
5.11 Remedies to the challenges.....................................................................................................46
EXECUTIVE SUMMARY.
1.0 BUSINESS DESCRIPTION
This business will be called STEPHENS MJENGO CONSULTANCY GROUP. The business will be
located in Kisumu county CBD town area. It will be a limited company and it will be dealing with
construction and housing units.
2.0 MARKETING PLAN
MJENGO CONSULTANCY GROUP aim to capture and dominate the construction industry
market. It shall use modern trends marketing method to create awareness.

3.0 ORGANIZATION AND MANAGEMENT PLAN

The business will only hire qualified employees to various positions for better production
and services and shall highly invest in training of employees.

4.0 PRODUCTION PLAN

This shall involve the stage where the aim product for the business shall be planned for in
terms of cost, raw materials and time frame for delivering.

5.0 FINANCIAL PLAN

It will show the expenses that will be Incurred in the business, the pre operational cost and
operational cost will be taken into account to avoid barriers in opening up the business.
CHAPTER ONE
1.0
Business Description.
Stephens Mjengo Consultancy Group is a building construction firm based in
Kisumu,Kenya.Mjengo Consultancy Group provides building services to potential clients who
would like to construct commercial or residential housing units. Our firm provides all
building services and have competent building team with nationally recognized certificates
consisting of Civil Engineering, Architects, Quantity Surveyors, contractors, land surveyors
and building workers to help erect structures that are of good construction standards and
attractive to client’s eyes. Our team is dedicated in eliminating poor building works by
providing good and quality services to our potential clients. We understand the importance
of meeting client’s demands and maintaining the safety of those to live in the structure.

1.0.1 Sponsors Background.

My Names Are Onyango Stephen Young, am aged 24 and am currently pursuing Diploma in
Quantity Surveying at Ramogi Institute of Advanced Technology. The skill gained from my
course has played a big role in the running of my business.
1.1 The Proposed Name of the Business.
Stephen’s Mjengo Consultancy Group is the name of my business and it is scheduled to
start in 2025.

1.2 Location and Address.

• The proposed Business will be located in Kisumu Town around CBD area
• Kisumu is a home for many residents of Kenya for it suits to be a working city
where many residents work and live their lives there. To have my business located
in Kisumu guarantees a high percent in market shares because possible clients
continue to build residential homes for employees in Kisumu.
• In Kisumu, there is availability of good roads, electricity and plenty of water from
Lake Victoria. This makes it easier to commence my business and thrive.
• Next to Kisumu County there is Kakamega town which an industrialized town
where my company can get raw materials from and with less transportation costs.
Kisumu has plenty of support services and most people come to look for job
opportunities in Kisumu so to be employees will not be a huge task. For potential
clients, many enamouring towns are growing towns which attract settlers who
need housing units for either commercial or residential purposes and which will
require a construction company’s job to erect their structures.

1.2.1 Figure 1
Figure 1
1.3 Form and Type of ownership.
• My company will operate as limited Company. My business will require different
building specialist for example Civil Engineers, Quantity Surveyors, Architects,
contractors etc. The following people will form a board of Members who will
contribute to the starting, running and building work of the company.

Table 1
Advantages Disadvantages
Has limited liabilities Limited companies must be incorporated
at companies house where a fee must be
paid
Low set up costs because cost will be Company names are subjected to certain
shared among the owners restrictions
It’s tax efficiency You cannot set up a limited company if
you are an undischarged bankrupt
Provides access to more financial opportunities

1.3 Ownership structure

• I will personally contribute 200,000Kenyan Shillings to the company.
• The company will include five executive members who will each contribute
200,000Kenyan shillings which will totally contribute to 1.2Million shillings which will
be good enough to start up the company.
• Family and Friends will donate up to 300,000Kenyan shillings.
• A registration fee will be paid to the register the business
• A fee will also be paid to register the company to the National Construction Authority
and also to acquire all the required credentials for example licences and business
permits to start and run the proposed business.
• The company will also pay some money for our office rent.
• Some money will be used to buy company vehicles to be used to run errands in the
company.

Table 1.3.1 Proposed Ownership Structure.

Table 2
 Source Amount %
Personal Savings 200,000 13.25%
Borrowing loans 100,000 6.62%
Family and friends 300,000 19.86%
Executive members 1000000 66.22%
Total 1,510,000

1.4 Products and services

• The company will be offering construction services
• The company will offer affordable construction services and housing units. According
to the client’s financial capabilities our company will come up with comfortable and
durable housing units which will be of good service to residents.
• The company will also offer instalment payment to clients so as not to financially
disable the clients.

1.5 Justification of opportunity

• The company’s goal is to eradicate poor housing standards which lead to building
collapsing in Kenya. The company will satisfy client’s needs by employing competent
workers to design and construct a building and using the proper channels to erect a
structure.
• The company will contribute to increase employment opportunities and also
improving the livelihood of employees in the society. It will also promote local
indigenous technology that will be used in construction sites.

1.6 Industry
1.6.1 Sizes of the Industry
 The company is under building and construction industry.

1.6.2 Key characteristics of the industry

• The firms in the company are small size.
• The company uses labour intensive technology. This is because the company will
require labour to build building structures and so a program will be introduced to
sharpen our worker’s skills so as to increase the productivity level of the company.
• The company will use modern technology which includes modern building
equipment and simple to use machines.
• The firm has no limited number of employees because in a construction firm labour
is unreliable and also as many workers as possible ease and fasten up construction
works.
 • In construction industry the competition is mostly high because many people have
realized the need to start a construction firm based on its success stories.
• Firstly, there is labour handling. To a starting company, workers are not paid so well
because the company has to budget its wages so as not to fail so it’s a problem to
fetch and employ worker Secondly, Material handling. Building materials tend to
increase annually which poses a Financial issue to the company when calculating an
overall cost of a project. Thirdly, Equipment handling. Machineries are expensive to
hire, run and maintain. Some machines even have shorter life spans which makes
then more unreliable.
1.6.3 Industrial trends and prospects.
1)
• We start the Establishment stage. Here the business is being created, planned and
the early days of its operations commences. At this point the company has difficulty
in surviving.
• The company after a while it starts to grow and we call it the growth stage period.
The company has now started to adapt and is partially able to compete with its
competitors. In this period the company already knows how to navigate its ways to
its targeted clients and has already started to make some revenue. The company
strategies made are now showing some positive response.
• Expansion Stage. In this stage, the company has started to be recognized and good
words are coming out from clients about our services. By now the company has
attracted a good number of clients mostly from referrals. Tenders from Kisumu
county government have been awarded to the company on building of county
hospitals and schools. There is sufficient revenue in the company’s account that
enable to run and expand our services to other counties around Kenya. The
company has opened 4 branches in Kakamega, Siaya, Nakuru and Mombasa.
• Maturity Stage. The company has now gained trust from customers and the tenders
awarded have become consistent. The revenue intake has become high enough to
enable the company to survive most unforeseen circumstances. The company has
enough banking support to ensure that even if the market becomes unstable it can
easily pull through.
2)

• BIM Technology. The company will use thus technology because it supports
construction Professionals by combining data capture within a large structure of
construction processes, allowing effective planning, designing, modifying and
management of buildings and their infrastructure.
• AL (Artificial Intelligence) and ML (Machine Learning). The company will also use
this technology to increase productivity, safety, improve financial planning and
enhance design of buildings in construction.
3)
 • Labour wage. Different companies have different ways of paying their employees.
Better paying companies attract more employees.
• Company services. Different companies have different services they offer to the
clients and also their employees. Fewer companies focus in improving employee’s
skills which bring huge competition between companies offering this services and
those that do not.
1.7 Goals of Business
1.7.1 Short term Goals
• Improve company’s productivity and that will be done by introducing a training
program for employees.
• Maintain company’s profits. Modern technology come to help rectify human errors
which caused losses and to minimize them to maximize the profits.
• Hire more workers.
• Build customer loyalty. This will be done by meeting client’s demand and providing
quality services
1.7.2 Long term Goals
• To expand the company to oversee countries. If the financial goal is met, the
company will expand to other non-developed countries and provide the services
there.
• Grow social media following. The more the company is knowing the more the
clients the company gets.
1.8Entry Gross Strategy
1.8.1 Entry Strategy

• Firstly, you set clear goals about the company which include: -Business goals for
expansion.
-Targeted level of sales
-The target market.
-Budget and other
available resources.

• Secondly, Research your market. Collect information about-Size of your market

-Domestic and
international competition.
- Your unique value
proposition in the market.
The research can be done by online research including publications, studies and
statistics.
 • Thirdly, choose the mode of entry.
The company will pay for billboards and television advertisements to get a large
number of clients.
The company will open an online website where our customers will be able to access
the company services.
The company will come up with a discount sale for clients for the next 1 month after starting
the business.
• Fourthly, consider Financial and insurance needs
Each employee will have an insurance cover together with the company to get
protection against unforeseen circumstances in the construction sites. The company’s
insurance cover includes credit insurance in case a client does not pay or a contract is
cancelled and performance security insurance in case a customer wrongfully calls a letter of
guarantee or in event of political risks.
The competitive advantage in our company is that we offer free employee training to
improve their technical skills.

1.8.2 Growth Strategy

• The company will increase our shares to a chosen market to enable profitability in
the company.
• We will create incentives for the repeat clients and changing the customer service
policies for increased appeal to its client. This way the company will know the
directions to take and where it will take them.
CHAPTER TWO
2.0 Marketing Plan
-A market research will be is to determine If there are enough customers in our market
willing to purchase our services.
To determine this, we need to know the characteristics of our targeted customers, market
and trends in our industry. Market research is important because it determines the
company’s marketing strategy.
Our targeted customers are government bodies and established clients who want to create
a revenue from real estate.
-After the market research is done, the company will then determine a marketing strategy.
This is the approach plan taken to provide our services to our targeted customers. A
marketing strategy is done by:-Identification of your target customers which we have
already done.
-The market segment the company will compete in.
 -Unique services provided.
-Pricing philosophy. The company will offer affordable building options which won’t drain
client’s pockets.
-Sales plan will be considered.

2.1 Customers.
2.1.1.

• My potential clients are: -Government bodies which require county developments

-Established clients between 35- 70 years who like to
generate revenue from real estate.
• My customers want eligible housing units, which are appealing to their targeted
customers.
According to the clients building need, our company focuses in designing standard
and prestigious houses especially if they are residential houses.

2.2 Market Share.

Table 2.2.1 Stephens Mjengo consultancy Group Enterprise market share.
No
Table 3
Name of Other businesses % market
share
Hakim construction limited 10%
Pole pole consultancy group 30%
Crossbow consultancy services 10%
Wakimani consultancy firm 40%
2.3 Competition.
2.3.1 Description of Potential Competitors.
Our potential competitors are other building construction groups located in Nairobi. The
competitors reduce the market share. More established construction groups are preferred
by clients unlike the current ones which is disadvantageous to our company.
The location of the competitors determines the market price of services offered in the area.
This can force lower service prices which decreases profit margin for each services
exchanged.
The advantage of competitors is that it motivates companies to thrive to meet client’s
expectations and grow generally.
2.3.2 Comparison of the proposed product with those of potential competitors.
 The company services will offer affordable pricing policies with will be so favourable to
clients. The company will have LIPA POLEPOLE services which will enable the client to build
a structure without strain.
Table 2.3.2.1 Competitors Analysis table
2.4 Method of Promotion and advertising
• The company will use radio and tv stations to advertise the company services. The
company will also use billboards in Nairobi to advertise their services. Details of The
company will be included in the advertising methods. Radio and Tv methods are
reliable because it will reach many people around Kenya and even abroad.
• On billboards, the advertisements will be done after every 2 months while for the tv
and radio stations it will be done after every 2weeks.
• The cost of advertisement for radio is 44,000 shillings per advert, For Tv is 100,000
shilling per advert and for billboards are 50,000 shilling per day depending on the
size.

2.4.2 Promotion Strategy.

• The company will sponsor community events. The company can decide on
supporting local community events mostly financial and then display the company’s
name or information on event T shirts or flyers.
To offer discounts for client referrals is also a way of promotion strategy. The
company can offer free maintain ace plans for each client referral.

• Promotional methods to employ on a daily basis are: -Using google display Ads to
build company’s brand. The Ads normally pop up in google videos and are mostly
used to catch viewers’ attention for they are given a few seconds to run before
returning the viewers content. If the viewer is interested in the ad, then he or she
can access the ads information.
-Another method is to launch Facebook ad Campaigns. This ad will be accessed by
many viewers because Facebook is a global platform.
-To run cold outreach to other construction companies is another promotion method.
This is using a large company to advertise your services. For example, our company can
request a contract from a larger construction company and when awarded the contract we
advertise our services to their customers and offer them incentives for referring clients to
our company.

• Promotions costs;
• To measure effectiveness of the campaign we have to:
-First, clarify the company goals. This is keeping track of how your company
business is going.
 -Secondly, Set up data collection and analysis capabilities.
-Thirdly, Measure your campaign reach. This is how many people will see the
advertisements and respond to it.
-Uncover your effective frequency.
-Identify touchpoints that need optimization.
-Take a closer look at your media mix.
-Lastly, link campaign outcomes to the revenue.

2.5 Pricing Strategy.

2.5.1 Cost plus strategy.
In our case we can add a percentage mark-up to the total building cost. This can help
maintain a good profit margin and business competitiveness.
Table 2.5.1.1
Table 4
Advantages disadvantages
It has consistent rate of return It depends on costs
It is good to test the market Doesn’t take customer willingness to pay
into account
The cost pricing is fair and nondiscriminatory
2.5.2 Penetration pricing.
This pricing strategy helps a company gain customers by lowering the initial services.
It also builds brand loyalty. To build loyalty to the customers you must continue to delight
customers after the first contract agreement to either do cost transportation for free or
offering discounts to the services provided.
This strategy pulls customers from competition.
Table 2.5.2.2
Table 5
Advantages Disadvantages
There is more customers demand It has poor brand perception
Offers market leadership Can lead to possible price wars
Result to less competition
2.5.3 Demand oriented pricing
This pricing strategy is based on the demand level of customers to a particular service.
The demand level is determined by the season. For example, in high peak periods
companies see high demand for products and services while in regular periods they see low
demands.

2.5.4 Credit terms which will suit your services.

Trade discounts. Trade discounts fastens customers pay within an agreed period of time.

2.5.5 Pretoria used.

- Capacity. Can your client pay your invoices?
- Character. It is important to determine that your trade partner has the background and
credentials that indicate they are trustworthy and have a reputation for sound business
practice.
- Collateral. To understand what assets your client has in case the invoices remain unpaid,
he/she can liquidate their assets.
-Capital. This is understanding the ability for the client to pay for your services.
-Conditions. You should situations that will affect the client to indicate a potential chance for
late payment.

2.6 Sales Tactics.

2.6.1 Selling methods
• Value addition. This method aims at increasing customer satisfaction and widen the
gap between your company and your competitors.
• Referral Networks

2.6.2 People involved in business sales

 Referrals. In construction business, your clients can be your referrals. Through your
clients you can be able to gain more customers.

2.7 Distribution Strategy.

2.7.1 how will you get your services to customers?
Using direct channel. Our services will be done physically and there will be interactions
between the company’s building team and the client.
2.7.2 Distribution problems anticipated
 • High cost of transportation.  Unfavourable weather
conditions  Uncalculated building risks.
• High pricing of building materials

2.7.3 How to solve the problems

 Put aside money in case of unforeseen building eventualities.

BOM
PERSONAL
CONSULTANT

GENERAL
MANAGER

ADMN
HR DEPARTMENT DEPARTMENT FINANCE PROJECT TEND
DEPARTMENT OPERATION CON
DEPT

WORKER ADMN MC SC T
EMPLO
YEE R
ADMN T

CHAPTER THREE
3.0: The organization plan.
3.1: The organization structure.
Figure 3.1

Figure 2

3.2 Managers and Qualifications

3.2.1 Marketing manager.
3.2.1.1
Qualifications.

• Relevant Bachelor’s degree in Sales and Marketing in a recognized institution.

 • Must have at least 5years sales experience and 3 years being in the building and
construction sector.
• Must have impeachable communication skills
3.2.1.2 Responsibilities.
• Responsible for developing, implementing and executing strategic marketing plans
for an entire organisation; so as to attract potential clients and retain existing ones.
• Building sustainable relationships and partnerships with key players in the society.
3.2.2 Human Resource Manager.
3.2.2.1 Qualifications
• Bachelor’s degree in Human Resource Management.
• Must have at least 3Years HR management experience and 1year being in the
building and construction industry.
• Must have good computer skills and impeccable communication skills.
3.2.2.2 Responsibilities.
• Hire employees and help them get training and development to advance their
careers.
• They are instrumental in overseeing conditions of employment, contractual terms,
pay negotiations and issues relating to equality and diversity.

3.2.3 Administrator.
3.2.3.1 Qualification
• Bachelor’s degree in construction management/construction science.
• Must have strong organizational skills.
• Must have 2-3years of experience in the construction industry.
• Voluntary professional certification is an added advantage.
3.2.3.2 Responsibilities.
• Monitor contracts.
• Process billing
• Keep track of company’s documents  Arrange project schedules.
• Check on clients

3.2.4 General Manager.

3.2.4.1 Qualifications.

• Bachelor’s degree in civil engineering or construction management,  Over 10years

experience in the construction industry.
• Proven track record of successful project delivery and completion.
• Good banking records.
3.2.4.2 Responsibilities
 • Set project policies and processes.
• Oversee recruitment and training.
• Evaluate operational and financial performances  Allocate building resources.

3.2.5 Project Manager.

3.2.5.1 Qualifications
• Bachelor’s degree in Civil engineering/architecture.
• At least 4years in the construction industry.
• Must be comfortable delegating and have strong leadership skills.
3.2.5.2 Responsibilities.
• Organize logistics.
• Delegate work and keep track of spending.

3.2.6 Logistics Manager.

3.2.6.1 Qualifications.
• Bachelor’s degree/Diploma certificate in procurement and logistics.
• Must have excellent communication skills.
• Must have at least 2-3years experience in the construction industry.
3.2.6.2 Responsibilities.
• Ensure supply chain is efficient and effective throughout the organisation.
• Organise, store and monitor the distribution of goods and services.  Organise
buying of machinery and other goods.

3.2.7 Tender and contract manager.

3.2.7.1 Qualification.
• Bachelor’s degree in Finance/business management  2-3 years’ experience in the
construction industry.
3.2.7.2 Responsibilities.
• Gathering business requirement for new contracts.
• Facilitating legal discussions around unresolved contract issues.
• Sending finalized contract out for signature.
• Managing the contract delivery.
• Acquiring tenders.

3.2.8 Architect
3.2.8.1 Qualifications
• Bachelor’s degree recognized by the Architects Registration board.
 • 1year of practical experience in the construction industry.
• Bachelor’s degree in Architecture.
• Knowledge of building codes and regulatory standards.  Must have strong creative
and visualization skills.

3.2.8.2 Responsibilities.
• Meeting clients and determine their needs and requirements.
• Managing design projects from concept development through to completion.
• Developing and presenting project proposals.
• Adjusting designs and plans to meet the client’s needs.

3.2.9 Contractor.
3.2.9.1 Qualifications.
• Bachelor’s degree in Civil Engineering.
• More than 5years experience
• Must have extensive knowledge of building materials, techniques and Standards.
3.2.9.2 Responsibilities.
• He/she is responsible for planning, leading, executing, supervising and inspecting a
building construction project

3.2.10 Quantity Surveyor.

3.2.10.1 Qualifications
• Bachelor’s degree/ diploma in quantity surveying in a recognized institution.
• Minimum of 2years experience.
• Must have extensive knowledge of building materials, techniques and Standards.
3.2.10.2 Responsibilities.
• Reviewing construction plans and preparing quantity requirements.  Liaising with
site managers, clients, contractors and subcontractors.  Advising managers and
clients on improvement and new strategies.
• Documenting any changes in design and updating budgets.

3.3 Personal, Number and duties.

Figure 3.3.1
Table 6
Position Numbers Required Qualifications Duties

General Manager 1 Bachelor’s degree Set construction

in Civil engineering policies and
in a recognized processes.
institution.
Oversee
5 plus years’ recruitment and
experience in the training of
construction employees.
industry.
Allocate building
resources.
Human Resource 1 Bachelor’s degree Hire employees and
Manager in Human Resource help them get
management. training and
development to
Must at least
advance their
3years of HR
careers.
management
experience and 1 Overseeing
year experience in conditions of
a construction employment.
industry.
Administrator 1 Bachelor’s Keep track of
degree/Diploma in documents.
Construction
Arrange project
Management
schedules.
Must have strong
Check on clients.
organizational
and computer
skills.
Marketing 1 Relevant Responsible for
Manager Bachelor’s degree developing,
in Sales and implementing and
marketing. executing strategic
marketing plans
Must have at least
for
5years sales
an entire
experience and 3
organisation.
years being in the
construction Building
industry. sustainable
relationships and
partnerships with
 key players in the
society.
Finance Manager 1 Bachelor’s degree

in any banking
field in a
recognized
institution.
Must have at least
5years in the
construction
industry.
Project Manager 2 Bachelor’s Organise logistics.
degree/diploma in
Delegate work and
Civil Engineering.
keep track of
At least 4years spending.
experience in
construction
industry.
Contractor 1 Bachelor’s degree He/she is
in Civil responsible for
Engineering planning,leading,ex
ecuting,supervising
At least 5years
and inspecting a
experience in the
building
construction
construction
industry.
project
Architect 2 Bachelor’s degree Meeting clients and
recognized by the determine their
Architects needs and
Registration board. requirements.
1year of practical Managing design
experience in the projects from
construction concept
industry. development
through to
Bachelor’s degree
completion.
in Architecture.
Developing and
Knowledge of
presenting project
building codes and
proposals.
regulatory
standards. Adjusting designs
and plans to meet
 Must have strong the client’s needs.
creative and
visualization skills
Quantity Surveyor 1 Bachelor’s degree/ Reviewing
diploma in quantity construction plans
surveying in a and preparing
recognized quantity
institution. requirements.
Minimum of 2years Liaising with site
experience. managers, clients,
contractors and
Must have
subcontractors.
extensive
knowledge of Advising managers
building materials, and clients on
techniques and improvement and
Standards. new strategies.
Documenting any
changes in design
and updating
budgets.
Logistics Manager 2 Bachelor’s Ensure supply
degree/Diploma chain is efficient
certificate in and effective
procurement and throughout the
logistics. organisation.
Must have excellent Organise, store
communication and monitor the
skills. distribution of
goods and services.
Must have at least 2-
3years experience in Organise buying of
the construction machinery and
industry other goods.
Tender and 1 Bachelor’s degree Gathering business
contract Manager in Finance/business requirement for
management new contracts.
2-3 years’ Facilitating legal
experience in the discussions around
construction unresolved
industry contract issues.
Sending finalized
contract out for
signature.
 Managing the
contract delivery.
Acquiring tenders.
Driver 5 Valid driving Transporting
licence construction
materials
Cleaners 3 Kcse D Cleaning the
company
offices
Chef 2 Diploma in Cooking for
catering/hospitality company’s staff
Valid cooking
certificates

3.4 Recruitment, training and promotion.

3.4.1 Recruitment.

1. Identify your needs. The need to hire is because we are starting a new company and
it requires employees for the company to run as planned.
2. Prepare the job description.
3. Create a recruitment plan. Determine who will be reviewing resumes, scheduling
interview and deciding on the right candidate. A board of members will be formed to
conduct the interviews and decide on who to employ.
4. Start searching. The elected members will weed put unqualified applicants and
choose the best and worthy applicants.
5. Recruit Top tier candidates. The candidates left after the interviews will be kept in
touch and notified to have been shortlisted. Video screening is the most appropriate
method to use to get to know the candidates personally.
6. Conduct video screening. A list of best interview questions will be made.
7. Interview in person. The interviewees should know where the company is at
recruiting people and how long it will take to get back to them. The interview should
not be long but the interviewer should be able to interact with the interviewee.
8. Offer the job. A deal must be made that favours both the employee and the
employer. Salary negotiations and benefits should be good enough to make the
interviewee to accept the job offer.
 9. On boarding the new employees. An on boarding process should be implemented to
make the new employees get to understand and familiarize themselves with the
company's operations. A mentee will be assigned to each employs to keep them on
track of the company’s progresses.
3.4.2 Training
Table 3.4.2 Staff training and development.

Table
ITEM NO COURSE DURATION COST TO BE REMARKS
DESCRIPTIO INCURRED
N
Driver Basic 1month 10,000
Mechanics
Building Certificate/dipl 2yrs 50000
employees(buil oma/Bachelor/
ding team) masters in
Civil
engineering
Administrator Public 3mnths 15000
relations
3.4.3 Promotion.
 In our company, promotions will be awarded annually.
 Each work unit will be awarded according to the achievements and work progress.
Promotion will be done in different ways.
 Financial promotions are the first one which will be by increasing employee’s salary.
 Secondly, gift will be given to various employees e.g. shopping vouchers and so much
more.

3.5 Remuneration and Incentives

3.5.1
Table 3.5.1
Table 7
ITEM NO JOB TITLE BASIC BENEFITS TOTAL

SALARY SALARY
1 Marketing 100,000 NHIF-1500 101500
Manager
2 General 150,000 NHIF-1500 151500
manager
3 Finance 120,000 NHIF-1500 121500
Manager
4 Administrator 50,000 NHIF-1500 51500
5 Project 80,000 NHIF-1500 81500
Manager
6 Tender and 80,000 NHIF-1500 81500
contract
manager
7 Logistics 70,000 NHIF-1500 71500
manager
8 Driver 20,000 NHIF-1500 21500
9 Cleaner 10,000 NHIF-1500 11500
10 Chefs 25000 NHIF-1500 26500

3.6 Licences, Permits and By laws.

Table 3.6.1
Table 8
ITEM NO DESCRIPTIO REQUIREME SOURCE OF FEE
N NTS ASSISTANCE PAYABLE
1 Registration Business e-citizen 2500 formation
2 Tax license Government County/sub 6000
regulation on county trade
licences government
3 V.A.T Taxation KRA website

4 NHIF Health licenseNHIF website500

5 Building Building and NCA
Regulations construction
valid documents
6 Environmental permits NEMA 1000 regulations
7 Service change Taxation County/sub 1000
county government
8 Fire hazards Safety County/sub 2000
county government

TOTAL 13,000
AMOUNT
PAYABLE
3.7 Support service
Table 3.7.1

Table 9
TYPE OF SERVICES SERVICE PROVIDER FEE
PAYABLE
Banking KCB

Insurance Jubilee insurance company

Courier services Fargo courier services

Medical AAR Insurance

Legal MTM advocates

CHAPTER FOUR
4.0 Operational Plan.
Stephens Mjengo Consultancy Group is committed in providing quality building and
consultancy services to potential clients. The company is visionary on building comfortable
and affordable housing units with better and effective methods to avoid building
catastrophe.
The company will have professional workmen who will assist in designing and building the
housing units. Each member of the company will have respective obligations to attend to to
enable smooth running of company’s operations.

4.1 Product and service design and development

♦ Mjengo Consultancy Group will be designed in a way that customers can access
quality and verified construction services and still access affordable housing units.
The company offers work labour so the client should not be worried in finding work
force.
♦ -By carrying out user research.

-By drawing up an initial design.

-By identifying the people, materials and processes required to produce it.
-By setting a budget and a time schedule with measurable targets.

♦ Clear targets will be set for measuring the building success. In each project done, the
cost incurred will be calculated and the cost is used in other future projects. In each
project, machines will be fuelled and repaired, materials will be bought, employees
will be paid etc. so also the cost of this expenses will be considered.
♦ In building construction, machines like bulldozers, excavators etc. will be used in
various project activities and also measuring equipment like theodilite, tape
measures etc. will be used.
♦ Machinery choice is so appropriate because there are different types of machines for
different type of work and this is a factor to consider when choiring machinery.
4.2 Production facilities and capacity
Table 4.2.1 Facilities Required for production/operation
Table 10
ITEM DESCRI DEPRE SUPPLI COST QUANT WHEN TOTAL
NO PTION CIATIO ER PER ITY REQUI AMOU
N UNIT RED NT
1 Machine 4000 CAT 40000 6 1st 240,000
s supplier month
s of
operatio
n
2 Furnitur 1000 Furnitur 10000 10 permane 100,000
e’s e decor ntly
3 Comput 3000 Hip 80000 7 permane 56000
er distribut ntly
ors
4.2.2 Product/service capacity table
ITEM NO SERVICE COST PER INSTALLA DATE TOTAL
UNIT TION REQUIRE COST
COST D
Machine CAT 40000 6 1st month of 240,000 manufactur operation
es

TOTAL COST OF FACILITIES REQUIRED

4.2.3 Repairs and maintenance of facilities for operation/production

♦ Accompany mechanic will be used to repair and regularly check the machines.
♦ Spare parts will be readily available and will be supplied by JM spare parts.

4.2.4 Features of proposed premises

♦ Rental premises. Our office will be located in Nairobi CBD area.
♦ Monthly rent will be paid

MAP

4.3 Production/operation strategy

4.3.1 Description of Monthly production/operation expenses
Table 11
MATERI SOURCE QUANTI COST UNITS TOTAL
ALS TY PER REQUIR COST
UNIT ED
Cement Bamburi 20 bags 550 20 11,000
cement
Building JK stones 3 lorries 30,000 4 360,000
stones
Timber Cyprus 4*2 60 per 70 6000
timber foot
Roofing Royal 12*12 70000 24 1,680,000
mabati
Sand Njogu 1m2 378 20 7560
enterprise
Total cost =2,064560
♦ The materials are readily available
♦ Lorries will be used for transporting building materials at an affordable price.
4.3.2 Monthly labour requirement
Table 12
POSITION SALARY
Marketing manager 101000
General manager 151000
Finance manager 121000
Administrator 51000
Project manager 81000
Tender and contract manager 81000
Logistics manager 71000
Total =657000

4.3.2.1 Monthly production overheads.

Table 13
Expenses Amount
Insurance 2000
Transport 5000
Electrical bills 2000
Waste bill 500
Rent 15000
Mobile bill 1000
Postal 500
Advertisement 10000
Repair and 15000
maintenance
Postage 1000
Total monthly 52000
expenses
Total monthly production=Monthly labour requirement monthly production overheads
52000+71000=123000
4.4 Production/service delivery process
4.4.1
♦ Identify business and commodity services required by business units
 ♦ Identify key stakeholders and priority for each business structure
♦ Develop enterprise list of business services
♦ Socialize across enterprise
♦ Develop work plan
♦ Measure service delivery

4.4.2
• Weather conditions.
• Political instability.
• Human resource management practices.

4.4.3
• Conducting a PEST analysis. This method allows the company to look at the
political, economic, social and technological influences on their success.

4.5 Government Regulations

Table 14

ITE DESCRIPTIO SERVICES FEE

M N PAYABL
NO E
1 Name search E citizen 950
2 Name E citizen 25000
registration
3 Business County 5700
licensing government
4 Pin certificate KRA 950
5 VAT KRA
Certificate
6 Tax KRA 20%on
compliance business
cost profit
CHAPTER FIVE
5.0 Financial plan
Financial plan paints a comprehensive picture of your current finances, your financial goals
and strategies set to achieve those goals.
5.1 Objectives
• Increasing company’s revenue.
• Increasing profit margin in the company.
• Retrenching in times of hardship and earning a return on investment.
5.2 Pre operational costs

Table 15
ITEM AMOUNT
Regulatory 20,000
expenses e.g.
licenses and
permits
Administrative 30000
expenses e.g.
furniture,
offices

Water bills 1000

Electricity 1000
Rent 15000
Transport 5000
Mobile bill 1000
Advertisement 10000
5.3 Financial Requirements.
Table 16
Amount Source of
finance
200000 Owners
savings
1,000,000 Executive
members of
the company
300000 Friends and
family
100000 Sacco loan
1,510,000
Total financial
5.4 Working capital.
STEPHENS MJENGO CONSULTANCY BUSINESS WORKING CAPITAL
Table 17
Current 2025 2026 2027
Assets
Cash at 100,000 200,000 250,000
hand
Cash in 55,000 100,000 200,000
bank
Debtors 20,000 10,000 30,000
Stock 125,000 140,000 200,000
Total C.A 300,000 450,000 680,000
Current
liabilities
Trade 50,000 70,000 60,000
creditors
Overdrafts 20,000 10,000 10,000
Total 70,000 80,000 70,000
liabilities
Total 230,000 370,000 610,000
working
capital
Working capital for year 2025
Working capital=Total current Assets-Total current liabilities
300,000-70,000=230,000

Working capital for year 2026

450,000-80,000=370,000
Working capital for year 2027
680,000-70,000=610,000

5.5 Pro-Forma income statement.

STEPHENS MJENGO CONSULTANCY BUSINESS PROFORMA INCOME STATEMENT FOR THE YEAR
2025,2026,2027
Table 18
ITEMS AMOU AMOU AMOU
NT IN NT IN NT IN
2025 2026 2027
Sales 2,000,00 2,500,00 3,000,00
0 0 0
Less cost of 400,000 450,000 500,000
sales
GROSS 1,600,00 2,050,00 2,500,00
PROFIT 0 0 0
Less
Expenses:
Salaries 100,000 100,000 150,000
insurance
Insurances 200,000 200,000 250,000

Power 40,000 50,000 60,000

Water 10,000 15,000 20,000

Communicati 10,000 15,000 20,000
on
Stationary 10,000 15,000 20,000

Security 10,000 15,000 20,000

Advertising 150,000 200,000 250,000

Loan interest 15,000 20,000 30,000

Renovation 20,000 25,000 30,000

Expenses 565,000 655,000 850,000

Net profit 1,035,00 1,395,00 1,650,00
before tax 0 0
Tax 30% 310,500 418,500 495,000

Net profit 724,500 976,500 1,155,00

after tax 0
5.6 Projected cash flow
MJENGO CONSULTANCY GROUP PROJECTED CASH FLOW FOR YEAR 2025
 Table 19

CASH IN Jan Feb March April May June July Aug Sept
FLOW
Bal b/f _ 107,000 198,000356,500 48,7500 741,000 910,000 105,950 1,199,10
0
Sales 150,000 167,000 250,000252,000 253,000 254,000 255,000 256,000 257,000
Debtors _ 29,000 35,000 35,000 30,000 31,000 30,000 32,000 31,000

Total
cash in 640,000 880,500 1,026,00 1,195,00 1,347,50 1,487,10
150,000 303,000 483,000
flow 0 0 0 0

CASH OUTFLOW
Purchase 30,000 50,000 60,000 100,000 80,000 50,000 70,000 80,000 100,000
s
Creditors 10,000 30,000 35,000 20,000 25,000 30,000 28,000 29,500 32,000
Electricit 1000 10,000 11,000 11,500 11,000 12,500 13000 13,500 14,000
y
Water 1000 5,000 5500 6000 6500 7000 7,500 8,000 8500

1000 10,000 15,000 15500 16,000 16500 17,000 17,500 18,000

Adverts

Total
cash out
flow 43,000 105,000 126,500 153,000 139,500 116,000 135,500 148,500 172,500

Net cash 107,000 198,000 356,500 487,500 741,000 910,000 1,059,50 1,199,10 1,314,60
0 0 0

CASH FLOW 2026

Table 20
CASH Jan Feb March April May June July Aug
IN
FLOW
Bal b/f 1,742,600 1,875,100 2,027,100 2,214,6002,431,60 2,681,20 2,825,70 3,064,70
0 0 0 0
Sales 280,000 290,000 310,000 320,000 322,000 325,000 330,000 350,000

Debtors 30,000 31,000 30,000 32,000 31,000 25,000 26,000 15,000

Total 2,052,600 2,196,100 2,367,100 2,566,600 2,785,20 3,031,20 3,181,70 3,429,70
cash in 0 0 0 0
flow
Purchas 90,000 100,000 80,000 60,000 200,000 100,000 50,000 80,000
es
Creditor 40,000 20,000 22,000 23,000 30,000 50,000 10,000 15,000
s
Electrici 16,000 16500 17,000 17,500 18,000 18500 19,000 19500
ty
Water 11,000 11,500 12,000 12,500 13000 13,500 14,000 14500
Adverts 120500 21,000 21,500 22,000 23,000 23,500 24,000 24,500

Total
cash out 153,500
177,50 169,00 152,000 135,000 104,000 205,500 117,00 150,00
flow
0 0 0
= 2,036,000
Net cash 1,875,100. 2,027,100. 2,214,600. 2,431,600. 2,681,200. 2,825,700. 3,064,700. 3,276,200. 3,501,
4,044,200

CASH FLOW 2027

Table 21
CASH Jan Feb March April May June July Aug Sept
INFLO
W
Bal b/f 4044200 4331200 4514700 4,814,70 5,118,20 5516200 587170 622770 659320
0 0 0 0 0
Sales 395000 400,000 450000 460,000 470,000 478000 485000 490000 498000
Debtors 40000 25000 30000 32000 28,000 30,000 32000 31,000 20000

Total
cash 4756200 4,994,90 5,306,70 5,616,20 6,024,20 638870 674870 729120
4,479,20 0 0 0 0 0 0 0
inflow
0
CASH OUTFLOW
Purchas 80000 150,000 90,000 100,000 10,000 50,000 70,000 60000 30000
es
Creditor 10000 15,000 12,000 9,000 9,000 20,000 7000 10000 5000
s
Electrici 31000 31,500 32,000 32,500 33,000 33,500 34,000 34500 35000
ty
Water 17000 17,500 18,000 18,500 19,000 19,500 20000 20500 21000
Adverts 27000 27500 28,000 28,500 29,000 29,500 30,000 30500 31000

TOTAL
CASH 148000 241,500 180,000 188,500 100,000 152,500 161,000 15,5500 157,000
FLOW

NET
CASH 5871700
4,331,20 4,514,70 4,814,70 5,118,20 5,516,20 622770 659320 713420
0 0 0 0 0 0 0 0
5.7 BALANCE SHEET OF FINANCIAL POSITION.
STEPHENS MJENGO CONSULTANCY GROUP BUSINESS STATEMENT OF FINANCIAL POSITION AS AT
31ST
DEC 2025,1st Jan 2026,31st Dec 2027

Table 22
ASSETS 2025 2026 2027
Equipment 240,000 240,000 350,000

Less than
10%Depreciati
on 24,000 216,000 24,000 216,000 35,000 315,000

Furniture and 100,000 100,000 150,000

fittings
Less than 5%
Depreciation 5,000 95,000 5,000 95,000 7500 142,500

Land 500,000 1,000,000 1,500,000

Motor vehicle 600,000 1,200,000 1,700,000

CURRENT 1,411,000 2,511,000 3,357,500
ASSETS
Cash in hand 100,000 200,000 300,000

Cash in bank 55,000 100,000 150,000

Stock 125,000 200,000 280,000

Debtors 20,000 30,000 50,000

TOTAL
ASSETS 1,711,000 3,041,000 4,137,500

CURRENT
LIABILITIES
Creditors 140,000 200,000 100,000

Bank overdraft
50,000 50,000 20,000

Long term
liabilities

Sacco loan 200,000 250,000 300,000

Capital 150,000
Financed by
owner’s equity 1,500,000 1,500,000
1,020,000
TOTAL
LIABILITIES 2,000,000 1,920,000
1,560,000

5.8 Performance Ratios

Table 23
Ratio Formula Year1 Year Year
2 3
Workin Current 4.3% 5.6% 9.71
g capital Assets/current %
liabilities
Gross Gross 80% 82% 83.3
profit profit/sales %
on sales *100
Quick Current assets - 0.82% 1.15 1.6%
Ratio stock /current %
liabilities
Net Net profit/sales 51.75% 55.8 46.5
profit *100 % %
before
tax ratio
5.9 Contribution statement
The proposed business will have a total of 200,000 into the first year while the total direct
cost will add up to 400,000.
Contribution margin=Sales – variable cost
Sales=2,000,000
Variable cost=purchase + Expenses + Tax
=850,000+565,000+310,500=1,725,500
=2,000,000-1,725,500=274500
BEP =Contribution margin *100/sales
=274500*100/2,000,000
 =13.7%[BEP]

5.10 Financial challenges

• Competition
• Taxes
• Unexpected expenses
• Too much debt
• Bad credit

5.11 Remedies to the challenges

In unexpected expenses, you should create an emergency fund to keep cash ready for any
emergencies.
In taxes, you should invest more in marketing and deduct expenses, make charitable
contributions, Revisit employee compensation
In bad credit, you should pay down existing debt, get a secured credit card, apply for a credit
builder loan, monitor and dispute errors on your credit report.
In competition, find a niche in the market via storytelling and specialization, provide great
customer service, set competitive pricing etc.

5.12 Appendix
STEPHENS MJENGO CONSULTANCY GROUP
Figure 4