How to Write a Construction

Company Business Plan

[Sample Template]
Are you about starting a construction company? If YES, here’s a complete sample
construction business plan template & feasibility report you can use for FREE. Okay, so we
have considered all the requirements for starting a construction business.
We also took it further by analyzing and drafting a sample construction marketing plan template
backed up by actionable guerrilla marketing ideas for construction businesses. So let’s proceed to
the business planning section.

A Sample Construction Company

Business Plan Template
Table of Content [show]

1. 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 won’t lack construction contracts from both the
government and the private sector.

2. 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 world’s 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.

3. Our Products and Services

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

4. Our Mission and 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.
 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.

Our Business Structure

Shannon Berg Construction Company intend starting small from Grand Rapids, Michigan, but
with a vision of growing the business to becoming a global construction brand with presence in
all the continents of the world. In order to achieve this vision, we just have to position our
company for growth and ensure that we hire dedicated and highly competent employees at all
levels.
Shannon Berg Construction Company will ensure that we build a team that will work together
towards achieving the company’s vision. We will build a business that has the right structures
and process in place that can support growth; a business that runs on auto pilot.
In view of the above, we have made provisions for the following position in our organization
based on the size of the company we intend starting but as the business grows, we will create
senior level positions and also create a structure that will support the business growth at every
growth and expansion stage;

 Chief Executive Officer (President)

 Project Manager
 Civil Engineer
 Structural Engineer
 Quantity Surveyor
 Land Surveyor
 Company’s Lawyer/Secretary
 Admin and HR Manager
 Business Developer
 Accountant
 Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

 Responsible for providing direction for the business

 Creates, communicates, and implements the organization’s vision, mission, and overall
direction – i.e. leading the development and implementation of the overall organization’s
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 organization’s 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

Company’s 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 customer’s needs, and
communicate with clients
 Develops, executes and evaluates new plans for expanding increase sales
 Documents all customer contact and information (manage the company’s CRM system)
 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/Customer’s 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

6. 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.

7. 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.

8. Our 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

Our Competitive Advantage

We are quite aware that there are big – time investors and construction companies who are well
recognized in the construction industry, and we maybe have to compete with them when it is
time to bid for juicy government contracts.
It might be challenging competing as a newbie in the construction industry, especially in a highly
organized market like that of the United States of America, which is why we were deliberate in
choosing our board members. Our competitive advantage is not limited to the crop of highly
experienced professions that are members of our management team but also our board members.
Our board members are highly respected professionals in the United States who have served the
government of the United States at various capacities; people who are accomplished business
gurus and people who have the right connections and experience to make things happen with
little or no struggle. For us, it is indeed part of the competitive advantage that we are bringing to
the market.
Another positive for Shannon Berg Construction Company is the fact that our Chief Executive
Officer / President is a renowned Civil Engineer, he has robust experience in the construction
industry and he has worked extensively as a senior project manager for one of the world’s
leading construction companies.
He is sure going to bring is experience, expertise and network (connections) to make Shannon
Berg Construction Company one of the leading construction brand in Grand Rapids, Michigan
and also active player in the global construction market.

9. SALES AND MARKETING STRATEGY

 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

10. 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.

 Marketing Strategy and Sales 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

11. 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 company’s 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

12. Our Pricing Strategy

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.

13. Startup Expenditure (Budget)

 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 won’t be economical
for us to acquire them from the start.
Generating Funding/Startup Capital for Shannon Berg Construction Company

 The Chief Executive Officer/President Engr. Shannon Berg will generate 20 percent of
the start – up capital from his personal savings and sale of his stocks
 30% of the capital will be generated from key partners (Nani David, Lois Scotland and
Christopher Parkston)
 50% of the capital will be sourced from banks
14. 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 Payer’s 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 Employee’s Handbook: Completed
 Drafting of Contract Documents (Tenancy Agreements et al), and other relevant Legal
Documents: In Progress
 Design of The Company’s 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.