construction business plan australia

July 29, 2023

How to start a construction company in australia: easy guide.

So, you’re thinking about starting a construction company in Australia? Good for you, mate! It’s not an easy feat, but with the right tools and knowledge, you can build something great.

In this easy guide, we’ll walk you through the key steps and considerations for starting a construction company in Australia. From company registration to financing strategies, we’ve got you covered.

Table of Contents

Key Takeaways

Starting a construction company in Australia requires careful planning and consideration of legal requirements.
Key steps include company registration, obtaining licenses and permits, and compliance with workplace health and safety guidelines.
A comprehensive business plan and financing strategy are crucial for success in the competitive construction industry.

Steps to Set Up a Construction Company in Australia

Congratulations! You are about to embark on an exciting journey of starting your own construction company in Australia. It may seem daunting at first, but with the right guidance, you can make it happen. Here are the key steps to set up a construction company in Australia:

Step 1: Register Your Company

Before you can start operating your construction business, you need to register your company with the Australian Securities and Investments Commission (ASIC). It’s easy-peasy and can be done online. Just make sure you choose a unique company name that hasn’t been taken by another business.

Step 2: Obtain Necessary Licenses and Permits

Depending on your state or territory, you may need to obtain certain licenses and permits to operate your construction company legally. These may include a builder’s license, a trade contractor’s license, and permits for specific types of construction work. Make sure you do your research and obtain the necessary licenses and permits to avoid any legal trouble down the track.

Step 3: Get Insured

Construction is a high-risk industry, and accidents can happen. That’s why you need insurance to protect yourself and your business. Consider getting public liability insurance to cover any damage or injury to third parties, and workers’ compensation insurance to cover your employees in case they get injured on the job.

Step 4: Comply with Safety Regulations

As a construction company, you have a legal obligation to provide a safe working environment for your employees and anyone else who comes onto your worksite. Make sure you comply with all safety regulations and guidelines, such as those set by Safe Work Australia, to avoid any accidents or fines.

Starting a construction company in Australia may seem like a daunting task, but by following these key steps, you can set yourself up for success. Remember to register your company, obtain necessary licenses and permits, get insured, and comply with safety regulations. And most importantly, don’t forget to have fun!

Creating a Business Plan for Your Construction Company

Congratulations, mate! Now that you’ve decided to start your own construction company, it’s time to get serious about creating a business plan. This document will be your roadmap to success and will help you secure funding, set goals, and make important decisions.

First things first, you’ll need to conduct a thorough market analysis. This means researching the competition, identifying your target audience, and figuring out what sets your business apart. Hint: your Aussie charm and good looks don’t count as unique selling propositions.

Next, it’s time to get your finances in order. You’ll need to determine your startup costs, projected earnings, and potential funding sources. Remember, cash flow is king, so plan accordingly.

After you’ve sorted out the money stuff, it’s time to get strategic. Create a growth plan that outlines your goals and how you’ll achieve them. This could include expanding your service offerings, increasing your marketing efforts, or opening up new locations.

Now, we know what you’re thinking. “But I’m a laid-back Aussie, I don’t need a stuffy business plan!” Trust us, mates, taking the time to create a comprehensive plan will pay off in the long run. Plus, it’s a great excuse to enjoy a cold one and brainstorm with your mates.

Legal Requirements and Regulations for Construction Companies in Australia

So, you’re ready to start your own construction company? Good for you, mate! But before you break out the hard hats and start pouring concrete, there are some important legal considerations you need to be aware of.

Licenses and Permits

First and foremost, you’ll need to obtain the appropriate licenses and permits to operate a construction company in Australia. Depending on the type of construction work you’ll be doing, you may need a general building contractor license or a specialized license for electrical, plumbing, or other types of work. Make sure you research the specific licensing requirements for your state or territory.

You’ll also need to obtain any necessary permits for construction projects. This can include building permits, zoning permits, and environmental permits. Again, the specific permits you need will depend on the type and scope of your construction work and location.

Construction can be a risky business, so it’s important to have the right insurance coverage to protect yourself and your business. At a minimum, you’ll need public liability insurance to cover any damage or injury that may occur on a construction site. You may also want to consider other types of insurance, such as builder’s warranty insurance or professional indemnity insurance.

Workplace Health and Safety

As a construction company owner, you have a duty to ensure the health and safety of your workers and anyone who may be affected by your construction work. This includes complying with workplace health and safety regulations and providing proper training and equipment to your workers. Failure to meet these obligations can result in fines and legal action, so it’s important to take workplace health and safety seriously.

Now that you have a better understanding of the legal requirements and regulations for starting a construction company in Australia, you can start building your business with confidence. Just remember to stay on top of any changes to the laws and regulations, and always put safety first on your construction sites.

Financing and Growth Strategies for Construction Companies in Australia

Congratulations, you’ve set up your construction company in Australia! Now comes the fun part: growing your business and securing the bag. But where do you start?

First things first, let’s talk financing. Unless you’re a billionaire with a keen interest in construction, you’ll likely need to seek out funding options. Your best bet is to look at bank loans, grants, and investors. Don’t be afraid to put on your best smile and pitch your business idea to potential investors. Who knows, they may just love your vision and finance your dreams.

Gearing up for Growth

Once you’ve secured the necessary funding, it’s time to think about how you’re going to grow your business. In the construction industry, word of mouth is everything. Start by delivering quality projects on time and within budget – your satisfied clients will happily recommend your business to their network.

But don’t just rely on good word of mouth. Get your business on the map by establishing a strong online presence. A website with testimonials, a comprehensive list of services, and a blog to showcase your expertise will go a long way in attracting potential clients. You can also take advantage of social media platforms to showcase your latest projects and gain a following of potential clients.

Setting Goals for Success

Finally, the key to achieving success in the construction industry is setting achievable goals. Establish clear objectives for your business, such as increasing revenue or expanding operations, and break them down into smaller, actionable steps. By tracking your progress and adjusting your strategy when necessary, you’ll be well on your way to dominating the construction industry in Australia.

So go forth, young business owner, and chase those dreams. With a bit of hard work, dedication, and a sprinkle of luck, you’ll be a construction industry titan in no time.

Q: How do I start a construction company in Australia?

A: Starting a construction company in Australia may seem daunting, but with the right guidance, it can be relatively straightforward. Here are the key steps to get you started:

Q: What are the steps to set up a construction company in Australia?

A: Setting up a construction company in Australia involves several important steps. These include registering your company, obtaining the necessary licenses and permits, and ensuring compliance with legal requirements. Here’s an overview of the process:

Q: Why is a business plan important for a construction company in Australia?

A: A well-crafted business plan is essential for the success of any construction company in Australia. It helps you define your goals, analyze the market, secure funding, and develop growth strategies. Here’s why creating a comprehensive business plan is crucial:

Q: What legal requirements do construction companies in Australia need to comply with?

A: Construction companies in Australia must adhere to various legal requirements and regulations. These include obtaining the necessary licenses and permits, maintaining insurance coverage, and ensuring compliance with workplace health and safety guidelines. Here’s what you need to know about the legal side of running a construction company:

Q: What financing options are available for construction companies in Australia?

A: Financing is a vital aspect of running a construction company in Australia. There are various options to consider, such as bank loans, grants, and attracting investors. Additionally, implementing effective growth strategies can help your construction business thrive. Here’s what you need to know about financing and growth strategies:

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8 Steps to Start a Construction Company in Australia

Step 1 – conduct thorough research to confirm viability.

Before setting off down the path of establishing your own construction firm, it is imperative to understand the viability of another construction company in your market or with your specific value proposition. If the market is over-saturated and the addressable market is happy with the companies that are operating, is there truly a sustainable opportunity for a new entrant? Thoroughly research the current players, what they specialise in, what they charge for projects and how they are perceived by clients. This will also help you define your own potential customer base and form a platform for your business plan.

Step 2 - Craft a robust business plan

At the risk of rehashing an oldie, “fail to plan and you plan to fail”. So, you have analysed the market and there is an opportunity for you to enter the market. It is now critical to document a business plan and capture the following:

Entity structure
Management structure
Service offering
Types of projects you will bid on
Target market
Employee headcount and roles
Marketing strategy
Thorough cost and funding analysis
Accounting and billing structure
Revenue objectives

Step 3 – Register your company

Once you have identified the business structure (ie, sole proprietor, limited liability company, publicly held company or trust), you need to register your company. You can do this via the Business Registration Service website where you can apply for an Australian Business Number (ABN) and also register for things like GST. You will also require a tax file number, allowing you to track tax payments and business expenses.

Step 4 – Obtain the requisite industry licences

There is a myriad of construction industry-specific licences, which are managed by state and territory governments. The key licences when you are starting out are as follows:

Individual contractor's licence – required before commencing any residential or commercial work
Company contractors licence – required for limited liability or public companies and allows you to establish contracts and subcontracts with other entities
High-risk work licence – required if you will be operating heavy machinery such as cranes, excavators or graders)

Visit the Business.gov website here for a more exhaustive list of building and construction licences and permits available.

Step 5 – Meet safety requirements and secure insurance

Given the nature of building and construction work, safety is of paramount importance. Some licences will require the provision of a detailed safety plan at the time of application, but it is an important piece of documentation for your company nonetheless. In addition to general Occupational Health and Safety (OHS) requirements, building and construction firms need to adhere to specific Workplace Health and Safety (WHS) requirements, which include induction cards (white cards), clothing, noise management, preventing falls and electrical safety (to name a few). It is also vital to secure appropriate insurance coverage to prepare your business for potential accidents. You will need to acquire public liability insurance (protecting the public from any damages caused by your business) and workers' compensation insurance (protecting your workers from any accidents occurring on-site).

Step 6 – Secure financing

Rarely does anyone start a construction business with all the requisite vehicles tools and equipment to complete projects. These will need to be purchased, rented or leased before you successfully win a bid, so it’s wise to finalise this early. In addition to these costs, you will be incurring bills, paying salaries and investing in marketing activity (to name just a few). Consider how your billing structure and cycle will play into meeting these commitments and remember – cash flow is what sinks most businesses, so ensure you have invested the time to carefully map this out. Finlease specialises in machine and equipment loans. Check out their website here , and speak with an industry professional today.

Step 7 – Hire your staff

While there are obviously a number of hiring processes and fair work requirements that you will need to adhere to (such as safe working conditions and meeting minimum pay thresholds), it is important to consider the culture you are looking to foster. Being at the start of your business life cycle, you are able to help craft your ideal workplace, so dedicate the time to drafting accurate and detailed job descriptions and ensure there are clear roles and responsibilities for each new staff member. Ambiguity often creates a negative first impression, so try to remove as much of it as possible from the start.

Step 8 – Start marketing to generate awareness

While many view the marketing function as simply a cost centre, it plays an important role in generating awareness and ultimately, demand for your services. This is particularly important in the infancy of your business, when you are relatively unknown and not an automatic inclusion on tender panels. Equally important, however, is ensuring that you establish a brand identity that represents how you want your company to be viewed – which may not be within your skillset. iSeekplant can help here, with an agency division that can help you establish a launch and marketing strategy, as well as essential communications channels including:

Superior web presence with a high-impact website
Google My Business and local directory set-up
Social media channel establishment
Email marketing templates

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How to start and successfully grow a construction business

Roofer working on framing against a blue sky

The construction industry is one of the top start-up business sectors, but it is an industry where well over half of new businesses don’t make it through the first five years. However, if you can successfully manage your construction company, you can avoid this pitfall and be set yourself up for long-term success.

Keep in mind that despite cyclical industry downturns, often sparked by external events such as weather changes, there will always be a need for affordable, quality housing.

To build a successful construction business you must consistently research, plan, finance and complete jobs that satisfy your customers.

Here, we will look at how to achieve these requirements from the start and successfully grow your building company.

Growing your construction business

One issue new construction companies or contractors face is spreading themselves too thin. If you try to do everything, then chances are you won’t be great at anything.

Perhaps you have experience in a certain home style or there is a shortfall of a specific floor plan within your local community, and it’s a need you can fill. Let’s quickly focus on how your business strategy and value proposition can include what best suits your skill set.

But first, let’s review the three broad areas: residential, infrastructure and industrial builds. Small businesses often serve as subcontractors to larger organizations.

Residential buildings

If you focus on the residential sector your clients can range from home buyers, investors, co-ops, to developers. It all depends on the types of residencies you build. You could concentrate on building houses, apartment buildings or duplexes. Within this sector you also have remodels and home extensions.

Small builders to large construction companies serve this sector.

Infrastructure

This sector focuses on roads, bridges, waste and water systems and other heavy engineering that is constructed to improve a city or town’s liveability. These projects are usually government-funded and can often take many years to complete from planning to final build.

A large construction company is more suited to the infrastructure sector.

The industrial sector is wide-ranging and can include retail and manufacturing facilities, industrial plants or refineries. Your clients may be investors, developers or individual business owners.

This sector is served by medium to large construction companies.

Identifying your niche

A good way for custom home builders to stand out from competitors is to specialize, or become an expert in a niche. Perhaps you could be a specialist in old home restoration, you could be an expert in eco-friendly buildings, or on an infrastructure level, a plumbing contractor can specialize in serving high-rise apartments. Obviously, it’s risky for a small construction business to spread themselves too thinly across highly diverse project types. Smart home builders know their target market.

Research your local market

The best place to start your niche research is with your local area and its demographics. What sort of customer base is there? Find out their age, status and interests. This can give you an idea of what kind of construction is needed.

Now, look at the businesses that are already there. What are they? Are there a lot of one type and few of another? Is there a need that isn’t currently being filled? Another thing to consider is the prices others charge in your area. Can you compete and profit? Look at the reviews and the reputation of the companies. Again, can you compete?

From the above information, you can get an understanding of the construction needs of the locals and of the area. However, you can’t just consider now, you must think about how the area may look in 10 years time. Is it still going to be growing or will construction have slowed?

The local market is a great place to begin your research, but you still need to take it a step further to help ensure your construction company won’t be one that fails in its first five years.

How to do construction market research

Start with free resources like Google, construction industry reports, builder’s websites, commercial directories or local phone books. You can also try industry magazines, government reports and look at historical data and bids as well as proposed projects coming to the area.

You should also understand how to cover expenses as you begin work. Will you need a business loan and will that loan require personal assets?

Customer feedback is an excellent way of knowing your local customer base. Through surveys, questionnaires, focus groups or face-to-face interviews you can find out:

How often they have used a builder;
What were their biggest issues with the building process;
Their most important factor that makes them a happy customer.

Whatever your questions are, there’s no one better to ask than those who may potentially become your customer.

It doesn’t matter what your research sources are as long as they help you get an accurate overview of your customers, their needs and how you can find your niche in the construction industry.

Draft your business plan

Now you’ve done your research and found your specialty, it’s time to start making plans. Specifically, your business plan. It needs to include:

Your business and management structure;
The service you provide;
What kind of jobs you will bid on;
Your target market;
How many employees you will have;
What your estimated income for your first year and the KPI’s you need to achieve to reach it;
Whether you will be a cash or accrual business and what your billing terms are;
How you are going to market yourself;
What your lending sources are;
And, what your estimated startup costs are.

To ensure you don’t forget anything, we recommend you use a construction business plan template.

Writing a construction business plan

Good research and accurate information is an important part of the startup stage, but writing a solid business plan is the most crucial. Knowing how to create professional and accurate construction estimations is a crucial part of your business planning process.

As your business plan is so crucial, don’t be afraid to get help . There are people who write up business plans for a profession.

Register your business

The next step is to register your business to ensure you pay the proper taxes required to operate. Contact your local government to find out more information on registering your construction business.

Get the right licenses and permits

Your state and local governments will have permits and licenses that you will need to run your company. As the business owner, it is up to you to ensure you comply with the laws and regulations. So, contact the regulatory authorities in your area to find out what you need to comply with your local government.

Find an insurance provider

Shop around and find the best insurance for your own company. You will need vehicle and equipment, risk, injury, personal and general liability insurance.

Find the funding you need

The cost of business does not end when you start up, depending on the job you are doing, you may have to lay out a great deal of money before you start generating cash and profits. In the meantime, you still have to survive. So, decide whether you can secure funding by yourself, whether a bank loan will do or if private lenders offer a better choice. Many turn to government loans or grants.

Work out what equipment you’ll need

Whether you are a general contractor or you have your own construction company, any new business will need construction equipment and heavy machinery. Some tools you will buy and some equipment you will rent.

What will you do yourself, and what tasks or site labour will subcontract for?

One of the main lessons business owners need to learn is to delegate. To grow your business, you will need to learn how to share as much workload as possible. You can use subcontracted labor, general contractors, bookkeepers and other tools to save you time.

You also can turn to software tools to help manage your business. For instance, creating quantity takeoffs and estimations are time-consuming; so using construction management software, you can get them done 80% faster. Software also can help you schedule work and manage subcontractors.

Who will look after your company’s bookkeeping?

Bookkeeping is one job that should definitely be delegated to a good professional. Good quality construction management software can integrate with your bookkeeper’s accounting software, making the financial side of your business easier to manage.

Of course, quality construction, good materials, great customer service and being able to complete jobs are critical to a successful construction business. However, growing one takes good management, planning and marketing.

Let’s have a closer look at what it takes to grow your construction business.

Build a great team

Your employees are a reflection of you so make sure your workers and other contractors offer the same quality services as you do. Again, you need to share the workload as much as you can; so build a team you can rely on.

Invest in your business

Next, you need to invest in your company. It’ll need your time, money and devotion to be a success. Whether you need to pay for new trade tech, undergo more training, or finance your marketing, it is all about growing your business by reaching more satisfied customers .

Focus on quality

The best way to build your reputation and grow your business is to produce quality work. Don’t cut corners and rush through the process. And if you don’t perform an accurate construction estimate, then you won’t know the project viability or how much time the project will take .

Use construction management software

The best way to build a profitable business is by using construction management software to consistently build accurate estimates. Software, like Buildxact, makes online estimating with updated pricing easy.

Learn how easy it is to get started with software, Book a demo or setup a risk-free trial today.

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Focus on new technology in construction to improve home building

New technology in construction is advancing and with supply shortages and prices uncertain, adapting these technological trends is vital.

A plumber working on a toilet installation in a bathroom

Break through customer renovation fears

Listen as award-winning architect and builder David Pollard offers ways to reframe the negative thoughts customers can have about renovation Listen as award-winning architect and builder David Pollard offers ways to reframe the negative thoughts customers can have about remodeling..

A wood house covered in solar panels in a green country field

Learn how new construction materials impact today’s custom home projects

Custom builders better manage new material purchases using online tools. Today, many homeowners look to sustainable materials in their custom home projects.

A builder and a customer shaking hands at a job site

Custom home builders earn homeowner trust with estimating templates

Builders can grow homeowner trust using estimating templates and multifunctional custom home building software.

Blocks spelling risk and benefit on a balancing board

Understanding construction risk management

With greater focus on risk management, successful builders are navigating today’s volatile business climate.

A job site with the wall framing of the house being built

In a tough economy, it’s important to learn new ways of planning custom home projects. Learn how lean construction can grow your business.

A group of builders working on a job site together

Subcontractor Management critical to profitable projects

Learn what Subcontractor Management is and why its critical for construction company success.

Buildxact's workflow integration in a laptop

Discussion with a leading residential builder’s coach

Buildxact and Kurt Hegetschweiler, Director of Builders Coach, take you through top tips on profitable, cash flow, and winning more work in this webinar.

How to manage your subbies from start to finish, in less time and with better results

Manage your subbies more efficiently with this webinar brought to you by Buildxact and HazardCo

A cover image to our eBook about 6 ways a supplier can boost their builder's success

6 ways suppliers boost builder success

Download this eBook to learn of 6 ways suppliers can boost business success for their builder customers.

Protecting your profit – Tactics for keeping your profit on track as a job progresses

Get a better hold of your profit with this webinar brought to you by Buildxact and Xact Accounting.

builders frame a custom home under construction

For long-term success, invest in the preconstruction meeting

By bringing stakeholders together to review project scope, schedule and budget, you avoid potential issues and delays down the road.

A builder estimates a project using Buildxact on their laptop.

Rising prices demand accurate construction cost forecasting

No matter rising costs, for many home builders construction cost forecasting proves too time consuming. Others find forecasting difficult and don’t know where to begin. This doesn’t have to be you. Today, tools exist that make forecasting a simpler, more predictable process.

A cover image for our eBook on three steps suppliers can make for profitable relationships

3 steps to a profitable supplier relationship

Download this eBook to learn three steps to having a profitable relationship with your suppliers.

A cover image for our infographic about material delays costing builders money

How much money do builders lose to material delays?

Download this infographic to get a deeper insight into how material delays are impacting builders’ profits.

Setting up and using a Client Portal in Buildxact

https://youtu.be/rpvKtSVLiV0

This video covers what a client portal is, how to set it up and invite people to it, notifications your client gets and notifications you get as changes are made in Buildxact.

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How suppliers use SaaS to modernize the builder relationship

Learn how suppliers are using SaaS to create deeper relationships with builders.

A cover image of our infographic about assumptions suppliers make that lose them customers

5 assumptions suppliers make that cost them customers

Download this infographic to understand the mistakes suppliers are making that’s costing them customers.

The Buildxact customer communications screen in a laptop

The building quote template offers builders a better way to serve homeowners

The importance of a building quote

The foundation of a successful home construction project lies with a detailed construction quote and resulting contract. Clarifying, via a quote to the homeowner, the project scope, specifications, costs and timeline reduces payment delays and unfortunate disagreements. The use of a building quote template leads to a higher level of customer se

Procurement in construction: proper planning improves your business

For the best customer experience, custom home builders know that good planning, coupled with proper management of homeowner expectations, is critical–especially in a tough construction industry experiencing potential cost fluctuations that make every dollar count.

By the time a home construction project is ready to break ground, months and tens of thousands of dollars have bee

A guide to branding for home builders: the key to success

Learn how to setup branding to grow your customer base. Branding helps set you apart from your competition.

a graphic balancing coins against a small framed house under construction to show the importance of budgeting.

Calculating preconstruction costs: why it’s essential to the construction process

Paying attention to the preconstruction process helps set a project schedule and budget that can be maintained and lowers the risk of hold-ups.

7 essential upgrades to your construction document management system

Custom home builders have a strong need for a complete, modern document management system.

How bid leveling helps nail the best construction bid

The process of bid leveling manages a variety of project information from bids in a way that the client can easily understand.

How to build a brick recipe

How to convert square metres of wall into numbers of bricks, cubes of sand, bags of cement using recipes.

How to build a cladding and insulation recipe

How to use recipes to work out cladding and insulation in Buildxact.

Setting up decking and flooring recipes

This video covers how to use recipes for decking and flooring.

A construction site for a two storey home

Budget 2022 – Key points for the building sector

The Federal Budget for the 2022 financial year has been announced, and there are some big changes in store. Here’s what you need to know.

Setting up framing recipes

How to manage wall framing and junctions using Buildxact recipes.

A job site with a nearly completed timber framing

Types of construction estimates you need to know

How you estimate and conduct your project management can affect the accuracy of the budget for construction costs and that budget can reveal as early as possible if the job will deliver a satisfactory result for the homeowner and turn a profit for you, the builder.

Importing a pricelist

This video will show you how to load your own price catalog into Buildxact.

How to integrate and use Deputy

Learn how to connect Deputy with Buildxact.

Completion percent invoicing and retention

This video covers completion percent invoicing

Cost plus invoicing

This video covers cost plus invoicing.

How to respond to a quote request in Buildxact’s Web Portal

Learn how to respond to an RFQ using the Client Portal.

How to reply to a quote request inside Buildxact

Learn how to respond to an RFQ in Buildxact.

Helping your client access the Client Portal

This video is for people who’ve just been invited to a project via the Buildxact Client Portal.

How to consider labor estimate costs for construction

It’s critical that you always submit competitive, complete quotes if you are to win the amount of work required to grow your business. To do this, you must have accurate estimates of labor costs and material costs‑especially during the current economy.

Connecting your email to Buildxact

Learn all about the Buildxact email integration feature.

June product news: Supplier features to transform the way you work

Welcome to our June edition of Product News! The Buildxact team are excited to share the work we’ve been doing to help suppliers and sales reps deliver value add services to their builders. Through simplifying the sales process, suppliers can continue to grow a loyal customer base.

Let’s jump straight in!

Respond to quote requests in Buildxact

The basics of construction tendering

Tendering in the construction industry is the process of requesting and receiving a price for a specific scope of work.

Supplier integration in Buildxact's estimating and construction management software

Transform the way suppliers work with builders

Buildxact’s latest features deliver an end-to-end platform for suppliers to work collaboratively with builders throughout a job

Two builders with an iPad walking through a home construction

April product news: New features to streamline admin

Welcome to our first product update for the year!

We’re super excited to collaborate with you and share our exciting new features, helping you save time and win more jobs. Let’s kick it off with the latest releases that will help give you more time to do the things you love most!

Organize your week in a dash

Seeing what tasks are coming up for th

Connect your accounting software to Buildxact

See an overview of the entire accounting connection process, where you can integrate your accounting software into the Buildxact platform.

Use contract invoicing in Buildxact

Learn the different aspects of contract invoicing such as altering stages, refundable deposits, as well as handling billing variations

Make variations (settling pc/ps items) in Buildxact

Learn about over and above variations, how to fill out details, as well as printing and accepting variations.

Creating work orders and handling internal costs within Buildxact

Understand how to use work orders and manage internal costs, what work orders are for, and timesheeting options in Buildxact.

Manage purchase orders and receive costs with Buildxact

Learn purchasing functions and how to manage receiving costs as well as review the three types of purchase orders.

Manage your job schedules in Buildxact

See how scheduling works in Buildxact. This includes structuring your schedules, methods of creation, the various views and functionalities.

How to use the Site Diary

Use the Site Diary functionality to share with your team updates on the job.

Create a job using Buildxact

Create a job within the Buildxact platform, including the types of jobs you can run, default invoices available, and job acceptance

A cover image of our eBook on how to estimate construction project costs

How to estimate construction project costs eBook

When estimating the costs of a construction project, it’s important to include all of the costs in order to stay profitable. These are typically split into hard and softs costs. Check out our guide where we explore the difference between these two types of costs, give some examples of soft costs, and explain why soft costs need to be included in project budgets.

A cover image for our eBook about the soft costs in construction

What are soft costs in construction? eBook

A cover image of Buildxact's eBook guide to construction management software

The ultimate guide to construction management software eBook

The right construction management software can save you loads of time and help you be more profitable. This guide will take you through the ins and outs of construction management software, key features to look for, and what a quality software can do for you and your business.

A cover image of our eBook on 10 ways to market a residential construction business

10 ways to market your residential construction business eBook

Social media, remote work, and online communication tools — and today, companies and consumers alike are researching and purchasing online.

A cover image for our eBook on 9 tips to maxmise residential construction profit

9 ways to maximize your residential construction business’ profit eBook

Learn how to maximize your profits by using cloud-based construction management software. Download the ebook now!

A cover image of our ebook about five ways to estimate more accurately and faster

5 ways to estimate faster and more accurately eBook

Learn how to estimate faster with your construction takeoffs with cloud-based construction management software. Download the ebook now!

Produce a professional custom quote letter using Buildxact

Make your quotes look amazing and sort through the different options on offer to determine what the client sees using the Buildxact custom quote letter tool.

A photo of a Dahlsens banner on a Dahlsens supplier store

Dahlsens grows business as it helps custom builders strengthen business practices

Dahlsens are reducing the time it takes to serve their customers, and helping builders quote 5x faster with Buildxact.

Mitre 10 integrates online pricing with builders to increase efficiency

Mitre 10 is connecting with builders using Buildxact’s supplier integration.

Working with specifications in Buildxact

Generate specifications from the Buildxact costing screens, how to edit and add images, and what to do about exclusions.

Use recipes in Buildxact

Learn and understand what recipes are, how they work and how to build them in Buildxact’s construction management platform.

Estimate phase request for quotes

Learn the entire process from requesting the quote, to accepting the quote, and how the response appears. See a few tips and tricks to help you get the most out of Buildxact.

How to do a basic M3 takeoff in Buildxact

Here we’ll explain how to use the takeoff tool to complete a basic cubic metre takeoff in Buildxact.

How to do a counting items EA takeoff in Buildxact

Counting individual items on plans in Buildxact using the takeoff tool.

How to do a basic LM takeoff in Buildxact

Understand the use of the most common lineal metre using Buildxact’s takeoff tool.

How to do a pitched M2 takeoff in Buildxact

Learn to do pitched M2 for tasks such as roofing or raked ceilings takeoffs using Buildxact.

How to do a vertical M2 takeoff in Buildxact

How to do M2 takeoffs on vertical surfaces from a top view plan using the Buildxact takeoff tool. This is commonly used when working with plaster, paint or tiling.

Using redistribution and selecting allowances, specifications and timeline items work in Buildxact

Learn how moving markup works, how you can identify PC/PS/Allowance items, and how to separate detailed costings from client specifications.

The Buildxact invoice screen with a play button

Streamline your admin with invoicing construction management software

Using Buildxact, you can streamline your admin process, send out invoices to your customers efficiently, and track your profits in one place.

The Buildxact costings screen with a play button

Maximise your profit with cost tracking construction management software

Maximise profits with cost tracking on Buildxact construction management software for builders and contractors using Xero or Quickbooks.

Manage your jobs seamlessly

Using Buildxact’s scheduling features, you’ll be apply to manage jobs effectively and seamlessly all in one platform.

A thumbnail of the Buildxact custom quote feature with a play button

Create professional and detailed quotes 5x faster

With Buildxact, you’ll be able to quote 5x faster using Buildxact’s quote builder, helping you stand out amongst the rest.

The Buildxact estimating screen with a play button

Develop accurate estimates up to 5x faster

Using Buildxact, complete accurate estimates and streamline your process, helping you to complete your estimates up to 5x times faster.

A thumbnail with the Buildxact takeoff tool and play button

Complete takeoffs up to 80% faster

Using Buildxact’s online construction management software, complete your takeoffs up to 80% faster, with greater accuracy and efficiency.

A quick look at Buildxact

Easy-to-use construction management software designed for residential builders. Take your residential construction business to the next level

What builders are saying about Buildxact

Check out what builders are saying about Buildxact and how the platform is helping them to accelerate their business and maximise profits.

Thumbnail featuring Buildxact customer Lauren O'Grady

Customer story – L O’Grady Constructions

Lauren O’Grady talks about how Buildxact has significantly reduced the time it takes to do takeoffs and cut their administration time in half

A thumbnail featuring Phillip Ouzounis, Buildxact customer, for his customer testimonial

Customer story – Zounis Constructions

Zounis Constructions uses Buildxact’s cloud estimating and job management software to provide customers with professional quotes and run jobs

Customer story – Shawco Building

Learn how Shawco Building uses Buildxact to improve their processes and reduce time to do takeoffs, improving efficiencies.

A thumbnail featuring Buildxact customer Bryce Parker for his customer testimonial

Customer story – Bryce Parker Homes

Bryce Parker Homes explains how Buildxact has transformed the way his business operates, reducing his quoting time for any project.

Customer story – Scalzo Constructions

Scalzo Constructions turned to Buildxact to streamline processes and be more efficient with the best construction management software.

Buildxact customer Lauren O'Grady using Buildxact on a computer at her office

L O’Grady Constructions delivers a quality work-life balance with Buildxact

L O’ Grady Constructions’ clients praise them for their ability to make quick decisions, as well as communicate and resolve hitches.

Phil Ouzounis, Buildxact customer, on a job-site

Zounis Constructions cuts takeoff time in half with the right technology tools

Zounis Constructions set up their business for success, using tools that make them more efficient and more profitable.

Buildxact customer using the Buildxact scheduling feature on a laptop at a job site

Shawco Building keeps customer communications clear with the Client Portal

Using Buildxact has made Hagen Shaw’s life much easier as quoting is far more efficient and pricing a lot more accurate.

Bryce Parker Homes uses a seamless system to simplify job management

Streamlining the ordering process and managing projects in Buildxact has made life a lot easier for Bryce and his team.

Jetcon Builders generates professional quotes more quickly to win more work

Buildxact is an end-to-end system, it provides Jetcon efficiencies from first takeoff to the final invoice, saving countless admin hours

How to add markup to your quotes, and manage tax and sell price in Buildxact

Learn to add markup to your Buildxact custom quote letters, as well as how to view and alter tax and understand how markup and tax impact customer price in Buildxact.

Reusing measurements, wastage and rounding in Buildxact

Make the most of the Buildxact takeoff tool by reusing measurements, as well as learn to add wastage and rounding to measurements.

Perform a Basic M2 takeoff in Buildxact

Learn about the most common square metre takeoffs you can complete with Buildxact. Go through the Buildxact takeoff tool and see some tips and tricks.

Get started with estimate costing in Buildxact

Learn about the estimate costing screen, basic editing, adding price items to your quote, and exporting a bill of quantities.

0:05 Overview

Downloading, uploading and using demo plans

Download and upload demo plans into your Buildxact environment.

Complete estimate details using Buildxact

Begin an estimate in Buildxact in the correct and most efficient way. Enter information such as estimate details, work location and notes.

Start using Buildxact

Learn the main parts of Buildxact, how to capture client leads, and how to start an estimate.

Setup your Buildxact account

Setup your account with your business details and logo. Learn how to add users and edit your Buildxact subscription.

Buildxact's Senior Customer Success Manager, Dan Conlon, video tutorial thumbnail

Welcome to Buildxact!

Learn about what will be covered and how to get the most out of the entire video series on the Buildxact construction management platform.

3 key benefits of job management software

This blog explains how to maximize the benefits of job management software and how an integrated accounting system improves your business.

How to drastically reduce construction costs for builders

Learn how to reduce construction costs effectively to boost revenue and optimize business costs with Buildxact.

A photo of Leah Walling and Jennifer Castenson

Buildxact diversifies leadership as it grows North American team, expands globally

Buildxact has hired Leah Walling as Executive Vice President of Demand Generation and interim Executive Vice President of Marketing.

Buildxact Software takes Silver at the NAHB Nationals during IBS 2022

Buildxact was awarded the silver medal in the Construction Management Software category at 2022 International Builders Show (IBS).

A photo of Buildxact's stand at the International Builders Show in 2022

New Buildxact pricing integration for top-level builder, dealer collaboration on display at 2022 NAHB International Builders’ Show

Attendees will learn how dealers and builders increasingly use software to help each other win more jobs amid climbing material prices and a tight labor market.

What is conceptual estimating?

Conceptual estimating is an estimate of the construction costs based on the designer’s preliminary sketches and specifications.

What’s involved in estimating in construction projects?

A construction estimate is the most crucial part of winning building jobs and is key to any successful project completion.

A photo of Buildxact CEO David Murray outside in a Buildxact t-shirt

Fast-growing SaaS construction tech company Buildxact secures AU$18.5 million in Series A funding to help realize global potential

Founded in Australia, and with already an established presence in the U.S. and Canada, Buildxact secured funding from some of Australia’s preeminent venture capital funds, taking Buildxact’s valuation post money to more than AU$125 million (US$92.5 million).

The construction estimating process, steps and strategies

When you are part of the construction industry, winning bids and tenders is vital to the success of your business. This makes the construction estimate a crucial step in creating a building company that earns profits, has high customer satisfaction and continues to grow.

How to keep your residential construction business profitable despite material shortages and price increases

The effects of COVID have been felt across all industries including the construction industry, and it has never been more critical for builders like you to focus on your long-term financial viability.

Plans laying on top of a pile of lumber on a construction site with a builder in the background

How to estimate construction materials

To make cash in the construction industry you must ensure that your outlay is covered and profit margins maintained. The trick is knowing how to set the project price. To set a price you need to know what the entire project costs are, including the material cost, direct labor pricing, equipment and the indirect cost of the complete job. Big construction companies often have expert c

The key benefits of construction management tools

It’s easy to imagine the effect construction management software will have on you and your construction firm. Imagine having more time, wasting less money, and having happier customers, all while growing your construction industry business. You don’t have to just imagine it though. Let’s have a look at how construction software benefits construction businesses of all sizes.

How to do a construction proposal: examples and template

Many large construction companies understand the importance of a construction proposal, but it is often overlooked by smaller builders and remodelers. That is usually because they don’t understand what a construction proposal actually is.

The buildxact takeoff tool in a laptop screen on a job site

How to do construction takeoff estimating

A material takeoff involves estimated counts of material supplies, material costs, labor costs and equipment by itemised prices and also can include a project completion date estimate by computing delivery times and building hours.

A carpenter measuring up a piece of wood with protective gear on

Carpenter quote templates

Managing a carpentry business is no easy feat. There are plenty of details to consider. How will you communicate with clients? What will your customer onboarding and administrative processes look like? How will you keep track of important records and information?

Buildxact's invoicing screen in a laptop, being used on a desk

What is estimating in civil engineering?

Estimating is an important factor in many industries. The local grocer wants to order enough stock to satisfy their customers yet have the goods on the shelf for as little time as possible. For the construction industry, it is no different. Without a detailed estimate, profit margins can suffer. However, estimation is not a process of guesses. An estimate is calculated through knowl

What does a construction estimator do?

Possibly the most crucial part to a construction project is construction estimating. It is the process of calculating the material, labor, equipment and overhead costs associated with a building project and then creating a quote, bid or project budget with the information.

Buildxact makes 2021 AFR Fast 100 list at #30

Buildxact has been named by the Australian Financial Review as one of Australia’s fastest-growing companies.

What is construction estimating? How automating software can transform estimating efficiencies

Construction estimating is a major element of construction management. The construction industry relies on accurate cost estimates for both simple and complex projects.

How to master building cost estimating – best tricks for fast and accurate estimates

Money runs the building and construction industry. To be successful you have to have a lot of money coming in and not as much going out. This is where building cost estimating is invaluable, but there are tricks to getting fast and accurate estimates.

How to estimate construction costs – The complete guide

The most important part of profitable construction projects is getting the costs right. If you undervalue the price, then you are going to lose money. If you are overvaluing your estimates, then you will most likely lose bids. Either way, incorrect cost estimates can destroy a builder or construction company. It can eat away at your profit margin or damage your reputation.

A banner image announcing Epicor's integration with Buildxact

Buildxact and Epicor’s BisTrack Integration Digitizes Manual Order Process Between Dealers and Builders

Buildxact, an estimating and project management software for dealers and custom home builders, announced today its integration with Epicor’s BisTrack Solution, an ERP software for building material suppliers and distributors.

A happy couple looking at a newly built home

Product News: Customer communication and collaboration has never been easier

As a custom home builder, you know that first impressions matter, and the secret to success is to stand out from the competition from the outset.

A header image announcing Leah Walling as Executive Vice President of Demand Generation

Leah Walling joins Buildxact as Executive Vice President of Demand Generation

As Buildxact continues to build its leadership team, marketing veteran Leah Walling has joined the company as Executive Vice President of Demand Generation. Based in San Francisco, CA, she offers more than just demand generation, viewing all aspects of marketing as essential components that fuel the engine driving demand, revenue and growth.

A builder on a job site facing the camera, with another builder on the tools in the background

How suppliers can foster a healthy relationship with their builders and manufacturers

The relationship between suppliers and builders needs to be mutually beneficial and how it can generate loyal customers for suppliers.

A red wooden person surrounded by white wood blocks all connected by a thought

3 ways suppliers can build strong relationships with builders

The key to a healthy relationship is communication and setting realistic expectations. Both sound very simple, but in most cases where relationships sour, these two factors have crumbled.

Buildxact customer Bryce Parker using a laptop on a construction site

How suppliers can embrace technology to connect with builders

Custom home builders and suppliers need to have a synergistic relationship to be successful in the construction industry. Suppliers want to offer custom home builders the materials they need to complete high-quality projects quickly and efficiently. Builders rely on suppliers to provide those materials at prices that allow them to make a profit. Price volatility in the construction

What is a quantity takeoff and how are they done?

It doesn’t matter whether you prefer to call it material takeoff, construction takeoff or estimation takeoff, a quantity takeoff is an essential part of any building project. Whether it is a large or a small job, accurate quantity takeoffs can mean the difference between a financial disaster and a completed project that keeps everyone happy.

Two builders on site surrounded by timber framing and pointing

Product news: Buildxact has just solved arguably the biggest pain point for builders and suppliers

At Buildxact we talk a lot about building. Construction. Renovations. Perhaps even more importantly, we talk about the people involved throughout the process – builders, trades, suppliers, consumers, even coaches and accountants!

Top 10 qualities of a productive construction manager

Construction managers are responsible for the everyday running of a construction project. They ensure that scheduled tasks are completed, and that the contractor has all the information they need to perform the work. They use technology, like construction management software, to successfully implement the work called for on the project documents. A good and productive construc

Cover image of Buildxact's Residential Construction Report from Jan to June 2021

Buildxact report finds residential construction is bouncing back from the pandemic

Despite lockdowns, the construction industry in Australia is in good shape. Will the end of government assistance lead to a bumpy road ahead?

Buildxact customer Hagen Shaw of Shawco using a laptop on a construction site

The importance of construction cost estimation

Estimating construction costs accurately relies on many elements. It’s a necessary process and is what underscores the pricing of construction projects. The accuracy or inaccuracy of an estimate can make or break a business’ profitability. However, the elements involved can complicate the process and result in a lot of risk, whether from material price fluctuations to uncertai

How to estimate construction project costs

Estimating construction costs starts with a careful review of the project documents to determine the amount of work in a project.

A sign post with four options pointing in different directions

How to choose the best construction quoting software

As a business owner in residential construction, you know that you need a competitive edge to win more business. While your project portfolio is impressive in attracting business, you’re only as good as your first impression, and generally, you only have one chance to get it right.

Construction takeoff software generates accurate estimates faster

The construction takeoff process when done manually with paper plans and a scale ruler is time-consuming and frustrating. It’s a process that often requires repetitive work while still resulting in inaccuracies. Because construction takeoffs are a necessary part of the construction industry, having a takeoff process that is efficient and accurate, is essential.

The Buildxact scheduling tool being used via laptop

The easiest way to get started with construction scheduling software

Residential construction projects rarely seem to go precisely as planned. Each new build or home renovation has a wide range of moving parts – and people – each with dependencies upon another.

7 common construction estimating mistakes – and how to avoid them

Creating quick and accurate estimates is one of the necessary essential functions to winning jobs and running a successful residential construction business. It takes a lot of time, and if you’re still creating them by hand or Excel, there’s more potential for costly errors.

How to estimate construction time for your project

After the rollercoaster of 2020, predicting anything in 2021 can often feel impossible. At a time of flux, the ability to accurately estimate construction time for building projects is never more vital.

The ultimate guide to construction management software

Searching for the right construction management software or assessing your current software? Here’s our in depth guide to help you.

What I learned from living homeless for 24 hours

To gain a deeper appreciation and to raise awareness for those experiencing homelessness, David Murray, Buildxact CEO, took on the Roughin’ It Challenge.

9 ways to maximise your residential construction business’ profit

It is undeniable that the global pandemic has taken a toll on businesses and our economy. And that includes the construction industry.

5 ways to estimate faster and more accurately

Estimating software streamlines your entire estimating process, from takeoffs, to estimates & sending quotes, set your construction business up for success.

A banner image from our Q4 Activity Report from October to December 2020

New report finds overall demand for small builders remains high

Residential builders and trades across Australia continue to stay in high demand, according to data from residential construction management software Buildxact.

An image with marketing strategy at the centre, with various strategies surrounding it

Construction Marketing: 10 strategies you should be using

We live in a rapidly changing world where technology is advancing at a groundbreaking speed. And with the rise of social media, remote work and online communication tools, everyone is migrating to researching and purchasing online. It is essential that if you own a small construction company or are involved in the construction industry in any way, that you take construction marketin

A series of wooden blocks with letters on them made to spell the word 'privacy'

Updates to our Terms & Conditions

We have recently made several changes to our Terms & Conditions. We have listed the changes to our Terms & Conditions below. If you would like to read through the full Terms & Conditions you can access them via the link below, or our website footer.

A photo of Buildxact President for North America Steve Yates

Buildxact appoints President for North America

Building on the success of the initial launch of Buildxact in North America earlier in 2020, Buildxact announces the appointment of Stephen Yates to the position of President, North Americas. Mr Yates’ role will be to drive North American priorities for all Buildxact business units and in particular the development of partnerships with the LBM (Lumber and Building Mate

Buildxact raises $6M to continue expansion

Buildxact has secured $6.0 million in new funds via an over-subscribed capital raise. The funds will enable Buildxact to further enhance its estimate and job management software platform for small residential builders, solidify its leadership position in the ANZ market, and boost its growing presence in the large North American market.

Banner image for our Activity Report from July to September 2020

Work continues to surge for small residential builders amidst COVID-19 pandemic

Read our report on how construction work continue to surge during the COVID 19 pandemic and small residential builders saw increased growth.

A takeoff being done with Buildxact via laptop on a desk with a hardhat and stationary

Estimating software: our guide to estimating software for builders & trades

Learn how to be successful as a builder or renovator, highly accurate and delivered to the customer in a short timeframe with our guide.

A laptop with the Buildxact completed takeoff screen

Takeoff software: our guide to construction takeoffs

Construction takeoffs sometimes referred to as material takeoffs, are an essential piece for almost any construction project. No matter the size of the job, takeoffs play a critically vital role in providing an accurate estimate for the builder or trader and their customer. It is even helpful for those in the electrical field since it will help them determine the quantities requ

A cover image for our Residential Construction Activity Report from April to June 2020

Buildxact publishes first Construction Activity Report

One of the key observations from the first edition of this quarterly report is that the COVID-19 pandemic had no significant impact on small builders in the residential housing sector over the June quarter, according to the data.

How job management software accelerates growth for small builders & trades

Job management software is quickly becoming essential for small builders and trades who want to accelerate growth and reach their business goals. This is true for those that work on one job at a time, as well as builders that manage multiple jobs simultaneously.

6 Top tips to help you start growing your business now!

If you are looking to grow your construction business, the best time to start is right now. It can feel like a daunting task and you may not know where or how to begin, so we thought we would give you hand, and list some basic strategies that you can start putting in place. These are some take-outs from our webinar ‘The Biggest Future Growth Opportunity in the B

A photo of Buildxact team member Liam Fraser

Buildxact appoints Chief Sales Officer, Liam Fraser, supporting continued growth in the business

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Sample Business Plans

Free financial templates, how to start a building or construction business.

Starting a building and construction business requires careful planning and preparation to ensure its long-term success. One of the crucial steps in this process is creating a detailed business plan. A well-crafted building and construction business plan serves as a roadmap, guiding entrepreneurs through the various stages of establishing and operating their construction business. In this article, we will outline the key components of a comprehensive business plan for a building and construction business.

Executive Summary:

The executive summary provides an overview of your business plan and should concisely capture the essence of your construction business. It should include:

a) Company description: Describe the nature of your building and construction business, including its legal structure, location, and the services you intend to offer.

b) Mission statement: Define the core purpose and values of your company.

c) Objectives: Outline your short-term and long-term goals, including revenue targets, market share, and expansion plans.

d) Competitive advantage: Highlight what sets your building business apart from competitors, such as specialised expertise, innovative techniques, or unique value propositions.

e) Financial summary: Provide an overview of your expected financial performance, including projected revenue, expenses, and profitability.

Company Description:

This section delves deeper into the specifics of your construction and building business. Include the following details:

a) Legal structure: Explain whether your business is a sole proprietorship, partnership, limited liability company (LLC), or corporation. Discuss the advantages and disadvantages of your chosen structure.

b) Company history: Share the background of your business, including its founding date, key milestones, and any notable projects or achievements.

c) Products and services: Clearly define the range of construction services you will offer, such as residential, commercial, or industrial projects. Describe any specialised areas or niches your business will focus on.

d) Market analysis: Conduct a thorough analysis of the target market for your building business. Identify your target customers, assess the demand for construction services in your area, and evaluate the competition.

Marketing and Sales Strategy:

Developing an effective marketing and sales strategy is essential for attracting clients and growing your construction business. Include the following elements:

a) Target market: Identify your ideal customer profile based on demographics, location, and specific needs. Define your target market segments and tailor your marketing efforts accordingly.

b) Competitive analysis: Evaluate your direct and indirect competitors, assessing their strengths and weaknesses. Identify ways to differentiate your services and highlight your unique selling points.

c) Marketing channels: Outline the marketing channels you will use to reach your target audience, such as online platforms, social media, industry associations, and local networking events.

d) Pricing strategy: Determine your pricing structure, considering factors such as materials, labour costs, overhead expenses, and desired profit margins. Balance competitiveness with profitability.

e) Sales approach: Describe your sales process and how you will generate leads, qualify prospects, and convert them into paying clients. Outline any partnerships or alliances that can help drive sales.

Operational Plan:

The operational plan outlines how your construction business will operate on a day-to-day basis. Include the following details:

a) Organisational structure: Define the key roles and responsibilities within your company, from management positions to onsite trades. Explain how decision-making processes will be handled.

b) Supply chain management: Describe how you will source construction materials and equipment, negotiate contracts with suppliers, and ensure timely delivery to project sites.

c) Project management: Outline the project management methodologies and tools you will utilise to ensure efficient project execution, including scheduling, budgeting, and quality control.

d) Health and safety: Emphasise your commitment to maintaining a safe working environment for your employees and complying with all relevant regulations and industry standards.

e) Facilities and equipment: Detail the physical infrastructure requirements for your construction business, such as office space, storage facilities, and specialised equipment.

Financial Projections:

Financial projections provide a forecast of your building and construction business’s financial performance over a specific period. Include the following components:

a) Revenue forecast: Project your revenue based on anticipated contracts, pricing, and market demand. Consider both short-term and long-term revenue growth.

b) Cost estimation: Estimate your expenses, including labour, materials, equipment, overhead costs, insurance, permits, and licenses. Conduct a thorough analysis of your cost structure.

c) Profitability analysis: Calculate your gross profit margin and net profit margin to assess the profitability of your construction business. Identify key performance indicators to monitor ongoing financial health.

d) Cash flow management: Develop a cash flow statement that predicts the inflow and outflow of cash, ensuring you have sufficient funds to cover expenses, investments, and potential contingencies.

e) Funding requirements: Determine if you require external financing to start or expand your business. Explore potential funding sources, such as loans, investors, or grants, and outline your repayment plans.

Factors to Look Out for as Building Business Owners

a) Intense competition from established players

In the building industry, you will face competition from both national and local specialist homebuilders. It’s important to understand that the dynamics between these players can be complex. National companies often have sophisticated search engine optimisation strategies, which can attract potential customers even in local markets. While you may have in-depth knowledge and expertise about your specific area, it’s essential to recognize that the nationals can still capture the attention of customers who are considering similar services in your region.

b) Emphasise cost control

As a business owner in the building industry, you are likely already aware of the significance of cost control. However, it’s crucial to approach cost control strategically. Instead of relying on a standard 10% contingency for unexpected expenses, consider implementing a zero-base approach to contingency planning. This method is more effective and predictive, allowing you to anticipate and allocate funds based on specific project requirements. Incorporate this approach when pricing and quoting jobs to ensure that you can compete on price without compromising your profit margins. By having a thorough understanding of your costs and planning for contingencies, you can confidently navigate pricing challenges and maintain healthy profitability.

Conclusion:

Creating a comprehensive building and construction business plan is crucial for establishing a solid foundation and increasing the likelihood of success. By addressing key aspects such as company description, marketing and sales strategy, operational plan, and financial projections, you can demonstrate your vision, attract potential investors, and guide your business towards profitability and growth. Remember to regularly review and update your business plan as your building business evolves and market conditions change.

If you want to start a construction and building business and need some help getting your business plan sorted, get in touch with us on 1300 644 853 or at [email protected] (24/7 website chat and enquiry available).

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What to Include in a Construction Company Business Plan

Senior Marketing Manager - Software

Nov 30, 2018 9:02:00 AM

The construction industry is growing steadily from year to year. In 2018, construction comprised 8% of the country’s GDP, and we can expect that positive trend to continue.

Starting a construction company is an excellent way of enjoying long-term returns on investment. Similar to any other startup, you need a solid business plan when establishing a construction company. A business plan allows you to lay down the blueprint for your company from start to finish. It includes information on the business itself, the services to be provided, how contracts will be obtained and an analysis of your position within the market.

While your own document might be quite extensive depending on the operations of your company, here are eight fundamental elements of a construction company business plan.

1. A Business Description

Your company description is one of the most important parts of your business plan. In this section, you should include the name of your company and the type of business you intend to operate, such as residential construction, commercial construction, and custom home builders.

The names and contact information of all business owners should be listed, as well as brief descriptions of each owner’s background and experience. In a nutshell, the business description should provide an overview of all the cornerstone information pertaining to your construction company.

2. Explanation of Services Provided

Next, include detailed descriptions of all the services to be provided by your company. When listing your services, ensure you have enough speciality and variation within each service to maintain demand.

Along with service descriptions, include the prices you intend to charge for each service. A price list also makes it easier for you to project revenues and to plan for business expenditure.

3. Market Analysis

Another important component of a construction company business plan is the market analysis section. In this section, include information regarding your potential customers and how construction services are performing in your target market. You should also include information about how you intend to attract customers.

Using information about your target market, list the advertising and marketing strategies you intend to use and how your company will stand out from the competition. You can also include the cost and projected effectiveness of each marketing strategy you plan to implement. Market analysis is important because it allows you to determine if your business model is sustainable.

4. Suppliers and Input Costs

As a construction company, you will need suppliers and vendors who deliver materials for your projects. In the business plan, include a section that covers how you will find suppliers. Will this be done by bidding or direct procurement? How will relationships with suppliers be maintained over time?

Also, list the items that you expect to purchase from your suppliers and how payment will be made for all materials delivered.

5. Competitor Information

Competitor information is another fundamental section to include in a construction business plan. You should identify at least three of your primary competitors, the services they provide, and some of the challenges your business will face in light of this competition.

Competitor analysis provides useful insights into how your company can improve on its shortcomings over time. It also shows the growth potential that your company can achieve as you strive to outperform the competition.

6. A Description of How Contracts Will Be Carried Out

Once customers express interest in your construction company, how will they begin the transaction process? Explain how you will prepare contracts with customers, how prices will be negotiated, and how payment will be made.

This section should walk customers and other stakeholders through the buying process and how services will be delivered to clients.

7. Financial Information

Your business plan should also include important financial information. Prepare a section that lists all the company’s assets, debts, cash flows and income projections.

You may choose to include a balance sheet, income statement, statement of cash flows, and other relevant financial documents that shed light on your construction company’s financial health.

8. Systems and Processes

Every successful business has clearly defined systems and processes, which allow it to operate efficiently and maintain positive cash flow. Technology is becoming increasingly central to the creation and maintenance of these systems.

For any construction company operating in the 21 st century, using technology will be key to success. For example, construction estimating software makes it easier and more efficient to plan for material costs, service delivery methods and project timelines. Rather than making inaccurate guesses regarding customer projects, this software creates accurate models fuelled by real-time data.

To see how you can grow your construction business with accurate and efficient estimating and takeoff, get a free trial of Cubit today.

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Guide to Starting a Construction Business in Australia

Starting a construction business in Australia can be a rewarding experience, but it requires careful planning, hard work, and a significant amount of investment. To make things easier for you, we thought it would be helpful to put together a brief guide on how to get your construction business up and running. If this is something that you’re interested in learning more about, here’s a guide on how to start a construction business in Australia.

Step 1: Develop a Business Plan

The first step in starting any business is to develop a comprehensive business plan. This plan will serve as a roadmap for your business and should include a detailed description of your construction business, your target market, financial projections, and marketing strategies. Your business plan should include information on the types of construction services you will offer, such as residential or commercial construction, renovations, or home improvements. You should also outline your target market and how you plan to reach them through marketing and advertising.

Financial projections are a critical part of your business plan. You will need to estimate your start-up costs, including equipment, materials, and insurance, as well as your ongoing expenses, such as rent, utilities, and salaries. You will also need to estimate your revenue and profit projections for the first few years of your business.

Step 2: Register Your Business

Once you have a business plan in place, the next step is to register your construction business with the Australian government. You will need to obtain an Australian Business Number (ABN) and register for the Goods and Services Tax (GST) if your projected turnover exceeds $75,000 per year.

You may also need to register for other licenses and permits, depending on the type of construction services you offer. For example, if you plan to work on projects that involve asbestos removal, you will need to obtain a license from the Australian government.

Step 3: Obtain Insurance

Construction businesses are inherently risky, so it is essential to obtain adequate insurance coverage to protect yourself and your business. You will need to obtain public liability insurance and workers; compensation insurance to cover any accidents or injuries that may occur on your job site.

In addition to these standard insurance policies, you may also want to consider professional indemnity insurance, which covers you in case of any professional negligence or errors that may occur during the construction process.

Step 4: Purchase Equipment

The equipment you will need for your construction business will depend on the types of services you offer. At a minimum, you will need a reliable vehicle to transport your equipment and materials to and from job sites, as well as basic hand tools, power tools, and safety equipment. As your business grows, you may need to invest in larger equipment, such as excavators, bulldozers, or cranes. These larger pieces of equipment can be expensive, so it is essential to factor in the cost when developing your business plan.

Step 5: Hire Employees

As your business grows, you may need to hire employees to help you with the workload. It is essential to employ qualified, experienced workers who can help you deliver high-quality construction services to your clients.

When hiring employees, you will need to comply with Australian employment laws, including minimum wage requirements, working hours, and entitlements such as annual leave and sick leave.

Step 6: Establish Relationships with Suppliers

To run a successful construction business, you will need to establish relationships with reliable suppliers, such as building material suppliers, tool and equipment rental companies, and waste removal companies.

When choosing suppliers, it is essential to consider factors such as price, quality, and reliability. You may also want to consider establishing long-term relationships with suppliers who can offer you discounts or other benefits in exchange for your loyalty.

Step 7: Market Your Business

Marketing your construction business is essential to attract new clients and grow your business. There are many ways to market your business, including advertising in local newspapers and magazines, creating a website, and using social media platforms such as Facebook and Instagram.

You may also want to consider attending trade shows or networking events to meet potential clients and establish relationships with other professionals in the construction industry.

Starting a construction business in Australia can be a challenging but rewarding experience. By following these steps and developing a comprehensive business plan, you can increase your chances of success and build a thriving construction business that provides high-quality services to your clients. With hard work, dedication, and a commitment to excellence, you can achieve your goals and build a successful construction business in Australia.

Kato Works is your go-to solution for the best construction equipment available. With a wide range of cranes and a team of experienced professionals, Kato Works is committed to providing high-quality equipment and exceptional customer service. Contact us today!

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Building and Construction Business Plans

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Construction Company Business Plans Australia

Whether you are seeking finance, insurance, a builder’s license, or a business plan to map your future direction, our expert team of business planners will write your business plan for you. At The Business Plan Company, we create many business plans for the building and construction industry. With business planners who have owned construction, development and building businesses, we can create accurate, insightful builder and construction business plans, with tips and advice along the way.

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Business Plan for Construction Companies

We create custom business plans to help construction companies succeed. Our plans include strategic advice, financial forecasts, and operational structures to support growth and long-term success in the construction industry.

General Construction Business Plan

A construction business plan is essential for a construction company for more reasons than one. The construction industry, which happens to be one of the largest in Australia, is growing rapidly.

In order to maintain steady growth and ensure that companies attain full potential, there ought to be a business plan. Successful construction companies are those that outline their business goals and have plans in place to achieve them.

It is crucial for you and your investors. It’s like a blueprint that helps you understand the business and achieve specific goals through strategic planning.

A good plan also affects financial decisions, whether you are taking a loan or seeking outside financing.

Investors need a good business plan to decide if they should invest in your business. A good plan shows the business goals, timelines, and strategies. It also gives an overview of the business, its services, finances, target markets, and employees.

What is a Construction Business Plan?

In essence, it’s a plan that helps you visualize the end results of your efforts and the path you need to follow to achieve it. Business plans are dynamic documents and powerful tools that define a structured business .

As the business grows, plans are reviewed, revised, new goals are set and new strategies formulated. For that to happen, construction business plans must necessarily contain-

Nature of the business plan, its purpose, and scheduling thereof Analysis of the market, nature of its target audience and the demographics involved-

The products and services the company proposes to deliver

Estimates of initial investment and likely expenses, experience in the business, availability of labour and vendors, details of business goals and plans to achieve them- this includes marketing strategies, pricing, and overall cost, nature of company organization, financial information like balance sheets, income and cash flow statements, estimates of profit, expenses, and sales, nature of obtainable contracts and how the company proposes to get them, liabilities and risks, future projections for the market, strategic business plan for construction company.

A business plan should address the nature of the products and services it provides. How customers perceive them and why they are better than others in the same category.

The plan should explain how it is going to provide greater value, offer premier customer service and achieve timelines. These business plans are essential for insurers, investors, managers, and financiers.

For a construction company to be successful, it needs to have controls in place for compliance, risk, and safety. The business plan for a construction company, no matter its size, should have the same structure. It should include well-established procedures, systems, pricing, and controls, as well as other important factors.

it’s essential to furnish a description of the company, the nature of the conducted business, and all relevant information thereof, including contact details. Customers must know what sort of vision the company has, its mission and its values.

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How to develop a business plan?

business plan for a construction company

Building a construction business plan is easy, provided you know what you need to do. You need to define the kind of services that you are in a position to offer.

You will identify the market and make plans for the future by setting goals and redefining them as required. Determine what kind of equipment you would need with changing scenarios and how much labour is required.

Budget carefully- estimate your annual expenses and check required cash flow. Organize everything in a way so that your plan is tangible, clear and workable.

Building a good construction business plan requires clear thinking, identifiable goals and the ways to achieve them. Business plan for construction company should also include defensive strategies.

It should include the implementation of training programs to ensure that companies retain the competitive edge. There should also be an equipment inventory management program to ensure that crews work efficiently.

Assigning responsibilities and holding people accountable is important for getting good results. Choosing the right people for the right job is crucial for a successful project. The plan should help companies keep current customers and attract new ones to buy your products and services. Properly carrying out the business plan and using the best strategies to reach your goals is the key to success.

Business plan for construction company

A construction company business plan includes many things. To be successful, the plan must have a variety of services at different levels. Price lists with service descriptions make the plan clear and help companies plan for expenses and expected revenues.

It’s important to list marketing strategies and show how they are better than others. Analyzing the market tells you if your business model can work. Suppliers, items to be bought, and making payments are important and should be discussed in detail.

The plan should identify information about your competitors and the challenges you might face because of them. Analyzing how your competitors behave can help you improve your company’s weaknesses. The business plan should include details about transactions, contracts, and negotiations in the construction business.

It’s important to list your assets, determine your cash flows, and project your incomes and liabilities to understand your company’s financial health. Operational efficiency, which comes from well-structured processes and systems, is a top priority. In summary, it’s important for companies to always stay on top of their construction business plan.

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How to run a successful construction business

When you’re just starting in construction (or have a fledgling business that needs to grow), it’s essential to focus on the right things.

This article highlights the key things that construction businesses need to do to succeed. Follow these, and you’ll give yourself a better chance of being profitable long term.

Construction Company Fundamentals

Construction companies who are trading well have the following attributes. How does your company stack up?

• Healthy ‘order book’ of upcoming projects to specify, quote and schedule. • Well known, trusted name in the market. • Profitability – they only take on projects with solid profit and the ability to manage potential risks. • Well resourced – their employees have access to durable, high-quality equipment that ensures their safety and makes their job easier. • Excellent project management – critical to the successful delivery of each project. • Cost control and active invoice management to ensure profitability and solvency.

Find Your Niche

Marketing your business as a ‘general contractor’ might seem like a great way to make everyone call you, but in fact, it’s possibly the worst thing you could do. Here’s why:

1. You won’t stand out from your competitors. If a hotel is looking for a complete refresh and remodel, are they going to call a general contractor or a business that specialises in hotel and accommodation refits?

2. You can’t focus your energy, marketing, skills and resources (equipment, employees) without a market specialisation. Again, if you’re a general contractor, you’ll be at the mercy of having to be everything to everyone. That’s not a profitable or predictable way to run a business. With a specialisation, you’ll have the right gear and the right employees to do each job. Plus it’s much easier to find new clients.

Like any business, knowing what your company does best can mean the difference between success and failure; so get clear on what services and projects you’d like to do and then focus your business on getting them.

Get Licensed

Not only is it against the law in most states and territories of Australia to do unlicensed construction work, but it’s also going to stop you from getting projects.

You can advertise the fact that you’re fully licenced (and insured) to your advantage, so why not do it the right way?

Get Business Insurance

When it comes to insurance, you’re best to get customised advice from a qualified insurance broker. They’ll let you know exactly what insurance cover you need and get you a good deal on the appropriate policies, saving you money in the process.

Liability Insurance (Public & Products), Material Damage, Construction Works Insurance, Commercial Structural Defects Insurance and more.

Don’t forget compulsory government cover like Worker’s Compensation too.

Recruit the Right Staff

Your business might be in construction, but just like any other business, success comes down to people.

By taking the time to hire quality staff, you’ll enjoy many benefits as an employer. Not only will they likely to be more dependable, but they’ll also do skilled work – which can quickly save you thousands of dollars in time and materials.

The other to remember is that clients will talk about your team for years to come, so make sure they’re saying good things (or that employee you hired cheaply or put on without checking their skills could cost you thousands or even millions in lost future revenue).

Here are some of the basics of hiring people:

• Hire skilled tradespeople, but check their references and qualifications. Don’t be afraid to turn someone away if they aren’t quite right for your business.

• Pay good rates and pay on time. Nothing demotivates employees more than missed paydays or getting cheap rates of pay. Spending a little more will also mean they’ll stay with you longer and do a better job.

• Be a leader, not a micro-manager. Your employees need clear direction and a set of expectations from you on each project so that they can do their best work. They don’t need someone watching every single action they take. By being onsite regularly and ensuring they all know what you wish to achieve, you’ll have a happy, motivated team.

Managing Contractors vs Employees

Contractors are essentially their own business people, so they need to be managed in a slightly different way to employees.

You need to ensure they are doing efficient and correct work for the success of your project, but they’re people too – so treating them well can go a long way to having a quality result and a contractor who’ll happily work for you again.

Remember, they also have rights on the worksite and can’t be expected to do things that are hasty, dangerous, or against best practices.

Marketing and Promoting Your Business

Starting a construction company and putting a post on Facebook won’t make you an overnight success (unfortunately).

By using several low-cost methods of marketing and promotion, you could soon have several enquiries and quotes to be working on; here’s how:

Word of Mouth

Word of mouth is completely free, and while it’s not as targeted (or as polished) as you might like it to be, it’s still a great way to get known. Ask friends and family and offer a discount if needed to help attract your first few jobs.

Remember to ask them for a review of your work afterwards on Google My Business, as this will help your online profile as well.

Social Media

Twenty years ago, the only advertising options were newspaper ads, radio or the Yellow Pages. Nowadays, you can promote your business for free on Facebook, Instagram and LinkedIn by doing posts, or by paid promotions that boost your posts to a wider audience.

While these platforms are free to use, make sure you’re making the most of it with regular, interesting content people want to see.

Give Free Quotes

Free quotes can be a great way to attract new clients and have an opportunity to meet and talk with them. Just be careful to make sure the time you’re putting into each quote is worth it (or you could soon run out of money doing ‘free’ quotes all day).

Partner Up & Refer Other Construction & Trade Businesses

As soon as you’ve established your niche, it can be great to build working relationships with other businesses that work in your field.

Carpenters, Plasterers, Plumbers, Electricians, Structural Engineers, Concreters, Airconditioning Installers, Roofers, Earthmovers – get in touch with them all and offer to partner up with them or refer leads. Developers are also a great source of jobs, both big and small.

Planning, Finance & Contracts

Just like your projects, if you don’t have a plan before you start, things aren’t going to go very well.

Taking the time to create a simple business plan that covers your goals for the next 1 – 5 years, combined with financials, staffing, budgeting, machinery/equipment requirements and marketing can make a big difference to your success.

Payroll / Training

Do you have accounting software to keep track of financials, invoicing and payroll? Have you asked an accountant about any particular rules or requirements that apply to your business? What have you got in place for things like skills or safety training for your staff and contractors?

Construction equipment financing

Managing your working capital and your cash flow is crucial to staying solvent and operational. A smart way of handling major expenses like buying large equipment could be to get finance for them, keeping more of your capital in the bank for daily operations. OnDeck can help you with things like this (it’s something we specialise in).

Repairs / Maintenance

You’ll have to budget for things like repairs and maintenance, as well as the downtime associated with it. If your drill breaks on a job and it’s a 2-hour return trip to get a new one, it makes sense to have more than one with you onsite. Being proactive like this can easily save you a fortune over time.

Tools & Equipment

What equipment will you realistically need? Buying too much gear will cost you in capital and storage, but buying too little (or too cheaply) will cause you problems too.

Having a wide range of all the essential tools you need for most projects is an excellent way to start, with things like OnDeck business loans if you need to suddenly buy, or hire more equipment for a particular project.

Building materials

Purchasing materials can cause financial problems for many construction companies. This is especially so when something has failed and needs replacing, or the client wants to make immediate changes you haven’t budgeted for. It pays to buy high-quality materials (as they’re usually easier to work with and give a better finish), but that can place significant demands on your cash reserves.

Getting access to flexible, on-demand capital can make a difference to your ability to trade (and reduce your stress levels at the same time). Talk with the team an OnDeck today about your requirements if materials expenses are hurting your budget.

Rent / Bills

Unless you’re basing yourself from a home office with a big shed for storage, you’re going to be up for rent or a lease to cover your office and materials/tools storage. You’ll also have to budget for operational costs while you’re waiting to get paid.

Talking about getting paid, you’ll also need to consider –

Construction Contract Types

Lump Sum or Fixed Price? Cost plus Contract? Time and Materials? Unit Pricing? Whichever model you go for on each project, you’ll have to consider the business impacts and risks of each one. In most cases, you’ll have to be able to fund not only part of the project costs but also all of your operating expenses for the duration it takes for you to get paid. Some developers and building owners pay on 60 or even 90-day terms, meaning you need to factor that timeframe into your cash flow projections. If you require a business loan to make up the difference, chat with the team at OnDeck for help (it’s a lot easier than applying through the banks).

Theft prevention

It’s a sad fact, but at some point, you’ll have to face the possibility of losing thousands of dollars in tools, equipment, or materials to theft or wilful damage. You can, of course, insure against these things, but you’ll need to have cash on hand to cover the shortfall in the meantime. Here are some ways to reduce the risks:

– Monitor job site access carefully. – Ensure all items, tools and materials are locked up securely at the end of each workday. – Hire security personnel or a security company to monitor access and the site (especially outside of hours). – Do background checks on employees and contractors. – Keep records of materials and tool inventories, and check them regularly. – Install security cameras, sensors or tracking onsite and clearly and permanently mark all materials, so they aren’t worth stealing.

Develop Online Marketing Strategies to Grow Your Business

In business, nothing is more important than sales. We touched on Social Media earlier in this article, but here are two other ways to promote your business digitally:

Google My Business

Google provides a fantastic web listing and advertising service that essentially gives you a way to promote your business for free. Download the smartphone app, get approved and start creating an online listing for your business that people can find when they search for construction. You can also advertise directly from the app too, multiplying the chances of finding new customers.

Every business needs a website, so make sure yours is easy to read, visually clear, and that it tells potential customers about the work you do.

With many ‘drag-and-drop’ website editors available now for a low monthly fee (like Wix, Weebly and Squarespace), you can easily create an attractive website – even if you’re not that good with computers.

Find your point of difference and highlight it, but above all, make it easy for people to contact you.

Learn how to grow sales and re-invent your construction small business.

About OnDeck

OnDeck offers flexible business loans that solve a need for extra funding. Whether it’s the cost of materials, covering a cash flow shortfall or getting some new equipment for a project, OnDeck can help you.

With an easy online application process, loans of between $10k and $250k, and terms of 6 to 24 months, we make it simple for businesses to get the extra funding they need.

Apply online in minutes at www.ondeck.com.au or call our helpful finance team on 1800 676 652 today.

Prepared by OnDeck Capital Australia Pty Ltd ABN 28 603 753 215 (“OnDeck”) for general information purposes only. Content may belong or have originated from third parties and OnDeck takes no responsibility for the accuracy, validity, reliability or completeness of any information. Information current as at February 2020. You should not rely upon the material or information as a basis for making any business, financial or any other decisions. Loans issued in Australia are subject to the terms of a loan agreement issued by OnDeck. Loans are subject to lender approval. OnDeck® is a Registered Trademark. All rights reserved.

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Construction Business Plan

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Fosse Commercial Contractors LLC

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

Customers in the Houston area are in need of beautiful office buildings, warehouses, public works etc. The area is expanding rapidly and they need a company that can provide high quality work and materials to build the spaces that were needed.

Fosse Commercial Contractors (FCC) strives to offer the finest quality design, site preparation, cost estimates, construction, repair, and alteration to clients needing large scale construction services, whether it be office buildings, warehouses, large apartment complexes, public works, etc. Fosse maintains the highest standards of service in the commercial construction industry.

The Houston area is booming at this moment, business has grown in the area for the last few years and is expected to continue for at least the next four years. This makes for a very attractive market for Fosse Commercial Contractors.

We will be concentrating on the customers that will provide us with the greatest margin, in other words those clients desiring office building construction. This is the fastest growing segment of commercial clients requiring our services. The other categories that we will serve include the restaurant segment, the special facilities segment, and all other potential commercial clients.

Competition

Currently we have three major competitors within the Houston area. These are TNT General Contractors, Texas Specialty Construction, and Polanski Construction. Each of these companies targets the same clients as Fosse and each has a fine reputation for customer satisfaction. However, the market in Houston is growing so fast that the demand is currently greater than supply. This is an excellent opportunity to gain market share and a defensible position in the industry.

In the construction industry the primary ways to compete are through low cost or better project management. One of the most important processes for winning a contract is the bid process. Fosse has a unique competitive edge over most of its competitors. Mr. David West, FCC’s General Projects Manager, is the nephew of Charles Nunn, who owns McHoughton’s Lumber, one of the Midwest’s major construction material suppliers. Through this relationship, Fosse has been able to gain a very advantageous supplier contract allowing Fosse to obtain its materials at a significant discount. With this edge the company can underbid its rivals and achieve a low cost leadership role.

Expectations

Fosse has only a small amount of debt and intends to stay that way. We expect to see increased profits from our market shift efforts by the end of Year 2. Over the next three years we expect lower profits as we make inroads into this tough market. We estimate that we will be able to reduce marginal costs and increase overall profitability by Year 3 or Year 4 as we grow and take advantages of economies of scale.

We also think we can grow. For this next year we intend to significantly increase overall revenues to close to $900K, from $572K this past year. We have the market, the people, and the capabilities. It’s time to grow.

However, growth is expensive. We are prepared to inject new capital to support losses for most of this first year. We can turn a profit for years 2 and 3.

Financial Highlights by Year

Problem & solution, problem worth solving, our solution.

Fosse Commercial Contractors LLC is a small construction company formed from the merger of Fosse Painting & General Construction and West General Contractors. The company has successfully operated in the Houston area for the past ten years working on both small and large scale construction, repair, and alteration projects focusing on residential contracting. With the business boom that is occuring in our local area and the desire to improve overall profit margins, the company is planning to shift its target market from residential clients to the larger commercial customers. This business plan will lay out our goals and tasks to make this transition successful and create enough market share to succeed in this highly competitive market.

Target Market

Market size & segments.

Market Segmentation

At the moment our potential list of clients includes all the various businesses in the Houston area and its suburbs. According to the Texas Small Business Association there are 6,512 firms of all types and sizes in the surrounding area. We will concentrate on the customers that can provide us with the greatest margin, in other words those clients desiring office building construction. This is the fastest growing segment of all the commercial clients requiring our services. The other categories that we will serve include the restaurant segment, the special facilities segment, such as gas stations, and theaters, and a category which we will call "general", encompassing all other potential commercial clients.

Target Market

Since office building construction has the highest average profit margin, we will focus most of our marketing and servicing toward these customers. Usually these clients require the largest projects in scope, land use, and cost. In addition, they tend to be the most sensitive to completion times. Therefore, we plan to accommodate these clients through a well established and expeditious permitting program, strict cost accounting and supply management, and intensive and comprehensive project management capitalizing on Fosse’s experience in the field.

Current Alternatives

One of the greatest limiting factors in this industry is its strong seasonality. During the winter months, contracts and production drop off sharply, increasing the company’s short-term risk of cash flow shortfall.

Our Advantages

Keys to Success

The local commercial construction market is booming at the moment. In order to achieve a defendable position in this environment, Fosse must concentrate on the following tasks.

Secure at least five large scale commercial contracts over the next three years.
Expand our customer base through expansion into other geographic areas to retain a sufficient level of profitability.
Increase marketing expenditures by 15%.

Marketing & Sales

Marketing plan.

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The most critical part of sales is not the marketing, but the bidding process, in which companies offer their designs, services, material quality, project timeline estimates, and costs. The company that offers the best combination of these variables is the most likely to get the contract. Therefore very detailed project planning, including supply agreements, labor needs, subcontractors, presentation, and other factors, is crucial for Fosse in winning contracts. We will be designing a standardized method for doing this with all our contracts, with an emphasis on quality, timeliness, and low cost to outbid our competitors.

Milestones & Metrics

Milestones table, key metrics.

Key Metrics

The number of large scale contracts per year.
New construction – we need over 50% of our business as new construction.
#of repairs – we would like to repair other’s work but we need to repair ours too.

Ownership & Structure

Fosse is a Limited Liability Company registered in the state of Texas. Fosse Commercial Contractors, LLC is exclusively owned by Mr. Robert Fosse (50%) and his partner, Michael West (50%). The company is expecting to alter to a Class C corporation chartered in Texas. This will create greater investment opportunities through the acquisition of investment capital from a limited number of shareholders.

Company History

Fosse Commercial Contractors, LLC began in the Houston area when Mr. Robert Fosse, who had worked in the residental construction business for ten years began his own company, Fosse Painting and General Construction in the Houston area. For the next eight years the company grew slowly, working mostly on small scale residential projects while gaining a reputation for quality services and reliability. Then the original company was merged with another small-scale local company, West General Contractors and the company began to bid successfully for larger projects. The company maintains a General Contractor’s license in the state of Texas.

The company’s management came to the conclusion that the firm had grown sufficiently to alter its primary target market from the residential construction segment to the higher margin office and commercial construction segment. The company plans to implement this change by the middle of 2004.

Past Performance

Management Team

Fosse’s management consists of Mr. Robert Fosse and Mr. David West. Mr. Fosse will concentrate on client contacts and bidding along with overall management of the company. Mr. West will be the company’s General Project Manager, coordinating all project management and concentrating on cost controls, suppliers, day-to-day project supervision, labor relations, etc. Mrs. Janet Fosse will be our office manager, handling client satisfaction,invoicing, permitting, and general book keeping. Most of our labor needs will be met through Contractor-Temps a nationwide temporary labor company.

The company is planning to expand it personnel to add a number of job superintendents as soon as the number of projects increases. These superintendents will have the following duties:

Direct supervision of all work at the job site.
Quality control.
Scheduling subcontractors and material deliveries.
Verifying and insuring that all work is done in accordance with plans.
Insuring that all work is performed in accordance with all OSHA guidelines.

In addition, as business increases, we will hire additional job superintendents and project managers as needed.

Personnel Table

Financial plan investor-ready personnel plan .">, key assumptions.

We do not anticipate a significant increase in profits until our 3rd year as we will need time to penetrate our new market. We plan on basing dividend payouts on overall performance and health of the company and may decide to retain such earnings for future growth.

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

We will use the influx of capital to expand into a new market. There is a lot of opportunity to grow and be successful. We need to buy equipment and get experts and do the website to refocus our brand

Sources of Funds

We will be using our sales and cash from our already established business to expand and make our business more profitable.

Projected Profit & Loss

Projected balance sheet, projected cash flow statement.

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Executive Summary of a Construction Contractor: Template & Example

May 9, 2024
Business Plan , Executive Summary

Executive Summary of a Construction Contractor business plan

A construction contractor business plan needs a straightforward executive summary . This part of your plan is the first thing investors and partners see, and it should clearly outline what your construction contractor is all about. It’s where you explain what makes your construction contractor business different and worth investing in.

We recommend using a two-slide PowerPoint format for this summary. The first slide should cover the basics of your business and the market you’re entering. Here, you detail your construction contractor’s services, location, and what sets you apart from others. The second slide focuses on your management team and your financial plans, highlighting the people behind the business and how you expect the construction contractor to grow financially.

This simple, two-slide approach ensures that your executive summary is easy to follow and covers all the essential points about your construction contractor business.

the business plan template for a construction contractor business

Construction Contractor Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

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Construction Contractor Executive Summary: Page 1

Executive Summary slide example of a construction contractor business plan

Business Overview

When detailing the business overview in your executive summary, it’s crucial to provide clear and concise information. This includes the name of your construction company, its location, and an overview of the types of construction projects you undertake.

These details not only introduce your business but also set the stage for its unique qualities. Indeed, a unique selling proposition (USP) is what sets your construction company apart from the competition. Whether it’s your expertise in green building practices, your use of cutting-edge technologies like BIM, or your focus on client-centric service, your USP should be a focal point of your executive summary. It’s what captures the interest of your audience and showcases the unique value your business brings to the market.

Example: For instance, “Superior Builds,” located in the industrial hub of Metro City, operates from a well-equipped office on Builders Lane. Established in 2010, they specialize in commercial and residential projects, incorporating sustainable building practices and advanced technologies such as BIM. Their USP is their commitment to eco-friendly construction methods, which not only appeal to environmentally conscious clients but also provide long-term value through energy efficiency.

Market Overview

Understanding and presenting the market size , growth trends, and industry dynamics are integral parts of the market analysis . This section should highlight the potential of the U.S. construction market, backed by relevant data like market value and growth rates. Discussing industry trends, such as the adoption of green building materials and BIM, provides insight into the evolving landscape and where your construction company fits within it.

Equally important is the competitive landscape. Your executive summary should identify key competitors and explain how your construction company positions itself in this environment. Whether you focus on specialized construction services, superior project management, or innovative construction solutions, this is your opportunity to showcase how your company is poised to stand out in a crowded market.

Example: Consider “Superior Builds” within the general contractor industry, part of a $112 billion market. Despite intense competition from 493,728 companies nationwide, “Superior Builds” differentiates itself by focusing on sustainable building solutions and advanced project management using BIM, catering to a growing segment of the market that values environmental responsibility and efficiency.

Construction Contractor Executive Summary: Page 2

Management Team

The management team’s background and expertise are significant assets to your business. In your executive summary, highlight the key qualifications and experiences of your team members.

This might include the CEO’s extensive background in sustainable construction or the CFO’s expertise in financial management within the construction industry. Demonstrating the team’s expertise not only builds credibility but also assures potential investors and partners of your construction company’s capability to succeed.

Example: At “Superior Builds,” the team is led by CEO John Carter, a pioneer in green construction with over 20 years of industry experience, and CFO Linda Smith, who has a robust track record of managing finances for large-scale construction projects. Their combined expertise ensures the company’s strategic positioning and operational efficiency.

Financial Plan

The financial plan overview should succinctly summarize your financial goals and projections, including revenue targets and profit margins, to provide a clear picture of your construction company’s financial trajectory.

Example: “Superior Builds” aims for $16 million in annual revenue by 2026, with a profit margin of 7-20%. The financial strategy includes leveraging high-profile, sustainable construction projects and expanding into new markets, with sales growth driven by a strong reputation and strategic partnerships, positioning the company for profitability and industry leadership within the next few years.

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Construction

Construction industry in Australia - statistics & facts

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Premium Statistic Number of employees in the construction industry Australia 2023, by sector

Gross value added (GVA) by the construction industry in Australia from 2014 to 2023 (in million Australian dollars)

Value of private sector construction work done Australia 2014-2023

Value of construction work done in the private sector in Australia from 2014 to 2023 (in billion Australian dollars)

Value of public sector construction work done Australia 2014-2023

Value of construction work done in the public sector in Australia from 2014 to 2023 (in billion Australian dollars)

LPI of the construction industry Australia FY 2010-2023

Labor productivity index (LPI) of the construction industry in Australia from financial year 2010 to 2023

Number of employees in the construction industry in Australia from 2013 to 2023 (in 1,000s)

Number of employees in the construction industry Australia 2023, by sector

Number of employees in the construction industry in Australia as of August 2023, by sector (in 1,000s)

Residential construction

Basic Statistic Value of residential construction work done Australia 2014-2023
Basic Statistic Value of new residential building work done Australia 2014-2023
Basic Statistic Value of new house construction work done Australia 2014-2023
Basic Statistic Monthly residential building approvals in the private sector Australia 2020-2024
Basic Statistic Building approvals for houses in the private sector Australia 2020-2024
Basic Statistic Building approvals for dwellings in the private sector Australia 2020-2024

Value of residential construction work done Australia 2014-2023

Value of residential construction work done in Australia from 2014 to 2023 (in billion Australian dollars)

Value of new residential building work done Australia 2014-2023

Value of work completed on new residential buildings in Australia from 2014 to 2023 (in billion Australian dollars)

Value of new house construction work done Australia 2014-2023

Value of work completed on new houses in Australia from 2014 to 2023 (in billion Australian dollars)

Monthly residential building approvals in the private sector Australia 2020-2024

Monthly number of residential building approvals in the private sector in Australia from January 2020 to January 2024

Building approvals for houses in the private sector Australia 2020-2024

Monthly number of building approvals for houses in the private sector in Australia from January 2020 to January 2024

Building approvals for dwellings in the private sector Australia 2020-2024

Monthly number of building approvals for dwellings excluding houses in the private sector in Australia from January 2020 to January 2024

Non-residential construction

Basic Statistic Value of non-residential construction work done Australia 2014-2023
Basic Statistic Construction work done on commercial buildings Australia 2014-2023
Basic Statistic Construction work done on offices Australia 2014-2023
Basic Statistic Construction work done on retail and wholesale trade buildings Australia 2014-2023
Basic Statistic Construction work done on industrial buildings Australia 2014-2023
Basic Statistic Construction work done on warehouses Australia 2014-2023

Value of non-residential construction work done Australia 2014-2023

Value of non-residential construction work done in Australia from 2014 to 2023 (in billion Australian dollars)

Construction work done on commercial buildings Australia 2014-2023

Value of construction work done on commercial buildings in Australia from 2014 to 2023 (in billion Australian dollars)

Construction work done on offices Australia 2014-2023

Value of construction work done on offices in Australia from 2014 to 2023 (in billion Australian dollars)

Construction work done on retail and wholesale trade buildings Australia 2014-2023

Value of construction work done on retail and wholesale trade buildings in Australia from 2014 to 2023 (in billion Australian dollars)

Construction work done on industrial buildings Australia 2014-2023

Value of construction work done on industrial buildings in Australia from 2014 to 2023 (in billion Australian dollars)

Construction work done on warehouses Australia 2014-2023

Value of construction work done on warehouses in Australia from 2014 to 2023 (in billion Australian dollars)

Infrastructure construction

Premium Statistic Number of major infrastructure pipeline projects Australia 2024, by status and type
Premium Statistic Major infrastructure pipeline projects Australia 2024, by status and location
Premium Statistic Value of infrastructure engineering construction work done Australia FY 2014-2023
Premium Statistic Value of energy infrastructure construction work done Australia FY 2014-2023
Premium Statistic Value of telecommunications infrastructure construction work Australia FY 2014-2023
Premium Statistic Value of transport infrastructure construction work done Australia FY 2014-2023
Premium Statistic Value of water infrastructure construction work done Australia FY 2014-2023

Number of major infrastructure pipeline projects Australia 2024, by status and type

Number of major infrastructure pipeline projects in Australia as of January 2024, by project status and type

Major infrastructure pipeline projects Australia 2024, by status and location

Number of major infrastructure pipeline projects in Australia as of January 2024, by project status and location

Total value of infrastructure engineering construction work done in Australia from financial year 2014 to 2023 (in billion Australian dollars)

Value of energy infrastructure construction work done Australia FY 2014-2023

Value of energy infrastructure construction work done in Australia from financial year 2014 to 2023 (in billion Australian dollars)

Value of telecommunications infrastructure construction work Australia FY 2014-2023

Value of telecommunications infrastructure construction work done in Australia from financial year 2014 to 2023 (in billion Australian dollars)

Value of transport infrastructure construction work done Australia FY 2014-2023

Value of transport infrastructure construction work done in Australia from financial year 2014 to 2023 (in billion Australian dollars)

Value of water infrastructure construction work done Australia FY 2014-2023

Value of water infrastructure construction work done in Australia from financial year 2014 to 2023 (in billion Australian dollars)

Construction companies

Premium Statistic Lendlease Group's revenue FY 2015-2023
Premium Statistic Lendlease Group's profit after tax FY 2015-2023
Premium Statistic CIMIC Group's revenue 2023, by segment
Premium Statistic CIMIC Group's NPAT 2015-2023
Premium Statistic Construction revenue of Hutchinson Builders FY 2017-2023
Premium Statistic Profit after tax of Hutchinson Builders FY 2017-2023

Lendlease Group's revenue FY 2015-2023

Revenue of the Lendlease Group Limited from financial year 2015 to 2023 (in billion Australian dollars)

Lendlease Group's profit after tax FY 2015-2023

Profit after tax of Lendlease Group Limited from financial year 2015 to 2023 (in million Australian dollars)

CIMIC Group's revenue 2023, by segment

Revenue of CIMIC Group Limited in 2023, by segment (in million Australian dollars)

CIMIC Group's NPAT 2015-2023

Net profit after tax (NPAT) of CIMIC Group Limited from 2015 to 2023 (in million Australian dollars)

Construction revenue of Hutchinson Builders FY 2017-2023

Construction revenue of Hutchinson Builders from financial year 2017 to 2023 (in billion Australian dollars)

Profit after tax of Hutchinson Builders FY 2017-2023

Profit after tax of Hutchinson Builders from financial year 2017 to 2023 (in million Australian dollars)

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Construction Business Plan Template

Written by Dave Lavinsky

Construction Business Plan

You’ve come to the right place to create your construction business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their construction companies.

Sample Construction Business Plan Outline

Below is a construction business plan example to help you create each section of your own construction business plan:

Executive Summary

Business overview.

VB Residential Construction Company is a startup construction company located in Milwaukee, Wisconsin. The company is founded by two cousins, Victor Martinez and Ben Schmidt. Together they have over 20 years of experience in constructing homes from design concept, remodeling and renovating homes. They are highly skilled in all aspects of construction and have garnered a positive reputation in the local construction community for their ethical practices and competitive skill set. Now that Victor and Ben have an extensive network of clients and contacts, they have decided to begin their own residential construction company.

Product Offering

The following are the services that VB Residential Construction Company will provide:

Custom home building/design build
Home remodeling and renovation
Project Management
Kitchen and bath construction

Customer Focus

VB Residential Construction Company will target those individuals and industry professionals requiring home construction services in Milwaukee, Wisconsin. Those individuals are landowners looking to develop homes on their lots, architects who have clients needing homes built, developers who have the vision but need a company to make it a reality, and households needing home remodeling services.

Management Team

VB Residential Construction Company will be led by Victor Martinez and Ben Schmidt. Together they have over twenty years of construction experience, primarily in residential builds, remodeling, and renovation. They both started at a young age working and learning from their fathers. When they graduated from high school, their fathers got them jobs at the construction company they were employed at. The four family members worked together for ten years at the construction company. The fathers recently decided they were going to retire from the industry which prompted Victor and Ben to branch out on their own and start their own residential construction company.

Success Factors

VB Residential Construction Company will be able to achieve success by offering the following competitive advantages:

Friendly and knowledgeable contractors who are able to take any project from concept to reality.
Unbeatable pricing – Clients will receive the best pricing in town for services on any project while maintaining the best quality and customer satisfaction.

Financial Highlights

VB Residential Construction Company is seeking $200,000 in debt financing to launch its construction business. The funding will be dedicated towards securing a small office space, purchasing two trucks, and purchasing all the construction equipment and supplies. Funding will also be dedicated towards the advertising agency and three months of overhead costs to include payroll of the staff, rent, working capital, and monthly fees to the accounting and human resources firm. The breakout of the funding is below:

Trucks: $40,000
Construction equipment, supplies, and materials: $100,000
Advertising agency in charge of promotions: $10,000
Three months of overhead expenses (rent, payroll, HR and accounting firms): $40,000
Working capital: $10,000

Company Overview

Who is vb residential construction company.

VB Residential Construction Company is a newly established contracting company located in Milwaukee, Wisconsin. Founded by cousins, Victor Martinez and Ben Schmidt, they have over 20 years experience in the construction industry. VB specializes in residential remodeling, kitchen and bath construction, as well as custom home building. VB Residential Construction Company also offers residential design, construction, and project management services. VB prides itself in delivering a level of expert craftsmanship to fulfill the vision for the client while exceeding expectations at exceptional value.

Company History

VB comes from the initials of the owners, Victor Martinez and Ben Schmidt, two cousins who have been working in the construction industry most of their lives. Both of their fathers spent decades as contractors and raised their sons working and learning the construction trade. The four have been working for another residential contractor in Milwaukee and have built and remodeled numerous homes for multiple builders and clients. Now that both of their fathers are retiring from the construction industry, Victor and Ben have decided to start their own residential construction company and use their years of experience, expertise, and contacts to be an independent residential contractor.

Since incorporation, VB Residential Construction Company has achieved the following milestones:

Registered VB Residential Construction Company, LLC to transact business in the state of Wisconsin.
Located a small office space to have a physical address for the company as well as a receptionist.
Reached out to their numerous contacts to include real estate agents, developers, architects, and landowners to advise them on their upcoming construction company in order to start getting construction contracts.
Began pricing out costs for trucks and necessary construction equipment.
Began recruiting a team of contractors that cover different areas of construction to include mechanical, plumbing, electricians, and roofing.

The following will be the services VB Residential Construction Company will provide:

Industry Analysis

Revenue for the Construction industry is expected to continue growing over the five years as demand for new housing expands. Revenues are expected to reach $107 billion.

Relatively low interest rates, coupled with rising per capita disposable income, is expected to support individual investment in new homes, providing an opportunity for industry revenue growth over the next five years.

Per capita disposable income is expected to rise steadily over the next five years, while concurrently, unemployment will drop, proving favorable conditions for industry growth.

Housing starts are expected to rise an annualized 2.9% and this growth is projected to stem partly from forward-looking consumers that choose to purchase homes while interest rates are low. Relatively low housing stock and relatively low interest rates are expected to lead demand for industry services to increase over the next five years.

Customer Analysis

Demographic profile of target market.

The precise demographics for Milwaukee, Wisconsin are:

Customer Segmentation

VB Residential Construction Company will primarily target the following customer profiles:

Households in search of home remodeling services
Landowners who would like to build homes on their lots
Architects who have clients that need home building or remodeling services
Developers who have already partnered with landowners and/or architects and are in search of a residential contractor

Competitive Analysis

Direct and indirect competitors.

VB Residential Construction Company will face competition from other companies with similar business profiles. A description of each competitor company is below.

JM Remodeling

JM Remodeling has been in business in Milwaukee, Wisconsin since 1990. They are a full-service design and build company. JM Remodeling specializes in residential and commercial restoration and renovation including custom carpentry, kitchens, bathrooms, roofing, siding, dormers, additions, home gyms, home offices, porches and decks, and mechanical services. JM Remodeling carries a staff of plumbers, electricians, journeymen carpenters, restoration specialists, roofers, siders, sheet metal workers, and expert estimators. JM Remodeling also has an apprenticeship program to train employees within the company. They are licensed, bonded and insured and also part of the National Association of Remodeling Industry (NARI). JM Remodeling also provides warranties on all their services. The work is guaranteed by labor warranties, factory warranties, and extended warranties.

Cream City Construction

Cream City Construction has more than 50 years experience in home design, remodeling and renovation in the Greater Milwaukee area and Southeastern Wisconsin. The home remodeling services they provide are additions, whole house remodeling, kitchens, bathrooms, lower levels, master suites and historic renovations. Cream City Construction is a design build company that works with the client to create the design plans, generate project costs, and build the project.

Cream City Construction is owned and managed by Todd Badovski and Jim Grote. Together they have decades of experience and have spent years refining the skills required to run a high end, quality driven remodeling company. The majority of their projects come from repeat business or referrals from clients delighted with their previous service. Cream City Construction is also a member of the National Association of Remodeling Industry (NARI) as well as the Historic Milwaukee Incorporated.

Sazama Design Build Remodel, LLC

Former restaurant owner Don Sazama established Sazama Design Build Remodel, LLC in 1987 after becoming a Master Carpenter. He wanted to merge his passions of business and design and expand his skills in carpentry and architecture. Don’s firm has completed over 700 homes and won 11 awards from the Milwaukee Home and Living magazine. Sazama Design Build Remodel builds homes that are modern and luxurious and have completed many large remodels of bathroom and kitchen renovations. Sazama likes to collaborate with firms such as Ivy Interiors and an award-winning landscape designer, Gingko Leaf Studio. Sazama Design Build Remodel can build and design all aspects of a home – from a home office, outdoor entertaining area, serene spas, and inviting kitchens. The team at Sazama is able to do a historic renovation, build or renovate into something modern and posh, or keep it traditional.

Competitive Advantage

VB Residential Construction Company will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

VB Residential Construction Company will offer the unique value proposition to its clientele:

Highly trusted and professional contractors with over 20 years of experience remodeling, renovating, and building homes.
Unbeatable pricing to its clients – VB Residential Construction Company does not mark up its services at a large percentage. They will offer the lowest prices in town.

Promotions Strategy

The promotions strategy for VB Residential Construction Company is as follows:

Word of Mouth/Referrals

Victor and Ben have built up an extensive list of contacts over the years providing home construction services for numerous highly satisfied clients. Most of the clients are repeat customers and have also referred them to other associates for home projects. These referrals and repeat customers are very likely to use VB Residential Construction Company instead of the previous construction company Victor and Ben were employed at.

Professional Associations and Networking

VB Residential Construction Company will become a member of construction and professional associations such as the National Association of Remodeling Industry (NARI) and the Milwaukee Chamber of Commerce. VB will also become a member in associations where other builders, developers, and architects are a part of. They will focus their networking efforts on expanding their client network.

Print Advertising/Billboard

VB Residential Construction Company will invest in professionally designed print ads to display in programs or flyers at industry networking events. They will also invest in two billboards to display in highly trafficked areas of town.

Website/SEO Marketing

VB Residential Construction Company will utilize the same advertising company that designed their print ads and billboards to also design their website. The website will be well organized, informative, and list all their services that VB is able to provide. The website will also list their contact information and a gallery of pictures that show their previous projects. The advertising company will also manage VB’s website presence with SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Milwaukee residential contractor”, “contractor near me”, or “residential contractor near me”, VB Residential Construction Company will be listed at the top of the search results.

The pricing of VB Residential Construction Company will be moderate and on par with competitors so customers feel they receive value when purchasing their services.

Operations Plan

The following will be the operations plan for VB Residential Construction Company.

Operation Functions:

Victor Martinez and Ben Schmidt will be the owners and managers of the company. They will oversee all staff, contractors, and subcontractors. They will also act as project managers for every job they receive and handle all pricing and bids to the client.
Victor and Ben will employ a team of contractors under them that will have an array of skill sets. The contractors will be trained and experienced either in plumbing, mechanical, electrical, roofing, or siding. Not all contractors need to be certified in all trades, but they need to be certified in at least one of the trades.
Office manager/assistant to be located at the small office. This person will handle all incoming calls, assist with visiting clients, bookkeeping and maintain files.
Victor and Ben will utilize a third-party human resources company to handle all hiring, onboarding, payroll, and benefits for the staff. The HR company will also handle all employee issues.
Victor and Ben will also pay a third-party accounting firm to manage all the high level accounting and tax payments.

Milestones:

VB Residential Construction Company will have the following milestones complete in the next six months.

3/1/202X – Finalize contract to lease small office space

3/15/202X – Execute advertising agency contract 4/1/202X – Begin networking and placing bids for construction jobs

5/1/202X – Begin recruiting and hiring team of contractors

5/15/202X – Purchase all necessary construction equipment, supplies, and trucks

6/1/202X – Start on first official job as VB Residential Construction Company

Victor and Ben are highly skilled at project management and residential construction. They are also both certified in plumbing, electrical, and mechanical. In the next few years, they will be certified as Master Carpenters.

Financial Plan

Key revenue & costs.

The revenue drivers for VB Residential Construction Company are the upcharge they will charge to the clients for their services. VB will purchase or subcontract a service at cost and will charge a 15% markup in order to obtain the markup fee. 15% is below the normal 25%-30% that other competing residential contractors charge.

The cost drivers will be the overhead costs required in order to maintain a construction company. The expenses will be the costs to purchase and maintain construction equipment and trucks, payroll and overhead costs for the staff, and rent and utilities. Other expenses will be the cost for the advertising agency, accounting firm, human resources firm, and membership association fees.

Funding Requirements and Use of Funds

VB Residential Construction Company is seeking $200,000 in debt financing to launch its construction business. The funding will be dedicated towards securing a small office space, purchasing two trucks, and purchasing all the construction equipment and supplies. Funding will also be dedicated towards the advertising agency and three months of overhead costs to include payroll of the staff, rent, and monthly fees to the accounting and human resources firm. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

Initial Monthly Average Contract Amount: $20,000
Growth in Average Monthly Contracts: 10%

Financial Projections

Income statement, balance sheet, cash flow statement, construction business plan faqs, what is a construction business plan.

A construction business plan is a plan to start and/or grow your construction business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your construction business plan using our Construction Business Plan Template here .

What Are the Main Types of Construction Companies?

Construction companies can be classified according to the type of constructions that they perform. Some are small renovation contractors, others are new home builders and others are commercial construction companies.

What Are the Main Sources of Revenues and Expenses for a Construction Company?

Construction companies get their primary source of revenue from individual contracts for new homes, remodeling projects or commercial projects.

The key expenses for construction companies are office space rent, salaries and wages, and equipment costs.

How Do You Get Funding for Your Construction Business Plan?

There are many options for financing a construction company like SBA loans, commercial loans, personal loans, or line of credit. There are also equipment funding opportunities that cover expenses associated with necessary tools, machinery and other equipment. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Construction Business?

Starting a construction business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Construction Business Plan - The first step in starting a business is to create a detailed construction business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your construction business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your construction business is in compliance with local laws.

3. Register Your Construction Business - Once you have chosen a legal structure, the next step is to register your construction business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your construction business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Construction Equipment & Supplies - In order to start your construction business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your construction business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Learn more about how to start a successful construction business:

How to Start a Construction Business

Where Can I Get a Construction Business Plan PDF?

You can download our free construction business plan template PDF here . This is a sample construction business plan template you can use in PDF format.

Other Business Plan Templates

Food Truck Business Plan Template

Event Venue Business Plan Template

How to build a multi-million dollar electrical contracting business

Like many small business owners, John Horan started his business out of his garage.

In the space of eight years he, his wife and his team built a $35 million, multi-award-winning enterprise.

Today John is MEA’s president and one of Queensland’s most respected electrical contractors.

John discusses how he achieved such tremendous growth and to get top six tips for new electrical contractors to grow their businesses.

1. Start with the end in mind

Build your business with a firm idea of the direction you want to take it. If you do not have a destination, you are on the road to nowhere.

In 2010, John set a five-year plan. He was going to build one of the largest solar companies in Queensland and then list on the Australian Stock Exchange or sell privately.

2. Get mentored

A business coach or mentor could help to shorten your learning curve and open your mind to new ideas and possibilities. It’s also a great way to keep yourself accountable for reaching the milestones along the way to achieving your ultimate goal.

John surrounded himself with very experienced people who helped him steer the business to where he wanted it to be.

“It’s like having a personal trainer at the gym. I know I wouldn’t work as hard if I didn’t have a PT there pushing and guiding me,” he said.

“And just like a PT, sometimes you have to pay for business coaching. Don’t be afraid of this. The value they will give you far outweighs the cost.”

There are lots of business coaches and mentors out there, just make sure you work with one who has the skills and industry knowledge that you need for your business.

3. Find your secret sauce

When everyone is the same, it’s hard for your customers to see you differently.

“I see too many electricians trying to do the same thing. They are not making themselves different or creating a niche,” John said.

Once John set the goal to be one of Queensland’s largest solar companies, he built a business around how they were going to be different, fast, agile, and better than their competitors.

“We built one of the largest sales teams in the game and created our own supply chain. This was our secret sauce. We made it so that it couldn’t be replicated and it was scalable.”

4. The business should be able to operate without you

Setting up the business to run without you means having the right systems and processes in place, as well as the right staff.

John made sure his business had systems and processes for everything. From how people answered the phone, to how they quoted, to automated surveys after every job.

“No one will invest in a business that relies too heavily on the business owner,” he said.

“And what happens if you get sick or, for whatever reason, can’t perform to the standard you want? This can significantly impact your plans if the business comes to a halt when you aren’t there.”

5. Always be learning

Electrical contractors must always be learning if they want to gain the business skills they need and the industry knowledge required to remain competitive.

“You have to be open and be a sponge for knowledge. Don’t be a know it all. There are so many people out there who are willing to help, but you have to be prepared to listen and take action”, explains John.

6. Bring your staff along for the ride

If your staff are to contribute meaningfully to your business goals, you must:

(1) be able to communicate what these goals are, and
(2) ensure each staff member understands how their contribution makes an impact to the business.

John made sure that his team understood his plans for the business and how they were going to help get there.

“This was critical to our success and enabled us to build and motivate a team who have a love for the environment and were passionate about sustainability,” he said.

In 2015, right on schedule, John and his business partner Scott Bird sold Horan and Bird to Origin Energy. John Horan is now the president of Master Electricians Australia and has this to say about us: “Master Electricians Australia is the nation’s leading business partner, knowledge source and advocate for electrical contractors”.

The Construction Skills Queensland Small Business Program Funding is a limited offer with only 30 spots available. Make sure you do not miss out on your chance to grow, build, and master your business. Click here to secure your place .

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Australia’s construction industry must help build a sustainable future

Financial viability alone is no longer enough, the building sector must look at its carbon budget

By Judy Too, Associate Professor Felix Kin Peng Hui and Dr Nilupa Herath, University of Melbourne

For decades, the construction industry has been largely driven by financial feasibility – focusing on cost optimisation and return on investment.

But a paradigm shift is under way, as the world’s environmental crisis intensifies and regulations become stringent . Financial viability alone is no longer enough. Projects are facing increasing scrutiny, based on their carbon footprint.

So, is the construction industry ready to build beyond financial budgets and embrace a new era of carbon-conscious construction?

While Victoria’s regulations, incentives and certifications are nudging the construction industry towards sustainable construction practices, there remains a significant gap between ambition and action.

Despite the ambition to achieve net-zero emissions by 2050, buildings are yet to be designed and delivered according to a project-level carbon budget . While there are ambitious targets, the building sector still has a long way to go to bridge the gap between this ambition and action.

A solution to engineering energy-saving smart materials

What exactly is a carbon budget.

Unlike a project’s financial budget, a carbon budget sets a limit on the emissions a project can generate throughout its entire lifecycle – from cradle to grave.

This is not an annual expense but a cumulative sum. Once the allocated global carbon budget is exhausted, net emissions must be maintained at zero.

Engineers and designers use this threshold to guide their material and design choices, and the success of this approach is then evaluated by comparing the actual project’s emission levels to the projected carbon budget at different project lifecycle phases.

Why the carbon gap?

While adopting a carbon budget approach is considered best practice, it is not yet an industry standard.

Our research found significant obstacles impeding progress towards this. A primary barrier is the lack of regulatory frameworks that emphasise adherence to carbon budgets.

This shortfall contributes to a lack of awareness among construction professionals about the importance of carbon budgeting and the environmental impact of their choices. Typically, short-term financial considerations are prioritised over the environmental and financial gains that could be realised in the long term.

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Although choosing low-carbon options could lead to long-term financial benefits through decreased energy use and lower operational costs, these options require a higher initial outlay.

Our research found that many developers are often reluctant to bear these high investment costs due to a phenomenon known as ‘split incentives’. This is when the parties responsible for making design and construction decisions do not directly benefit from the incentives, which makes it challenging to justify the initial investment.

Typically, the benefits of energy efficiency, like reduced energy bills and building operational costs, accrue to the building’s occupants or owners over time, rather than to the developers who fund the initial construction.

So, developers may not see the immediate value in allocating additional funds to improve the building’s performance. This misalignment of costs and benefits, combined with the lack of regulatory enforcement, poses challenges for the industry in effectively adopting low-carbon solutions and implementing sustainable practices.

Building projects require the collaboration of architects, engineers, contractors and suppliers, each contributing to distinct phases of the construction process, and sticking to a carbon budget requires seamless coordination by them all.

But the absence of explicit incentives or penalties for exceeding carbon budgets, along with these coordination challenges, makes it even more complex to integrate carbon-efficient strategies.

On top of this, measuring and verifying emissions across a building’s entire lifecycle is an extra challenge.

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Navigating this complex data and monitoring these procedures often leads to imprecise estimations and, in some cases, a complete lack of accurate data.

Environmental responsibility and business viability

Investors are increasingly prioritising environmental, social and governance (ESG) factors as well as financial metrics.

This shift tells us that a project’s carbon budget could ultimately outweigh its financial budget in importance.

We could see stakeholder discussions change from “What can be achieved within budget X?” to “What can be accomplished within carbon limit X?”

To do this, we need innovative solutions that reduce emissions while meeting project objectives, only then will we ensure the industry’s future success in both environmental and economic fronts.

This shift requires a balance between environmental responsibility and business viability. But additional risks on construction companies through overly stringent regulations and insufficient support will be counterproductive.

Instead, the government should encourage this shift by:

Focusing on collaborative solutions that provide clear and phased regulatory frameworks that offer businesses sufficient time to adapt and innovate;
Implementing targeted financial incentives and subsidies, like tax breaks, grants and loan guarantees, to ease the initial burden of adapting to these changes;

Lifting standards in Victoria's building industry

Fostering knowledge sharing and collaboration between industry stakeholders, policymakers and researchers to develop cost-effective and efficient carbon-reduction strategies; and
Investing in research and development for new technologies and materials that can make sustainable construction more affordable and accessible.

Embracing carbon budgets alongside financial ones is not an option, but an imperative. The question is not if the industry will adapt, but how quickly and effectively.

By making these changes, the construction industry can not only help to mitigate climate change, but also unlock new opportunities for innovation, resilience and long-term prosperity.

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Ministers Treasury portfolio

The Hon Julie Collins MP
Media releases

Growing Australia’s construction workforce to build more homes

Joint media release with Brendan O’Connor MP Minister for Skills and Training

The Albanese Labor Government is investing $90.6 million to boost the number of skilled workers in the construction and housing sector, as part of a big focus on housing in the 2024–25 Budget.

This funding is essential to help close the national skills gap and provide the skilled workforce the economy needs to increase housing supply.

It will help Australia get to our ambitious national goal of 1.2 million more homes.

This Budget continues to remove cost barriers to education and training, and incentivise Australians to train in areas the economy needs them most, with $88.8 million for 20,000 additional Fee‑Free TAFE training places to increase the pipeline of workers for construction and housing, including:

$62.4 million , working with States and Territories, to deliver an additional 15,000 Fee‑Free TAFE and VET places over two years from 1 January 2025. $26.4 million , working with states and territories, to deliver approximately 5,000 places in pre‑apprenticeship programs over two years from 1 January 2025.

Our Government’s 20,000 additional Fee‑Free training places will grow our skilled housing and construction workforce, building on the success of Fee‑Free TAFE in 2023.

Places may be offered by both TAFEs and industry Registered Training Organisations that provide specialised and high‑quality training in the sector.

To 31 December 2023, Fee‑Free TAFE supported over 355,000 student enrolments nationally.

Enrolments in Fee‑Free TAFE were strong across all priority sectors, with over 24,000 construction sector course enrolments in 2023.

Of these 24,000 enrolments, over 3,000 of them were by women.

The new pre‑apprenticeships places will support more people to move into a construction apprenticeship and succeed in training, by providing students with a taste of industry experience before choosing to become an apprentice.

Engaging migrants is also critical to meeting skills needs in Australia’s construction and housing sector.

That’s why the Budget also includes $1.8 million to streamline skills assessments for around 1,900 potential migrants from countries with comparable qualifications who want to work in Australia’s construction and housing sector, and prioritise the processing of around 2,600 Trades Recognition Australia skills assessments in targeted occupations.

This will mean more skilled workers to help Australia build more homes.

It also builds on the commitment in the Government’s Migration Strategy to improve the approach to skills recognition and assessments.

Quotes attributable to the Minister for Skills and Training, Brendan O’Connor MP:

"This Budget continues the Albanese Government’s work to build a stronger Vocational Education and Training sector which is what we need to skill Australians for the future, and support more people into secure, well‑paid work.

In the previous National meeting of Skills Ministers, we added delivering housing supply to priorities on our national skills agenda, and these investments will support and strengthen Australia’s residential housing capability.

This is a great opportunity for people to gain a trade whilst accessing government incentives and reduce cost of living pressures through more affordable housing."

Quotes attributable to the Minister for Housing, Homelessness and Small Business, Julie Collins MP:

"Our Government knows that building more homes is the best way to address Australia’s housing challenges, which is why we have an ambitious national target to build 1.2 million homes.

More homes mean more affordable options for everyone – whether they’re buying, renting or needing a safe space for the night.

But to build more homes we need more tradies, and that is what this announcement will deliver. It’s just one way we’re working across Government to build the homes Australia needs."

De Grey Mining Plans To Raise $395M For Major Gold Project In Australia

De Grey Mining (OTCPK: DGMLF) has announced an ambitious plan to raise $395 million (A$600 million) to support the financing of its Hemi Gold Project in Western Australia’s Pilbara region. The equity raising is a strategic move to fulfill a pre-condition for debt financing, allowing the company to progress with its construction activities and ultimately achieve the first gold production in the second half of 2026.

"Proactively finalizing the equity component of the (Hemi) project financing allows better planning and management of the forward capital works plan, including near-term ordering of long-lead items and contractor appointments," the company said in a statement.

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The specifics of the equity raising will result in issuing 545.5 million shares through an institutional placement of A$344 million and a 1-for-7.95 pro-rata accelerated non-renounceable entitlement offer for A$256 million. The placement’s issue price of A$1.10 represents a 15% discount to the stock’s closing price on May 7, which was A$1.27.

“The underwritten equity raising represents a landmark milestone and a key de-risking event for De Grey,” said Managing Director Glenn Jardine .

“The significant level of support received from key stakeholders to date provides strong validation of the high-quality nature of Hemi and our strategy of becoming a material Australian gold producer,” he added.

The Hemi Gold Project has gained considerable attention as a prospective tier-1 gold mine. It is part of the larger Mallina Gold Project and boasts a significant mineral resource estimate of over 12.6 million ounces. The project is designed for large-scale, low-cost open-pit mining, with a projected output of 530,000 ounces annually over the first decade of production.

The refractory nature of much of the ore at Hemi requires complex processing techniques, leading De Grey to opt for pressure oxidation (POX) as the primary method for gold extraction. This choice aligns with industry practices, as pressure oxidation is used in about 40% of the world’s gold production.

Project director Peter Holmes was in charge of commissioning Barrick's Pueblo Viejo project in the Dominican Republic, one of the largest POX plants worldwide.

Benzinga Mining is the bridge between mining companies and retail investors. Reach out to [email protected] to get started!

Also read: Uranium Executives Anticipated Russian Nuclear Fuel Ban Despite Senate Delay

Photo: Shutterstock

This article De Grey Mining Plans To Raise $395M For Major Gold Project In Australia originally appeared on Benzinga.com .

VIDEO : Why the planned construction workforce boost won't ease the housing crisis

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The government's announced more than 90 million dollars to boost the construction sector workforce by providing more fee-free TAFE places and making it easier for migrants to work in the sector in Australia. But Independent Economist Harley Dale says this alone isn't enough to meet the 1.2 million news homes in five years target, which he says remains a pipedream.

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Australia's building sector must look at its carbon budget, say experts

by Judy Too, Felix Kin Peng Hui and Nilupa Herath, University of Melbourne

For decades, the construction industry has been largely driven by financial feasibility—focusing on cost optimization and return on investment.

But a paradigm shift is under way, as the world's environmental crisis intensifies and regulations become stringent. Financial viability alone is no longer enough. Projects are facing increasing scrutiny, based on their carbon footprint .

So is the construction industry ready to build beyond financial budgets and embrace a new era of carbon-conscious construction?

While Victoria's regulations, incentives and certifications are nudging the construction industry towards sustainable construction practices, there remains a significant gap between ambition and action.

What exactly is a carbon budget?

Unlike a project's financial budget, a carbon budget sets a limit on the emissions a project can generate throughout its entire lifecycle—from cradle to grave.

This is not an annual expense but a cumulative sum. Once the allocated global carbon budget is exhausted, net emissions must be maintained at zero.

Engineers and designers use this threshold to guide their material and design choices, and the success of this approach is then evaluated by comparing the actual project's emission levels to the projected carbon budget at different project lifecycle phases.

Why the carbon gap?

While adopting a carbon budget approach is considered best practice, it is not yet an industry standard.

Our research , published in Heliyon , found significant obstacles impeding progress towards this. A primary barrier is the lack of regulatory frameworks that emphasize adherence to carbon budgets.

This shortfall contributes to a lack of awareness among construction professionals about the importance of carbon budgeting and the environmental impact of their choices. Typically, short-term financial considerations are prioritized over the environmental and financial gains that could be realized in the long term.

Although choosing low-carbon options could lead to long-term financial benefits through decreased energy use and lower operational costs, these options require a higher initial outlay.

Our research found that many developers are often reluctant to bear these high investment costs due to a phenomenon known as "split incentives." This is when the parties responsible for making design and construction decisions do not directly benefit from the incentives, which makes it challenging to justify the initial investment.

Typically, the benefits of energy efficiency, like reduced energy bills and building operational costs, accrue to the building's occupants or owners over time, rather than to the developers who fund the initial construction.

So, developers may not see the immediate value in allocating additional funds to improve the building's performance. This misalignment of costs and benefits, combined with the lack of regulatory enforcement, poses challenges for the industry in effectively adopting low-carbon solutions and implementing sustainable practices.

But the absence of explicit incentives or penalties for exceeding carbon budgets, along with these coordination challenges, makes it even more complex to integrate carbon-efficient strategies.

On top of this, measuring and verifying emissions across a building's entire lifecycle is an extra challenge.

Navigating this complex data and monitoring these procedures often leads to imprecise estimations and, in some cases, a complete lack of accurate data.

Environmental responsibility and business viability

Investors are increasingly prioritizing environmental, social and governance (ESG) factors as well as financial metrics.

This shift tells us that a project's carbon budget could ultimately outweigh its financial budget in importance.

We could see stakeholder discussions change from "What can be achieved within budget X?" to "What can be accomplished within carbon limit X?"

To do this, we need innovative solutions that reduce emissions while meeting project objectives, only then will we ensure the industry's future success in both environmental and economic fronts.

Instead, the government should encourage this shift by:

Focusing on collaborative solutions that provide clear and phased regulatory frameworks that offer businesses sufficient time to adapt and innovate;
Implementing targeted financial incentives and subsidies, like tax breaks, grants and loan guarantees, to ease the initial burden of adapting to these changes;
Fostering knowledge sharing and collaboration between industry stakeholders, policymakers and researchers to develop cost-effective and efficient carbon-reduction strategies; and
Investing in research and development for new technologies and materials that can make sustainable construction more affordable and accessible.

Embracing carbon budgets alongside financial ones is not an option, but an imperative. The question is not if the industry will adapt, but how quickly and effectively.

By making these changes, the construction industry can not only help to mitigate climate change, but also unlock new opportunities for innovation, resilience and long-term prosperity.

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Key Takeaways

Steps to Set Up a Construction Company in Australia

Creating a Business Plan for Your Construction Company

Legal Requirements and Regulations for Construction Companies in Australia

Licenses and Permits

Workplace Health and Safety

Financing and Growth Strategies for Construction Companies in Australia

Gearing up for Growth

Setting Goals for Success

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RELATED READING

8 Steps to Start a Construction Company in Australia

Step 2 - Craft a robust business plan

Step 3 – Register your company

Step 4 – Obtain the requisite industry licences

Step 5 – Meet safety requirements and secure insurance

Step 6 – Secure financing

Step 7 – Hire your staff

Step 8 – Start marketing to generate awareness

More Helpful Sht

Builders & Renovators

Supplier Connection

How to start and successfully grow a construction business

Table of Contents

Growing your construction business

Residential buildings

Infrastructure

Identifying your niche

Research your local market

How to do construction market research

Draft your business plan

Writing a construction business plan

Register your business

Get the right licenses and permits

Find an insurance provider

Find the funding you need

Work out what equipment you’ll need

What will you do yourself, and what tasks or site labour will subcontract for?

Who will look after your company’s bookkeeping?

Build a great team

Invest in your business

Focus on quality

Use construction management software

Construction Quoting Software

Construction Estimating Software

Construction Takeoff Software

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