general construction business plan

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

Upmetrics AI Assistant: Simplifying Business Planning through AI-Powered Insights. Learn How

Entrepreneurs & Small Business

Accelerators & Incubators

Business Consultants & Advisors

Educators & Business Schools

Students & Scholars

AI Business Plan Generator

Financial Forecasting

AI Assistance

Ai pitch deck generator

Strategic Planning

See How Upmetrics Works  →

• Sample Plans
• WHY UPMETRICS?

Customers Success Stories

Business Plan Course

Small Business Tools

Strategic Canvas Templates

E-books, Guides & More

• Sample Business Plans
• Construction, Architecture & Engineering

General Contractor Business Plan

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write a General Contractor Business Plan?

Writing a general contractor business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Introduce Your Business:

Market opportunity:, product and services:.

• For instance, construction services, project management, construction consulting, and maintenance & repair can be included as services, and specialized expertise and competitive pricing can be part of your USPs.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

Say goodbye to boring templates

Build your business plan faster and easier with AI

Plans starting from $7/month

2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business description:

• Residential construction
• Commercial Construction
• Civil construction
• Industrial construction
• Green building and sustainable construction

Company structure:

Mission statement:, business history:.

• Additionally, If you have received any awards or recognition for excellent work, describe them.

Future goals:

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the construction industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target Market:

• For instance, homeowners, property owners, real estate developers, and insurance companies can be a target audience for a general contracting company focusing on residential projects.

Market Size and Growth Potential:

• You may include statistics and information like the number of ongoing and upcoming residential or commercial projects, the value of construction spending, etc.

Competitive Analysis:

Market trends:.

• For instance, there is a growing demand for eco-friendly and sustainable construction practices; explain how you plan on dealing with this potential opportunity in the market.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your construct contractor business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your services:

Mention the services your contracting business will offer. This list may include services like,

• Construction project management
• Renovation services
• Budgeting or cost estimation services
• Project coordination
• Maintenance and repair

Service Process:

Case studies:, additional services:.

In short, this section of your general contractor plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

• For instance, timely project delivery, quality craftsmanship, competitive pricing, and sustainable practices can be some of the great USPs for a general contracting company.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your construction contractor business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your general contractor business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

• Include their qualifications, relevant experience, the training required, and the duties they will perform.

Operational Policies and Procedures:

Equipment & technologies:.

• Explain how these technologies help you maintain quality standards and improve the efficiency of your business operations.

Contingency Plans:

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your general contractor business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

• It should include key executives, general contractors, and other department managers (e.g. project manager, safety manager.) involved in the business operations, including their education, professional background, and any relevant experience in the industry.

Organizational structure:

Compensation plan:, advisors/consultants:.

• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your general contracting services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.

Financing needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the construction industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your general contractor business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This general contractor business plan sample will provide an idea for writing a successful general contractor plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our general contractor business plan pdf.

Related Posts

Construction Company Business Plan

Plumbing Business Plan

Simple Business Plans Template Example

Best AI-based Business Plan Generators

Painting Business Plan

Woodworking Business Plan

Frequently asked questions, why do you need a general contractor business plan.

A business plan is an essential tool for anyone looking to start or run a successful general contractor business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your general contractor company.

How to get funding for your general contractor business?

There are several ways to get funding for your general contractor business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your general contractor business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your general contractor business plan and outline your vision as you have in your mind.

What is the easiest way to write your general contractor business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any general contractor business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

Plan your business in the shortest time possible

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Popular Templates

Create a great Business Plan with great price.

• 400+ Business plan templates & examples
• AI Assistance & step by step guidance
• 4.8 Star rating on Trustpilot

Streamline your business planning process with Upmetrics .

Call Us Today!    1-877-804-2421       [email protected]

Call Us Today!

1-877-804-2421 [email protected]

Your Construction Business Plan for 2023

by: Daniel Quindemil

Are you starting a construction business? Are you trying to grow your existing business?

There’s an endless supply of detailed construction business plan templates out there and most of them seem to emphasize small things like licensing, insurance, and other complex administrative stuff, rather than what’s most important , which is sales .

By the end of this post, however, you will see that your “plan” doesn’t have to be a professional work of art, but is actually much simpler than you might think…

Strategy #1: How to Generate Unlimited Leads

What if I told you that there’s a way to consistently get 50-70 leads every week for you to choose from?

For contractors who rely on word of mouth , these numbers seem impossible, but that right there is the flaw with getting your leads from referrals only.

Although referrals are good in that they have a higher chance of closing the sale , they can’t be controlled or scaled and that’s bad news if you want to grow your construction business .

Instead, what you want to do is have a system of in-bound leads , whether that means getting invited to bid on jobs every week, or actively pursuing new jobs.

Whatever method you choose, you want to imagine as if you are feeding your business’ lead machine because this will be the “engine” that drives all of your sales.

After all, construction businesses’ growth mostly depends on how many leads they are getting and how fast they are processing them into jobs .

But, isn’t making a good lead machine hard? Not at all. The answer is lead generating platforms

Lead generating platforms connect clients with general contractors and connect general contractors with subcontractors. It is essentially an online, local network of jobs in your area.

On the commercial side , sites like the Blue Book Network and the Dodge Construction Network are great options that offer batches of dozens of leads every week.

On the residential side , there are platforms like Home Advisor, Houzz, and even Google Ads

Pro Tip I n residential construction, most clients find contractors on internet searches or general directories. In that case, a good Google Ads campaign and a landing page can go far.

Strategy #2: How to bid jobs FAST

Earlier, we mentioned how construction businesses’ growth mostly depends on how many leads they are getting and how fast they are processing them into jobs .

Now that we’ve understood how to get more leads, let’s learn what to do with them…

The Law of Large Numbers in Construction

In construction, the closing rate of bids is around 10%.

The reason for this small rate is because construction is competitive . Although there’s big construction management companies and general contractors out there, most jobs rely on lots of subcontractors for the actual work.

All of this means that, as a contractor, you have to bid as much as possible if you want to make good returns. Like what we said earlier, getting lots of leads will help you bid more, and cherry pick the best jobs.

So what’s stopping contractors from bidding more jobs? TIME

Between “fighting fires” during the day and visiting clients and job sites, most contractors have very little time to estimate their own bids.

In fact, one contractor I know (Maverick Construction) told me how, before we started providing him estimating services , he was only able to bid 5 jobs per month .

This number isn’t uncommon for most contractors, but the problem is, how can we possibly grow our business like this if the law of large numbers is true? You can’t.

Why you should Outsource your Estimating

So, we’ve covered why contractors are missing out by estimating their own bids; that leaves us with two options:

To start estimating more bids you can either 1) hire an in-house estimator or 2) outsource your estimating to a third party firm .

The problem with hiring an in-house estimator is that it will come with more overhead costs .

A personal estimator would most likely work on a salary and for most small contractors, there’s not enough business coming in to pay these costs every month.

What happens if one month only pulls in a few jobs? Clearly, outsourcing your estimating is the ideal solution for small contractors.

On-Demand Estimating Service Advantages : Does not require payroll, employees, or software Gives you the power of an entire department Increases the amount of jobs you can bid

Strategy #3: How to Close More Sales

Now, there are many contractors that apply the two previously mentioned strategies, but there’s ONE strategy so many miss that’s wrecking their business.

The biggest mistake that contractors make is that they put in all the work hunting for leads and bidding the jobs, but the moment a bid is sent, they don’t do any follow-up with their clients.

Following up with the clients you send bids to can single handedly win you the job because of one principle in psychology…

In psychology, the Mere Exposure Effect is the principle that people gain a preference for things they are familiar with.

What does this mean for your sales? The more you make contact with your clients, the more likely they’ll choose you for the job .

Pro Tip Invest in face-to-face contact

To gain exposure, you have to interact with your clients at 4 “touch points”:

• Phone Calls
• Text Messages

You don’t have to be a stalker… but a few regular check-ups can go a long way and even mean the difference between you winning the job or not.

If you are able to get closer with the project management, you can even come out of the project with more jobs lined up!

The Secret to 10X your Construction Business

If you are interested in growing your construction business , I’ve prepared a short training video for you that you can watch for FREE:

In this training, I will show you how you can put your estimating on autopilot and boost your sales to 10X your business in 90 days ; step-by-step with a simple copy and paste formula !

Do you want more projects?

Learn how to get leads on autopilot, bid jobs faster, and close more sales.

Learn about our Contractor Sales Academy .

Related Posts

Construction Email Marketing Basics: What you Need to Know

8 Essential Digital Marketing Tips for Construction

5 Most Important Construction Project Management Responsibilities

5 Construction Leads Strategies to Grow Your Business

Our Office: 16650 North Kendall Drive

Links: Commercial Estimating Services Residential Estimating Services Construction Takeoff Services Estimating Services Construction Estimating Consultant

Terms of Use Privacy Policy Contact Us About Us FAQ

Sign up and one of our team members will contact you shortly.

Construction Business Plan Template [Updated 2024]

Construction Business Plan

If you want to start a new construction company or expand your established business, you need a business plan.

The following construction business plan template gives you the key elements to include in an effective business plan. It can be used to create a commercial construction business plan, a general contractor business plan or business plans for residential construction, building construction or industrial construction.

You can download the Construction business plan template (including a full, customizable financial model) to your computer here.

Sample Business Plan For a Residential Construction Company

Below are links to each of the key sections of a construction company business plan example:

• Executive Summary – The executive summary provides an overview of your business opportunity and summarizes the business plan.
• Company Overview – The company analysis includes information about your business idea, the full service design and construction services you offer, and the business structure.
• Industry Analysis – The industry analysis includes market research that supports your business and provides insights into market trends and the construction industry.
• Customer Analysis – The customer analysis provides an overview of your target market and the demographics and purchasing habits of these target customers.
• Competitive Analysis – The competitive analysis should identify your direct and indirect competitors and highlight your competitive advantage.
• Marketing Plan – The marketing plan includes your overall marketing strategy, pricing strategy and what marketing techniques you will try to attract potential customers (i.e., email marketing, paid advertising, etc.).
• Operations Plan – The Operations Plan includes information on your construction company’s day to day operations, expected operating costs and the bidding process for new construction jobs.
• Management Team – The management team section includes a profile of the business owner and management team including the officer manager and project managers, their experience and responsibilities.
• Financial Plan – The financial plan includes financial projections, including cash flow statements, income statements, and balance sheets for the next 5 years.

Comments are closed.

Business Plan Template Construction

• Get Started

Home >> #realtalk Blog >> Manage a business >> The Ins and Outs of …

The Ins and Outs of Writing a Construction Business Plan (Free Template)

By Shannon Mulligan

A strong foundation is essential for a construction job—and starting a construction business. And how do you do that? By setting up your business for success with a solid construction business plan. 

Read on to learn about why you need a construction business plan, how to create one in six easy steps, and a free template to get you started. 

What’s a business plan for a construction company?

A business plan is a document that outlines a company’s business activities, goals, and how its activities will help achieve its objectives. It documents a business’s market research, financial projections, mission statement, and offerings. 

Every construction business can benefit from a business plan, whether you’re established or just starting. A construction business plan can help you secure funding, document your business model, forecast future business demands, and function as a guiding light for you and your team. 

The benefits of having a construction business plan

Most businesses start with a business plan—it’s a natural way to get your thoughts onto paper and organize them into actionable steps. Business plans can take a lot of time, but when done right, your business plan can function as your manual to move your business forward. 

If you’re still unsure whether your construction business needs a business plan, these four benefits might help you decide. 

Apply for funding

You’ll need a business plan if you’re looking for a business loan or planning to apply for business grants. Most financial lenders won’t even consider giving you a business loan without a well-thought-out business plan. A business plan is a way for lenders to gauge the risk level they’re taking if they lend your business money.

Your business plan should show lenders how to use their money and how to pay it back. It also allows you to build confidence in your ability to run a business from an organizational standpoint.

Attract top talent

Hiring the right people is important for any business, but it can make or break a construction business. Giving potential hires a complete understanding of your vision for your construction company can be the difference between finding the right employees versus the right now employees.

Creating a business plan will give you a clear vision for your company that you’ll easily be able to communicate to any potential hires.

Understand your competition

Industry and competitor research and analysis are a big part of creating a business plan. You might start your business plan thinking you know exactly what makes you stand out, but then again, you might not. Researching who your competitors are and what they do helps you solidify how your business can be differentiated from your peers. 

Finding what’s unique to your business is a huge factor in outbooking other local construction businesses.

Gives you clarity

Trying to get your business off the ground can feel like you get lost in the weeds of it all. Creating a business plan can help you clarify key elements of your company. A business plan gives you the big picture and lets you identify the priorities and milestones you need to focus on for your business.

How to write a business plan for a construction company

Writing a business plan for your construction company is essential in building your business. Whether you’re looking for funding or you’re looking for clarity, a business plan can help set you on the right path. Here are six key components of a successful construction business plan.

1. Executive summary

An executive summary is an overview of your construction business plan. Think of it as the CliffsNotes version of your business plan—it gives readers the basics of your business’s goals, financial projections, strategies, and more. This should be the first section of your business plan, but it’s usually the last thing you write because your plan informs it. 

An excellent executive summary reflects your construction business and should excite the reader about your company and its potential. 

2. Company description

The company overview and description section is the second section in your construction business plan. This section outlines vital details about your company, like your location, the size of the business, what you do, and what you hope to do in the future. 

When writing your company description, try to include the following information:

• The official company name
• Type of business structure (sole proprietorship, LLC, corporation, etc.)
• Names of the owners/management team
• The business location
• A company history that outlines when the business started, why you created it, and what it does
• Mission and vision statements

3. Market analysis

A robust market analysis gives you the foundation to create a strong construction business plan with the best chance at success. Market research is the best way to test whether your business will succeed. It can help you mitigate risks, give insights into customer preferences, and even help you decide on location and pricing. 

There are two main types of market research: primary and secondary. Primary research is gathered directly from consumers—think surveys, interviews, and focus groups you administer. Secondary research is compiled from external sources—think government census data, polling results, and research conducted by third parties. 

Both primary and secondary are great on their own; together, they’ll give you a fuller picture. 

4. Operations plan

There are a lot of moving parts that go into running a construction business. The operations plan lets you lay out all those parts and explain how you’ll run your company. This includes everything from your physical location, facilities, staffing needs, and equipment you’ll require. You can outline the types of projects your construction business will undertake, how many projects you’ll take on at once, and what resources you’ll need to deliver quality service at that scale.

5. Marketing and advertising strategies

Use the marketing and advertising strategies section of your construction business plan to highlight how you plan to promote your business. This section can outline all of the strategies you plan to use and can include a rough budget of what you plan to spend on marketing and advertising. Consider social media , digital marketing, content marketing, SEO, and local marketing strategies.

6. Financial projections

The financial projections section includes details about how you’re funding your business, projected revenues and expenses, and profitability projections. Accurate financial projections give potential lenders and investors confidence in your understanding of the industry and the viability of your business. 

Quick tips for writing a construction business plan

Now that you’ve got everything needed to start writing your business plan, here are five quick tips to help your writing process. These are big-picture ideas that you can use to get the most out of your construction business plan:

• Get to the point: Use clear, concise language to get your point across. Skip the jargon and ensure someone outside the construction industry understands what you write.
• Use data when you can: It’s great to have supporting data points to back you up when you’re talking about the industry and market.
• Write for your audience: Who are you writing for? Investors? Employees? Shareholders? Lenders? When you clearly define your audience, you can write in a way that resonates.
• Research, and then research some more: What you have to say about your industry is important, but having facts backed by research is even more powerful and convincing. 
• Use it: Don’t let your business plan just be another PDF collecting metaphorical dust on your desktop. Use it to inform your decisions and guide you and your team through the years. And update it when needed!

Free construction business plan template

Ready to get started on your construction business plan? Our free construction business plan template can help you write a business plan with all the elements needed for success. 

Download your free construction business plan template now

Build a better business with the right tools

If you know one thing, it’s that the quality of your tools can make or break a project. The same is true for the tools you use in your business. 

With Homebase , you get everything you need to take control of your construction business . Built for teams like yours, Homebase helps you schedule your team , track their hours , and run payroll even if you’re all on different job sites. 

Homebase is the all-in-one management app that simplifies running your construction business. Get started for free .

Construction business plan FAQs

Why should you create a business plan for your construction company even if you aren’t looking for financing.

You should create a business plan for your construction company even if you aren’t looking for financing, because it can help you understand your business and competitors and give potential hires confidence in your business.

What’s the best way to create your construction business plan?

The best way to create a construction business plan is to use a business plan template. You can download your free construction business plan template above.

Remember:  This is not legal advice. If you have questions about your particular situation, please consult a lawyer, CPA, or other appropriate professional advisor or agency.

Related posts

March 22, 2024

How to Start a Construction Business in 8 Easy Steps

Being able to build something from the ground up is an incredible skill: a skill you can monetize into your…

Subscribe to our newsletter

Looking for ways to stay up to date on employment laws and small business news?

Homebase makes managing hourly work easier for over 100,000 local businesses. With free employee scheduling , time tracking , and team communication , managers and employees can spend less time on paperwork and more time on growing their business.

• Hiring & onboarding
• Team communication
• Employee happiness
• HR & compliance
• Integrations
• Food & beverage
• Beauty & wellness
• Medical & veterinary
• Home & repair
• Hospitality & leisure
• Education & caregiving
• Contact sales
• Become a Partner
• Careers – We’re hiring!
• #realtalk Blog

All Formats

Table of Contents

Plan template bundle, construction business plan template bundle, construction business continuity plan bundle, construction marketing business plan template bundle, construction business development plan template bundle, 32+ construction business plan templates, construction business plan template, free sample construction business plan template, general construction business plan template, sample residential construction business plan template, free simple construction business plan template, small construction business plan template, commercial construction business plan template, building construction business plan template, 5 year construction business plan template, construction and engineering business plan template, construction company business plan template, construction management business plan template, construction start-up business plan template, construction contractor business plan template, construction carpenter business plan template, construction marketing plan template, general contractor business plan with cover page, construction business plan template download, simple real estate business plan template, printable business plan outline template, printable business plan template, sample business plan in word, construction financial business plan template, construction small business plan template, operational construction business plan template, construction startup company business plan, construction management business plan, residential housing business plan template, how to create a construction business strategy plan, construction business plan with executive summary, building project construction business plan, construction business plan final proposal in pdf, create a construction business plan in 6 steps:, step 1: business description, step 2: goals and objectives, step 3: resources needed, step 4: strategies, step 5: financial statements, step 6: review and edit, final thoughts, general faqs, 1. what is a construction business plan, 2. what is the purpose of having a business plan, 3. who needs a construction business plan, 4. what must be included in a business plan, 5. mention the advantages of business plans, plan templates, free 32+ construction business plan templates.

In all the stages involved in getting to choose out mutual partners to accomplish your real estate small business plan , or getting to hire out contractors, a construction business plan might be the savior. It helps you in making the essential steps in mapping out a strategic achievement of construction goals. This is accomplished by incorporating project management plan tools available for users’ disposal.

• Google Docs

• Apple Pages

• A brief history of your construction company
• The customers, suppliers, and needs you have
• A sheet summary of the growth of the company, including financial details
• A brief of your long-term and short-term goals
• Steps on how you will make profits.
• Planning leads to practical and faster achievements in any company
• It foresees the future
• It acts as an added strength to a business action plan for steady growth and prosperity
• It helps one be ready to face any unexpected situation that might crop up.

More in Plan Templates

Construction pitchdeck template, construction marketing strategy business plan, 5-year construction financial projection template, civil engineering construction marketing business plan template, 3-year construction financial projection template, plumbing construction marketing business plan template, cleaning construction marketing business plan template, remodeling construction marketing business plan template, construction due diligence.

• 7+ Financial Plan Templates
• 10+ Operational Plan Templates
• 9+ Training Plan Templates
• 5+ Shooting Schedule Template
• 11+ School Counselor Lesson Plan Templates in PDF | Word
• 9+ Interdisciplinary Lesson Plan Templates in PDF | MS Word
• 10+ Business Continuity Plan Templates in Google Docs | Ms Word | Pages | PDF
• 18+ Compensation Plan Templates in Google Docs | MS Word | Pages | PDF
• 10+ Executive Bonus Plan Templates in PDF
• 8+ Facility Management Plan Templates in PDF
• 10+ Diversity Recruitment Plan Templates in PDF | MS Word
• 11+ Audit Corrective Action Plan Templates in MS Word | Excel | PDF
• 9+ Recruitment Agency Marketing Plan Templates in PDF
• 10+ Recruitment Marketing Plan Templates in PDF | MS Word
• 10+ Student Recruitment Plan Templates in PDF | MS Word

File Formats

Word templates, google docs templates, excel templates, powerpoint templates, google sheets templates, google slides templates, pdf templates, publisher templates, psd templates, indesign templates, illustrator templates, pages templates, keynote templates, numbers templates, outlook templates.

How To Write a Winning Construction Company Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for construction company businesses who want to improve their strategy or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you will accomplish it. To create an effective business plan, you must first understand the components essential to its success.

This article provides an overview of the key elements that every construction company business owner should include in their business plan.

Download the Ultimate Construction Business Plan Template

What is a construction company business plan.

A construction company business plan is a formal written document describing your company’s business strategy and feasibility. It documents the reasons you will succeed, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Construction Company Business Plan?

A construction company business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Construction Company Business Plan

The following are the key components of a successful construction company business plan:

Executive Summary

The executive summary of a construction company business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your construction company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your construction business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your construction firm, mention this.

You will also include information about your chosen construction company business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a construction company business plan. Conduct thorough market research to determine industry trends and document the size of your market. Questions to answer include:

• What part of the construction industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a construction company business’ customers may include:

• Businesses (e.g., office complexes, restaurants, retail stores)
• General contractors
• Other construction companies

As you conduct your customer analysis, keep in mind that your target customers may not be aware of your company or product right away. You will need to have a marketing strategy to reach them and get them interested.

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or construction company services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or you may promote your construction company business via word-of-mouth.

Operations Plan

This part of your construction company business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present. Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a construction company business include reaching $X in sales. Other examples include hiring a certain number of employees, signing up a certain number of customers, or completing a certain number of projects.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific construction industry. Include brief biography sketches for each team member. Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Construction Company

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Construction Company

Cash Flow Statement Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup construction business.

Sample Cash Flow Statement for a Startup Construction Company

Finish with an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your construction company. It not only outlines your business vision but also provides a step-by-step process of how you will accomplish it.

A well-written business plan is an essential tool for any construction company. The tips we’ve provided in this article should help you write a winning business plan for your construction company.  

Finish Your Construction Business Plan in 1 Day!

Other helpful articles.

Best Marketing Strategies & How To Write a General Contractor Marketing Plan + Template

How To Write a Winning Apartment Construction Business Plan + Template

How To Write a Winning Concrete Construction Business Plan + Template

Construction Bidding: How to Create Winning Bids & Proposal + Template

How To Write a Winning Electrical Construction Business Plan + Template

How To Write a Winning Civil Engineer Business Plan + Template

Construction Contracts Agreements You Need + Template

How To Write a Winning General Contractor Business Plan + Template

How To Write a Winning Home Builder Business Plan + Template

How To Write a Winning Landscape Construction Business Plan + Template

How to Write a Winning Residential Construction Business Plan + Template

How to Write a Winning Road Construction Business Plan + Template

• Global (EN)
• Albania (en)
• Algeria (fr)
• Argentina (es)
• Armenia (en)
• Australia (en)
• Austria (de)
• Austria (en)
• Azerbaijan (en)
• Bahamas (en)
• Bahrain (en)
• Bangladesh (en)
• Barbados (en)
• Belgium (en)
• Belgium (nl)
• Bermuda (en)
• Bosnia and Herzegovina (en)
• Brasil (pt)
• Brazil (en)
• British Virgin Islands (en)
• Bulgaria (en)
• Cambodia (en)
• Cameroon (fr)
• Canada (en)
• Canada (fr)
• Cayman Islands (en)
• Channel Islands (en)
• Colombia (es)
• Costa Rica (es)
• Croatia (en)
• Cyprus (en)
• Czech Republic (cs)
• Czech Republic (en)
• DR Congo (fr)
• Denmark (da)
• Denmark (en)
• Ecuador (es)
• Estonia (en)
• Estonia (et)
• Finland (fi)
• France (fr)
• Georgia (en)
• Germany (de)
• Germany (en)
• Gibraltar (en)
• Greece (el)
• Greece (en)
• Hong Kong SAR (en)
• Hungary (en)
• Hungary (hu)
• Iceland (is)
• Indonesia (en)
• Ireland (en)
• Isle of Man (en)
• Israel (en)
• Ivory Coast (fr)
• Jamaica (en)
• Jordan (en)
• Kazakhstan (en)
• Kazakhstan (kk)
• Kazakhstan (ru)
• Kuwait (en)
• Latvia (en)
• Latvia (lv)
• Lebanon (en)
• Lithuania (en)
• Lithuania (lt)
• Luxembourg (en)
• Macau SAR (en)
• Malaysia (en)
• Mauritius (en)
• Mexico (es)
• Moldova (en)
• Monaco (en)
• Monaco (fr)
• Mongolia (en)
• Montenegro (en)
• Mozambique (en)
• Myanmar (en)
• Namibia (en)
• Netherlands (en)
• Netherlands (nl)
• New Zealand (en)
• Nigeria (en)
• North Macedonia (en)
• Norway (nb)
• Pakistan (en)
• Panama (es)
• Philippines (en)
• Poland (en)
• Poland (pl)
• Portugal (en)
• Portugal (pt)
• Romania (en)
• Romania (ro)
• Saudi Arabia (en)
• Serbia (en)
• Singapore (en)
• Slovakia (en)
• Slovakia (sk)
• Slovenia (en)
• South Africa (en)
• Sri Lanka (en)
• Sweden (sv)
• Switzerland (de)
• Switzerland (en)
• Switzerland (fr)
• Taiwan (en)
• Taiwan (zh)
• Thailand (en)
• Trinidad and Tobago (en)
• Tunisia (en)
• Tunisia (fr)
• Turkey (en)
• Turkey (tr)
• Ukraine (en)
• Ukraine (ru)
• Ukraine (uk)
• United Arab Emirates (en)
• United Kingdom (en)
• United States (en)
• Uruguay (es)
• Uzbekistan (en)
• Uzbekistan (ru)
• Venezuela (es)
• Vietnam (en)
• Vietnam (vi)
• Zambia (en)
• Zimbabwe (en)
• Financial Reporting View
• Women's Leadership
• Corporate Finance
• Board Leadership
• Executive Education

Fresh thinking and actionable insights that address critical issues your organization faces.

• Insights by Industry
• Insights by Topic

KPMG's multi-disciplinary approach and deep, practical industry knowledge help clients meet challenges and respond to opportunities.

• Advisory Services
• Audit Services
• Tax Services

Services to meet your business goals

Technology Alliances

KPMG has market-leading alliances with many of the world's leading software and services vendors.

Helping clients meet their business challenges begins with an in-depth understanding of the industries in which they work. That’s why KPMG LLP established its industry-driven structure. In fact, KPMG LLP was the first of the Big Four firms to organize itself along the same industry lines as clients.

• Our Industries

How We Work

We bring together passionate problem-solvers, innovative technologies, and full-service capabilities to create opportunity with every insight.

• What sets us apart

Careers & Culture

What is culture? Culture is how we do things around here. It is the combination of a predominant mindset, actions (both big and small) that we all commit to every day, and the underlying processes, programs and systems supporting how work gets done.

Relevant Results

Sorry, there are no results matching your search., construction slumped at the start of the year.

Power construction spending is up 62% in February from a year ago and has more than doubled since 2022, largely on AI and large language models. 

April 1, 2024

Construction spending slumped 0.3% in February after January spending data were revised lower. Spending, not adjusted for inflation, is now 10.7% higher than a year ago. The cost of inputs to construction industries, as measured in the producer price index, grew 2.2% on an annualized basis in February. Rising costs of materials such as steel, cement and asphalt could be exacerbated by the tragic Francis Scott Key Bridge collapse in Baltimore in March. According to the Energy Information Administration, Baltimore imports the largest amount of asphalt in the U.S.; shipment diversions could add to congestion and increased costs.

Private residential construction spending grew 0.7% in the month after January spending was revised lower. A 1.4% bump in spending on new single-family construction was slightly offset by a 0.2% drop in multifamily construction. Builders have pivoted back to single-family homes as record-high backlogs of multifamily units are brought on line. Permits to build single versus multifamily have diverged significantly since February of last year with single-family surging at a 30% annual growth rate; multifamily permits were down 32% from a year ago in February. Expectations for lower interest rates into the end of the year, coupled with significant supply shortages in the resale market, have moved builders to be more optimistic about the year ahead for single-family housing demand.

Private nonresidential construction fell 0.9% in February with all major components (commercial, power and manufacturing) disappointing in the month. Spending remains 12.6% higher than a year ago thanks largely to stronger manufacturing construction, especially for manufacturing of computer and electrical plants, which is up 44.5% from a year ago. Spending on manufacturing infrastructure by the private sector is nearly double the amount of spending on commercial construction, which used to take up the largest share of private nonresidential construction. Spending on manufacturing was boosted significantly by federal government initiatives and began to rise precipitously in 2022.

Public construction spending, the majority of which occurs at the state and local levels, dropped 1.2% in February as nearly all categories saw spending declines in the month. Spending on highway and street construction, the largest portion of total spending, fell 1.6% but remains 18.5% higher than a year ago.

The increased demand for power from the use and training of AI and large language models is contributing to increased investment in power infrastructure by governments; power construction spending is up 62% in February from a year ago and has more than doubled since 2022. Surging private sector investment in data centers continues to lead power demand. Electricity generation and transmission will remain an area of growth as new regions of the country will see increased investment in order to power their data center needs. Some tech behemoths are already investing directly in power generation. 

Supply chains remain fragile and will be a risk to the construction outlook if materials and shipping costs rise.

Yelena Maleyev, KPMG Senior Economist

Bottom Line

Increased demand for housing, surging electrification needs and manufacturing construction incentives will keep the construction sector growing in 2024. Labor shortages remain acute, but increased immigration over the last few years has helped alleviate that. Supply chains remain fragile and will be a risk to the construction outlook if materials and shipping costs rise. 

Explore more

December construction spending doubled expectations

Construction activity is carrying momentum into the new year on the back of ongoing infrastructure projects.

KPMG Economics

A source for unbiased economic intelligence to help improve strategic decision-making.

Housing starts turn sharply lower

Harsh winter weather flattened housing starts.

Subscribe to insights from KPMG Economics

KPMG Economics distributes a wide selection of insight and analysis to help businesses make informed decisions.

Meet our team

By submitting, you agree that KPMG LLP may process any personal information you provide pursuant to KPMG LLP's Privacy Statement .

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

Job seekers

Visit our careers section or search our jobs database.

Use the RFP submission form to detail the services KPMG can help assist you with.

Office locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.

• Election 2024
• Entertainment
• Newsletters
• Photography
• Personal Finance
• AP Investigations
• AP Buyline Personal Finance
• Press Releases
• Israel-Hamas War
• Russia-Ukraine War
• Global elections
• Asia Pacific
• Latin America
• Middle East
• Election Results
• Delegate Tracker
• AP & Elections
• March Madness
• AP Top 25 Poll
• Movie reviews
• Book reviews
• Personal finance
• Financial Markets
• Business Highlights
• Financial wellness
• Artificial Intelligence
• Social Media

Building a new Key Bridge could take years and cost at least $400 million, experts say

Crews were set to begin removing the wreckage of a collapsed highway bridge in Baltimore on Friday. Maryland Gov. Wes Moore said a large crane, which can lift up to 1,000 tons, would be one of at least two used to clear the channel of the twisted metal and concrete remains of the Francis Scott Key Bridge, and the cargo ship that collided with it this week.

A container ship rests against the wreckage of the Francis Scott Key Bridge on Thursday, March 28, 2024, in Baltimore, Md. After days of searching through murky water for the workers missing after the bridge collapsed, officials are turning their attention Thursday to what promises to be a massive salvage operation. (AP Photo/Matt Rourke)

• Copy Link copied

In this image released by the National Transportation and Safety Board, a NTSB investigator is seen on the cargo vessel Dali, which struck and collapsed the Francis Scott Key Bridge, Wednesday, March 27, 2024 in Baltimore. (Peter Knudson/NTSB via AP)

FILE - A section of the new I-35 bridge is raised from a barge in the foaming Mississippi River at Minneapolis, June 24, 2008. The I-35W bridge was rebuilt in less than 14 months. Experts say the rebuilding of Baltimore’s Francis Scott Key Bridge likely will take longer, with estimates ranging from 18 months to several years. (AP Photo/Andy King, File)

ANNAPOLIS, Md. (AP) — Rebuilding Baltimore’s collapsed Francis Scott Key Bridge could take anywhere from 18 months to several years, experts say, while the cost could be at least $400 million — or more than twice that.

It all depends on factors that are still mostly unknown. They range from the design of the new bridge to how swiftly government officials can navigate the bureaucracy of approving permits and awarding contracts.

Realistically, the project could take five to seven years, according to Ben Schafer, an engineering professor at Johns Hopkins University.

The Baltimore bridge collapse today:

• The latest: Cranes arriving to start removing wreckage from deadly Baltimore bridge collapse
• Cost : Building a new Key Bridge could take years and cost at least $400 million, experts say
• Environment : Activists watch for potential impact on environment as Key Bridge cleanup unfolds

“The lead time on air conditioning equipment right now for a home renovation is like 16 months, right?” Schafer said. He continued: “So it’s like you’re telling me they’re going to build a whole bridge in two years? I want it to be true, but I think empirically it doesn’t feel right to me.”

Others are more optimistic about the potential timeline: Sameh Badie, an engineering professor at George Washington University, said the project could take as little as 18 months to two years.

The Key Bridge collapsed Tuesday, killing six members of a crew that was working on the span, after the Dali cargo ship plowed into one its supports . Officials are scrambling to clean up and rebuild after the accident, which has shuttered the city’s busy port and a portion of the Baltimore beltway.

The disaster is in some ways similar to the deadly collapse of Florida’s Sunshine Skyway Bridge, which was was struck by a freighter in Tampa Bay in 1980. The new bridge took five years to build, was 19 months late and ran $20 million over budget when it opened in 1987.

But experts say it’s better to look to more recent bridge disasters for a sense of how quickly reconstruction may happen.

Jim Tymon, executive director of the American Association of State Highway and Transportation Officials, cited the case of the Interstate 35W bridge in Minnesota, which collapsed into the Mississippi River in 2007. The new span was up in less than 14 months.

“It’s the best comparison that we have for a project like this,” Tymon said. “They did outstanding work in being able to get the approvals necessary to be able to rebuild that as quickly as possible.”

Tymon expects various government agencies to work together to push through permits, environmental and otherwise.

“It doesn’t mean that all of the right boxes won’t get checked — they will,” Tymon said. “It’ll just be done more efficiently because everybody will know that this has to get done as quickly as possible.”

One looming issue is the source of funding. President Joe Biden has repeatedly said the federal government will pay for the new bridge, but that remains to be seen.

“Hopefully, Congress will be able to come together to provide those resources as soon as possible so that that does not become a source of delay,” Tymon said.

Minnesota Sen. Amy Klobuchar helped to obtain funding quickly to rebuild the I-35W bridge in her state. But she said replacing the Baltimore span could be more complicated.

She noted that the I-35W bridge, a federal interstate highway, was a much busier roadway with about 140,000 vehicle crossings a day, compared with about 31,000 for the Maryland bridge.

“But where there’s a will there’s a way, and you can get the emergency funding,” Klobuchar said. “It’s happened all over the country when disasters hit. And the fact that this is such a major port also makes it deserving of making sure that this all gets taken care of.”

Badie, of George Washington University, said the cost could be between $500 million and $1 billion, with the largest variable being the design.

For example a suspension bridge like San Francisco’s Golden Gate will cost more, while a cable-stayed span, like Florida’s Skyway Sunshine Bridge, which handles weight using cables and towers, would be less expensive.

Whatever is built, steel is expensive these days and there is a backlog for I-beams, Badie said. Plus, the limited number of construction companies that can tackle such a project are already busy on other jobs.

“A project like this is going to be expedited, so everything is going to cost a lot more,” Badie said.

Hota GangaRao, a West Virginia University engineering professor, said the project could cost as little as $400 million. But that’s only if the old bridge’s pier foundations are used; designers may want to locate the new supports farther away from the shipping channels to avoid another collision.

“That’s going to be more steel, more complicated construction and more checks and balances,” GangaRao said. “It all adds up.”

Norma Jean Mattei, an emeritus engineering professor at The University of New Orleans, said replacing the Key Bridge likely will take several years. Even if it’s a priority, the process of designing the span, getting permits and hiring contractors takes a lot of time. And then you have to build it.

“It’s quite a process to actually get a bridge of this type into operation,” she said.

Free Download

Building Construction Business Plan Template

Download this free building construction business plan template, with pre-filled examples, to create your own plan..

Or plan with professional support in LivePlan. Save 50% today

Available formats:

What you get with this template

A complete business plan.

Text and financials are already filled out and ready for you to update.

• SBA-lender approved format

Your plan is formatted the way lenders and investors expect.

Edit to your needs

Download as a Word document and edit your business plan right away.

• Detailed instructions

Features clear and simple instructions from expert business plan writers.

All 100% free. We're here to help you succeed in business, no strings attached.

Get the most out of your business plan example

Follow these tips to quickly develop a working business plan from this sample.

1. Don't worry about finding an exact match

We have over 550 sample business plan templates . So, make sure the plan is a close match, but don't get hung up on the details.

Your business is unique and will differ from any example or template you come across. So, use this example as a starting point and customize it to your needs.

2. Remember it's just an example

Our sample business plans are examples of what one business owner did. That doesn't make them perfect or require you to cram your business idea to fit the plan structure.

Use the information, financials, and formatting for inspiration. It will speed up and guide the plan writing process.

3. Know why you're writing a business plan

To create a plan that fits your needs , you need to know what you intend to do with it.

Are you planning to use your plan to apply for a loan or pitch to investors? Then it's worth following the format from your chosen sample plan to ensure you cover all necessary information.

But, if you don't plan to share your plan with anyone outside of your business—you likely don't need everything.

More business planning resources

How to Write a Business Plan for Investors

How to Start a Business With No Money

How to Create a Business Plan Presentation

10 Qualities of a Good Business Plan

Simple Business Plan Outline

Business Plan Template

Industry Business Planning Guides

How to Write a Business Plan

Download your template now

Need to validate your idea, secure funding, or grow your business this template is for you..

• Fill-in-the-blank simplicity
• Expert tips & tricks

We care about your privacy. See our privacy policy .

Not ready to download right now? We'll email you the link so you can download it whenever you're ready.

Download as Docx

Download as PDF

Finish your business plan with confidence

Step-by-step guidance and world-class support from the #1 business planning software

From template to plan in 30 minutes

• Step-by-step guidance
• Crystal clear financials
• Expert advice at your fingertips
• Funding & lender ready formats
• PLUS all the tools to manage & grow

Tax Season Savings

Get 40% off LivePlan

The #1 rated business plan software

Transform Tax Season into Growth Season

Discover the world’s #1 plan building software