Are you about starting a civil engineering business? If YES, here is a complete sample civil engineering business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting an equipment leasing business. We also took it further by analyzing and drafting a sample equipment leasing business marketing plan template backed up by actionable guerrilla marketing ideas for equipment leasing businesses. So let’s proceed to the business planning section.
Starting a civil engineering business is capital intensive because of the heavy duty equipment that are required to carry out construction projects and also the cost of managing a large workforce.
Despite the fact that the construction industry requires huge startup capital, the industry is highly profitable especially if you have the expertise and capacity to deliver quality jobs. The major clients for civil engineering companies are governments and the private sector.
Major civil engineering companies all over the world head towards developing countries, because they know that they are going to get juicy construction contracts there. The fact that they have infrastructure deficit means that the government must be up and doing in terms of road constructions, bridge construction, public facility construction (hospitals, schools, office facilities and estates et al) etc.
If you are truly convinced that starting a civil engineering company is the right business for you, then you need to write your own business plan. The essence of writing a business plan before starting any business is for you to have a roadmap and a blueprint of how you would want to setup, manage and expand your business.
Below is a sample civil engineering company business plan template that will help you successfully write yours with little or no stress.
A Sample Civil Engineering Business Plan Template
1. Industry Overview
Civil engineering business is a subset of the Construction industry and the Construction industry consists of establishments that are majorly into building construction, heavy and civil engineering construction, specialty trade contracting and other related activities.
The construction industry is responsible for the infrastructural development of the world. In other words, all the edifices, bridges, dams, roads, estates, campuses, shopping malls, office complexes, skyscrapers and massive structures that you see around are all products of the construction industry.
The value of private nonresidential construction includes new construction and renovations associated with all nonresidential buildings, including commercial, industrial, educational and religious structures. The Construction sector derives just over 70.0 percent of its revenue from new construction, renovation and repairs on nonresidential buildings.
As a result, construction contractors benefit from increased private nonresidential construction. The value of private nonresidential construction is expected to increase in 2018, presenting a potential opportunity for the sector.
Statistics has it that in the united states of America alone, there are about 3,186,774 registered and licensed construction companies scattered all across the United States responsible for employing about 8,761,382 people and the industry rakes in a whooping sum of $2 trillion annually.
The industry is projected to grow at a 3.4 percent annual growth within 2013 and 2018. It is important to state that the companies holding the largest market share in the industry include D.R. Horton Inc., Fluor Corp., Turner Construction Company, AECOM and EMCOR Group Inc.
A recent report published by IBISWorld shows that the Construction sector has performed well over the past five years to 2018, exhibiting a strong turnaround following the early economic recovery.
Revenue for the sector rose 4.3 percent in 2013, a level unmatched since the beginning of the economic recession, as improved household finances and increased consumer sentiment encouraged building activity to resume at a rapid pace.
Sector revenue continued to grow robustly in 2014, 2015 and 2016, bolstered by favorable interest rates, easing access to credit and accommodative lending standards by banks. The report also indicated that growth for the sector stagnated in 2017, as the yield on the 10-year Treasury note soared 26.5 percent, stifling investment in new projects.
As a matter of fact, over the past five years, the Construction industry in the US has grown by 3.4 percent to reach revenue of $2tr in 2018. In the same timeframe, the number of businesses have grown by 1.0 percent and the number of employees has grown by 2.2 percent.
The success of civil engineering companies to a larger extent depends on their relationship with the biggest clients in the industry; the government of any country. No doubt, there is always enough construction contracts to go round as long as a civil engineering company is competent and well positioned.
2. Executive Summary
Justin Wellington® Civil Engineering Company is an international civil engineering company that has its headquarters in Santa Fe, New Mexico – USA. The fact that we are based in the United States does not in any way restrict our scope of operations. We are an international civil engineering company and we work for clients in any part of the world.
Justin Wellington® Civil Engineering Company is world class civil engineering company that will be specialized in the constructions of skyscrapers, bridges, stadiums, roads, dams, office complexes, shopping malls, schools, campuses and estates et al. Creativity, excellence and timely completion of projects will be our signature.
We intend starting our civil engineering business on a small scale in Santa Fe – New Mexico, but we intend to have our presence in any part of the world that our clients want us to work. We hope to achieve this feat within the first 8 years of launching the company.
Justin Wellington® Civil Engineering Company is fully aware that starting a civil engineering business requires huge capital base, which is why we have perfected plans for steady flow of cash from private investors who are interested in working with us.
We can confidently say that we have a robust financial standing and we are ready to take on any construction project that comes our way as long as the project is duly commissioned by the required authority.
Justin Wellington® Civil Engineering Company will be owned by Engr. Justin Wellington and other partners. They also have plans to sell shares of the company in the nearest future to interested investors. Justin Wellington who is the principal partner has a degree in Civil Engineering and an MBA from the University of Chicago Booth School of Business.
He has over 25 years’ experience in the construction industry. Before starting his own civil engineering company, he was a senior project manager and consultant with one of the largest civil engineering companies based in the United States.
3. Our Products and Services
Justin Wellington® Civil Engineering Company will undertake both small and massive construction projects for governments, private sectors and for individuals which is why we do not intend to place limitations of the scope of the projects we handle.
We know that if we are good at what we do, it will make it easier for our brand to grow beyond Santa Fe – New Mexico to other parts of the United States of America. Our business offerings are listed below;
- Road Construction
- Bridge Construction
- Dam construction
- Airports and Helipads Construction
- Seaports Construction
- Skyscrapers construction
- Estate construction
- Public facility construction (hospitals, schools, shopping malls, office complexes and industrial facilities et al)
- Construction of residential facilities
- Property Makeover Services
- Construction Consultancy and Advisory Services
4. Our Mission and Vision Statement
- Our vision is to build a first class civil engineering company that will have active presence in North America, South America, Africa and Asia.
- At Justin Wellington® Civil Engineering Company, our mission and values are to help governments, the private sector and individuals in the United States and throughout the world realize their dreams of building structures that can compete on a global stage.
Our Business Structure
We will ensure that we build a team that will work together towards achieving the company’s corporate vision. We will build a business that has the right structures and processes in place that can support growth.
In view of the above, we have made provisions for the following positions in our organization based on the size of the company we intend starting, but as the business grows, we will create senior level positions and also create a structure that will support the business growth.
- President/Chief Executive Officer (President)
- Project Manager
- Civil Engineer
- Structural Engineer
- Quantity Surveyor
- Land Surveyor
- Company Lawyer/Secretary
- Admin and HR Manager
- Business Developer
- Accountant
- Front Desk Officer
5. Job Roles and Responsibilities
Chief Executive Officer – CEO (President):
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Produces, connects, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Accountable for fixing prices and signing business deals
- Responsible for providing direction for the business
- Accountable for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board
Project Manager
- Responsible for the planning, management and coordinating all projects on behalf of the company
- Supervise projects
- Ensures compliance during project executions
- Provides advice on the management of projects
- Responsible for carrying out risk assessment
- Uses IT systems and software to keep track of people and progress of ongoing projects
- Responsible for overseeing the accounting, costing and billing of every project
- Represents the organization’s interest at various stakeholders’ meetings
- Ensures that project desired result is achieved, the most efficient resources are utilized and different interests involved are satisfied.
Civil Engineer
- Responsible for preparing bids for tenders, and reporting to clients, public agencies and planning bodies
- Ensures that sites meet legal guidelines, and health and safety requirements
- Assesses the environment impact and risks connected to projects
- Responsible for judging whether projects are workable by assessing materials, costs and time requirements
- Draws up blueprints, using Computer Aided Design (CAD) packages
- Discusses requirements with the client and other professionals (e.g. architects and project managers et al)
- Responsible for managing, directing and monitoring progress during each phase of a project
Architects
- Responsible for creating building designs and highly detailed drawings
- Works around constraining factors such as town planning legislation, environmental impact and project budget
- Adapts plans according to circumstances and resolving any problems that may arise during construction
- Works with project team and management to achieve a common goal
Land Surveyor
- Responsible for undertaking land surveys / measurements using a variety of specialist technical equipment
- Accountable for producing and advising about construction plans and drawings
- Responsible for advising about technical matters and whether the construction plans are viable
Company’s Lawyer/Secretary
- Responsible for drawing up contracts and other legal documents for the company
- Consults and handle all corporate legal processes (e.g. intellectual property, mergers & acquisitions, financial/securities offerings, compliance issues, transactions, agreements, lawsuits and patents et al)
- Develops company policy and position on legal issues
- Researches, anticipates and guards company against legal risks
- Represents company in legal proceedings (administrative boards, court trials et al)
- Plays a part in business deal negotiations and take minutes of meetings
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Designs job descriptions with KPI to drive performance management for clients
- Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Outlines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Accountable for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily office activities.
Business Developer
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Accountable for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
Accountant
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managers with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- In charge of developing and managing financial systems and policies
- Accountable for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the company
- Serves as internal auditor for the company
Front Desk/Customer’s Service Officer
- Receives Visitors/clients on behalf of the organization
- Receives parcels/documents for the company
- Handles enquiries via email and phone calls for the organization
- Distributes mails in the organization
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Consistently stays abreast of any new information on the company’s properties that are put up for sale, promotional campaigns etc. to ensure accurate and helpful information are supplied to clients when they make enquiries.
6. SWOT Analysis
We know that surviving in the business world as a civil engineering company requires more than knowing how to deliver standard projects but also how to network with key people that matters; decision makers that can decide who a construction project is giving to.
We know that it will be a bit difficult to compete with already established civil engineering companies in the United States especially because we are new in the industry.
In order to properly position our company for growth and to favorably compete in the construction industry, we engaged the services of Dr. Andrew Trump, a renowned HR and business consultant in the United States of America to help us run a SWOT analysis for the business.
It is important that we know our strengths, weaknesses, the opportunities that we can leverage on in the industry and the threats that we are likely going to be confronted with. With that we will be able to map out strategies that will not only help us to survive in the industry but also to build a global civil engineering brand.
Here is a summary from the result of the SWOT analysis that was conducted on behalf of Justin Wellington® Civil Engineering Company;
- Strength:
Justin Wellington® Civil Engineering Company can confidently boast of having a competent management team that are some of the best hands in New Mexico. Although we are a new civil engineering company, but our president and board of trustees are respectable people in the United States of America who have served the US government in various capacities.
- Weakness:
The fact that we are a new civil engineering company could count as a weakness. It is normal for clients to think twice before awarding construction contracts to newbies in the industry. Another weakness that can count against us in the industry is the fact that we may not have the financial muscle to drive the business the way we ought to drive it.
We require huge financial base to be able to higher top government lobbyists and also to acquire some of the latest heavy duty construction equipment.
- Opportunities:
Our business concept, our mission and vision puts us at an advantage in the industry. We will start small to build trust within Santa Fe – New Mexico and there are loads of opportunities for us there simply because we are positioned to work with both the state governments and the private sector.
- Threat:
Civil engineering companies are subject to threats from government policies, global economic downturn and unforeseen natural disasters (disasters that may cause setback). In 2018, the yield on the 10-year Treasury note is expected to increase, posing a potential threat to the sector.
These are the threats that we are likely going to face as a newbie civil engineering company in Santa Fe – New Mexico. Another threat that we are likely going to face is the arrival of a big civil engineering company in the location where our business has strong presence.
7. MARKET ANALYSIS
- Market Trends
The trend in the construction industry is that construction companies are always coming out with processes that will help them achieve more within a short period; construction jobs can be time consuming especially massive infrastructures.
Most players in the construction industry are aware that the government of any country or state is the biggest client they can get and they do all the lobbying to ensure that they get government contracts. No doubt, there are loads of big time investors that have stakes in the construction industry, but one thing is certain, there is room big enough to accommodate both the big and small civil engineering companies.
What smaller construction companies need to do to survive in the industry is to concentrate on developing estates, schools, hospitals and hotels et al before bidding for big construction contracts like road construction, bridge construction, dam construction and skyscrapers et al.
Another obvious trend in the construction industry is subletting of contracts. It is now obvious that construction giants leverage on their brand to win contracts and in some cases after they have won the contract, they will go ahead to sublet the contract to smaller companies that they trust can execute the project at an agreed fee that will be good enough for both parties to make profits.
Smaller civil engineering companies position themselves to be able to leverage on such opportunities once it presents itself.
8. Our Target Market
Our target market cuts across governments at all levels and countries, the organized private sector and people of different classes and from all walks of life. We know that our selling points will be our excellent and timely delivery of construction projects using global best practices. Below is a list of the people and organizations that we have specifically designed our services for;
- Families
- Organized private sector (Corporate organizations)
- Land Owners
- Businessmen and women
- University Campuses
- Foreign investors who are interested in owning properties in the United States of America
- The government of the United States of America (Government contracts)
- The governments of other nations of the world
Our competitive advantage
We are quite aware that there are civil engineering companies that are well recognized in the construction industry, and we maybe have to compete with them when it is time to bid for juicy government contracts. It might be challenging competing as a newbie in the construction industry especially in a highly organized market like that of the United States, which is why we were deliberate in choosing our board members and lobbyists.
Our competitive advantage is not limited to the crop of highly experienced professions that are members of our management team but also our board members.
Our board members are highly respected professionals in the United States who have served the government of the United States at various capacities; people who are accomplished business gurus and people who have the right connections and experience to make things happen. For us, it is indeed part of the competitive advantage that we are bringing to the market.
Another positive for Justin Wellington® Civil Engineering Company is the fact that our Chief Executive Officer/President is a renowned Civil Engineer, he has robust experience in the construction industry and he has worked extensively as a senior project manager for one of the world’s leading construction companies.
He is sure going to bring is experience, expertise and network (connections) to make Justin Wellington® Civil Engineering Company one of the leading construction brands in Santa Fe, New Mexico and the global construction market.
9. SALES AND MARKETING STRATEGY
We have been able to clearly define our target market and we know how to get them to hire our services which is why we have decided to adopt some of the winning formula that construction giants utilize to win major construction contracts.
We know that it will take different marketing and sales strategies to win clients. For example, there are requirements a civil engineering company would have to meet before they can be awarded a government contract. We have put all these factors in place before creating a workable marketing and sales strategy for Justin Wellington® Civil Engineering Company.
Justin Wellington® Civil Engineering Company is fully aware of the bureaucracy and horse trading that exists in bidding for civil engineering cum construction contracts from the government and even the organized private sector, which is why we were able to put protocols in place to hire some of the best business developer to handle our sales and marketing.
No doubt, our sales and marketing team will be recruited base on their vast experience in the construction industry and their ability to fit into our Business model.
We are going to pay more emphasis in the training of all our employees so as to give them all they would need to help the company achieve its aim and objectives. Justin Wellington® Civil Engineering Company will adopt the following marketing and sales strategies;
- Introduce our business by sending introductory letters alongside our brochure to all the corporate organizations and government offices in Santa Fe, New Mexico and other States in the US.
- Promptness in bidding for civil engineering cum construction contracts
- Advertise our business in real estate / properties magazines and websites
- List our business on yellow pages
- Promote our business on satellite TV and radio stations.
- Attend expos, seminars, and business fairs et al
- Create different packages for different category of clients in order to work with their budgets and still deliver quality housing/ property to them
- Leverage on the internet (social media platforms and our official websites) to promote our business.
Sources of Income
Justin Wellington® Civil Engineering Company was established with the aim of maximizing profits through delivering standard construction works for our highly esteemed clients. Below are the sources we intend exploring to generate income for Justin Wellington® Civil Engineering Company;
- Road Construction
- Bridge Construction
- Dam construction
- Airports and Helipads Construction
- Seaports Construction
- Skyscrapers construction
- Estate construction
- Public facility construction (hospitals, schools, shopping malls, office complexes and industrial facilities et al)
- Construction of residential apartments
- Property Makeover Services
- Construction Consultancy and Advisory Services
10. Sales Forecast
It is a known fact that as long as there are homeowners in the United States of America, there will always be need to for them to construct or reconstruct from time to time to conform with the trends in the neighborhood or city.
We are well positioned to take on the challenges that are synonymous to civil engineering businesses in the United States, and we are quite optimistic that we will meet out set target of generating enough income/profits from the first month of operation and grow the business beyond Santa Fe – New Mexico to other states in the United States of America within record time.
We have been able to examine the construction industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Justin Wellington® Civil Engineering Company, it is based on the location of our business and the civil engineering cum construction and related services within the construction industry;
- First Fiscal Year: $1.5 million
- Second Fiscal Year: $3.5 million
- Third Fiscal Year: $5 million
N.B: This projection was done based on what is obtainable in the industry and with the assumption that all things that will facilitate easy flow of civil engineering cum construction contracts. From our calculations, we are likely going to make a minimum of 30 percent profits after tax from executing key construction projects.
11. Publicity and Advertising Strategy
We have been able to work with our consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. First and foremost, we want our brand to be visible, which is why our publicity strategy has been well crafted to help us achieve our aims and business objectives.
All our publicity materials and jingles are done by some of the best hands in the industry. Below are the platforms we intend to leverage on to promote and advertise our civil engineering business;
- Place adverts on both print and electronic media platforms
- Place our flexi banners with our company’s logo and contacts in every property we put up for sale
- Sponsor relevant TV shows so as to be able to communicate our brand and what we do
- Maximize our company’s website to promote our business
- Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, LinkedIn, Google+ and other platforms (real estate online forums) to promote our business.
- Install our billboards on strategic locations all around Santa Fe – New Mexico
- Distribute our fliers and handbills in targeted areas from time to time
- Ensure that all our workers wear our branded shirts and all our vehicles and trucks are branded with our company’s logo.
12. Our Pricing Strategy
Although our prices may not be outrageously lower than what is obtained in the industry, but we are hopeful that whatever price we bill our customers will be amongst the lowest they can get in the industry. The fact that we are going to be billing our clients lower than what is obtainable in the industry does not in any way affect the quality of our projects.
- Payment Options
At Justin Wellington® Civil Engineering Company our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them but at the same time, we will not accept payment by cash because of the volume of cash that will be involved in most of our transactions.
Here are the payment options that Justin Wellington® Civil Engineering Company will make available to her clients;
- Payment by via bank transfer
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will help us achieve our plans without any itches and we will also pay our lobbyists with same platforms.
13. Startup Expenditure (Budget)
Having done our due diligence, this is what it would cost us to set up Justin Wellington® Civil Engineering Company in the United States of America;
- The total fee for incorporating the business in The United States of America – $750.
- The budget for permits and license – $2,000
- The cost for hiring Consultant – $2,500.
- The cost for computer software apps (Accounting Software, Payroll Software, CRM Software, Microsoft Office, and QuickBooks Pro) – $7,000
- The budget for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $5,400.
- The cost for payment of rent for a suitable Office facility with enough space in Santa Fe – New Mexico for 12 months at $1.76 per square feet in the total amount of – $105,600.
- The cost for office remodeling (construction of racks and shelves) – $20,000.
- The cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $15,000
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500)
- The cost for acquiring heavy duty construction equipment: $1 million
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
- The cost of launching our official Website – $600
- Working capital (investment fund): $2,000,000
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $5,000
Going by the report from our research and feasibility studies, we will need about $4,000,000 (four million Dollar) to set up a construction company in Santa Fe – New Mexico.
It is important to state that most of the heavy duty construction equipment that we will work with will be leased. This is necessary because some of these equipment are really expensive and it won’t be economical for us to acquire them from the start.
Generating Startup Capital for Justin Wellington® Civil Engineering Company
Justin Wellington® Civil Engineering Company is owned and managed by Justin Wellington and other business partners. They decided to restrict the sourcing of the startup capital for the business to just three major sources.
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $1 million (Personal savings $800,000 and soft loan from family members $200,000) and we are at the final stages of obtaining a loan facility of $3 million from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
Justin Wellington® Civil Engineering Company was established with the aim of building a company that will outlived the founders and partners; a civil engineering company that will have active presence in major cities in the world.
In order to position of company for growth, we have been able to create strong partnerships with the government of the United States of America, organized private sector and construction giants. We are optimistic that we will continue to execute civil engineering cum construction contracts for our clients.
Our marketing team will continue to get the needed support and encouragement that they need to be able to deliver on set goals and targets for the organization, and we will continue to improve our processes and structure to meet up with the changing trend in the construction industry.
Check List/Milestone
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Renting of Office Facility and remodeling the facility: Completed
- Conducting Feasibility Studies: Completed
- Generating capital from the CEO/President and Business Partners: Completed
- Applications for Loan from our Bankers: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of working tools and equipment, furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Purchase of utility truck: Completed
- Establishing business relationship with key players in the industry (networking and membership of relevant real estate bodies, government lobbyists, construction companies and building materials dealers): In Progress