Are you about starting a general contracting business? If YES, here is a detailed sample general contractor business plan template & feasibility report you can use for FREE.

A general contracting company or general contractor is responsible for providing all of the material, labor, equipment (such as engineering vehicles, construction tools and machines) and other services needed for a construction project. Usually, the general contractor hires specialized sub-contractors to execute all or some portions of the construction project.

You need a general contractor license to be able to operate this type of business, and a Contractor License is a kind of permit or authority that allows a construction tradesman to charge over $500 for their services. Persons who want to start a business, hire workers, bid on projects, and advertise must become licensed contractors. To get a license, you must have at least 4 years’ journey level experience in a trade, pass an exam and hold an active contractor bond.

A Sample General Contractor Business Plan Template

1. Industry Overview

The general contracting business is under the real estate cum construction industry and a general contractor is a manager, and perhaps a tradesman, employed by the client on the advice of the architect, engineer or the architectural technologist or the client him/herself if acting as the manager.

A general contracting company is in charge of the overall coordination of a construction project. It is the norm for a general contracting company to first and foremost assess the project-specific documents (referred to as bid, proposal or tender documents).

If it is a renovation project, a site visit is required to get a better understanding of the project to be carried out. Depending on the project delivery method, the general contracting company will submit a fixed price proposal or bid, cost plus price or an estimate.

The general contracting company considers the cost of home office overhead, general conditions, materials, equipment and logistics as it relates to transporting equipment and manpower to site as well as the cost of labor.

Going forward, the construction industry and real estate industry are expected to continue thriving hence increase in the demand for the services of the contractors. So also, the industry is also expected to benefit from the increase in renovation and new construction activities.

Statistics has it that the General Contractors industry in the united states of America is worth over billion, with an estimated growth rate of 4.5 percent between 2014 and 2019. There are about 54,398 registered and licensed general contracting businesses in the United States and they are responsible for employing about 279,527 people. It is important to state that there are no companies with a dominant market share in this industry.

A recent report published by IBISWorld shows that over the five years to 2019, favorable lending rates, improved per capita disposable income and record corporate profit levels have helped bolster construction activity across several sectors, increasing demand for industry services.

The report reveals that housing stats are expected to increase at an annualized 6.2 percent over the five years to 2019. Conversely, unemployment is expected to fall at an annualized 10.7 percent during the same period, boosting the need for new office, industrial and manufacturing space.

The general contractors’ industry will keep on thriving in the coming decade especially if the contractor is committed to providing reliable and quality work its customers. The market is highly unsaturated and there is room for growth as the industry is expanding and maturing.

The good news for would-be entrepreneurs is that there is an estimate of continued annual growth for the general contractor services industry for as high as 20 percent. The general contractor industry is very open to any aspiring entrepreneur who has acquired the required trainings, skills and perhaps professional certifications to start his or her own business.

2. Executive Summary

Jose McLaurin® General Contracting Company, Inc. is a licensed American general contractor company. We have been able to secure a well – positioned office facility in a central business district in Grand Rapids – Michigan. We are a general contractor company that is set to compete in the highly competitive industry not only in Grand Rapids – Michigan, but also throughout the United States market.

Jose McLaurin® General Contracting Company, Inc. is set to work at new residential construction, new nonresidential construction, additions, alterations and reconstruction and other services. We will provide services that include; providing all of the material, labor, equipment (such as engineering vehicles and construction tools and machines) and other services needed for the construction project.

Our business goal is to become one of the leading general contractor services in the United States and we will make sure that we do all we can to compete favorably with leaders in the industry. Our workers are going to be selected from a pool of certified and highly experienced civil engineers, technicians and tradesmen with different area of expertise as it relates to our service offerings.

We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading general contractor services  in the United States .

At Jose McLaurin® General Contracting Company, Inc., our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Jose McLaurin® General Contracting Company, Inc. is a family business that is founded by Engr. Jose McLaurin graduated from A and M University, Texas; B.Engr. in Civil Engineering. He has the required experience that can help build Jose McLaurin® General Contracting Company, Inc. to favorably compete with other leading general contractor businesses in the United States of America.

3. Our Products and Services

Jose McLaurin® General Contracting Company, Inc. is established with the aim of maximizing profits in the industry. We want to compete favorably with leading general contractor services in the United States which is why we have but in place a competent quality assurance team that will ensure that every project carried out meets and even surpass our customers’ expectations.

We will work hard to ensure that Jose McLaurin® General Contracting Company, Inc. is not just accepted in Grand Rapids – Michigan but also in other cities in the United States of America. Our service 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

4. Our Mission and Vision Statement

  • Our vision is to establish a standard general contractor services company whose services will not only be accepted in Grand Rapids – Michigan but also in other cities in the United States of America.
  • Our mission is to provide globally accepted general contractor services and to build a general contracting company that can favorably compete with other leading brands in the industry.

Our Business Structure

Jose McLaurin® General Contracting Company, Inc. intends starting small in Grand Rapids – Michigan, but hopes to grow big in order to compete favorably with leading companies both in the United States and on a global stage. We are aware of the importance of building a solid business structure that can support the kind of world class business we want to own, which is why we are committed to only hire the best hands within our area of operation.

We will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all our stakeholders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

  • Chief Executive Officer
  • Head, Technical Services (Senior Civil Engineer)
  • Human Resources and Admin Manager
  • Sales and Marketing Executive
  • Accountant
  • Civil Engineers
  • Client Service Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

  • 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 result
  • Responsible for providing direction for the business
  • Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization

Head, Technical Services (Senior Civil Engineer):

  • Serve as project manager of the organization; works directly with employees
  • Develops strategic plan by studying technological, and financial opportunities; presenting assumptions; recommending objectives.
  • Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
  • Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
  • Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
  • Maintains quality service by establishing and enforcing organization standards.
  • Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
  • Make certain that the technical department perform efficiently, coordinate employee efforts, and facilitate communication between management and handymen
  • Ensures that the organization works in line with international best practices.

Admin and HR Manager

  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Design 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.
  • Defining job positions for recruitment and managing interviewing process
  • Carrying out induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Oversee the smooth running of the daily office activities.

Sales and Marketing Manager

  • Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
  • Model demographic information and analyze the volumes of transactional data generated by customer
  • Identifies development opportunities; follows up on development leads and contacts
  • Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
  • Responsible for handling business research, market surveys and feasibility studies
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Develop, execute and evaluate new plans for expanding increase sales
  • Create new markets cum businesses for the organization
  • Empower and motivates the sales team to meet and surpass agreed targets

Accountant/Cashier:

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensuring compliance with taxation legislation
  • Handles all financial transactions for Jose McLaurin® General Contracting Company, Inc.
  • Serves as internal auditor for Jose McLaurin® General Contracting Company, Inc.

Civil Engineers (Project Manager)

  • Responsible for providing all the material, labor, equipment and other services needed for construction sites
  • Handles other related job as instructed by the Head, Technical Services.

Client Service Executive

  • Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
  • 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 services
  • Manages administrative duties assigned by the creative director in an effective and timely manner
  • Consistently stays abreast of any new information on the organizations’ projects to ensure accurate and helpful information is supplied to clients when they make enquiries

6. SWOT Analysis

Jose McLaurin® General Contracting Company, Inc. engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured general contractor company that can favorably compete in the industry in the United States.

Part of what the business consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for Jose McLaurin® General Contracting Company, Inc. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Jose McLaurin® General Contracting Company, Inc.;

  • Strength:

We can boast of having a system that runs on automation. We have been able to select a team of workforce that will keep us at an advantage. Aside from the synergy that exists in our carefully selected workforce, our services will be guided by international best practices in the industry.

  • Weakness:

As a new general contractor services company in Grand Rapids – Michigan, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients (construction companies) in the already saturated and highly competitive industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into promoting our business the way we would want to.

  • Opportunities:

Acceleration of the housing and nonresidential construction markets in the United States is bound to support growth for our business. In the wake of all the natural disasters in the coastal areas of the United States, owners are looking for structures that will survive hurricanes, fires, and earthquakes. Jose McLaurin® General Contracting Company, Inc. is equipped to answer the call.

  • Threat:

While the US construction marketing is currently experiencing remarkable construction growth, it’s only sustainable long-term if builders embrace modern technology and practices. As of now, the labor shortage, lack of digitalization and poor coordination are three major factors that could limit a future flourishment of construction in America and by extension it will pose a threat to our business.

7. MARKET ANALYSIS

  • Market Trends

A close watch on industry activities shows that the revenue increase is due to an acceleration in downstream construction markets in the United States. As a result of the increase in demand from downstream construction markets, activities in this industry, registered businesses and of course contracts, job numbers have been trending upward.

Going forward, the construction and real estate industry are expected to continue thriving hence increase in the demand for the services of general contractors. Another notable trend shows that general contractors are moving from using technology solutions for specific tasks to having real-time and accurate information at their fingertips on mobile devices.

Construction productivity is on the brink of a huge leap due to integrated and intuitive software that doesn’t just give you a bunch of numbers but rather provides easy-to-understand information that enables you to make good decisions. The totally connected jobsite is now a reality.

Lastly, while paper is slowly being phased out of construction sites, many companies are still completely reliant on the material to complete jobs. As a result, information is constantly obsolete, and communication is fragmented and unproductive.

If companies are serious about meeting the increasing demands of building in the US, it takes a commitment to full-scale digitalization. That means getting rid of all traces of paper and adopting a collaborative document management system that provides real time access and visibility to all project stakeholders.

8. Our Target Market

Before starting our general contractor company in Grand Rapids – Michigan, we conducted a market survey and feasibility studies and we are certain that there is a wide range of construction companies and other players in the construction industry. We are aware that the industry’s primary markets are the nonresidential and residential building sectors.

There are favorable conditions for growth in the General Contractors Services industry and as a result of this, survival in the industry will require that you build on existing knowledge of the services you offer to your customers and broaden your skill base in order to be able to compete favorably.

More general contractor companies are coming up and they are using the services of existing companies in the business to boost their competitive edge and exposure in the industry. To be highly competitive in the General Contractors Services industry, you should be able to deliver consistent and reliable jobs, and you must be able to meet set targets.

Our competitive advantage lies in the power of our team; our workforce. We have a team of certified and highly trained civil engineers and technicians, a team with excellent qualifications and experience in various niche areas in the general contracting industry. Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

We are mindful of the fact that there are stiff competitions in the General Contractors industry, hence we have been able to hire some of the best marketing experts to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet the overall business goal of Jose McLaurin® General Contracting Company, Inc.

Our corporate goal is to grow Jose McLaurin® General Contracting Company, Inc. to become one of the leading concrete contractor services brands in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Grand Rapids – Michigan but also in other cities in the United States of America.

Jose McLaurin® General Contracting Company, Inc. is set to make use of the following marketing and sales strategies to attract clients;

  • Introduce our business by sending introductory letters alongside our brochure to public work department, construction and real estate companies, corporate organizations and other key stake holders in and around Grand Rapids – Michigan.
  • Promptness in bidding for construction contracts from construction companies, real estate companies, government and other cooperate organizations
  • Advertise our business in relevant real estate magazines, newspapers, TV and radio stations
  • List our business on yellow pages ads (local directories)
  • Attend relevant international and local 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 excellent services
  • Leverage on the internet to promote our business
  • Engage direct marketing approach
  • Encourage word of mouth marketing from loyal and satisfied clients

Sources of Income

Jose McLaurin® General Contracting Company, Inc. is established with the aim of maximizing profits in the General Contractors Services industry and we are going to ensure that we do all it takes to meet and surpass the expectations of all our clients. Jose McLaurin® General Contracting Company, Inc. will generate income by providing services that include;

  • 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

10. Sales Forecast

One thing is certain, there would always be construction and real estate companies, corporate organization, government agencies, households and individual who would need the services of general contractors.

We are well positioned to take on the available market in the industry and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our company to enviable heights.

We have been able to examine the general contractor services market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below is the sales projection for Jose McLaurin® General Contracting Company, Inc., it is based on the location of our business and of course the wide range of our services and target market;

  • First Fiscal Year: $350,000
  • Second Fiscal Year: $750,000
  • Third Fiscal Year: $1.2 million

N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

11. Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for both corporate clients and households in the whole of Grand Rapids – Michigan and beyond which is why we have made provisions for effective publicity and advertisement of our company.

Below are the platforms we intend to leverage on to promote and advertise Jose McLaurin® General Contracting Company, Inc.;

  • Place adverts on both print (newspapers and real estate related magazines) and electronic media platforms
  • Sponsor relevant community – based events / programs
  • Leverage on the internet and social media platforms like; Instagram, Facebook, LinkedIn, Twitter, YouTube, Google + et al to promote our services
  • Install our billboards in strategic locations all around Grand Rapids – Michigan
  • Distribute our fliers and handbills in target areas
  • List our company in local directories / yellow pages
  • Advertise our company in our official website and employ strategies that will help us pull traffic to the site.
  • Ensure that all our staff members wear our branded shirts and all our vehicles are branded with our company logo.

12. Our Pricing Strategy

We will keep the prices of our services below the average market rate by keeping our overhead low and by collecting payment in advance from construction and real estate companies. We are aware that there are some one – off jobs or government contracts which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.

  • Payment Options

The payment policy adopted by Jose McLaurin® General Contracting Company, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Jose McLaurin® General Contracting Company, Inc. will make available to her clients;

  • Payment via bank transfer
  • Payment via credit cards / Point of Sale Machines (POS Machines)
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payment for services rendered without any stress on their part.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget for establishing a standard general contracting company in Grand Rapids – Michigan and here are the key areas where we will spend our startup capital;

  • Business incorporating fees in the United States of America will cost – $750.
  • The budget for Liability insurance, permits and license will cost – $3,500
  • Acquiring an office space that will accommodate our employees for at least 6 months (Re – Construction of the facility inclusive) will cost – $80,000.
  • The amount required to purchase the needed concrete mixers, trucks and other related construction equipment – $200,000
  • Equipping the office (computers, printers, projectors, markers, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $5,000
  • Amount required to purchase the needed software applications to run our business – $ 3,500
  • Launching an official Website will cost – $500
  • Amount need to pay bills and staff members for at least 2 to 3 months – $50,000
  • Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000

Going by the report from our market research and feasibility studies, we will need about three hundred and fifty thousand (350,000) U.S. dollars to successfully set up a medium scale but standard general contractor services company in the United States of America.

Generating Funds/Startup Capital for Jose McLaurin® General Contracting Company, Inc.

Jose McLaurin® General Contracting Company, Inc. is a family business that will be owned and managed by Engr. Jose McLaurin and his immediate family members. 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 $100,000 (Personal savings $70,000 and soft loan from family members $30,000) and we are at the final stages of obtaining a loan facility of $250,000 from our bank. All the papers and document 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

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Jose McLaurin® General Contracting Company, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

Jose McLaurin® General Contracting Company, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

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
  • Securing a standard office facility, renovation and equipping of the facility inclusive: Competed
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Conducting Feasibility Studies: Completed
  • Generating part of the startup capital from the founders: Completed
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents: In Progress
  • Design of Logo for the business: Completed
  • Purchase of concrete mixers, trucks and other related equipment: Completed
  • Printing of Promotional Materials: Completed
  • Recruitment of employees: In Progress
  • Purchase of concrete mixers, trucks and other related construction equipment, furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
  • Creating Official Website for the business: In Progress
  • Creating Awareness for the business: In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress
  • Establishing business relationship with vendors and key players in the construction and real estate industries: In Progress
Joy Nwokoro