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Construction Business Plan Template

Written by Dave Lavinsky

Construction Business Plan

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

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

Sample Construction Business Plan Outline

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

Executive Summary

Business overview.

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

Product Offering

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

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

Customer Focus

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

Management Team

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

Success Factors

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

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

Financial Highlights

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

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

commercial building construction business plan

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.

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commercial building construction business plan

How to Write a Construction Company Business Plan (12 Steps)

You are starting a construction business. You own a construction company. Do either of those statements sound like you? If so, you need a construction company business plan. Building a construction company is hard work, but you don’t reach success on hard work alone. You also need strategic planning, an in-depth understanding of the competition, and a way to finance your business. These are all things that construction business plans address. In this post, we take a deep dive into how to write a business plan for a construction company. Read on to learn everything you need to know.

Why Do You Need a Business Plan for Your Construction Company?

Before you get too deep into “how” to write a home-building business plan, it’s helpful to understand “why” you should write one. There are three main considerations here: competition, growth, and financing.

Competition

The 50 U.S. construction companies with the highest annual revenue all made more than $1.5 billion in 2020 , with the highest-grossing company topping $14.4 billion. This is the level thousands of construction companies in the U.S. and around the world are trying to reach, and the fight to get there is fierce. With that in mind, you need to understand your competition. This is a primary purpose of a construction company business plan. You probably already know who your competitors are, but you need to do market research and write it all down. A construction or general contractor business plan will force you to do that.

Illustration #01

Like it or not, if you’re not growing, you’re more than likely dying in the construction industry. And your financial backers will want to see that you intend to grow. That means you need to have a plan for growth — how to achieve it and how to manage it when it happens.

How are you going to fund the expansion of your business? How will you get the initial capital to buy equipment? There are plenty of questions related to finances when you’re building a construction company. And any large or small construction company business plan will answer them and help you get the financing you need in the process.

Two Types of Information to Include in a Construction Business Plan

The information you include in your commercial or residential construction business plan will fall into two categories: industry information and general business information. Both are important to your business for different reasons. Perhaps the most important reason to include thorough information in your business plan is that it demonstrates your knowledge of the industry and business in general to the investors and banks who will read the plan when considering you for a loan. See below to learn more.

Industry information:

What do you know about the construction industry that others don’t? In other words, what makes your approach to your construction business different from the rest? This is what investors in your business will want to know as they try to gauge your chance of success. Don’t rely on empty buzzwords here — words like friendly, service, reliable, and the like. These are fine words, but you need to be more specific. How does what you know about the construction industry make you capable of running a successful construction business? Make sure those points are clear in your construction company business plan.

General business information:

In addition to your expertise in home building, you need to demonstrate some knowledge of general business practices. That means construction business plans need to have detailed information on the basic running of the business, the plan to get construction jobs, cash flow, corporate taxes, and similar items.

How to write a construction business plan

A business plan for a construction company is not a single page of text. It’s a complex, multi-part document that requires a lot of information. While not all construction company business plans are the same, most of them have a similar format. They include 12 key sections, which we explore in more detail below.

Executive Summary

Your executive summary is your introduction. It needs to summarize the rest of the document but not go into too much detail. Try to limit the executive summary section to a single page if at all possible, and cover topics like the following:

  • The reason you are starting a construction company
  • Your goals for the business
  • Where you plan to operate and offer residential construction services
  • Your estimated business expenses and profits
  • How your home building business will fit into the existing market

Again, don’t go into too much detail here. The details will come later in the business plan. Just hit the high points.

Company Description

The second part of your construction business plan will echo some of the points you raised in the executive summary, but it will go into deeper detail. In the company description section, the takeaway point for a reader should be why you think your business will be successful. To that end, you need to describe any specialties you or your business partners have, any special positioning you can achieve within the market, and any revenue streams or reduced expenses that can make you more competitive. You will also need to describe the existing competition here. Who are your competitors, how successful are they and why do you expect to outperform them? These are all questions your company description should answer.

Operational Plan

You will get into even more detail in this section. But instead of focusing on who you are and what your business will be, you will use the operational plan section to describe how your business is going to run day in and day out. You’ll need to cover a few key areas: Technology: List and describe the pieces of technology and equipment you will use in the operation of your construction business. This can include initial construction equipment purchases and office technology like computers, programs, and even home design software .

Bidding processes: How do you plan to bid on residential construction jobs? This is an important part of generating revenue for your construction company, so it needs to be described in detail in your business plan.

Production schedules: When you get a home-building job, you are instantaneously on a tight schedule. As you know, it takes a lot to take a home from paper to real life, and the logistics behind that process are complex and unforgiving. So, make sure your business plan demonstrates your knowledge of production schedules and, more specifically, how you plan to structure your company’s production schedules.

Inventory partners: Being willing to build homes is one thing, but having the right partnerships in place to get the job done is entirely another. Which vendors and suppliers will you work with? Why? Do you have any existing relationships that could prove beneficial to your business? Answer these and any related questions in your operational plan.

Market and Competition

You’re probably not going to be the first construction company in town. Who else is already established in your intended service area? How successful are they? Your construction company’s business plan needs to contain an in-depth analysis of the competition you’re going to face, as well as the market for residential construction services in the place you plan to operate. The reason why is simple. You need to know who your competitors are so you can see what they’re doing and look for ways to grab some market share from them. And you need to know whether people want the service you are going to provide. This section will cover all of that — for both your knowledge and that of your financial backers.

Illustration #2

Construction is a service, but it contains within it multiple related services that you can choose to offer or not offer to your customers. This is going to be an important part of your business plan — starting a construction business without a list of services you will provide is like opening a store without knowing what you’re going to sell inside it. So, make a list. Here are some of the construction-related services you may want to consider:

  • Residential construction
  • Commercial construction
  • Home design
  • Landscape work

Sales & Marketing

You may not be a marketer at heart, but you’re going to have to have a plan to market your construction business and bring in home-building jobs. The sales and marketing plan you write in your business plan should be as detailed as possible. Include information on the following subtopics:

  • Your marketing budget
  • Your company’s marketing assets, such as a website
  • Advertising plans (such as billboards, newspaper ads, and search engine advertising)
  • Whether and how you plan to leverage social media
  • Loss leader plans, such as offering free home design consultations
  • How you will measure the success of your marketing efforts

In addition to marketing, this section of your construction company business plan will need detailed information on your sales processes. Will you have dedicated salespeople? How will your sales team get leads? Will salespeople be paid on commission? Answer these questions and more.

Managers can make or break a construction business. These are the leaders of your company — the ones who will define the path your business follows and bear the responsibility for the successes and failures you have along the way. That’s why this is an essential part of your home-building business plan. Management may shift over time, but at the start, you need to have a good idea of who’s going to be in charge of what. You will also need to include an explanation of why you have chosen these people, who they answer to, and what you are planning to pay them.

For financial backers, this is going to be one of the most important sections of your business plan. They want to know how you plan to manage the money they may give you so they have an idea of whether this is a sound investment. Give them as much detail as possible. Cover everything from your revenue projections and operational costs to employee wages and the price of your services. Wherever possible, you need to include exact figures based on hard data and research instead of soft estimates based on your own beliefs. Remember — lenders and investors have a head for numbers, so they will immediately notice if you’ve left something important out.

The funding section of a business plan for a construction company is an extension of the finance section, but it’s not the same thing. This is where you describe how you plan to obtain the money you need to start, run, and expand the business. The audience reading your business plan will hopefully play a part in the funding — that’s the whole idea, anyway — but you need to convince them that you will be able to use their funds wisely to generate revenue. Be specific about how much startup funding you’re going to need and why. Go into detail about how you will repay a loan or generate returns for investors. Describe how initial funding will be used in your business — to buy equipment, hire talented employees, market your business, and so on. With these bases covered, you will set yourself up to receive the funding you need to get this business off the ground.

Financial Projections

You’re hoping for a bright future for your new construction company. That’s a given. But you need to show that bright future with the financial projections in your business plan. Include projections for revenue, expenses, and profits for five years out from your starting date. Don’t just say you plan to bring in $100 million by the fourth quarter of year three — show the numbers behind how you’ll get there. You will be able to reference the information from the other sections of your business plan to support your projections.

Funding Request

If you need investments or a loan to start your construction business, you need to include in your business plan a specific funding request. This is where you ask for the money you need. Here again, you need to provide some detail:

  • How much money do you currently have for the business?
  • How much are you contributing alongside the investment or loan you are seeking?
  • What assets do you already own, and what assets do you still need to acquire?

Many of the facts and claims you have made in other sections of your construction company business plan will have supporting information or related documents that won’t quite fit. The appendix is where you include those references. Any extra information that could help financial backers understand your proposed business should be included here. And don’t worry — this section will not likely be read in its entirety, so you can include everything. In general, more information in a business plan is better than less.

Final Thoughts

Writing a construction company business plan is a big task, but if you break it down into small steps, you can get it done. From the executive summary to the appendix, your business plan needs to demonstrate your ability to achieve success in the residential construction industry. With your business plan written and your company started, you’ll need to get home-building jobs and please your clients. Cedreo can help with that. Our home building software can help you quickly create 3D home designs to help clients visualize the project and make them much more likely to close the deal with you. Interested? Learn more about our home building software here, or contact us for more information.

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How To Write a Business Plan for Commercial Construction Company in 9 Steps: Checklist

By alex ryzhkov, resources on commercial construction company.

  • Financial Model
  • Business Plan
  • Value Proposition
  • One-Page Business Plan
  • SWOT Analysis
  • Business Model
  • Marketing Plan

Are you ready to revolutionize the commercial construction industry and make a positive impact on the environment? With the growing concern over carbon emissions and the need for sustainable building practices, now is the perfect time to start a commercial construction company that focuses on eco-friendly solutions. In this blog post, we will guide you through the process of writing a comprehensive business plan for your eco-friendly commercial construction company in 9 simple steps. But first, let's take a look at the latest statistics and growth opportunities in the industry.

The commercial construction industry is thriving, with a projected growth rate of 4.2% annually over the next five years. As businesses strive to reduce their carbon footprint and comply with environmental regulations, there is a growing demand for eco-friendly construction practices. In fact, 74% of construction companies have reported an increase in demand for sustainable building solutions in the past year alone. By tapping into this market opportunity, you can not only build a successful business but also contribute to a greener future.

Now that you understand the immense potential in the commercial construction industry, it's time to get started on your business plan. Follow these 9 steps to create a comprehensive roadmap that will guide your eco-friendly commercial construction company towards success:

  • Identify the target market and determine the potential demand for commercial construction services.
  • Conduct thorough market research to understand the competitive landscape and identify opportunities for differentiation.
  • Define the company's mission, vision, and values to provide a clear direction for the business plan.
  • Determine the legal structure and register the company according to local regulations.
  • Develop a comprehensive business model that outlines the company's revenue streams, cost structure, and profitability potential.
  • Create a detailed financial plan, including projected revenues, expenses, and cash flow projections.
  • Assess the funding requirements and explore potential financing options, such as loans or investment partnerships.
  • Identify the key team members and their roles in the organization, ensuring the necessary expertise is present.
  • Develop a marketing and sales strategy to attract clients and establish a strong brand presence in the industry.

By following these steps and incorporating eco-friendly building practices into your commercial construction company, you will not only meet the growing demand for sustainable solutions but also position your business as a leader in the industry. Get started on your business plan today and make a positive impact on the environment while building a successful company.

Identify The Target Market And Determine The Potential Demand For Commercial Construction Services.

Before embarking on any business venture, it is crucial to identify the target market and evaluate the potential demand for your commercial construction services. This initial step sets the foundation for crafting an effective business plan.

To accurately identify your target market, conduct thorough research to identify the specific industries, businesses, and organizations that typically require commercial construction services. Consider factors such as the size of the projects, budget constraints, and the complexity of the construction requirements.

  • Utilize industry reports, market analysis, and trends to gain insights into the current and future demand for commercial construction services.
  • Segment your target market based on factors like location, industry, and project size to focus your efforts and tailor your services accordingly.
  • Consider partnering or collaborating with architects, engineers, and developers who have expertise in eco-friendly building practices to tap into specialized markets.

Once you have identified your target market, it is crucial to determine the potential demand for your commercial construction services . Conduct a comprehensive analysis of market trends, economic indicators, and industry forecasts to gauge the overall market growth and demand for construction projects.

Seek to answer important questions such as:

  • Is the demand for commercial construction services increasing or declining?
  • Are there any emerging trends or regulations that may impact the demand for eco-friendly building practices?
  • Are there any gaps or unmet needs in the market that your company can address?

By addressing these questions and analyzing market data, you will be able to assess the potential profitability and viability of your commercial construction business. This information will guide you in making informed decisions and developing a tailored business plan that aligns with the market demand.

Conduct Thorough Market Research To Understand The Competitive Landscape And Identify Opportunities For Differentiation.

To ensure the success of your commercial construction company, it is crucial to have a deep understanding of the competitive landscape and identify opportunities that will set your business apart. Conducting thorough market research allows you to gather valuable insights that will inform your business strategy and positioning in the industry.

Firstly, analyze the current market conditions to determine the size and growth potential of the commercial construction industry. This will enable you to gauge the demand for your services and identify any specific trends or challenges that may impact your business.

Next, examine the competitive landscape to gain insights into the key players in the industry, their market share, and the strategies they employ. Identify their strengths and weaknesses, as well as any gaps in the market that your business can exploit.

  • Analyze competitor websites, social media presence, and customer reviews to understand their brand positioning and customer satisfaction levels.
  • Attend industry conferences, trade shows, and events to network with industry professionals and gain valuable insights.
  • Consider conducting customer surveys or interviews to understand their needs, preferences, and pain points.

Furthermore, identify opportunities for differentiation by thoroughly understanding the needs and preferences of your target market. Determine what aspects of eco-friendly building practices are most valued and desired by potential clients and develop strategies to meet those needs more effectively than your competitors.

In this stage of the business plan, it is crucial to document your findings in a systematic and organized manner. This will help you make informed decisions and guide your business strategy moving forward.

  • Create a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis to assess your competition and identify the areas in which your business can excel.
  • Use industry reports, market research surveys, and trade publications to gather relevant data and insights.
  • Engage with industry experts, consultants, and advisors to gain deeper insights and validate your research findings.

By conducting thorough market research to understand the competitive landscape and identify opportunities for differentiation, you lay the foundation for a successful and sustainable commercial construction company. This knowledge will guide your business strategy, positioning your company as a leader in implementing eco-friendly building practices and reducing the carbon footprint of buildings.

Define The Company's Mission, Vision, And Values To Provide A Clear Direction For The Business Plan.

Defining the mission, vision, and values of your commercial construction company is crucial in providing a clear direction for your business plan. These elements will guide your decision-making process, shape your company culture, and set the tone for your operations.

Your mission statement should succinctly capture the purpose and essence of your company. It should reflect the core values and goals that drive your organization. Take the time to carefully craft a mission statement that showcases your commitment to revolutionizing the commercial construction industry through eco-friendly building practices.

  • Be concise and specific in your mission statement.
  • Ensure your mission aligns with the overall goal of reducing the carbon footprint of buildings.
  • Highlight the unique aspects of your company that differentiate you from competitors.

Your vision outlines the future direction and long-term aspirations of your company. It should inspire and motivate both your team members and potential clients. Consider how your eco-friendly building practices will contribute to creating sustainable and environmentally conscious structures, thus leaving a positive impact on the community and the world.

  • Make your vision ambitious, yet attainable.
  • Clearly articulate how your company's efforts will contribute to reducing carbon emissions and promoting sustainability.
  • Ensure your vision is aligned with the growing demand for eco-friendly construction practices.

Your values define the ethical principles and beliefs that guide your company's actions and behavior. They serve as a foundation for making decisions and interacting with clients, employees, and stakeholders. Consider incorporating values such as integrity, transparency, innovation, and a commitment to environmental stewardship into your company's values.

  • Select values that resonate with your target market and potential clients.
  • Ensure your values are reflected in your company's daily operations and practices.
  • Communicate your values clearly to employees and stakeholders, fostering a strong company culture.

In conclusion, clearly defining your company's mission, vision, and values in your business plan will provide a strong foundation for both strategic decision-making and day-to-day operations. It will not only guide your internal team but also attract like-minded clients who share your commitment to sustainability and reducing the carbon footprint of buildings.

Determine The Legal Structure And Register The Company According To Local Regulations.

When starting a commercial construction company, determining the legal structure of your business is a crucial step. The legal structure you choose will impact various aspects of your company, including taxation, liability, and operational procedures.

Before making a decision, it is important to thoroughly research and understand the different options available. Common legal structures for commercial construction companies include sole proprietorship, partnership, limited liability company (LLC), and corporation. Each structure has its own advantages and disadvantages, so it is essential to choose the one that best aligns with your business goals and future plans.

Once you have determined the legal structure, the next step is to register your company according to local regulations. This process typically involves submitting required documents, such as articles of incorporation or organization, to the appropriate government agencies. It is important to carefully follow the registration requirements to ensure your company is legally recognized and operating within the law.

Registering your company also involves obtaining any necessary licenses and permits specific to the commercial construction industry. These may include contractor licenses, building permits, and certifications for eco-friendly building practices, depending on your business idea. Research and comply with all the requirements to avoid any legal complications in the future.

By determining the legal structure and registering your commercial construction company according to local regulations, you are establishing a strong foundation for your business. It ensures that you are operating legally, protecting your interests, and positioning yourself for success in the industry.

Develop A Comprehensive Business Model That Outlines The Company's Revenue Streams, Cost Structure, And Profitability Potential.

Developing a comprehensive business model is an essential step in creating a strong foundation for your commercial construction company. This model will serve as a roadmap for how your business will generate revenue, manage costs, and ultimately achieve profitability. By outlining these key aspects of your operation, you can demonstrate to potential investors and partners the viability and sustainability of your business.

Revenue Streams: Outline the various ways your company will generate income. This could include revenue from construction projects, maintenance and renovation services, or even selling sustainable building materials and technologies. Identifying multiple revenue streams will not only diversify your income sources but also create opportunities for growth and expansion.

Cost Structure: Analyze and outline the various costs associated with running your commercial construction company. This may include expenses such as employee salaries, materials and equipment, insurance, permits, and overhead costs. Clearly defining your cost structure will help you understand your financial commitments and enable you to make informed decisions regarding pricing and budgeting.

Profitability Potential: Assess the profitability potential of your business by considering the revenue streams and cost structure you have identified. Calculate your projected profit margins based on market research and industry benchmarks. This analysis will help you gauge the financial viability of your business and make any necessary adjustments to ensure long-term sustainability.

  • Regularly review and update your business model to adapt to changing market conditions and industry trends.
  • Consider incorporating eco-friendly practices and sustainable technologies into your business model, as this may attract environmentally conscious clients and potentially increase profitability.
  • Seek guidance and advice from industry experts or mentors who have experience in developing successful business models for commercial construction companies.

Create A Detailed Financial Plan, Including Projected Revenues, Expenses, And Cash Flow Projections

A detailed financial plan is crucial for the success of any commercial construction company. It provides a roadmap for managing the company's finances, identifying potential risks, and maximizing profitability. To create a comprehensive financial plan, consider the following:

  • Projected Revenues: Estimate the company's expected revenue streams based on the target market and demand for commercial construction services. This could include contracts, subcontracts, and ongoing maintenance agreements. Be realistic and account for potential fluctuation in the market.
  • Expenses: Identify all the costs associated with running the business, including material costs, labor costs, equipment purchases or rentals, insurance, permits, and licensing fees. Break down these expenses into categories to get a clear understanding of the financial implications.
  • Cash Flow Projections: Analyze the projected cash flow by estimating the timing of incoming revenue and outgoing expenses. This will help determine periods of potential cash shortages and allow for proactive planning to avoid financial challenges.

Tips for Creating a Detailed Financial Plan:

  • Consult with a financial professional or accountant to ensure accuracy and adherence to accounting standards.
  • Use financial projections as a tool to track your progress and make necessary adjustments to your business strategy.
  • Be conservative with revenue projections and be prepared for unexpected challenges that may impact cash flow.
  • Regularly review and update your financial plan to reflect changes in the market and business conditions.

Remember, a detailed financial plan not only helps secure funding but also provides a clear understanding of your company's financial health. It allows you to make informed decisions and adapt to changes in the market, ultimately increasing the chances of achieving long-term success in the commercial construction industry.

Assess The Funding Requirements And Explore Potential Financing Options, Such As Loans Or Investment Partnerships.

Once you have identified your target market, conducted market research, and developed a comprehensive business model, it is crucial to assess your funding requirements and explore potential financing options to bring your commercial construction company to life. To ensure the success and growth of your business, you need to have a clear understanding of the financial resources needed and the various avenues available to secure these funds.

Assessing the funding requirements: Start by determining the amount of funding your commercial construction company requires to cover essential expenses such as equipment, personnel, marketing, and initial operational costs. It is essential to have a detailed breakdown of these capital requirements to present a solid case to potential investors or lenders.

Exploring potential financing options: Once you have a clear understanding of your funding needs, it is time to explore the various financing options available to you. Here are some potential avenues to consider:

Tips for exploring financing options:

  • Traditional bank loans: Approach local banks or financial institutions to inquire about business loan options. Prepare a well-structured business plan and financial projections to present to the lenders.
  • Government grants and programs: Research and identify any government grants or programs specifically designed to support eco-friendly initiatives or small businesses in the construction industry.
  • Investment partnerships: Explore the possibility of partnering with investors who align with your mission and vision. Present your business plan and revenue projections to demonstrate the potential return on investment.
  • Crowdfunding: Consider utilizing crowdfunding platforms to raise funds from individuals who believe in your eco-friendly building practices and mission. Create a compelling campaign that outlines the benefits and impact of your commercial construction company.
  • Self-funding: If possible, assess your own financial capabilities and consider self-funding all or part of your commercial construction company. This demonstrates your commitment and dedication to the business.

Remember to thoroughly research and evaluate each financing option to determine its suitability for your specific business needs. Each option may have different requirements, terms, and conditions, so it is crucial to understand these factors before making any commitments.

By assessing your funding requirements and exploring potential financing options such as loans or investment partnerships, you can secure the necessary capital to launch and operate your commercial construction company successfully. This strategic approach ensures that you are well-prepared and positioned to thrive in the competitive industry while revolutionizing the construction sector with eco-friendly practices.

Identify The Key Team Members And Their Roles In The Organization, Ensuring The Necessary Expertise Is Present.

One of the critical aspects of building a successful commercial construction company is having the right team in place. Each team member plays a crucial role in contributing to the company's overall success and achieving its goals. Therefore, it is paramount to identify the key team members and their respective roles while ensuring that the necessary expertise is present.

When identifying the key team members, first consider the core areas of your business that require specialized skills and knowledge. Are you in need of an experienced project manager who can oversee construction projects from start to finish? Do you require an architect who can design eco-friendly buildings with a focus on reducing the carbon footprint? Or perhaps you are in need of a business development manager who can attract new clients and establish strong industry partnerships.

Tips for identifying key team members:

  • Clearly define the roles and responsibilities of each team member to ensure clarity and avoid duplication of tasks.
  • Look for individuals who align with your company's mission, vision, and values, as they will be more likely to contribute positively to the organization's culture.
  • Consider conducting thorough interviews and personality assessments to gauge a candidate's fit within the team and their ability to work collaboratively.
  • Take a holistic approach and consider the diversity of skills, experiences, and perspectives within the team to foster innovation and creativity.
  • Provide opportunities for professional development and growth to retain top talent and ensure their expertise continues to evolve alongside the company's needs.

Remember that assembling the right team is an ongoing process. As your commercial construction company grows and evolves, it may be necessary to adjust the team composition and roles to accommodate new opportunities and challenges. By ensuring that the necessary expertise is present within your organization, you set a solid foundation for success and further establish your company as a leader in implementing eco-friendly building practices.

Develop A Marketing And Sales Strategy To Attract Clients And Establish A Strong Brand Presence In The Industry.

Marketing and sales play a crucial role in the success of any commercial construction company. To attract clients and establish a strong brand presence in the industry, a robust marketing and sales strategy is essential. Here are some important steps to consider:

  • Identify your target audience: Determine the specific sectors and industries that require commercial construction services. Research their needs, pain points, and preferences to tailor your marketing messages effectively.
  • Build a strong brand identity: Develop a compelling brand identity that reflects your company's values and unique selling propositions. This includes creating a distinct logo, brand colors, and tagline to differentiate yourself from competitors.
  • Establish an online presence: In today's digital era, having a strong online presence is crucial. Build a professional website that showcases your portfolio, expertise, and testimonials. Utilize search engine optimization (SEO) techniques to improve your website's visibility on search engines.
  • Create engaging content: Develop informative and engaging content that educates potential clients about your eco-friendly building practices and their benefits. This can include blog posts, case studies, and videos that showcase your expertise and approach.
  • Utilize social media: Leverage social media platforms to amplify your brand reach and engage with your target audience. Create compelling content, engage in conversations, and share industry insights and updates to position yourself as a thought leader.
  • Attend industry conferences and trade shows to network with potential clients and establish partnerships with other businesses in the industry.
  • Offer free consultations or assessments to demonstrate your expertise and build trust with potential clients.
  • Develop strategic partnerships with suppliers, architects, and contractors to expand your network and reach a broader audience.
  • Consider offering incentives or discounts for early adopters of your eco-friendly practices to attract clients and create a competitive advantage.

By developing a comprehensive marketing and sales strategy, you can effectively attract clients, establish a strong brand presence, and position your commercial construction company as a leader in eco-friendly building practices.

In conclusion, writing a business plan for a commercial construction company requires careful consideration and attention to detail. By following the nine steps checklist outlined above, you can ensure that your business plan effectively addresses key aspects such as market analysis, financial projections, and team structure.

Furthermore, by revolutionizing the commercial construction industry with eco-friendly building practices, you can not only meet the demands of the market but also contribute to reducing the carbon footprint of buildings. This innovation will position your company as a leader in sustainability and attract environmentally conscious clients.

Remember, a well-crafted business plan serves as a roadmap for success. By implementing these steps and strategies, you can establish a strong foundation for your commercial construction company and navigate the competitive landscape with confidence.

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The Complete Guide to Commercial Construction Management and Commercial Construction Project Managers

By Diana Ramos | May 27, 2021

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In this article, we’ve compiled the most useful tips and step-by-step instructions for hiring a commercial construction manager. Plus, you’ll learn all about the responsibilities of the role and how proper management helps projects succeed.

Included on this page, you’ll find key questions to ask when hiring a commercial construction management firm , a commercial construction management plan template , and common construction management certifications for commercial construction .

What Is Commercial Construction Management?

Commercial construction management (CM) , also called commercial construction project management (CPM) , uses business principles to make building projects more successful. These techniques address scheduling, cost, scope, quality, function, and safety.

Construction managers improve project efficiency by leveraging their expertise in both construction and project management. Commercial construction managers represent the interests of the owners and oversee the commercial construction process from start to finish. They coordinate architects, engineers, contractors, and subcontractors from pre-design to project completion.

The term commercial construction refers to the building of structures for use by private-sector businesses. This field includes a wide variety of building types, such as factories, office towers, and shopping malls. 

However, commercial construction management principles do not apply exclusively to the private sector. Many other large-scale projects also incorporate these principles, such as large residential developments, industrial construction, and public-sector construction, like schools and roads. 

The Commercial Construction Management Association of America (CMAA) has led the development of the CM discipline. Its Construction Management Body of Knowledge and Standards of Practice document best practices and ethical standards for the profession. 

Depending on the scale of your project, your CM may consist of one individual manager or a whole team.

Residential vs. Commercial Construction Management

Commercial construction differs from residential building in many ways, including size, purpose, materials, regulation, systems complexity, budget, and stakeholders. 

Residential construction generally refers to single-family homes and projects of four units or fewer, as well as remodels of these homes. The building of large apartment complexes and subdivisions, with dozens or even hundreds of homes, operates as commercial construction. 

The distinctions between residential and commercial building are as follows:

  • Size: Commercial buildings are typically much larger than homes. For this reason, it’s more challenging to coordinate a commercial project and adhere to its schedule and budget. 
  • Purpose: Residential construction creates living spaces. Commercial buildings are those that the owner intends to use to make a profit.
  • Materials: Residential buildings are primarily timber framed. Commercial buildings generally require steel and concrete. Homes usually have shingle roofs, while the roofs of commercial structures call for bitumen or thermoplastic polyolefin (TPO). The latter category of materials give builders the ability to construct larger and taller structures, and can also withstand heavier use.
  • Regulation: Building codes for commercial structures are more strict. For example, commercial codes require sprinkler systems to put out fires. (Residential codes do not include this requirement.) For commercial projects, governments may dictate construction methods, design, and size, as well as electrical and plumbing specifications. The process for acquiring permits for commercial buildings can take months or even years, and may entail public hearings. Home construction undergoes a simpler review.
  • Systems: Commercial building systems are complex because these systems serve larger structures (with more users) and, therefore, must fulfill more diverse purposes. Such systems include elevators, electrical construction, plumbing, heating, security, and air conditioning. As a result of this complexity, commercial builders need more specialized construction expertise.
  • Budget: Commercial projects are usually more expensive than residential ones. Size, materials, complexity, and labor needs drive these costs.
  • Stakeholders: Residential projects typically have a small number of participants — the builder and homeowner or investor may be the only active stakeholders. Commercial projects involve a bigger group, including the general contractor (GC), subcontractors, engineers, architects, and the construction manager. If the construction manager is not in house, the owner may also have executives monitoring the project.

Scale of Commercial Construction Projects

Commercial construction usually involves medium or large-scale projects, such as factories, shopping malls, and office buildings. Homes are generally small-scale construction jobs. 

Residential construction seldom has a dedicated construction manager. The builder or general contractor manages the project.

Medium-scale commercial construction includes making cosmetic updates to existing structures and new buildings. It also includes the building of new strip malls, medical and dental offices, apartment complexes, and light industrial structures.

Anything larger than medium-scale commercial construction qualifies as large-scale commercial construction. Examples include the sector known as public works construction , which refers to government projects like schools, courthouses, and highways. In this sector, a government or government agency is both the owner and client. Therefore, unlike other sectors of commercial construction, public works construction is not for profit.

Commercial construction management practices are the norm for medium and large-scale projects. But, public works construction employs some different processes. Governments, for example, often have very strict competitive bidding rules for contracts.

Commercial Construction Project Manager Responsibilities

Commercial construction project managers have numerous responsibilities — according to the Construction Management Association of America, these PMs have 120 responsibilities  spanning cost management, time management, quality management, project management planning, contract administration, safety management, and professional practice. 

The term professional practice refers to project-related duties, including evaluating the goals of the project, creating controls, and putting in place communication norms. The manager also establishes the structure of the project team and defines the roles. 

Construction project managers are responsible for keeping the project moving according to plan. The goal is to manage the project so that it finishes on schedule and within budget, while still meeting building codes, plans, and specs. 

Some of the most significant responsibilities of the commercial construction manager include the following: helping the owner and architect during the design phase; reviewing drawings; evaluating construction feasibility; estimating costs; creating work packages for the bidding process; and overseeing construction. Learn more about making budgets and schedules for construction projects in “The Comprehensive Guide to Construction Budgeting” and “Construction Project Management 101.”

Per the CMAA’s seven categories of responsibilities, the list below provides a sampling of some of those obligations:

  • Project Management Planning: Creating a CM plan, setting performance criteria, compiling reference data, establishing a decision-making structure, organizing the project, defining the roles and responsibilities of team members, planning site use, selecting design professionals, and verifying insurance
  • Cost Management: Estimating costs or overseeing cost estimating, developing a budget, creating a cost management structure, modeling costs, projecting cash flow needs, understanding the potential impact of external economic changes
  • Time Management: Developing a schedule, reporting on progress, identifying project milestones, determining the critical path , factoring in the role of float , determining the impact of change orders on the schedule
  • Quality Management: Defining the quality objectives of the owner, making sure drawings and specifications align with quality objectives, organizing the design review, identifying the construction elements that affect quality, evaluating bids for quality, inspecting quality, managing change order procedures
  • Contract Administration: Understanding design phase contracts, implementing construction procurement strategies, pre-qualifying and soliciting bids, defining the submittal process, developing contract and documentation procedures, checking deliverables, resolving contract disputes, managing risk, compiling information to support owner financing of the project, preparing punch lists, managing the project closeout
  • Safety Management: Assessing the contractor’s safety record, understanding site safety liability by statute and regulation, verifying insurance for safety claims, managing workers’ compensation, creating the project safety manual, documenting incidents, developing an emergency plan
  • Professional Practice: Adhering to the standards and ethics of construction management, defining the commercial and legal relationship between the owner and the construction manager, identifying practice and third-party liabilities, complying with environmental regulations

Commercial Construction Management vs. General Contractors

The work of a commercial construction manager may overlap with that of a general contractor, but their roles and their relationship with the owner are different.

Here are some of the key differences between a commercial construction manager and a general contractor:

  • Time of Hire: The construction manager usually comes on board at project inception, before the design phase. Once the design is final, a number of general contractors bid on the job. Because the CM is involved from the outset of the project, they can increase the schedule’s efficiency by being able to overlap procurement and construction.
  • Design Input: Because CMs work during pre-construction, they can advise on project options, including design, specifications, and materials, and solve problems in order to help save money and improve the functionality of the overall building. Such activities constitute the process of value engineering . Because general contractors do not join the project until the design is complete, they cannot provide this kind of input. For this reason, CM-guided projects often generate fewer change orders and more accurate cost and time estimates.
  • Compensation Model: The commercial construction manager receives a fee, either as a flat amount, a per-hour rate, or a percentage of the project cost. The general contractor often wins the job by being the lowest bidder (the bid includes money to cover overhead and profit).
  • Relationship with Owner: The commercial construction manager represents the owner. The manager obtains the materials and services needed for the project by soliciting competitive bids on behalf of the owner, who pays the costs in addition to the CM’s fee. The CM provides the owner with complete transparency regarding these ongoing project costs. Conversely, the GC provides only the bid price (which represents all costs). Once work begins, the general contractor has an incentive to maintain or increase the profit margin by coming in under budget. They can achieve this by holding down costs and, in less frequent cases, cutting corners. Because of this incentive, the interests of the GC and owner may be at odds.
  • Team History: General contractors have staff members, including foremen, carpenters, and laborers, who work together as a team. The GC also frequently works with subcontractors. This means that the people on the job are already familiar with each other and, thus, share expectations and norms. Construction management staff members are professionals, and they manage construction work by procuring builders. As a result of this procurement process, the CM may assemble a team of laborers among whom there is no shared history. The familiarity and shared understanding among members of a GC team can offer the owner an advantage.
  • Control: By using a construction manager, the owner generally gains more control over construction, but also must be more involved in the project. With a GC, the owner gets less control over the project, but also bears less responsibility.
  • Risk and Liability: Unless the contract with the CM explicitly states that such a manager is responsible for costs beyond the budget, the owner carries the financial risk of cost overruns. GCs, on the other hand, typically must absorb increased costs, such as overtime, except when they have to issue change orders for scope changes or plan mistakes. In terms of liability, the construction manager is only responsible for a construction worker’s injury when the CM’s contract specifies an obligation to maintain safety or the CM assumes said obligation through their actions. GCs, on the contrary, must ensure worker safety and comply with safety regulations.

Despite these differences, the roles of CMs and GCs can still overlap.

When the owner and general contractor have built mutual trust (through past projects or otherwise), they may hire that GC to act as construction manager. 

Moreover, in some cases, the CM may oversee the general contractor, who, in turn, directs subcontractors. Or, the CM may contract directly with trade firms, such as electricians, placing that construction manager in the role of GC (i.e., the person who hires and supervises subcontractors, such as electricians).

Advantages of Using a Commercial Construction Manager

Hiring a construction manager to lead a commercial construction project offers the owner several benefits, including end-to-end oversight, cost and time savings, and greater control.

Here are the most important advantages of using a commercial construction manager:

  • Cost and Time Savings: As discussed above, because the commercial construction manager begins at the outset of a project, you can save in terms of your budget and your time. The CM also minimizes change orders and avoids delays. 
  • Reduced Stress: The commercial construction manager’s expertise can increase the owner’s confidence that the project will be successful. The CM also deals with day-to-day oversight of the construction and any problems, which relieves the owner of these responsibilities.
  • Quality: The CM’s expertise, close supervision, and opportunity for value engineering result in a high-quality structure. 
  • Flexibility: A construction management firm can use a variety of scheduling and procurement approaches, which allows the CM to shorten the construction schedule and increase efficiency.  
  • Control: Because the CM acts as an extension of the owner, the owner gains more project control. 

A study by the CMAA of 623 construction projects found that more buildings with a construction manager finished on or under budget than those without. And, more projects led by a CM were on or ahead of schedule. 

The value of the CM projects in the study averaged $17.8 million; those without a CM averaged $13.4 million. This discrepancy suggests that when the stakes are high, owners depend more heavily on CMs. 

Specifically, the study found that 84.9 percent of CM projects versus 81.9 percent of non-CM projects came in on or under budget. They also found that 68.8 percent of CM projects versus 65.9 percent of non-CM projects were on or ahead of schedule.

Main Frameworks for Adding Construction Management to a Project

There are many ways to add a construction manager to your commercial project: You can hire a solo consultant, contract with a CM firm, or acquire this capacity in house. 

If you choose to hire outside construction management, there are different ways to structure the relationship.

For centuries, builders and owners did not view construction management as a distinct process. But, in the 1960s, CM began taking shape as a professional service in its own right , the CMAA says.   

Now that commercial construction management is a well-established discipline, property developers and large construction firms have made construction managers and CM departments integral parts of their organizations. 

However, most owners do not build frequently enough to justify having a commercial construction manager or team. Owners typically hire a commercial construction management firm or an independent construction manager.

When an owner hires an independent CM, that CM generally takes one of three traditional approaches to this contractual relationship: The manager acts as a pure construction manager, a construction manager as agent (CMaA), or a construction manager at risk (CMAR). 

  • Pure Construction Manager: Here, the CM plays a role on a commercial construction project similar to that of a general contractor. The pure CM identifies and hires subcontractors and suppliers, and also oversees the construction process. But, the CM performs these particular tasks for an itemized fee, rather than as part of a GC-oriented bulk bid (the GC does not enumerate these details for the owner). Because of the pure CM’s fee structure, the owner can benefit from any cost savings. But, that owner also loses the security of having a fixed bid.  
  • Construction Manager as Agent: Also called construction manager as advisor , this type of CM acts solely as an advisor to and coordinator for the owner. For a fee, the advisor offers their expertise to the owner and helps the owner make decisions. The owner contracts directly with the subcontractors. Because a commercial construction manager joins at project inception, the CMaA can advise the owner at every stage of the project. For this reason, the CMaA model can be helpful for owners without deep construction knowledge. 
  • Construction Manager at Risk: Also known as construction manager as constructor , the commercial construction manager in this model gives the owner a guaranteed maximum price (GMP) and assures such owner that they will complete the project on time. In this approach, the CM may get a fee, build a profit margin into the GMP, share any cost savings with the owner, or use a combination of these payment structures. The CMAR advises the owner during the pre-construction phase, and also manages material procurement and subcontractor hiring. Then, the construction manager at risk oversees the building work. In this relationship, the main advantage for the owner is the CMAR’s assumption of the majority of the risk. 

Design-build is another popular construction project delivery method. This approach is closely related to the three aforementioned ones. In design-build, the entire project, including design and construction, falls under one contract and one team, usually either the architect or contractor. That team alone is responsible for the entire project. 

This particular approach streamlines the project for the owner and limits the shifting of blame. Proponents like design-build for its efficiency and collaboration. 

Design-build and CMAR are similar in that they both entail end-to-end responsibility. But, there are also some important differences between the two approaches. While the CMAR may bring a great team together, these subcontractors and other participants work for different firms, which renders them unable to integrate in the way that the single team of the design-build method can.

The two methods also have different contractual standards for performance. In CMAR, the standard of care covers the legal obligation to guarantee that the design functions as intended. Maintaining this performance standard means putting in as much effort as any other reasonable professional would. In design-build, the contractor must maintain a commitment to performance , meaning they must achieve the level of performance that they’ve specified in the contract. In other words, the design-build firm must fix any problem that arises.

In addition, once construction gets underway, CMARs are not liable for any design problem that a contractor discovers. Instead, the architect or engineer resolves any issue by responding to a change order request. Conversely, because the design-builder is both the designer and builder, they are responsible for constructing a building that functions as intended. The design-builder’s team must, therefore, work to resolve the issue so that the building performs as promised. Consequently, the design-builder does not use change orders. This responsibility (or lack thereof) highlights the essential difference between the standards of build-as-designed and build-to-perform .

Steps in a Commercial Construction Project

The commercial construction manager guides a project through its entire lifecycle, and manages all the steps of the construction process: development, design, pre-construction, procurement, construction, commissioning, owner occupancy, and closeout.  

(To learn more about each of these steps, see “The Stages of Construction Project Management.”)  

1. Development: This step entails finding a site, doing a feasibility study, and arranging financing.

2. Design: During this stage, architects and engineers draft plans for what the building will look like and design the substructures and systems that will make the building perform its intended function safely. 

3. Pre-Construction: In this step, the commercial construction manager shepherds the building through the zoning and permit processes. The manager coordinates final drawings and specifications, oversees detailed site preparation, prepares bid packages, and qualifies contractors and subcontractors. 

4. Procurement: In this phase, the commercial construction management firm awards contracts and obtains materials and equipment. (For details on different procurement methods and how to bid on commercial construction projects, read “Bid Like a Winner: The Master Builder’s Guide to Construction Bidding.” ) Then, the newly hired contractors must make submittals regarding materials to the architect or engineer for approval. At the same time, the CM engages in detailed budgeting. 

Download the following sample commercial construction budget, which calculates costs per square foot, to help plan, track, manage, and automate your project budget.

Commercial Construction Budget Template

Download Commercial Construction Budget Example — Microsoft Excel 

5. Construction: This refers to the active building phase during which the CM answers RFIs , controls costs, manages the schedule, and inspects the work. Such progress tracking is critical to keeping a project on schedule. 

Download the free commercial construction template below to create a visual timeline of actual versus planned progress. (Check out these links for more free timeline templates and free construction schedule templates .) 

commercial building construction business plan

Download Commercial Construction Timeline Template

Microsoft Excel | Smartsheet

6. Commissioning: This phase of the process involves verifying that all parts of the building function as intended. The CM tests systems such as heating and air conditioning to make sure they perform to specifications.

7. Owner Occupancy: As the owner moves into the building and takes possession of the keys, the CM oversees the installation and calibration of equipment and furnishings.

8. Project Closeout: The CM makes sure that the crew has completed all the work; then, the team dismantles the job site. The CM compiles a number of documents for the owner, including manuals and documentation about the building as well as contractual paperwork. The owner does a final walkthrough.

This commercial building construction process flow chart shows the phases of commercial construction.

commercial building construction business plan

For each of these steps, you can find helpful templates, such as a bid tabulation form and a project closeout checklist, in “Excel Construction Management Templates.”

Commercial Construction Management Plan Templates

Below, you will find all the templates you need to compile a commercial construction management plan.

Commercial Construction Management Plan Template

Commercial Construction Management Plan Template

This template provides the high-level structure for a commercial construction management plan.

Download Commercial Construction Management Plan Template

Microsoft Word | Google Doc

Construction Project Resource Management Template

Construction Project Resource Management Template

Use this template to identify resource needs and manage them appropriately. 

Download Commercial Construction Resource Management Plan Template Microsoft Excel | Google Sheets

Construction Project Timeline Template

Construction Project Timeline Template

This template will help you outline the timeline for your commercial construction project. 

Download Commercial Construction Project Timeline Template Microsoft Excel | Google Sheets | Smartsheet

Construction Project Bid Tabulation Template

Bid Tabulation Template

This template gives you space to document each individual bid and associated cost. 

Download Commercial Construction Bid Tabulation Template Microsoft Excel | Google Docs | Smartsheet

Construction Project Abstract of Bids Template

Abstract of Bids Template

As you gather contractor bids, use this abstract of bids template to rank the bids against each other based on project-specific criteria.

Download Commercial Construction Abstract of Bids Template Microsoft Excel | Google Docs | Smartsheet

Construction Project Subcontractor Documentation Tracker Template

Subcontractor Documentation Tracker Template

This template helps you track subcontractor work and related documents, making it easier to manage subcontracted jobs.

Download Subcontractor Documentation Tracker Template

Microsoft Excel | Google Sheets | Smartsheet

Construction Project Daily/Weekly Inspection Report Template

Daily Weekly Inspection Report Template

Use this template to gather details of daily inspections and record details of each activity area.

Download Commercial Construction Daily/Weekly Inspection Report Template Microsoft Excel | Google Sheets

Construction Project Contractor Progress Payment Template

Contractor Progress Payment Template

This template enables you to document payments made to contractors while the project is underway. These monthly payments reflect the percentage of completed work.

Download Commercial Construction Contractor Progress Payment Template Microsoft Excel | Google Sheets | Smartsheet

Construction Risk Register Template

Risk Register Template

Employ this template to assess and record risks associated with your commercial construction project. 

Download Commercial Construction Risk Register Template

Microsoft Excel | Google Sheets |   Smartsheet

Construction Punch List Template

Construction Punchlist Template

This template functions as a record of outstanding work in the final stages of the project.

Download Commercial Construction Punch List Template Microsoft Excel | Smartsheet

Construction Project Closeout Checklist Template

commercial building construction business plan

Use this template to check that all the major items in the commercial construction project are completed.

Download Commercial Construction Project Closeout Checklist Template Microsoft Excel | Smartsheet

Construction Project Submittal Form Template

Construction Submittal Form Template

This template gives a standardized way to track requests from contractors to both architects and engineers, helping you verify the installation of correct products. 

Download Construction Submittal Form Template

Microsoft Excel | Microsoft Word | Adobe PDF | Google Doc | Smartsheet

Construction Project Schedule of Submittals or Submittals Log Template

Also known as a submittal log, use this template to compile an accurate record of all submittals and responses. 

Schedule of Submittals Template

Download Commercial Construction Schedule of Submittals Template

Microsoft Excel | Google Doc

Submittal Log Template

Download Commercial Construction Submittals Log Template

Microsoft Excel | Google Doc | Smartsheet

Construction Request for Information Template

Construction RFI Template

This template offers a standardized way to track requests for information, which is used when there are missing details in construction documentation.

Download Commercial Construction Request for Information Template

Tips for Commercial Construction Managers

Experienced commercial construction managers say certain practices are especially important for project success, including the following:

  • Read the Construction Contract Carefully: The CM needs to be familiar with all parties’ rights and obligations under the contract from the start. Such information includes when a party can make claims and liens and how to handle delays and change orders.
  • Expect the Unexpected: Be prepared to deal with surprise expenses, extreme weather, staff turnover, and delays. Doing this requires flexibility and multiple back-up plans.
  • Keep Your Boots on the Ground: While CMs have lots of paperwork to handle in a commercial construction project, they must also be on site as much as possible to help spot brewing problems. 
  • Hold a Kickoff Meeting: This meeting should include the owner and other project participants. Make sure everyone has the same understanding of the project, and encourage discussion of potential trouble spots, delays, or cost issues. Use this feedback to adjust scopes of work if necessary. By conducting this meeting, you lay the groundwork for good communication throughout the life of the project.
  • Manage Schedules Meticulously: Factor in long lead times to procure customized building components. Avoid stacking trades, i.e., having multiple subcontractors work in a confined space at once, because doing this impedes work and creates inefficiencies. 
  • Maintain a Safe Work Site: Watch for hazards and take measures to prevent injuries. On site, use guardrails, set up barricades around open holes, and require proper safety equipment. Safety is critical to avoiding injuries, project delays, and insurance claims.
  • Hone Your Negotiating Skills: At every stage of the commercial project, the CM acts as a negotiator. Understand that in the pre-contract phase, the owner and CM usually have more leverage than the contractor and subcontractor. During construction however, that power structure reverses, giving the contractor and subcontractor more influence. Strategies such as principled negotiation (deciding on merits), mutual-interests negotiation (finding common ground), and aggressive negotiation have their places. Change orders in particular are subject to negotiation.
  • Be Organized: Commercial construction requires an enormous amount of paperwork — from material orders to submittals and contracts. Without this documentation, you expose yourself to breach of contract and liability claims. Don’t waste time hunting for documents. Use software to manage administration.

How to Select a Commercial Construction Management Firm for Your Project

If you are an owner embarking on a commercial construction project, bring in a construction manager early in order to take advantage of their expertise. Following are nine steps for a successful hiring process based on advice from the CMAA.

  • Write a Project Statement: This document details the prospective building’s size, purpose, and other characteristics. Commercial construction management firms will use this to grasp project complexity and understand the experience required.
  • Provide Your Cost and Time Goals: While these may change through your work with the CM, schedule and budget goals are important project parameters.
  • Establish Your Internal Processes: Clarify who will be the main liaison with the CM and who will have authority on decisions about spending, design, and day-to-day management.
  • Form a Selection Panel: Include members with construction knowledge and someone who will have ongoing involvement with the project. Familiarize the panel members with the project.
  • Years of experiences
  • Professional credentials
  • History of similar projects
  • Screen These Submissions to Make a Short List: After reviewing the submissions, winnow the list down to those firms you want to investigate further. 
  • Solicit Proposals: Ask firms on the short list to submit proposals. This request for proposals (RFP) should outline the project in detail so the firms can address how they would approach the project and any relevant experience they have. Ask firms to provide preliminary pricing or bids in separate financial proposals, so you can evaluate technical expertise and cost independently.  
  • Evaluate the Proposals: Assess the submissions for technical merit, and rank them. Then review the financial proposals (note that these numbers are still subject to negotiation). Identify the top candidates for interviews.
  • What is it like to work with you?
  • What are the hallmarks of your CM process?
  • How do you differ from the competition?
  • What is your record on things that are important to us or the project such as smart building technology, environmental innovation, or distinctive design? 
  • When could you begin this project?
  • Finalize a CM Contract: Agree on scope of service and price. The contract should define deliverables and milestones for performance measurement.

Commercial Construction Manager Job Description

To hire a skilled commercial construction manager to join your team, use a job description that highlights key responsibilities and necessary skills. Download the free job description below, which covers duties such as overseeing the construction site and managing costs. 

The following downloadable job description is designed to target an on-staff commercial CM position at a large construction, property development, or construction management firm. However, you can easily adapt the description and customize it to suit your needs.

Sample Commercial Construction Manager Job Description

Use the format and content in this sample commercial construction manager job description as a starting point, and add details relevant to your needs. You can use the job description to recruit applicants.

Post the job description on employment boards. Publicize the vacancy on social media, linking to the full job description on your website. Your job description should include the following sections: 

  • Sample Introduction: Beaver Valley Construction Management is a thriving independent consultancy with a staff of 75 commercial construction managers. We serve clients in a tri-state area who are building office and retail structures. Beaver Valley managed the construction of the 50-story Three Rivers Tower, which is now the anchor of a complex that 75,000 people use on a daily basis. We brought this job in ahead of schedule and under budget.  
  • Manage major commercial construction projects from inception to closeout.
  • Work with owners, architects, engineers, contractors, subcontractors, and other professionals to achieve a successful result.
  • Oversee the design, pre-construction, construction, and commissioning phases of a new commercial building construction. 
  • Define deliverables and determine necessary resources.
  • Estimate costs.
  • Procure materials, equipment, and labor.
  • Negotiate contracts with project participants.
  • Develop and maintain the construction schedule and budget. 
  • Assess and manage both on-site and off-site risks.
  • Supervise site work and day-to-day construction.
  • Handle zoning, permits, and licensing.
  • Coordinate contractors and subcontractors.
  • Ensure that the work meets plan specifications and quality standards.
  • Monitor compliance with all regulations.
  • Communicate with stakeholders through regular written and oral reports.
  • We need a skilled negotiator who can reach contract agreements that meet all stakeholders’ needs and comply with the budget and schedule.
  • You must be a multitasker who is able to manage competing priorities and time constraints.
  • You have to be an experienced estimator who can determine precisely what resources the project requires.
  • We require a detail-oriented leader who delegates when necessary and ensures completion. 
  • You must be a strong collaborator who works cooperatively with architects, engineers, contractors, and owners to achieve project objectives and milestones.
  • We need a problem solver who’s adept at resolving job-site challenges  and keeping the project on track.
  • You have to be an experienced user of construction technology, including BIM, project software, and major budgeting and scheduling solutions. 
  • We require an articulate communicator who is comfortable speaking in front of others.
  • You must have a bachelor’s or master’s degree in Construction Management, Architecture, Engineering, or a related field.
  • The position requires 10 years work experience in construction management or project management in an AEC setting.
  • We prefer candidates who have experience with large-scale commercial construction.
  • You must have in-depth knowledge of current construction techniques and materials.
  • Certification from the Construction Management Association of America or American Institute of Constructors is a prerequisite.
  • We offer a competitive salary with benefits, including health, dental, and life insurance, 401(K) match, tuition reimbursement, and flexible spending accounts for healthcare and dependent care expenses.
  • The commercial construction manager is expected to spend about one quarter of their time at our offices in either Beaver Valley or Three Rivers and the remainder of their time at client offices and construction sites in the tri-state area. Occasional overnight travel is required.
  • This is an exempt position that requires schedule flexibility to meet project needs. This schedule includes regular evening and weekend work. There is no paid overtime. 
  • Beaver Valley Construction Management is an equal opportunity employer and certified federal government contractor. 
  • To learn more about what it’s like to work at Beaver Valley Construction Management, see the careers section of our website. We encourage qualified candidates to apply by clicking the “Get Started Now” button. We will accept applications until we fill this position. We will invite candidates who pass an initial screening for an in-person interview and skills test. No phone calls, please. 

Commercial Construction Manager Job Description Template

Download Customizable Commercial Construction Manager Job Description

How to Become a Commercial Construction Manager

The steps toward becoming a commercial construction manager involve both formal education and on-the-job training. 

This career track usually entails the following:

  • Education: CMs often obtain a bachelor’s degree in construction management, architecture, engineering, or a similar field. A four-year degree in construction management can be expensive, with tuition costing up to $240,000, but there are many more affordable options. In addition, there are associate-degree and certificate programs.
  • Field Experience: Starting before and during college, CMs pursue construction site work, especially hands-on building experience. Internships in commercial construction management and related roles, such as cost estimating, are also desirable. Apprenticeships offer another way to gain experience. Howard Community College in Maryland combines classwork and on-the-job training in its apprenticeship program . 
  • Work Experience: Entry-level jobs in CM are usually as assistants or in project roles such as quality assurance inspector, cost estimating, scheduling and documentation management with a CM firm or team. From there, CM specialists advance into construction manager roles, leading projects, and program executive positions.
  • License: Some U.S. states require construction managers to be licensed. For example, California CMs need to obtain either an architect, engineer, or general contractor license to work on state and local government projects. Check the requirements in your state.
  • Certification: After a certain number of years work experience, you can take a test to gain certification from various industry bodies. This signifies that you meet high standards of technical expertise and ethics.
  • Graduate Degree: This is not required, but you can enhance your resume by pursuing a master’s degree in construction management.  

Another track is the construction manager in training (CMIT) program of the CMAA. This pathway involves four progressive levels of competence and work experience. To gain the CMIT designation, you must be at least 18 years old, pass a level one exam, have a supporting letter from a supervisor, and know the basics of CM. 

Attaining each subsequent CMIT level (up to level four) requires passing an exam, completing soft skills training, and having at least six months experience per level in specific aspects of construction management, such as contract administration and time management.

In addition, CMIT participants work with mentors who help them gain experience, provide support, and facilitate networking.

Education Opportunities for Commercial Construction Management

The study of construction project management is a specialty field in which you learn about management, planning, and organization in order to successfully complete projects in the construction industry.

Historically, people in this field rose to construction project manager positions from trade jobs, such as carpentry or plumbing. But, construction has grown so complex, that companies now look for education and experience. 

From four-year plans to certificates to PhD programs, there are many educational possibilities in construction management.

Commercial Construction Management Education and Training Opportunities

Today’s construction project manager typically has a bachelor’s degree in engineering or construction, while some pursue master’s degrees and certificates as well. And, with the rise of online classes, it has become much easier to take classes during your off hours. 

Here are the education options for those wanting to pursue construction management:

  • Clemson University in Clemson, South Carolina, which has a 90 percent job placement rate for graduating students.
  • The University of Washington in Seattle, Washington, which boasts an entire Construction Management Department.
  • Georgia Institute of Technology in Atlanta, Georgia, notably its School of Building Construction .
  • University of Florida in Gainesville, Florida, the first to become accredited by the American Council for Construction Education (ACCE).
  • Cal Polytechnic State University in San Luis Obispo, California, with courses in Construction Management in its College of Architecture and Environmental Design
  • Pratt Institute , the renowned art and design school with campuses in New York City, Brooklyn, and Utica, New York, has close ties to New York construction resources. Its faculty has overseen such projects as the World Financial Center.
  • Kennesaw State University in Kennesaw, Georgia, provides scholarships to qualifying construction management students, and its advisory board actively engages in hiring the school’s students and graduates. 
  • Arizona State University in Tempe, Arizona, offers undergraduate, graduate, and doctoral studies of construction management. It also offers an accelerated master’s program called “4+1,” which allows undergraduates to begin a master’s program in their senior year. Its school of construction is the largest in the state and produces 21 percent of all construction management degrees in Arizona. ASU also offers an online master's program in construction management, designed to meet the growing need for professionals with advanced technical, management, and applied research skills in the construction industry.
  • Stanford University in Stanford, California has a graduate and doctoral program in three construction course tracks: construction engineering and management, design-construction integration, and sustainable design and construction.
  • The University of Washington in Seattle, Washington includes certificates, undergraduate, and graduate degrees in construction management. The department also has strong ties to local construction agencies, leading to many student internships.
  • Clemson University in Clemson, South Carolina, has received high marks for its construction management master’s program from both the National Center for Construction Education and Research, and the Associated General Contractors of America.

Commercial Construction Management Certification Choices

There are many certifications that commercial construction managers can pursue. The most well known is the certified construction manager (CCM) designation from the CMAA. 

Note that many universities, colleges, and community colleges offer CM certificates for students who complete multi-week or multi-month programs, often online and self-paced. Certificates differ from certifications, which require passing an exam and meeting other industry standards.

Attaining one of the top CM certifications typically takes at least eight years of combined education or work experience. There are other certifications that demonstrate your mastery of certain aspects of construction, but they do not focus on construction management practices.

Do You Make More as a Commercial Construction Project Manager if You Have Certification?

Commercial construction managers with certifications and advanced degrees earn about 10 percent more than their counterparts, the CMAA says. 

According to the U.S. Bureau of Labor Statistics, the 2019 median pay for construction managers was $95,260 a year or $45.80 an hour. The top-earning 25 percent of CMs made $126,040, while the bottom quartile made $71,900. 

The job outlook for construction managers is bright. There were 476,700 CMs in the United States in 2019. Between 2019 and 2029, that number is forecasted to grow eight percent, much more than average, the Bureau says.

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Construction Business Plan Template

Construction company analysis.

In your company analysis, you will detail the type of construction business you are operating.

For example, you might operate one of the following types:

  • Commercial Building Construction. This segment includes construction work (including maintenance and repairs) on office, retail, hotel, agricultural and entertainment buildings.
  • Single Unit Residential Housing Development
  • Multi Unit Residential Housing Development
  • Municipal Building Construction
  • Road & Highway Construction
  • Electrician business
  • Plumbing business

In addition to explaining the type of construction business you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include sales goals you’ve reached, construction projects completed, etc.
  • Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

CONSTRUCTION BUSINESS PLAN OUTLINE

  • Construction Business Plan Home
  • 1. Executive Summary
  • 2. Company Overview
  • 3. Industry Analysis
  • 4. Customer Analysis
  • 5. Competitive Analysis
  • 6. Marketing Plan
  • 7. Operations Plan
  • 8. Management Team
  • 9. Financial Plan
  • 10. Appendix
  • Construction Business Plan Summary

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General Contractor Business Plan

commercial building construction business plan

Your constructional expertise, contractual knowledge, and project management skills are enough for you to start a general contracting business. However, you need something more to succeed—a well-thought-out business plan.

Having a business plan can help you secure funding, set priorities, make informed decisions, and steer your business in the right direction.

Need help writing a business plan for your general contractor business? You’re at the right place. Our general contractor business plan template will help you get started.

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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.

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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

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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.

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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

commercial building construction business plan

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

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Download General Contractor Business Plan

commercial building construction business plan

Permit Center

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Building Permits

Residential & commercial building.

The Building Safety Division oversees plan reviews, permits, and safety inspections for both commercial and residential projects in Prescott, collaborating with various departments. Our requirements ensure adherence to building standards, safeguarding investments and public safety. Obtaining a permit also creates a record for future owners.

We are currently under the 2018 International Residential Code and 2018 International Building Code. View these codes at  ICCSAFE.ORG  

Stages of Approval

Navigating building permits, plan reviews, fees, and inspections for projects requires careful planning, regulatory adherence, and effective communication. It ensures projects meet safety standards, zoning, and city goals.

  • Application Process
  • Plan Review
  • APPROVAL, FEES & ISSUANCE
  • Inspections

Building Permit Application Process

Step one: determine what permit type/subtype you need.

Please reference the following documents to determine if you need a permit as well as what type/subtype is needed , you’ll need this information when you apply online in the prescottpermits.com system.

  • What type of work requires a permit?
  • Permit Type & Subtype Descriptions
  • 2018 Code Design Criteria

STEP TWO: GATHER ALL NEEDED MATERIALS

Prior to applying for a permit please review the submittal checklists below and have the appropriate required documents ready to upload with your submittal for the correct type and sub-type of building permit.

Accessory Structures 

Commercial / Multi-Family - New or Addition

Commercial / Multi-Family - Tenant Improvement and Remodel

Electrical Only

Fences and Walls

Manufactured Structures

Mechanical Only

Photovoltaic Solar System

Plumbing Only

Pool and Spa

Re-roof Only

Single Family Residential / Duplexes - New

Single Family Residential / Duplexes - Addition or Remodel

The Fast Track permitting process allows applicants to submit for a permit without the necessity of construction plans. This program has been created to help customers quickly receive a permit for small, “like for like” projects, that can be verified for code compliance on-site with a proper building inspection.

At permit issuance, applicants will receive both a permit and a Fast Track checklist that highlights common items our inspection staff will be verifying on-site.  

Please refer to our fast track permitting checklists below to see if your project qualifies. 

NEW PROCESS COMING SOON IN 2024

The Express Model process has been designed to address large mass-graded sites that contain multiple similar or identical structures.

The process begins with an applicant submitting model plans and elevations to be reviewed, approved, and issued by the City of Prescott.

Once the model plan is issued, the applicant is permitted to submit up to five express permits (model site) a day, and all express permits will be reviewed by the City within a 5 day period. Approved model plans for express permits are valid for a duration of three years and are approved to be built anywhere within the City, provided site-conditions are compatible with the submitted model plan designs.

For further information, or to see if your project qualifies for the express model permits process, please refer to our express model permit submittal checklists below:

Additional Forms

2018 Building Pad Certification Form

Special Inspection Form

Backwater Valve – Hold Harmless Form

Certified Building Wrap Statement

Energy Certification Form

Code Interpretation - Residential Bedrooms

Code Interpretation - Drinking Fountains

2018 Braced Wall Calculation Sheet

External Resources

International Code Council

Arizona Building Officials

Arizona Registrar of Contractors

Yavapai County Contractors Association 

Arizona State Board of Technical Registration 

U.S. Department of Justice ADA guidelines

U.S. Access Board ADA information

STEP THREE: View & Complete Related Requirements

Additional Engineering, Right of Way, or Fire Permits or Supporting Documents may be needed when applying for your building permit. You may select the link below to apply for these permits.

  • Engineering & Fire Code Permits
  • Right of Way Permits
  • FEMA and Flood Control
  • Fire Sprinklers
  • Wildland Urban Interface (WUI)

STEP FOUR: Property specific requirements

Additionally, for structures located in floodplains, Wildland Urban Interface (WUI), historic preservation districts or airport impact areas, extra documentation might be required when applying for a building permit. Detailed information can be found by following the restrictions link below.

  • View Property Specific Restrictions

step FIVE: APPLY FOR A PERMIT

Log into your online PrescottPermits.com portal account to apply for a permit. If you do not already have an account, please follow the steps listed here.

  • prescottpermits.com

Apply for a Permit

Log into your online PrescottPermits.com portal account to apply for a permit.  If you do not already have an account, please follow the steps listed here.

  • PrescottPermits.com Help Center

Historical Data

Looking for Permit History & Census Data? 

Information related to issued Commercial and Residential Building Permits is available by time period and type. Please follow the link below to view.

  • Permit history & census data

Building Plan Review

The plan review process is a crucial step in ensuring the safety, compliance, and successful execution of construction and development projects. Through a meticulous assessment of proposed plans, specifications, and designs, our expert team evaluates the project’s alignment with building codes, regulations, and industry standards. This thorough examination not only identifies potential issues but also provides valuable insights and recommendations to optimize the project’s feasibility, efficiency, and overall quality.  

The following checklists are designed to assist you through the plan review process and ensure that you have addressed essential aspects of your project.

Plan Review Checklists

  • International Building Code Plan Review Checklist
  • International Residential Code Plan Review Checklist

We currently perform plan review under the 2018 International Residential Code and 2018 International Building Code and City of Prescott approved amendments. Complete codes may be viewed at ICCSAFE.ORG .

Code adoption and specific code amendments which supersede designated sections of code can be viewed via links below:

3-1: International Building Code

3-2: International Building Code

3-5: International Building Code

3-6: International Plumbing Code

3-7: National Electric Code

3-8: International Residential Code for One and Two Family Dwellings

3-17: Administrative Building Code

3-18: International Energy Conservation Code

4-5: Fire and Safety Inspections

6-1: International Fire Code

6-2: Urban-Wildland Interface

Plan Review Timeline

Each permit type has a unique set of evaluation criteria, review departments, and estimated timeframes. Following receipt of Plans and Supporting Documents files, applicable department reviewers will be assigned based on permit type. If corrections or additional documentation are needed, each reviewer will include detailed notes of required code items. Following completion of all reviews for the round, the permit status is updated to “Corrections Required” and a notification emailed to applicant with Comments Letter posted on the portal. Upon return of updated full set of documentation, a new round of review will commence. You may check the status of your permit review in your PrescottPermits.com portal.

If you have further questions regarding the review process or expected completion date, you may contact the Building Permit Center.

  • Contact Building Permit Center

Approval, Fees, and Issuance

Following review approval by all departments, fees will be applied and applicant notified the permit is Ready to Issue. Following payment (online or via check), the permit will be issued and approved files posted on the portal for download.

For more information see permit fees.

  • View Permit Fees

Building Inspections

Know before you schedule.

  • Ensure all work has been completed per approved plan prior to requesting an inspection.
  • Ensure the area(s) that are going to be inspected are free and clear of all debris and clutter.
  • Inspections are scheduled in advance online through the PrescottPermits.com  portal.
  • Inspections can be scheduled as early as the next business day (or up to 5 business days) if requested prior to midnight.
  • Inspections are not available on weekends or City of Prescott holidays.
  • Inspections may be cancelled by 11:59pm the day before the inspection is scheduled; if you need to cancel your inspection on the day it is scheduled , please call Building Permits  between 7:30am-8:00am.

On-Site Inspection information

  • Approved plans and permit must be on-site and available to the inspector the day of inspection.
  • Inspections are performed Monday thru Friday between the hours of 8:00 am and 3:00 pm , except on observed holidays.
  • Inspection results will be emailed to all contacts on permit the day of inspection and are also available in the online portal.
  • After 2 failed inspections , a re-inspection fee will be applied and must be paid before scheduling a new inspection.

How to Schedule an Inspection

Log into your online PrescottPermits.com portal account to schedule your inspection.  If you do not already have an account, please follow the steps listed here.

Do you have questions?

Not finding what you're looking for or have questions? We are happy to help, please reach out.

commercial building construction business plan

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The Buzz: Work on new hotel, home store underway. The latest with old Barnes & Noble

commercial building construction business plan

April signaled the start of two big commercial projects in Redding.

Building permits were issued for the My Place Hotels on East Cypress Avenue and the At Home store on Dana Drive.

All told, the city’s building department issued five commercial permits for projects worth $13.3 million in April. That sparked what had been a slow start for the commercial sector in Redding in 2024.

To date, the city has issued six commercial permits for projects worth $14 million, compared to 13 commercial permits for projects worth $21.2 million for the first four months of 2023.

My Place looks to open early 2024

Redding will be the first location in California for My Place Hotels.

Joe Dinger, vice president of development for Pacific Northwest My Place Hotels Group, said My Place Hotels “dot the I-5” with locations in Medford, Oregon; Gresham, Oregon; and Vancouver, Washington.

“So, for us, Redding is a natural extension,” he said.

Dinger said construction is expected to be completed in late February or early March.

“We are typically a little bit quicker with hotel projects. It’s only a 64-unit property, no swimming pool. It’s a pretty simple construction as it’s related to hotel construction, which is usually an 18-month timeline,” Dinger said.

The site in Redding has been vacant for years and had been a magnet for vandals and homeless people before the empty, dilapidated former Meek’s building was razed in October 2022. Meek’s closed in 2006. BI-MORE Spend Less moved in, but that retailer closed in 2010.

Demo work on old Costco underway

What was the tire center at the old Costco on Dana Drive is gone.

The tire center jutted out just north of the old store’s entrance. It was demolished to make room for what will be the new façade of At Home, which will anchor River Bend Commons when it moves into the old Costco building.

Tilton Pacific Construction is doing the demolition work.

At Home has a location in Chico in the Chico Marketplace on East 20th Street.

Also coming to River Bend Commons is Redding’s first Raising Cane’s , a popular fast-food chicken franchise.

On a side note, we were traveling to the Bay Area recently when our daughter, Faith, wanted to check out the Raising Cane's in Vacaville. The restaurant featured a double drive-thru, much like Chick-fil-A and cars were backed up almost to the street.

Curiously, Raising Cane's in Vacaville shares a parking lot with In-N-Out Burger. Talk about traffic gridlock.

Work on Raising Cane’s in Redding is expected to start later this year and the company plans to open in Redding in September 2025.

At Home’s media relations team did not respond to an email seeking information about when the store is expected to open.

Maybe before the end of this year?

Stay tuned.

Old Barnes & Noble/OfficeMax building headed for auction

The Barnes & Noble and OfficeMax building in Redding will be auctioned off later this month.

The Churn Creek Road building has been vacant since late last year when Barnes & Noble closed to relocate to Hilltop Drive. The bookstore had been the lone tenant ever since OfficeMax closed in 2017.

It's among a growing list of vacant retail buildings in Redding.

Recent additions include Kelly-Moore Paints on Hilltop Drive and Site for Sore Eyes on East Cypress Avenue. Kelly-Moore closed all 150 of its stores in January after 78 years in business. The owners of Site for Sore Eyes retired and closed the store after nearly 20 years in Redding.

Strip malls across Redding are filled with “space for lease” signs, a pretty good indication of the low demand for used commercial space in these times.

Which brings us back to the former Barnes & Noble/OfficeMax building.

The East Coast Company that owns the property has tasked Tranzon Asset Strategies to sell the 44,000-square-foot building.

“Obviously, you know, there is a soft retail market across the country. This is a seller we worked with frequently in the past,” Tiffeny Cook of Tranzon recently told me over the phone. “So, we have (sold) a number of properties for them at auction.”

Cook is based in Orange County. Her team recently traveled to Redding to show the property to prospective buyers.

Bidding will start May 20 and closes at 2 p.m. Eastern Time on May 22.

The minimum bid is $1.375 million. Cook said the minimum bid is based on the value of comparable retail properties in the area.

David Benda covers  business , development and anything else that comes up for the USA TODAY Network in Redding. He also writes the weekly  "Buzz on the Street"  column. He’s part of a team of dedicated reporters that investigate wrongdoing, cover breaking news and tell other stories about your community. Reach him on Twitter  @DavidBenda_RS  or by phone at 1-530-338-8323. To support and sustain this work, please  subscribe  today.

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Government’s $91m tradie plan only ‘modest’ boost for home building

Government’s $91m tradie plan only ‘modest’ boost for home building

The federal government’s $91 million investment to boost the number of skilled construction workers will only give minor stimulus to a housing sector challenged by soaring demand, economists and industry leaders say.

The plan to add almost 22,000 new workers would equal less than 2 per cent of the existing construction workforce of more than 1.3 million, economist Carlos Cacho said.

“It’s pretty modest. This is really a long-term problem that is going to take many years to rectify,” said Mr Cacho, the chief economist at investment bank Jarden.

It was also not clear how quickly the extra workers would be able to get up to speed and play a meaningful role in tackling the Albanese government’s target of 240,000 homes a year, on average, for the next five years.

The increasingly shaky target of developing 1.2 million new homes is a crisis of surging demand and a construction workforce facing its own challenges of strong demand from infrastructure for the same resources, and the retirement of skilled Baby Boomer tradesmen.

“Despite a sizeable workforce of 1.35 million Australians, the industry has an annual exit rate of 8 per cent, and we are only replacing half of those people per year,” said Master Builders Australia chief executive Denita Wawn.

Immigration rules that exclude foreign tradies from the country’s fast-track visa system have compounded the shortage.

The increase in potential workers will come from $62.4 million in next week’s federal budget to create 15,000 fee-free training places in TAFE and VET vocational colleges; $26.4 million to create 5000 pre-apprenticeship programs; and $1.8 million to speed up the skills assessment of 1900 potential migrants.

  • Related: Loyalty program a huge driver of occupancy at Marriott hotels
  • Related: Melbourne CBD retail vacancies tighten as businesses come roaring back
  • Related: Rest Super, Barings snaffle $780m Goodman industrial portfolio

“To build more homes we need more tradies, and that is what this announcement will deliver,” Housing Minister Julie Collins said on Wednesday in a joint announcement with Skills and Training Minister Brendan O’Connor.

The investment drew applause from the sectors most affected by the shortages.

Ms Wawn said making it easier for skilled migrants – who often found the existing processes too long and costly to have their qualifications recognised – to work in home building was crucial.

“For many migrants, it is simply too hard to have their professional capacity recognised to work in a trade in Australia, and they are instead in roles that present fewer hurdles to obtain,” she said.

“The Parkinson Migration Review found skills assessments or qualification recognition can take up to 18 months and cost nearly $10,000; time and money people simply don’t have in this economic climate.”

Property Council of Australia head of advocacy and policy Matthew Kandelaars said the industry needed a bigger boost.

“While we welcome funding to streamline skills assessments for potential migrants in construction trades, we can and must set our sights even higher,” he said.

“Only 1.8 per cent of our skilled migrant intake has been comprised of new construction workers over the past two decades, falling significantly short of what we need.”

The Housing Industry Association said next week’s budget needed to continue existing arrangements that subsidised companies for taking on apprentices.

“Without an employer, there is no apprentice, and the financial incentives currently in place that have encouraged the employment of an apprentice and improve retention, have proved invaluable to helping the construction industry to access more workers,” HIA managing director Jocelyn Martin said.

Mr Cacho said while the labour shortage was a problem, it was less of an issue than productivity, or how efficiently the sector could build new homes.

“That is a bigger issue – how long it takes to build. That’s a bigger problem than just getting people on site.”

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commercial building construction business plan

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Hartford Courant

Connecticut News | Historic CT diner owner ‘blindsided’ by…

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Connecticut news | former uconn men’s basketball player rakim lubin dies at 28, connecticut news, subscriber only, connecticut news | historic ct diner owner ‘blindsided’ by building’s planned demolition for apartment construction.

The Wethersfield Diner. (Don Stacom/The Hartford Courant)

The property owner is seeking the town’s permission to tear down the diner and put up a four-story apartment and retail building , and operator Stacey Pribyson said Wednesday there’s nothing she can do to stop it.

“I bought the business in 2015, when it was closed — locked up and dark. I spent eight months restoring it, cleaning everything, building it back,” Pribyson said. “Then I heard last Friday that the (property) owner wants to sell.”

Will Rivera, Pribyson’s husband and the diner’s cook, put it more bluntly: “We were blindsided.”

The AM Group, a development company from New York, told Wethersfield’s planning and zoning commission Tuesday that it wants to build a four-story apartment building on the acreage where the Wethersfield Diner stands.

The commission approved zoning permits for the project, and there appears to be nothing on the horizon that will save the diner business or building.

Stacey Pribyson at her Wethersfield Diner. (Don Stacom/The Hartford Courant)

The AM Group is working with the property owner, 718 Silas Dean Realty LLC. A related company, 708 Silas Dean Realty LLC, also owns the adjacent gas station and Oakland Fresh Market.

Land records show that 708 Silas Dean Realty bought the gas station property for $1.1 million in December of 2021; the company lists members as Belal Basatna of Orange, Essam Tinawi from Wethersfield, and Jay Nahlawi from Milford. They are also the listed contacts for 718 Silas Dean Realty LLC, which bought the diner property for $450,000 in mid-2022, according to town records.

The goal of the apartment complex is to “provide a seamless and pleasing exterior appearance for this part of the Silas Deane Highway, which helps create a more pedestrian-friendly, boulevard-type experience,” an AM Group spokesman told the commission Tuesday night.

“This will necessitate the demolition of the existing Wethersfield Diner. The new building will consist of one retail/office space on the first floor, and 18 apartment units (three on the first floor, and five each on the additional floors,” AM Group’s application states.

AM Group’s zoning paperwork indicates the diner building was constructed in 1952. Rivera said he believes it dates back several years before that, and Pribyson said it was manufactured in 1949.

“This is a Mountain View,” she said, referring to a line of prefabricated diners manufactured in New Jersey from 1939 through the late 1950s. Pribyson said that exterior was bricked over years ago, and a small kitchen and dining area were added on later as well.

“I used to work here in high school. Then in 2014, it was closed down. I thought ‘Holy cow, the diner is empty,’ so I bought the business,” she said.

The diner shut down again for more than a year during the pandemic, and Pribyson said she thought about selling at that time because the menu didn’t lend itself to a quick pivot to takeout.

“It’s very hard to take pancakes or eggs to go,” she said.

She reopened it with reduced hours; the diner is now serving breakfast and lunch on weekdays. The business was good enough to outlast the Wethersfield locations of the Chip’s and Denny’s chains, but now appears to be at the end of the line.

Moving the building to another property might work for someone else, she said, but she doesn’t have the cash to pay for that.

“It’s too bad. There aren’t many diners left in Connecticut,” she said.

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  16. Building Permits

    The plan review process is a crucial step in ensuring the safety, compliance, and successful execution of construction and development projects. Through a meticulous assessment of proposed plans, specifications, and designs, our expert team evaluates the project's alignment with building codes, regulations, and industry standards.

  17. The Buzz: April was a big month for commercial construction in Redding

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  25. Free Construction Business Plan Template + Example

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