Marketing plan for a construction company

After several years of decline in the market of construction, McGraw-Hill Construction estimated that the construction industry would increase by 8% in 2011. While this is certainly good news for those working in industry, construction it remains a very competitive business. The company’s construction market their products and services effectively can be successful and the best way to do this is by creating a detailed marketing plan.

Set goals

In the first part of a marketing plan for a company building must set goals. You have to set realistic and measurable goals you want to achieve in the next year. For example, a goal might be to help sponsor an annual event where volunteers come together to build homes for the homeless in your area. Or, you can speak at meetings of the chamber of commerce to publicize your business. The key is to write goals that are specific, measurable, for example, “to raise US $ 25,000 in the annual housing construction in June 2011″.

Market research

The next part of your marketing plan is to conduct market research. Collect market information can help you make more accurate predictions about the growth in the construction industry in your area, to identify strengths and weaknesses of your competition, and grow your business. While conducting market research is somewhat slow and potentially costly, there are different ways you can do it.

If you have a big budget for marketing, hiring a market research company it is the fastest and effectively. If you do not have the budget to hire outside help, you can carry out your own research attending meetings of the Chamber of Commerce, knowing the trends building in your city, studying the marketing strategies of your competitors and using the Internet for information relevant.

Target audience

Analyzes the information you collected in market research and use it to determine your target market, which is the group of customers with your construction company does business with more frequency.

Market research can help you better know your target customers. For example, if your construction company is aimed at customers of commercial real estate, maybe you made during the investigation of market surveys revealed that these customers tend to be middle-aged men and make use of technology. Use the information you collected to create a detailed profile of your market, including gender, age, income level and their technology preferences.

Marketing strategies

The last part in a marketing plan is to identify what your advertising strategies, which are promotional methods you use to promote your construction company will be. These strategies depend on the results of market research. For example, if the profile of your target customer is made by developers of commercial properties that are users of technology, using strategies and tactics of advertising such as advertising with search engines, mobile advertising and social media to promote your business. Describe each of the tactics they use to promote your construction company and set an implementation schedule. Be sure to include a budget for the strategies and how you plan to spend on each.

Starting and advertise a construction business

Running a business building itself needs more than you know about the trade. You need to understand how the management of small business and sales to succeed as an entrepreneur. Advertising a construction company needs to identify its target customers and the means to reach potential customers. Below is some advice to help you start and advertise a construction business.


Business plan

  1. Write a business plan. It includes specific information about what types of construction projects want to work, the kind of customers you want and the size of business you want to start. Consider whether you want to employ others or use subcontractors. It also includes information about your competition and create a marketing plan in which you detail how you will market your services.
  2. Seeking advice on business. Consultation with a lawyer and an accountant to ask questions about the best legal structure for the company. (You can choose to operate as a sole proprietorship with limited liability companies or partnership, among others.) Find local small business seminars to learn about small business management, and tries to find a mentor who operates a business of similar construction to you will begin. Find out what fees, licenses, procedures and necessary permits are to operate a construction business in your state. Requests a liability insurance and employment research regulations.
  3. Choose a place. Your office and you need to store will depend on the type of construction business you want to perform. A carpenter may only need a small workshop, while contractors offering services use large equipment requiring a variety of buildings for storage and office support staff of the house. Investigate local zoning laws, which can regulate everything from the noise, before creating your store or buy property. Choose a place considering storage equipment, travel time and accessibility for customers.
  4. Create a budget and get financing. Your budget should include estimated operating costs and expenses. Your business plan will be essential to obtain a traditional loan. However, it can still be difficult to obtain bank financing to start a construction business. Consider borrow friends or family, use your personal credit cards and use your personal savings to cover initial operating costs. Save on your start-up costs by renting equipment.
  5. Promote your business. Once you have researched all your responsibilities as a business owner, you’re ready to offer your services building. Your marketing efforts can include everything from door to door calls, sales, brochures, print advertising, a website and even an advice column in the local newspaper. Give your business cards to satisfied customers and ask for references.


  1. Choose your advertising goals. These objectives can be measurable (such as increased business by 20 percent) or general ideas (such as to publicize your construction services). The more specific you are in your goals, the easier it will be to create an effective advertising and analyze your results.
  2. Identify your target market. This is the group that is very likely to buy your services. If you’re not sure who you’re most common customer, uses a survey to ask who the customers are and what services they are interested. Typical customers are building businesses homeowners, businesses, governments and schools.
  3. Create your message. Adapt your advertising to the interests of your target market and their needs. For example, if you sell construction services to homeowners, create advertising that describes how your services can solve problems remodeling or improve their homes. Focus on the benefits your business provides to customers.
  4. Choose your media. Select one of the newspapers, general or specialized magazines or websites. Choose an option that has an audience that corresponds to your target market. Most media companies maintain demographic information describing their common readers and their preferences. For example, you can post your ad in the local newspaper, if your marketing is building services for local business owners.
  5. Analyze your answer. It includes a way to measure the effectiveness of your advertising. You can do this using a code that gives the customer a discount or just asking where he learned of the construction company.

How to account for construction costs

Construction costs are accounted for through a project accounting system where costs are charged to a particular contract that has been established as a project in the system. The project accounting system allows several construction projects to be in progress at the same time with the costs accounted for separately for each project.

Costs generally fall into three categories: direct costs, such as hand labor, materials and sub-contracting; Indirect costs such as indirect labor, supervision, tools, equipment costs, supplies, insurance and support, and selling, general and administrative expenses, which are excluded from the cost contract, As they apply to the general administration of the company and cannot be easily identified with a particular project. In general, there are two methods of accounting that can be used for information purposes: the finished contract method and the degree of progress.


Log daily transactions in newspapers, in the beginning. It periodically summarizes and publishes transaction information to general ledger accounts, where each transaction is recorded as both a debit and a credit to particular accounts in the general ledger. For example, payment for construction materials represents an increase in debit or an account of project costs and a credit or reduction in the company’s cash account.

Carry out financial reports under the completed contract method. Using the completed contract method the income is only reported for completed projects. Work in process (costs) is only reported on the balance sheet, resulting in an asset if contract billing exceeds costs or a liability if costs exceed contract billing. The total net profit or loss is reported in the final period, when the project has been completed and has a direct impact on revenue only during that period. The completed contract method of accounting is entirely retrospective (the company will not know if there will be a loss in the project until the end) and does not provide any guidance for management during the project period.

Decide which of the two methods you are going to use and be consistent. Under the percentage of completion method, costs are presented in the income statement together with a pro rata share of all project revenues (or invoices) equal to the proportion of work performed during the period. The proportion of work done is determined by dividing the costs for the period of the total estimated costs of the project. The percentage-of-completion method estimates actual revenues in each period, but is susceptible to possible manipulation of results that may distort the actual position of the firm.

The average cost per square foot to build an extension in your home

Planning and building a new home expansion is a great project as it is a great way to invest money and make a profit in the future when the market value of houses increases. However, the original cost per square foot (929.03 cm²) for an expansion can be high and requires tight budgets.

Building attachments

Most extensions require a completely new construction, from foundational elements to new materials for roofs and canals. Basically, this is almost as much as building a new home, so homeowners often use new home construction costs to figure out how much they have to spend. In general, in 2011 it cost between US $ 100 and US $ 300 per square foot (929.03 cm²) to build a new house, like most extensions, not including any furniture or complicated extension such as canteens, but electricity, Plumbing and other necessities.


For some homeowners, the line between an extension and a remodel is very inaccurate, as it may seem easier to remodel a home and increase its size at the same time. These remodeling costs closely resemble the prices of new home construction, in 2011 ranged from US $ 115 to US $ 250 per square foot (929.03 cm²) to remodel a single room with an extension. A two-floor extension tends to start at the upper limit of US $ 175, while a multiple-room extension falls in the range of US $ 150 to US $ 325.


There are important variance factors that affect the price of a home’s expansion. One is location, since labor and materials always vary in price from one place to another; But the main factor is the quality of the materials that the owners choose, because the wood costs more than the carpet and the price of the stone is higher than the vinyl, and thus prices can increase quickly to US $ 300 and more with The choice of high-end materials. For this reason, it can be difficult to create averages without having an idea of ​​what the owner wants.

Extensions in existing spaces

Building an additional space may not seem like an extension, but in many cases allows owners to change the attic or basement through a new meeting room. In this case, prices are much lower because the basic structure is already built. Basements can cost about $ 40 per square foot (929.03 square feet), while the attic can cost less, equal or more, depending on the electrical system and existing plumbing.

Estimating the box preliminary project costs commercial remodeling

Commercial remodeling projects are awarded to companies construction companies bid on the work. The first step in the bidding process is to develop a range of individual items. Commercial remodeling projects involve multiple merchants.

Work planning can be complicated because the interrelated steps must be completed in the correct order. The contractor must estimate hand labor for labor and material costs that can accurately make a formal job offer.


  1. Determines all stages of remodeling work and different trades necessary to complete the project. The first step in filling a preliminary cost table construction is the identification of the individual stages.
  2. Determines each step of each stage. For example, painting a room requires sanding the walls, patches holes, primer, re-sanded the walls and apply finishing coats of paint. Accurate preliminary cost table requires a full explanation of all the works included in the scope of work. Enter these steps in individual lines in the preview box costs. Depending on the complexity of the work, contractors can build a separate table for each trade.
  3. Measuring the amount of units of measurement for each stage is required. The measurement units vary based on trade. For example, for painters, the contractor measures how many square meters of wall and finishing coating meters are included in the project. For electricians, this calculation includes many electrical circuits, lights, switches and other elements that are installed. Carpenters can measure their work by the number of linear meters of wall that are torn down and assembled, or how many windows and doors are installed. Each task is measured, and the contractor enters the amounts of these preliminary steps in the table.
  4. Check out the guide cost of contractors and added in the cost table the unit cost of each item. The guide contains the average cost of unit prices nationwide for each operation and process. These estimates give the contractor a solid idea of ​​its current workforce of more construction material costs.
  5. Add in the preliminary cost table rates by considerations such as permits, waste disposal and equipment rental. The contractor must capture all your expenses to create a specific offer.
  6. Totals unit prices of the preliminary table. The sum is the total cost of business for labor and materials, and unnecessary expenses. From this preliminary picture, the contractor can calculate its price offer and submit a proposal for work.

Estimating costs and budgets in construction projects

How much is worth to execute a construction project? The million dollar question. To do this, the costs must be estimated. I think it is attributable to an appointment that seems to me magnificent, and which reflects the difficulty of answering the question posed:

“An estimate is the most optimistic prediction with a non-zero probability of being true”

In the next post we will reflect on the importance of cost estimation and the budgeting of a construction project.

Cost estimation processes and budgets in projects under construction

According to the PMBOK Guide (Guide to the basics of project management Project Management Institute) management costs of a project includes the following processes:

  • Estimate Costs: Develop an approximation of the financial resources needed to complete the project.
  • Determine the Budget: add the estimated costs to establish an authorized cost baseline.
  • Controlling Costs: Monitor the project situation to update the project budget and manage changes to the cost baseline.

These three processes could be grouped in two, since the estimation of costs and budgets in construction projects are carried out in a planning phase and control of costs is a more linear process, which is carried out along of the entire project.

Focusing on the processes that interest us for the post, based on the definitions of the PMBOK guide, the main ideas of the processes in question are presented:

  • Cost estimation: this is a quantitative prediction, in the form of currency, of the resources needed to carry out the project activities. Costs are estimated for all resources required for the project, i.e. personnel, materials, services, facilities, equipment, etc. In order to obtain this cost estimate for all activities, different tools (parametric, upward, three-valued, reserve analysis, etc.) will be used and a basis must be available, such as knowing the project and its activities, its Schedule, risks, etc.
  • Budget Determination: consists of adding up the estimated cost of all activities or work packages and being able to establish a baseline or cost reference plan. The project budget constitutes the funds authorized to carry out the project. The cost control will be based on this authorized budget and its corresponding baseline. In this process, the financing requirements are also obtained, if any.

Depending on the needs, the type and volume of the project, the cost estimate and the determination of a base budget can be converted into a single process. The number of people involved in these processes will also vary.

The tools for estimating costs will also vary depending on, for example, the phase of the project or the degree of definition of the project in that particular phase. The PMBOK guide talks about these processes within the project planning, but they can also be given prior to the start of the project, as could be the case for the budget determination for a tender.

It would have to be seen, depending on the structure of the organization and the project entity, whether or not the preparation of the bidding is part of the project or future project, or are, on the contrary, a project in itself, or they do not even enter into any of these assumptions.

Description of residential construction work

Responsible for building residential areas are construction workers who engage in residential construction. They specialize in these types of building plans and designs of buildings that residents prefer. Residential construction often requires the same skills needed to build commercial households. However, these construction workers must understand how homes should be built to be functional and habitable.


Residential construction jobs include specialists such as architects, designers, carpenters, painters and electricians. Typically, a construction manager known as general contractor is hired by the owner of a property, as a resident or a real estate developer. Property owners and construction managers discuss the type of home that is constructed and the costs associated with the type of home chosen by the owner. Some construction workers could work for the construction manager full time, while others will have to be outsourced. The types of jobs may include insulation, drywall installation, and installation of tiles on the ceilings, plaster, roofing tiles, masonry, excavations and foundations.


In May 2008, most construction workers work 40 hours a week. However, according to the Bureau of Labor Statistics, 18% of them worked 45 hours a week. Although much of the construction is becoming automated, building homes still require much physical strength. Construction workers must carry heavy materials and equipment frequently.

In construction, especially at the beginning, residential construction workers work outdoors where they can be exposed to adverse environmental conditions. These workers can also work at high altitudes, though not always as large as the construction of high-rise buildings. However, residential construction workers normally follow careful safety measures and use safety equipment.


Some construction workers begin as workers who are hired immediately after they finish school. To improve your skills, construction workers have to take classes and receive training in the workplace. Training on security issues is considered especially important in the classroom.


Construction costs of building a house

Construction costs for the construction of a house vary considerably between geographic regions. Variable costs such as labor, supplies, local taxes and fees are the central drivers for discrepancies. Typically, the cost of home construction can be estimated accurately as there are numerous residential projects in each market to serve as a comparison or reference.


Geographic locations will significantly alter the cost of housing construction. Some areas are abundant with the resources and thus the prices of the house are smaller. Areas where resources are scarce are able to charge a large premium on these costs. For example, Maryland home building costs are typically the highest in the nation. Much of this is derived from the small blue collar work force in the region. Contractors and subcontractors trade unions charge a premium for their services, which in turn raises housing construction costs.


Many people see the cost of housing construction as unpredictable and random. With any reputable contractor, this is simply not the case. House construction typically utilizes common wood construction techniques that serve as an industry normalization. Because of this, you can easily estimate the cost of a home in a particular geographic region. Associated General Contractors of America publishes costs per square foot of housing construction in all regions. Access to this information through its website in the resources section. You can use this cost per square foot to determine your predicted cost based on the size of the desired home page. For example in California, the average cost per square foot of new construction is $ 75; starting from this value,


One of the elements that will affect the cost of construction in your geographic region is the quality of the finishes selected for your home. If a house is designed with high end finishes, as expected the cost of construction will be more. For example, a home with marble counters and mahogany panels (two very expensive materials) will cost more than a home built in the area.


An example of home construction costs is not predictable is when the owner constantly asks for changes to the original design. If a contractor is forced to re-work the construction and new materials for the construction of a house of order, then usually costs are increased. The best method to maintain an estimated cost is to minimize the design change as much as possible once construction has begun.

Expert penetration

Housing construction costs are a simple enough for experts. However, for those people who are unfamiliar with the construction industry, they can be a puzzle. Make sure you form a strong relationship with your contractor before hiring for the project. You will have to rely on your experience to achieve a desired result and cost. In addition, take time for housing construction costs in your immediate area. You can accomplish this by contacting local contractors and asking about the square feet costs of recent home projects.

Calculation of construction cost

Costing is essential throughout the planning process. If done right, you can relate the expectations of project sponsors to actual budgets long before the first order of change arrives. Before starting the design, a project budget consisting of indirect costs (design payments, permits, lawyer payments, etc.) and hard costs (site acquisition, building construction, other infrastructure) should be developed. The resources of all who are going to pay for the project within a box where the project designer and all other participants of the project must agree. The more detailed and realistic the cost calculation the less likely the surprises will be as the project gets closer to its execution.

By the time the project reaches its construction stage, the project designer will have originally had a preliminary budget of his expenses, prepared by the project engineer, architect or landscape architect. Preliminary cost calculation is typically based on costs of similarly designed projects built within the same region. If it is a public project, there may be actual cost records that will enable the project manager to develop a base calculated on unit per housing or by structure and on the basis of anticipated amounts (egg quantities of linear meters of sidewalks or water lines Of a certain width or diameter or cubic meters of soil or gravel required). There may also be private service information that provides cost information for public and private projects.

Preliminary expenditure calculation is often used to obtain commitments from government funds or to arrange for preliminary financing. The closer the execution of the project, the safer the budget becomes, because a considerable amount of time can pass between the times the project is proposed and the time it is built.

The preliminary cost calculation will need to include an emergency fund, up to 30 percent, to cover uncertainties in the bidding process. If the project is proposed during a time of rising land, material and labor, the fund may need to be higher for the fluctuating cost of the items in the project.

The typical costs included in the facet of the preliminary expenditure calculation include:

Indirect costs

  • Attorney payments;
  • Project management payments;
  • Permit and bond requirements;
  • Design and inspection payments;
  • Advertising / marketing costs.

Hard costs

  • Costs of building construction;
  • Land acquisition;
  • Services, include sanitary and storm drainage, water, gas and electric lines;
  • Erosion and sedimentation control;
  • Pavement of streets, curbs, gutter and sidewalk.

The final construction cost calculation is completed shortly after it has been determined to put the project to bid and after all requirements for government approval have been met. The project designer will prepare a worksheet detailing the calculation that makes up all site improvements and building costs in great detail. Electronic sheets such as Excel and Quattro Pro are used to compute and also make the total of such costs. You can buy different standardized models at different prices. These calculated alternative costs can be used to accelerate the estimation process. Costs are specified on a meter or square meter basis, per item or similar basis.

Build a house

Building the perfect home can really be a challenge, considering the great adventure that we face. It requires of us the maximum attention, it requires multiple knowledge in financial subjects, techniques of work, installations, procedures with the administrations, etc. But do not be scared, others have already done so and are now proud owners of their homes.

Build a house … but, please, no fright

Whether it’s the dream home or a commercial property: Building a home is always a small adventure, either for the costs or for the time that is needed for its construction. But it is an adventure whose happy ending can be planned.

How? In this sense I would like to make a small contribution on this website, not only for the private developer (self-construction), but also for the builders and investors who want to build a house. It is not necessarily intended to satisfy all the requirements in an exhaustive way; since, under no circumstances, professional advice could be substituted at the time of building a house.

Rather, it is about providing a first approximation to the subject, providing valuable information on how to build a house and smart real estate, in a simple and easy to understand way. The exhibition of topics starts with the terrain, continues with the best financing of building and planning, to other issues such as air conditioning, technical installations.

Management of works or legal aspects, energy efficiency and modern. It is surprising the lack of essential knowledge that people have, when they want to build a house or think about buying a home. And that, even though building a house means – for the majority – the biggest investment of our lives, which has more consequences in relation to monthly payments.

The property – form vs. function

“Form follows function” or “Function follows form”? (Is the function subordinate to the design or is the design subordinate to the function?)

Both aspects are part of the old and endless discussion of my fellow architects, both against and in favor. That is to say: when it comes to building a house is paramount for some distribution and design, while for others it is essential to build a house especially practical and functional. For me there is no possible discussion: both aspects must be reconciled when building a house.

A functional home, but aesthetically not very suitable, is as undesirable as a nice building, but nothing practical. Aspects like function and design are the ones that bother the most when incorrect planning is done. Or, what good is a washing area next to the kitchen, if then the drying area is three floors above? Or why these spacious dining rooms, whose use is restricted to once every five years?

It would not make sense to develop an architecture without a well-defined function, but neither would it have, if due attention is not given to aesthetics, when designing the spaces, a fundamental part that serves to improve the needs of a project.

Plans for the future: other issues related to: building a house, to provide further clarification on this matter. Some issues will be taken up for its due updating.