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Construction Business Planning

Document Type: Guide
Version: 1.0
Last Updated: February 2026
Distribute To: Owners, Executives, Management

Purpose​

Provide a framework for strategic business planning specific to construction companies.

Annual Business Planning Cycle​

Q4: Strategic Planning (Next Year)
    ↓
Q1: Execute Plan, Monitor
    ↓
Q2: Mid-Year Review, Adjust
    ↓
Q3: Prepare for Next Cycle
    ↓
Q4: Strategic Planning...

Key Planning Components​

1. Market Assessment​

Evaluate:

  • Economic conditions (local, regional)
  • Construction spending forecasts
  • Client industry health
  • Competitor landscape
  • Labor market conditions
  • Material pricing trends

Sources:

  • Dodge Construction Network
  • ENR forecasts
  • Local permit data
  • AGC/ABC reports
  • Client conversations

2. Company Assessment​

Strengths:

  • What do we do well?
  • Where do we win?
  • Key differentiators?
  • Strong relationships?

Weaknesses:

  • Where do we struggle?
  • Capability gaps?
  • Resource constraints?
  • Operational issues?

Opportunities:

  • New markets?
  • New services?
  • New clients?
  • Technology adoption?

Threats:

  • Competitive pressure?
  • Labor shortage?
  • Economic downturn?
  • Key person risk?

3. Financial Analysis​

Review:

  • Revenue trend (3-5 years)
  • Profitability trend
  • Cash flow patterns
  • Backlog health
  • Bonding capacity utilization
  • Key financial ratios

4. Goal Setting​

Categories:

  • Revenue targets
  • Profitability targets
  • Market position
  • Operational improvements
  • People development
  • Technology adoption

SMART Goals:

  • Specific
  • Measurable
  • Achievable
  • Relevant
  • Time-bound

Business Plan Outline​

Executive Summary​

  • Company overview
  • Key objectives
  • Major strategies
  • Financial summary

Company Profile​

  • History
  • Ownership
  • Organizational structure
  • Core competencies

Market Analysis​

  • Industry overview
  • Target markets
  • Competitive position
  • Growth opportunities

Services​

  • Current services
  • Capabilities
  • Differentiators
  • Planned expansions

Marketing & Sales​

  • Business development strategy
  • Client retention
  • Relationship building
  • Pipeline targets

Operations​

  • Operational model
  • Quality approach
  • Safety program
  • Technology utilization

Organization & People​

  • Key personnel
  • Organizational chart
  • Hiring plans
  • Training/development

Financial Plan​

  • Revenue projections
  • Profitability targets
  • Capital needs
  • Cash flow projections

Risk Management​

  • Key risks identified
  • Mitigation strategies
  • Insurance program
  • Contingency plans

Implementation​

  • Key initiatives
  • Timeline
  • Responsibilities
  • Milestones

Financial Projections​

Revenue Planning:​

Backlog (Current):               $______________
+ Expected Awards:               $______________
= Total Available Work:          $______________

Work to be Performed This Year:  $______________
Carryover to Next Year:          $______________

Target Backlog (Year End):       $______________

Profitability Planning:​

MetricPrior YearBudgetStretch
Revenue
Gross Profit
Gross Margin %
G&A Expenses
Net Profit
Net Margin %

Capacity Planning​

Labor Capacity:​

Trade/RoleCurrentNeededGapAction
Project Managers
Superintendents
Foremen
Field labor
Estimators
Admin

Bonding Capacity:​

Current Single Limit:     $______________
Current Aggregate Limit:  $______________
Current Utilization:      $______________ (___%)

Projected Need:           $______________
Gap:                      $______________
Action Required:          _________________

Strategic Initiatives​

Common Initiatives:​

AreaExamples
GrowthNew market entry, service expansion
EfficiencyTechnology adoption, process improvement
PeopleHiring, training, retention
QualityPrograms, certifications
SafetyCulture improvement, metric targets
FinancialMargin improvement, cash flow

Initiative Template:​

Initiative: ________________________________

Objective: ________________________________

Owner: ____________________________________

Timeline: _________________________________

Resources Required: _______________________

Success Metrics: __________________________

Key Milestones:
1. ________________________________________
2. ________________________________________
3. ________________________________________

Key Performance Indicators​

Financial KPIs:​

  • Revenue growth %
  • Gross margin %
  • Net margin %
  • Backlog months
  • Working capital ratio
  • AR days outstanding

Operational KPIs:​

  • Win rate %
  • Project profitability vs. bid
  • Schedule performance
  • Quality metrics
  • Safety (TRIR, EMR)

People KPIs:​

  • Revenue per employee
  • Turnover rate
  • Training hours
  • Employee satisfaction

Monthly/Quarterly Review​

Review Checklist:​

  • Financial results vs. plan
  • Backlog status
  • Pipeline review
  • Key project status
  • Safety metrics
  • Initiative progress
  • Issues/risks
  • Adjustments needed
  • WIP Analysis
  • Win Rate Analytics
  • Risk Management
  • Financial Reporting

Template provided by support.construction. Strategic planning drives sustainable growth.