Capacity Planning Procedures

Document Type: Guide
Version: 1.0
Last Updated: February 2026
Distribute To: Owner, CEO, Operations Manager, CFO

Purpose

Establish procedures for assessing and planning organizational capacity to support growth, optimize resources, and maintain quality standards.

Why Capacity Planning Matters

Construction Capacity Reality:

Growth requires capacity (people, bonding, capital)
Exceeding capacity leads to failures
Under-capacity means missed opportunities
Right-sizing enables profitability

Capacity Constraints:

People (management, field, estimating)
Bonding
Working capital
Equipment
Systems/processes
Physical facilities

Capacity Assessment

Current Capacity Analysis:

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         CAPACITY ASSESSMENT
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Company: _______________________  Date: _______________

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REVENUE CAPACITY:

Current annual revenue: $_________________
Revenue at current capacity: $_________________
Capacity utilization: _____%

If under 70%: Underutilized - can grow without adding resources
If 70-85%: Healthy - selective growth possible
If 85-95%: Near capacity - growth requires investment
If over 95%: Strained - quality/delivery at risk

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PEOPLE CAPACITY:

| Role | Current | Capacity Each | Total Capacity | Utilization |
|------|---------|---------------|----------------|-------------|
| PM | | $_____M/yr | $ | ___% |
| Super | | $_____M/yr | $ | ___% |
| Estimator | | _____ bids/yr | | ___% |
| Admin | | ratio ___:1 | | ___% |
| Field | | _____ | | ___% |

Bottleneck role: _______________________
Revenue limited by: $_________________

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BONDING CAPACITY:

Single job limit: $_________________
Aggregate limit: $_________________
Current backlog: $_________________
Available aggregate: $_________________
Utilization: _____%

Revenue limited by bonding: $_________________

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WORKING CAPITAL:

Current working capital: $_________________
WC as % of revenue: _____%
Industry benchmark: 8-12%
Revenue supportable: $_________________

Revenue limited by WC: $_________________

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EQUIPMENT CAPACITY:

| Equipment Type | Current | Utilization | Capacity Limit |
|----------------|---------|-------------|----------------|
|                |         |             |                |

Revenue limited by equipment: $_________________

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SYSTEMS/PROCESS CAPACITY:

| System/Process | Can Support | Current Load | Bottleneck? |
|----------------|-------------|--------------|-------------|
| Estimating | $_____M | $_____M | ☐ |
| Project mgmt | $_____M | $_____M | ☐ |
| Accounting | $_____M | $_____M | ☐ |
| Payroll | _____ people | _____ | ☐ |
| Billing | _____ projects | _____ | ☐ |

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CAPACITY SUMMARY:

| Constraint | Revenue Capacity | Utilization | Bottleneck |
|------------|------------------|-------------|------------|
| People | $ | ___% | ☐ |
| Bonding | $ | ___% | ☐ |
| Working capital | $ | ___% | ☐ |
| Equipment | $ | ___% | ☐ |
| Systems | $ | ___% | ☐ |

OVERALL CAPACITY: $_________________ (lowest constraint)

Primary bottleneck: _______________________

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Capacity Planning by Function

Project Management Capacity:

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         PROJECT MANAGEMENT CAPACITY
================================================================

CURRENT PM STAFF:

| PM | Current Load | Target Load | Available | Projects |
|----|--------------|-------------|-----------|----------|
|    | $            | $           | $         |          |

Total PM capacity: $_________________

PM capacity rules of thumb:
  Experienced PM: $5-10M depending on project types
  Junior PM: $2-5M
  Complex projects: Lower capacity per PM
  Routine projects: Higher capacity per PM

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PM CAPACITY ANALYSIS:

If growing to $_________________:
  PMs needed: _____
  Current PMs: _____
  Gap: _____

Hiring timeline: _____ months to find and onboard
Lead time required: _____ months before growth

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ACTION ITEMS:

☐ Hire _____ PMs by _______
☐ Promote from within: _______________________
☐ Training needed: _______________________

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Field Supervision Capacity:

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         FIELD SUPERVISION CAPACITY
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CURRENT SUPERINTENDENTS:

| Super | Current Projects | Capacity | Available |
|-------|------------------|----------|-----------|
|       |                  |          |           |

Total superintendent capacity: _____ projects / $_____ revenue

Superintendent capacity rules:
  Experienced super: 2-4 projects depending on size/complexity
  Junior super: 1-2 projects
  Travel projects: Dedicated per project

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FIELD LABOR CAPACITY:

Direct labor force: _____
Labor hours available/year: _____
Subcontractor relationships for overflow: ☐ Strong  ☐ Limited

Self-perform capacity: $_________________ revenue
With subcontractors: $_________________ revenue

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Estimating Capacity:

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         ESTIMATING CAPACITY
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CURRENT ESTIMATING STAFF:

| Estimator | Specialty | Bids/Month | Hit Rate | Revenue Won |
|-----------|-----------|------------|----------|-------------|
|           |           |            |          |             |

Total estimating capacity: _____ bids/month
Required hit rate: _____%
Revenue generation capacity: $_________________/year

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ESTIMATING BOTTLENECK ANALYSIS:

To achieve $_________ in new awards:
  Win rate: _____%
  Bids required: _____
  Bids per month: _____
  Current capacity: _____
  Gap: _____

Solution options:
☐ Hire estimators
☐ More selective bidding (improve hit rate)
☐ Estimating software/efficiency
☐ Outsource quantity takeoff

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Growth Capacity Planning

Capacity for Growth Scenario:

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         GROWTH CAPACITY PLAN
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GROWTH SCENARIO:

Current revenue: $_________________
Target revenue: $_________________
Growth: _____% over _____ years
Annual growth rate: _____%

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YEAR-BY-YEAR CAPACITY REQUIREMENTS:

| Resource | Current | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|----------|---------|--------|--------|--------|--------|--------|
| Revenue target | | | | | | |
| PMs needed | | | | | | |
| Supers needed | | | | | | |
| Estimators | | | | | | |
| Admin/accounting | | | | | | |
| Bonding required | | | | | | |
| Working capital | | | | | | |

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INVESTMENT REQUIRED:

People:
| Position | Year | Salary + Burden | Hiring Cost |
|----------|------|-----------------|-------------|
|          |      |                 |             |

Total people investment: $_________________

Working capital:
  Current: $_________________
  Required at target: $_________________
  Gap: $_________________
  Source: _______________________

Bonding:
  Current capacity: $_________________
  Required: $_________________
  Gap: $_________________
  Action: _______________________

Equipment:
  Additions needed: $_________________
  Timing: _______________________
  Funding: _______________________

Systems:
  Upgrades needed: _______________________
  Investment: $_________________

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TOTAL INVESTMENT FOR GROWTH: $_________________

Payback period: _____ years
ROI: _____%

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Capacity Constraints and Solutions

Breaking Bottlenecks:

Constraint	Solutions
PM capacity	Hire, promote, train, technology, reduce scope per PM
Field supervision	Hire, promote, work with subs, technology
Estimating	Hire, outsource takeoff, improve hit rate, be selective
Bonding	Increase WC, improve financials, surety relationship
Working capital	Retain earnings, equity injection, better terms
Equipment	Buy, lease, rent, subcontract
Systems	Upgrade software, add staff, outsource

Quick Capacity Additions:

Timeframe	Options
Immediate	Subcontract, overtime, temporary staff
3-6 months	Hire experienced people, lease equipment
6-12 months	Train/promote, build relationships
12+ months	Develop talent pipeline, build systems

Monitoring Capacity

Monthly Capacity Dashboard:

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         CAPACITY DASHBOARD
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Month: _______________

| Metric | Target | Actual | Status | Trend |
|--------|--------|--------|--------|-------|
| Revenue capacity | $ | $ | ☐R ☐Y ☐G | ↑↓→ |
| PM utilization | ___% | ___% | ☐R ☐Y ☐G | ↑↓→ |
| Super utilization | ___% | ___% | ☐R ☐Y ☐G | ↑↓→ |
| Estimating capacity | ___/mo | ___/mo | ☐R ☐Y ☐G | ↑↓→ |
| Bonding utilization | ___% | ___% | ☐R ☐Y ☐G | ↑↓→ |
| WC utilization | ___% | ___% | ☐R ☐Y ☐G | ↑↓→ |

Constraints approaching:
1. _______________________________________________________
2. _______________________________________________________

Action items:
1. _______________________________________________________
2. _______________________________________________________

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Capacity and Backlog Balance

Backlog vs. Capacity:

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         BACKLOG CAPACITY ANALYSIS
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BACKLOG BY TIMING:

| Period | Backlog $ | Revenue Capacity | Status |
|--------|-----------|------------------|--------|
| Q1 | | | ☐Over ☐Under ☐Match |
| Q2 | | | ☐Over ☐Under ☐Match |
| Q3 | | | ☐Over ☐Under ☐Match |
| Q4 | | | ☐Over ☐Under ☐Match |

If over capacity:
- Delay starts
- Increase subcontracting
- Add capacity
- Decline/defer new work

If under capacity:
- Aggressive pursuit
- Reduce pricing (carefully)
- Consider other markets
- Temporary cost reduction

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Strategic Planning
Growth vs. Profitability
Workforce Planning
Bonding Program Management

Template provided by support.construction. Grow into capacity, not beyond it.

Purpose​

Why Capacity Planning Matters​

Construction Capacity Reality:​

Capacity Constraints:​

Capacity Assessment​

Current Capacity Analysis:​

Capacity Planning by Function​

Project Management Capacity:​

Field Supervision Capacity:​

Estimating Capacity:​

Growth Capacity Planning​

Capacity for Growth Scenario:​

Capacity Constraints and Solutions​

Breaking Bottlenecks:​

Quick Capacity Additions:​

Monitoring Capacity​

Monthly Capacity Dashboard:​

Capacity and Backlog Balance​

Backlog vs. Capacity:​

Related Documents​