Feasibility study for a ready construction establishment
In recent years, the Kingdom has witnessed a massive urban renaissance, with which construction, reconstruction, and internal and external finishing works for buildings and apartments, as well as companies and shops, have increased. This is what made a contracting establishment one of the projects that have a very high success rate.
Working in this field is very profitable! However, it is not recommended to enter the field randomly, but it must be based on the results of an integrated feasibility study that guarantees a sound and strong entry into the market
Consulting a feasibility study office that tells you how to successfully run a contracting establishment is one of the important steps that should be taken and inquire about the smallest details regarding project management financially, technically and administratively. The following are the sections that should be included in a feasibility study for a contracting establishment:
Services provided by a contracting establishment
The activities of the contracting establishment no longer depend on construction work only, but extend to specialized and complementary activities. Starting with general contracting for residential, commercial, educational, recreational, health and sanitation buildings, passing through contracting for landscaping, plumbing, carpentry, blacksmithing and decoration works, all the way to contracting for air conditioning, maintenance and operation works.
The cost of establishing a contracting establishment
Some offices undertake to assist the investor to launch his project in establishing a contracting establishment, in exchange for an amount to be paid that does not exceed 6,000 Saudi riyals, as follows:
1. Opening a commercial register with government fees for one year for all electronically approved activities.
2. Opening an uncle’s office file so that the Saudization certificate can be issued and the employment sponsorship transferred to it.
3. Opening a file in social insurance and issuing a certificate.
4. Opening a file in the Department of Zakat and Income and issuing a certificate of zakat and value added (VAT).
5. Opening a Wasel address so that documents can be received and delivered by mail.
6. All services include government fees and comments only for these services.
Marketing study for a contracting establishment
The marketing feasibility study for the contracting establishment determines the expected price for the requirements of the project or company, in addition to the preferred specifications for the commodity produced by the company.
Marketing for a contracting institution is considered one of the most important elements of its success, and with the recent development, e-marketing has become the dominant element in marketing, so you must be present on various social networks, and target groups interested in your field of work.
Promote yourself to the owners of housing companies, as well as cooperate with real estate investment companies, and make sure that the quality of your work is the messenger that carries and reflects the image of your contracting company
- The distinguished place has a great role, as the distinguished place in itself is considered marketing for the company.
- Advertisements in newspapers and economic magazines
- Communicate with startups that will be the same size as your company and offer partnership to get some projects larger than the size of the company.
- Communication with real estate investors and developers.
Employment, equipment and supplies of a contracting establishment
The necessary tools, equipment and raw materials: plumbing hand tools, electric hand tools, carpentry and blacksmith hand tools, construction equipment, painting equipment, transport vehicle, pump, desk, sofa…
The technical machinery and equipment differ from one company to another according to the company’s specialization, and the shape and size of the machinery and equipment differ from one project to another. The technical study of the contracting company determines the most appropriate machinery and equipment for the project.
Necessary labor: The company’s capital, specialization and size are what determine the number of necessary labor. Only the feasibility study that you will prepare will choose the necessary labor from among what we will mention: interior designer, construction engineer, accountant, paint workers, construction workers, blacksmith, carpenter, plumber, electrician..
Company office: Contracting companies need areas in the process of reconstruction and construction, such as expansions in cities and desert projects. An administrative apartment can be rented on the ground floor, with an area not exceeding 60 square meters, to be the administrative headquarters of the company. And work to equip office furniture, decorations and various equipment and requirements for office work, so that the company is qualified to receive, work and communicate with customers.
Tips for project success
There is no doubt that the project of a contracting establishment is successful and profitable, being within a vital sector, and the demand for construction, reconstruction and building works, in addition to restoration and renovation with decorations.. is continuing and increasing. Also, the percentage of risk is low because the work is based on the request of the client. But all these advantages cannot guarantee you success in the project without successful management.
A business plan is a summary of the strategy you are developing in order to successfully run your organization through a specific phase. Through it, you review all the procedures and means to achieve your goals and launch your company’s activity.