Feasibility study for a contracting company project

Humans are always in need of construction and development, and with the urban boom witnessed in this era, it has become necessary to develop the infrastructure, which has made the contracting company project a profitable one.

Therefore, it is essential to conduct a feasibility study for a contracting company project. Contracting companies operate in all areas of construction, such as building, interior and exterior finishing of residential apartments, commercial companies, malls, and many other countless businesses.

Feasibility study for a contracting company project

A feasibility study is of great importance before starting a project or investment. It is a series of specialized studies that cover the project from its inception to its liquidation to ensure the project's potential to achieve the best results. Therefore, the following should be done:

1. Knowing the size of the company and the projects that the company can undertake

A feasibility study helps the project owner understand the actual market situation and its requirements, determine the size of the company based on the financial amount allocated to start the investment, and identify the projects for which he can bid or contract to undertake when establishing the company.

2. Determine the field of work that suits the company within the market.

The scope of work must be determined based on the investment amount and available experience, as the contracting field is diverse and includes many fields in addition to the field of construction and building.

3. Scrutinizing the selection of the company’s workforce and appropriate equipment for the project.

One of the most important components of a contracting company, as it is a fundamental element in the operation of the business within the contracting company, and you will need to know more information about the equipment you will be renting.

Also, determining the work system for the workers who will join the work, whether it will be through employment or projects, are all essential things that must be known before entering the job market.

4. Make a comparison between the companies available in the market and the available projects.

One of the most important things when establishing a contracting company is knowing your competitors in the market so you can compete strongly with them based on the available price. Knowing the projects available in the market helps you understand the factors that contribute to the success of your project.

The importance of a feasibility study for a contracting company

A feasibility study helps identify some important issues that must be taken into consideration when conducting a feasibility study for a contracting company project, which are as follows:

Evaluation of practical and scientific evidence on the suitability of the contracting company.
Providing the project owner with a true picture of the reality through accurate numbers and details to help the company owner make the right decision.
Providing a complete data system for the project, through a technical, financial and marketing study of the project.
A feasibility study provides a comprehensive report on the project's basic costs, the profits it will generate, and the period of time it will take to recover the money invested in the company.

Financial study of the contracting company

Financial study is one of the important matters in the feasibility study of a contracting company project.

1. Anticipate the investment costs that the company may need.

Determine the capital that can be spent on the project, which is the amount of money spent and not recovered during a single financial period. It includes all the amounts that will be spent from the beginning of the idea to the beginning of the actual project for the contracting company.

2. Sources of financing investment costs and their results

Project financing sources are numerous, and while the company is implementing the project, self-financing may not be sufficient. In this case, external financing, such as banks, must be sought to obtain a financial loan. It must be taken into account that if the financing is self-financing,

The benefit of the alternative opportunity is lost, and in the case of taking out a loan, there is interest due during the repayment period.

3. The investment cost elements required for recovery must be identified.

It includes all investment expenses incurred by the owner to establish and prepare the company for operation, which must be recovered during the years of operation, including real estate, capital, and equipment. Therefore, it is called the payback period.

Marketing study for a contracting company

The feasibility study of a marketing contracting company project depends on collecting information and data related to the contracting company through the current and future demand and supply engine for the company.

As well as its competing companies, determining the marketing channels and budget it needs, and the marketing method that can be used during the work period.

The importance of marketing studies for contracting companies

Determines the quantity of expected demand and projects within the market.
Set a price that is appropriate to the market and competitive.
Select the channels through which you will implement your marketing and advertising plan.
Set a known budget to promote the company in the market.

The importance of advertising and publicity for a contracting company

One of the most important things to consider is that it helps citizens know the company and its type of activity.

Like any other business, a contracting company needs a marketing and advertising plan. Therefore, it's important to advertise your company on social media and publish ads in various newspapers and magazines to help explain your company's vision and the services it provides.
Offers can be made to attract customers to deal with the company, which helps increase its profits. Installment services can also be provided to customers.
Develop a plan to expand the company's operations in the future and try to keep up with all the latest developments in the contracting field.

The most important factors that contribute to the success of a contracting company

There are some factors that help the company owner to make his company successful in the market, which are:

Develop a preliminary vision of the field in which the company will operate, and develop a vision of the amount of capital the company will need.
You must study the market, identify the areas that suit the company, and gather information about competitors.
Seek advice from people with experience in the field, as this will help you understand the market conditions.
Conduct a feasibility study that covers all the details of the project, including all the financial and technical details required by the project, along with accurate figures. This study will become the primary reference in deciding whether to operate the project or not.

Objectives of the contracting company project

The goal of undertaking a project is always to make a profit or achieve self-realization through the success of this project. The implementation of this project depends on the project owner and his ability to manage it.

He also has an interest in learning and researching everything related to the project, knowing everything new in the market and the current market situation, and comparing the situation of his company with its competitors. The project also aims to develop the country and provide advanced capabilities in a more effective manner.

Administrative structure of the contracting institution

Each company has its own administrative structure, which consists of:

Company Executive Director.
Executive Engineer for the company's business.
Secretary and Public Relations Officer.
Sales and marketing employee for the company.
An accountant skilled in dealing with government agencies such as the Tax Authority, Insurance and other government agencies.
Legal Affairs Manager to draft contracts and complete various legal procedures.
The company must have a foreman with experience in this field.
The need for a worker to perform cleaning work inside the company headquarters.

The contracting field is one of the most profitable sectors compared to other projects, but attempting to enter this field requires extensive research before entering it.

It is not recommended to enter this field haphazardly. Therefore, a comprehensive and well-studied feasibility study for a contracting company project must be conducted.