Feasibility study for a small contracting project

A feasibility study for a contracting project. Not long ago, construction required building and construction. With the increasing urban boom and the ongoing need for continuous infrastructure development, this has made contracting projects a resounding success. Therefore, we will present to you a feasibility study for a contracting project.

Feasibility study for a contracting project

It has been said that a feasibility study is nothing but a series of specialized and interconnected studies in which work, investment, or even the start of a project are located. It has been addressed in the life of the project from the beginning of its establishment until reaching liquidation.

This is to ensure the project's suitability for achieving the best returns or results. In the following points, we will learn about the feasibility study for a contracting project:

1- Determine the size of the project you want to do.

The feasibility study places the investor in the light of the actual market requirements. In addition, through this study, the investor is fully aware of the size of his project, which is appropriate for him according to the financial amount he has.

2- The company’s appropriate field of work in the market.

The activity is determined based on the amount allocated for investment and the existing experience. The field of articles is very diverse, and includes the field of construction and building for other contracting, including landscaping, plumbing, and even carpentry. It may also include blacksmithing, decoration work, as well as air conditioning, maintenance, and operation.

3- Select the required labor and equipment.

This element is an important component of any contracting project, as it is considered one of the main elements in the operation of the contracting project.

When you want to start a contracting business, you need to purchase some information and also find out other information related to the equipment you will rent.

Also, the workers who will join you in that business and the work system allocated to you, whether for employment or projects, are all major determinants that you must know before entering the market.

4- Compare the companies in the market with the projects offered for work.

In all projects, you need to identify your competitors in the market, in order to launch a strong competition based on price and quality at the same time. Furthermore, knowing the projects available in the market will help you determine many aspects related to your contracting project.

Financial study of the contracting project

1. Determine the investment costs of the contracting project: You must determine the capital or the amount of investment expenditure on that project, such as the cost of what will be spent.

2. Sources of financing for investment costs and their implications

There are usually many sources of funding for any project. When you are implementing a contracting project, it is likely that self-financing will not be sufficient, or you may have to resort to lending institutions or banks to obtain a financial loan.

Here, you must keep in mind that in the case of self-financing, the opportunity cost of the investment is the money lost. If you take out a loan, you will have to repay it in addition to the interest.

3. Identify the investment cost components for recovery.

It includes all investment costs you incur during the preparation period for the contracting project to start operating. Here, you must recover these costs over the years of operation, including the property, working capital, and equipment. This is called the payback period.

4. Marketing study for the contracting project

The marketing study was based on collecting and analyzing data related to the contracting project by determining the current demand and supply.

You also need to determine the marketing channels and marketing strategy that you will follow in the project. The importance of the marketing study for the contracting project lies in the following:

Determine the size of demand you expect and identify projects in the market.
Set a price that is appropriate to the market in which you can compete.
Identify the marketing channels used for promotion as well as advertising.
Know the budget that suits the contracting project in order to publish the project in the market.

Purpose of a contracting company

It was represented in the following points:

General contracting works include construction and maintenance works of all kinds, as well as the installation of buildings that become ready, as well as works related to surveying, leveling, and the like.
There are road leveling works, water and sewerage works.
Water treatment plants and sewage treatment plants are being installed.
All projects are supervised and technical as well as engineering consultations are provided.
Manufacture of the necessary building materials to achieve the project objectives.
Manufacture of cement bricks and floor tiles to achieve the same objectives.
It imports all the equipment, machinery and materials required for the project to carry out its work, in addition to the furniture and equipment necessary for this matter.

Types of contracting projects

There are many types of contracting projects and ideas that you can implement, including the following:

Metal scaffolding: Its role lies in maintaining the safety of workers on architectural projects, instead of the presence of wooden scaffolding, which puts their lives at risk. This type of scaffolding is used in the fields of construction, building, and welding, as well as in installing pipes at various heights. It is also used in hotels, factories, residential towers, tourist areas, and the like.
Precast concrete wall production: This type has become increasingly popular in most architectural projects, as it saves time and ensures high-quality construction. The project also involves producing concrete panels and selling them to construction companies, with a return on investment of approximately 331 TP3T in the first year.
Manufacturing metal structures for hangars: This is classified as part of the contracting sector, and involves constructing metal structures for various storage hangars.
Water tank manufacturing: This is one of the most profitable projects you can undertake, as water tanks are used extensively in projects.
Block making workshop project: The specialized products of this project may be used in the construction of large administrative units.
Suspended ceiling manufacturing: This involves the production of suspended metal units, as well as wall units in all their various directions, including standard tiles that are uniform in dimensions and longitudinal sections.

Contracting company project cost

The costs associated with the legal procedures that have become specialized in establishing a company or contracting project, such as the commercial register, the tax card, and insurance related to workers and the like, have generally reached a high level.

Moreover, you will find that the feasibility study of a contracting project must be conducted at the required level and with the required specialization.

There are contracting projects in many fields, including construction, building and finishing works, whether internal or external, for buildings, as well as cracks and so on.