Budget Plan

CORE CONSTRUCTION

NAKUL LOHRI VENKATA PUTCHA NILESH PADWAL

• Estimate Budget plan for Core Constructions.• Financial plans of the company.• Present Balance Sheet & Profit or Loss Statement.• Direct and In-Direct Costs.• Budget TimeLine.• Break even analysis.• Risks Involved

BUDGET OVERVIEW

• Core Construction company provides building services and quality construction with high standards and techniques.

• The company creates award-winning multi-million dollar facilities throughout the United States.

• CORE Constructions started in 2013 and the company began to bid successfully for large scale products.

• All tasks are performed by skilled craftsmen for an effective management of projects during construction.

ABOUT COMPANY

• Written Business Plan• Determine financial need• Obtain necessary licenses and permit• Get Insurance• Purchase or lease construction equipment and tool• Cost estimation• Hire experienced construction workers.• Hire subcontractor• Advertise construction company. • Start a website for your construction company.

ASSUMPTIONS

FINANCIAL CONSIDERATIONS

• We expect to see increased profits from our market by the end of year 1.• For the first three years we expect lower profits as we make inroads into the

market.• It was exclusively owned by Mr.A(50%) and Mr.B(50%).• This company is expecting to alter to a C class corporation.• This which will create greater investment opportunities through the

acquisition of investment capital from a limited number of shareholders.

MARKET ANALYSIS• The categories that we will serve include the restaurant

segment.• The special facilities segment, such as gas stations, and

theaters. And a category which we will call "general", encompassing all other potential commercial clients

BREAK EVEN ANALYSIS

Total expense = Direct + Indirect Cost = $ 2,923,060

Total Sales = $ 4088637

Profit = Total Sales -- Total expense.

= $ 1,165,577

Investment = Land + Building + Machinery

= $1,221,050

Break Even point = 1221050/1165577= 1.04

After 1 year, the company will start making profit.

POTENTIAL RISKSDesign Risks• Design errors and omissions• Failure to carry out the works in accordance with the contract

External risks• New stakeholders emerge and request changes• Laws and local standards change

Organizational risks• Inexperienced workforce and staff turnover• Delayed deliveries• Lack of protection on a construction site

Contd….

Project management risks• Failure to comply with contractual quality requirements• Scheduling errors, contractor delays• Project team conflicts

Construction risks• Construction cost overruns• Technology changes

THANK YOU