Business Management of Owning a Construction Company

Owning a construction company requires good planning whereby the management puts several measures in place to ensure that a company performs well to generate enough money that aids it run its operations. Availability of surplus raw materials is one of the important factors to consider while managing a construction company. A construction firm should have enough laborers who offer services to customers and who work at the production stage. Running a construction company requires that the management come up with a good marketing strategy that allows the company to attract as many clients as possible to allow the organization generate enough income to carry out its activities effectively. Keeping records in an organized manner makes it easy for a construction company to make references and also to avoid loss of data. Managers who plan their activities wisely and accordingly in a construction company are in a better position of elevating the profit that the company generates and to improve the quality of goods and services that the firm offers.

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Definition of Important Concepts

Management is a common term that this paper uses and it means to adopt effective measures as a leader that help to run an organization in an effective manner. The term construction is also common in this analysis and it means to come up with projects such as buildings, bridges and roads using qualified personnel.


Even though raw materials are essential in the running of a construction company, some companies lack them due to poor management which in most cases leads to the fall of a business. Other construction companies lack enough laborers and this makes the available workers to strain with their work which in most cases lowers the outcome of construction companies. Lack of effective marketing strategy and lack of proper ways of record keeping also in many instances lead to the downfall of many construction companies because they are not able to generate sufficient income from different customers and they experience confusion respectively.This report makes use of an imaginary company by the name of Davis Construction firm to expound on the management of owning a construction company. As part of its activities, this construction firm produces building bricks from clay soil, produces celling boards that builders fit inside houses, and also hires professional masons and other construction designers to people or organizations that want to come up with buildings. To attain its goals, the management of Davis Construction firm must take into account several measure that will help it run its activities.

Availability of Raw Materials

First of all, the manager of this organization must ensure that there is a continuous flow of raw materials to enable the firm continue with its production. In this case, the essential raw materials that Davis Construction firm needs are clay soil to manufacture bricks, wood chips to manufacture celling board, and sufficient water to carry out the mixing process. Other raw materials that this organization needs to produce its goods include chemicals that it uses to carry out its production.

A good manager will carry out a research on the best places to acquire the raw materials so that the firms does not experience delays in its production process. To ensure a steady supply of raw materials in a construction firm, managers should have more than one source of suppliers who deliver raw materials to the company. Having more than one source of supplier who supply the same product is important because this allows a company to carry out its activities continuously not to inconvenience customers. In many instances, unreliable suppliers make business managers to consider alternative ways getting raw materials to carry out an organization’s activities (Alonso, 2007, p. 3). Another way in which the manager of this company and any other construction company can ensure constant availability of raw materials is by establishing nearby sites that generate enough raw materials to run the activities of an organization. For example, to have a constant supply of water, the manager can hire professionals to come and dig boreholes that will provide surplus water to the firm at a much cheaper cost.

Availability of Workers

Effective management of a construction company calls for hiring enough laborers who help in running the organization’s activities. A wise manager will therefore, put measures to ensure that the laborers share work equally and that they do not strain while carrying out their activities. The laborers in a construction firm should fall into several sections where each worker partakes in the activity of his specialization. By each worker taking part in the activities of his specialization, a construction firm will attain accuracy in all the goods it produces and all the services it offers.

To get laborers of sufficient knowledge to carry out their activities, the management of Davis Construction Firm should carry out a test while recruiting laborers after ascertaining their credentials. Even though it is a common occurrence in many countries that construction activities attract workers with low educational level (ILO, 2001, p. 12), it is important for managers to hire workers with high qualification to do their job perfectly so as to come up with products and services that satisfy customers’ needs. The management should ensure that workers get sufficient training to enable them carry out their duties with preciseness. As a way of improving the technical skills of their workers, managers should organize educative seminars where other professionals offer theoretical and practical knowledge to the workers. Good managers take the initiative of helping technicians who show great ability in their duties attain further training and also to serve as motivation to the contractors. Managers in a construction company should also take their workers to tour different construction firms because if they fail to do this, it will be impossible to compete favorably with other construction firms.

Marketing Strategies

A construction company should adopt effective marketing strategies that allows it to reach customers from different geographical regions. After intense research about marketing strategies, managers in construction companies such as Davies Construction Firm should come up with a suitable way of marketing the goods and services that the firm offers. To effectively reach customers from different regions, managers who run construction firms should adopt reliable channels such as the internet and publications because these two are able to carry so much information about a company and are also able to transmit information within a very short time. Enhanced technology has improved communication and marketing which has positive effect on inter-organizational relationship and communication (Avlonitis & Karayanni, 2000, p. 442). Managers in a construction firms should appoint certain people with the right qualification to manage the company’s website and to attend to customers’ needs. In a business organization, it is important for managers to create a customers’ department wing to improve the quality of services and to build a long-term relationship with the customers (Rust, Moorman, & Bhalla, 2010, p. 5).

Record Keeping

Managers who run construction companies should adopt better ways of storing vital information. Good forms of record keeping enable construction companies to make necessary reference whenever conflicts or discrepancies occur. For example, Davis Construction Firm can adopt better ways of record keeping by using computers that are able to store large amount of data for a very long time. People in charge of electronically storing data must be very keen in their activities to ensure that the information stays for a long time without getting lost (Trace, 2002, p. 138). Managers in a construction firm should also adopt a way of keeping records that is easy to retrieve information. Some of the advisable ways of keeping records in a manner that is easy to retrieve include using alphabetical orders, storing records according to the subject and keeping records in accordance to urgency.


Managers who run construction firms should take the initiative of helping the company attain its goals. As part of their management duties, managers should be able to come up with ways that ensures a constant and sufficient supply of raw materials to enable the firm carry out production of goods and services continuously. A manager should also be able to ensure that a construction firm has enough workers who help in carrying out the activities of a company in accordance to their area of specialty. Coming up with an effective marketing strategy helps to reach customers from different regions and therefore, be able to generate enough money for the construction firm. Above all, a manager in a construction firm needs to device effective methods of storing vital information about past and current operations of a construction firm.


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