PRESENTED BY: EVANS KAVEHAGI

INDEX NO:

SUPERVISED BY:

PRESENTED TO: THE KENYA NATIONAL EXAMINATION COUNCIL IN PARTIAL FULFILMENT

FOR THE AWARD OF DIPLOMA IN PROJECT MANAGEMENT.
EXAM SERIES: MARCH 2024
DECLARATION
I declare that this business plan project is my original work and has not been submitted to
examination or any award of diploma in Project Management or in any institution of higher
learning or the Kenya National Examination Council.
Name: EVANS KAVEHAGI
Index No

Signature:
Date:

Declaration by the supervisor.

I declare that this business plan project has been submitted for examination to Kenya
Examination Council with my approval as the supervisor of the Institute.
Name: FRANKLYN
Signature:
Date:

i
DEDICATION

I'd like to dedicate this project to the Kenya Examination Council and my lecturer for their support and all those
who were involved in its development. Their personal and combined efforts are highly appreciated. I also
dedicate my success to my Institution.

ii
ACKNOWLEDGEMENT

I would like to give my sincere gratitude to God for the much that I have achieved in this project. I also thank
my Lecturer and the entire Victory Digital College fraternity for their support through all this tremendous work
and also for their guidance, support and advice throughout the making of this project, and also my parents,
friends and family for their motivation and support. May God bless all dearly

iii
EXECUTIVE SUMMARY.
1.0 BUSINESS DESCRIPTION
This business will be called MJENGO CONSULTANCY GROUP. The business will be located in Nairobi County CBD
town area. It will be a limited company and it will be dealing with construction and housing units.

2.0 MARKETING PLAN

MJENGO CONSULTANCY GROUP aim to capture and dominate the construction industry market. It shall use
modern trends marketing method to create awareness.

3.0 ORGANIZATION AND MANAGEMENT PLAN

The business will only hire qualified employees to various positions for better production and services and shall
highly invest in training of employees.

4.0 PRODUCTION PLAN

This shall involve the stage where the aim product for the business shall be planned for in terms of cost, raw
materials and time frame for delivering.

5.0 FINANCIAL PLAN

It will show the expenses that will be Incurred in the business, the pre operational cost and operational cost will
be taken into account to avoid barriers in opening up the business.

iv
 EXECUTIVE SUMMARY.

Contents
DECLARATION ................................................................................................................................................................................. i
EXECUTIVE SUMMARY. ...................................................................................................................................................................... IV
1.0 BUSINESS DESCRIPTION ............................................................................................................................................................. IV
2.0 MARKETING PLAN ...................................................................................................................................................................... IV
3.0 ORGANIZATION AND MANAGEMENT PLAN ................................................................................................................................ IV
4.0 PRODUCTION PLAN.................................................................................................................................................................... IV
5.0 FINANCIAL PLAN ........................................................................................................................................................................ IV
CHAPTER ONE ..................................................................................................................................................................................... 1
1.0 BUSINESS DESCRIPTION.................................................................................................................................................................... 1
1.1SPONSORS BACKGROUND. ................................................................................................................................................................. 1
1.2THE PROPOSED NAME OF THE BUSINESS............................................................................................................................................... 1
1.2.1Location and Address. .......................................................................................................................................................... 1
1.3FORM AND TYPE OF OWNERSHIP. ........................................................................................................................................................ 1
1.3.1OWNERSHIP STRUCTURE .............................................................................................................................................................. 2
1.4PRODUCTS AND SERVICES .................................................................................................................................................................. 3
1.5JUSTIFICATION OF OPPORTUNITY ......................................................................................................................................................... 3
1.6INDUSTRY ...................................................................................................................................................................................... 3
1.6.1 Sizes of the Industry ............................................................................................................................................................ 3
1.6.2 Key characteristics of the industry ................................................................................................................................... 3
1.6.3Industrial trends and prospects. ........................................................................................................................................... 4
1.7 GOALS OF BUSINESS ...................................................................................................................................................................... 5
1.7.1SHORT TERM GOALS ..................................................................................................................................................................... 5
1.7.2LONG TERM GOALS ....................................................................................................................................................................... 5
1.8ENTRY GROSS STRATEGY ................................................................................................................................................................ 5
1.8.1ENTRY STRATEGY .......................................................................................................................................................................... 5
1.8.1GROWTH STRATEGY ...................................................................................................................................................................... 6
CHAPTER TWO .................................................................................................................................................................................... 7
2.0 MARKETING PLAN .......................................................................................................................................................................... 7
2.1 CUSTOMERS. ................................................................................................................................................................................. 7
2.2 MARKET SHARE. ..................................................................................................................................................................... 7
2.3 COMPETITION................................................................................................................................................................................ 8
2.3.1 Description of Potential Competitors. ................................................................................................................................. 8
2.3.2 Comparison of the proposed product with those of potential competitors. ..................................................................... 8
2.4METHOD OF PROMOTION AND ADVERTISING ......................................................................................................................................... 9
2.4.1PROMOTION STRATEGY. ................................................................................................................................................................. 9
2.5PRICING STRATEGY. ....................................................................................................................................................................... 10
2.5.1Cost plus strategy. ............................................................................................................................................................. 10
2.5.2Penetration pricing............................................................................................................................................................ 10
Advantages Disadvantages ................................................................................................................................................. 10
2.5 Demand oriented pricing ............................................................................................................................................ 10
2.5.1 Credit terms which will suit your services. ......................................................................................................................... 10
2.5.2 Pretoria used. ................................................................................................................................................................... 10
2.6 SALES TACTICS. ............................................................................................................................................................................ 10
2.6.1 Selling methods ................................................................................................................................................................ 10
2.6.2People involved in business sales ....................................................................................................................................... 10
2.7 DISTRIBUTION STRATEGY. ............................................................................................................................................................... 11
2.7.1 How will you get your services to customers? ................................................................................................................... 11
2.7.1 Distribution problems anticipated...................................................................................................................... 11
2.7.2How to solve the problems ................................................................................................................................................ 11

v
CHAPTER THREE ................................................................................................................................................................................ 12
3.0: THE ORGANIZATION PLAN. ............................................................................................................................................................. 12
3.1: The organization structure. ................................................................................................................................................ 12
3.2 MANAGERS AND QUALIFICATIONS ............................................................................................................................................. 12
3.2.1GENERAL MANAGER. .................................................................................................................................................................. 12
3.2.1.1 Qualifications. ............................................................................................................................................................... 12
3.2.1.2 Responsibilities .............................................................................................................................................................. 12
3.2.2 PROJECT MANAGER. .................................................................................................................................................................. 13
3.2.2.1 Qualifications ................................................................................................................................................................ 13
3.2.2.2 Responsibilities. ............................................................................................................................................................. 13
3.2.3 MARKETING MANAGER. .............................................................................................................................................................. 13
3.2.3.1 Qualifications. ............................................................................................................................................................... 13
3.2.3.2 Responsibilities. ............................................................................................................................................................. 13
3.2.4 CONTRACTOR. .......................................................................................................................................................................... 13
3.2.4.1 Qualifications. ............................................................................................................................................................... 13
3.2.4.2 Responsibilities. ............................................................................................................................................................. 13
3.2.5 HUMAN RESOURCE MANAGER. .................................................................................................................................................... 13
3.2.5.1 Qualifications ................................................................................................................................................................ 13
3.2.5.2 Responsibilities. ............................................................................................................................................................. 13
3.2.6 ADMINISTRATOR........................................................................................................................................................................ 14
3.2.6.1 Qualification .................................................................................................................................................................. 14
3.2.6.2 Responsibilities. ............................................................................................................................................................. 14
3.3 RECRUITMENT, TRAINING AND PROMOTION ........................................................................................................................................ 14
3.3.1 Recruitment. ..................................................................................................................................................................... 14
3.3.2 TRAINING ................................................................................................................................................................................ 15
3.4. PROMOTION. ............................................................................................................................................................................. 15
3.5 REMUNERATION AND INCENTIVE ...................................................................................................................................................... 15
3.6 SUPPORT SERVICES ........................................................................................................................................................................ 16
CHAPTER FOUR ................................................................................................................................................................................. 17
4.0 OPERATIONAL PLAN. ..................................................................................................................................................................... 17
4.1 PRODUCT AND SERVICE DESIGN AND DEVELOPMENT.............................................................................................................................. 17
2.4 PRODUCTION FACILITIES AND CAPACITY ....................................................................................................................................... 17
4.3 GROUNDS/OFFICE PLAN .......................................................................................................................................................... 18
4.4 OTHER FIXED ASSETS ..................................................................................................................................................................... 19
4.6 PRODUCTION PROCESS/SERVICES ACTIVITIES ....................................................................................................................................... 19
4.7 COMPLYING WITH OPERATIONAL REQUIREMENTS ................................................................................................................................. 19
CHAPTER FIVE ................................................................................................................................................................................... 21
5.0 PRE-OPERATION COSTS .................................................................................................................................................................. 21
5.1 WORKING CAPITAL ....................................................................................................................................................................... 21
5.2 PROJECT CASH FLOW STATEMENT FOR YEAR 1 YEAR ................................................................................................................. 22
5.3 PROFORMA INCOME STATEMENT FOR YEAR 1 .......................................................................................................................... 23
5.4 PERFORMANCE RATIOS................................................................................................................................................................... 24
5.6 CONTRIBUTION STATEMENT ............................................................................................................................................................ 24
5.7 FINANCIAL CHALLENGES ................................................................................................................................................................. 24
5.8 REMEDIES TO THE CHALLENGES ........................................................................................................................................................ 25

vi
CHAPTER ONE
1.0 Business Description.
Mjengo Consultancy Group is a building construction firm based in Nairobi Kenya. Mjengo Consultancy
Group provides building services to potential clients who would like to construct commercial or residential
housing units. Our firm provides all building services and have competent building team with nationally
recognized certificates consisting of Architects, Quantity Surveyors, contractors, land surveyors and building
workers to help erect structures that are of good construction standards and attractive to client’s eyes. Our
team is dedicated in eliminating poor building works by providing good and quality services to our potential
clients. We understand the importance of meeting client’s demands and maintaining the safety of those to
live in the structure.
1.1Sponsors Background.
My Names Are Evans Kavehagi, currently pursuing Diploma in Project management at Victory Digital
College. The skill gained from my course has played a big role in the running of my business.

1.2The Proposed Name of the Business.

Mjengo Consultancy Group is the name of my business and it is scheduled to start in 2025.
1.2.1Location and Address.
The proposed Business will be located in Nairobi Town around CBD area. Nairobi is a home for many residents
of Kenya for it suits to be a working city where many residents work and live their lives there. To have my
business located in Nairobi guarantees a high percent in market shares because possible clients continue to
build residential homes for employees in Nairobi.
In Nairobi, there is availability of good roads, electricity and plenty of water. This makes it easier to commence
my business and thrive. Next to Nairobi County there is Thika town which an industrialized town where my
company can get raw materials from and with less transportation costs. Nairobi has plenty of support services
and most people come to look for job opportunities in Nairobi so to be employees will not be a huge task.
For potential clients, many enamoring towns are growing towns which attract settlers who need housing
units for either commercial or residential purposes and which will require a construction company’s job to
erect their structures.
1.3Form and Type of ownership.
My company will operate as limited Company. My business will require different building specialist for
example Quantity Surveyors, Architects, contractors etc. The following people will form a board of Members
who will contribute to the starting, running and building work of the company.

1
Table 1 Advantages and disadvantages of forms of ownership

Advantages Disadvantages
Has limited liabilities Limited companies must be
incorporated at companies house
where a fee must be paid
Low set up costs because cost will Company names are subjected to
be shared among the owners certain restriction
It’s tax efficiency You cannot set up a limited
company if you are an
undischarged bankrupt
Provides access to more financial
Provides access to more financial
opportunities
1.3.1Ownership structure
• I will personally contribute 200,000Kenyan Shillings to the company.
• The company will include five executive members who will each contribute
200,000Kenyan shillings which will totally contribute to 1.2Million shillings which will
be good enough to start up the company.
• Family and Friends will donate up to 300,000Kenyan shillings.
• A registration fee will be paid to the register the business
• A fee will also be paid to register the company to the National Construction Authority
and also to acquire all the required credentials for example licences and business
permits to start and run the proposed business.
• The company will also pay some money for our office rent.
• Some money will be used to buy company vehicles to be used to run errands in the
company.

Table 2: Proposed Ownership Structure.

Source Amount %
Personal Savings 200,000 13.25%
Borrowing loans 100,000 6.62%
Family and friends 300,000 19.86%
Executive members 1000000 66.22%
Total 1,510,000

2
1.4 Products and services
The company will be offering construction services. The company will offer affordable construction services
and housing units. Accordingto the client’s financial capabilities our company will come up with
comfortable and durable housing units which will be of good service to residents.
The company will also offer instalment payment to clients so as not to financiallydisable the clients.
1.5 Justification of opportunity
The company’s goal is to eradicate poor housing standards which lead to building collapsing in Kenya. The
company will satisfy client’s needs by employing competentworkers to design and construct a building and
using the proper channels to erect a structure.
The company will contribute to increase employment opportunities and also improving the livelihood of
employees in the society. It will also promote localindigenous technology that will be used in construction
sites.

1.6 Industry
1.6.1 Sizes of the Industry
The company is under building and construction industry.
1.6.2 Key characteristics of the industry
The firms in the company are small size. The company uses labor intensive technology. This is because the
company will require labor to build building structures and so a program will be introduced to sharpen our
worker’s skills so as to increase the productivity level of the company.

The company will use modern technology which includes modern building equipment and simple to use
machines. The firm has no limited number of employees because in a construction firm labour is unreliable
and also as many workers as possible ease and fasten up construction works. In construction industry the
competition is mostly high because many people have realized the need to start a construction firm based
on its success stories.
Firstly, there is labor handling. To a starting company, workers are not paid so well because the company
has to budget its wages so as not to fail so it’s a problem to fetch and employ worker Secondly, Material
handling. Building materials tend to increase annually which poses a Financial issue to the company when
calculating an overall cost of a project. Thirdly, Equipment handling. Machineries are expensive to hire, run
and maintain. Some machines even have shorter life spans which makes then more unreliable.

3
1.6.3Industrial trends and prospects.
Establishment stage. Here the business is being created, planned and
the early days of its operations commences. At this point the company has difficulty
in surviving.
The company after a while it starts to grow and we call it the growth stage period.
The company has now started to adapt and is partially able to compete with its
competitors. In this period the company already knows how to navigate its ways to
its targeted clients and has already started to make some revenue. The company
strategies made are now showing some positive response.

Expansion Stage. In this stage, the company has started to be recognized and good
words are coming out from clients about our services. By now the company has
attracted a good number of clients mostly from referrals. Tenders from Nairobi
county government have been awarded to the company on building of county
hospitals and schools. There is sufficient revenue in the company’s account that
enable to run and expand our services to other counties around Kenya. The company
has opened 4 branches in Kajiado, Kiambu, Nakuru and Mombasa.
Maturity Stage. The company has now gained trust from customers and the tenders
awarded have become consistent. The revenue intake has become high enough to
enable the company to survive most unforeseen circumstances. The company has
enough banking support to ensure that even if the market becomes unstable it can
easily pull through.
2)BIM Technology.
The company will use thus technology because it supports construction Professionals by combining
data capture within a large structure ofconstruction processes, allowing effective planning,
designing, modifying and management of buildings and their infrastructure.
AL (Artificial Intelligence) and ML (Machine Learning). The company will also use this technology
to increase productivity, safety, improve financial planning and enhance design of buildings in
construction.
3) Labour wage.
Different companies have different ways of paying their employees. Better paying companies
attract more employees.
Company services. Different companies have different services they offer to the clients and also
their employees. Fewer companies focus in improving employee’s skills which bring huge
competition between companies offering this services and those that do not.

4
 1.7 Goals of Business
1.7.1Short term Goals

Improve company’s productivity and that will be done by introducing a trainingprogram for employees.
Maintain company’s profits. Modern technology come to help rectify human errorswhich caused losses and
to minimize them to maximize the profits. Hire more workers. Build customer loyalty. This will be done by
meeting client’s demand and providingquality services
1.7.2Long term Goals

To expand the company to oversee countries. If the financial goal is met, the company will expand to other
non-developed countries and provide the servicesthere.
Grow social media following. The more the company is knowing the more the clientsthe company gets.

1.8Entry Gross Strategy

1.8.1Entry Strategy

1 set clear goals about the company :

• Business goals forexpansion.

• Targeted level of sales

• The target market.

• Budget and other

2. Research your market. Collect information about

• Size of your market

• Domestic and international competition
• Your unique value
• proposition in the market.

The research can be done by online research including publications, studies andstatistics.
3.choose the mode of entry.

The company will pay for billboards and television advertisements to get a largenumber of clients.

The company will open an online website where our customers will be able to accessthe company
services.
The company will come up with a discount sale for clients for the next 1 month after startingthe business.
4. consider Financial and insurance needs

Each employee will have an insurance cover together with the company to get protection against
unforeseen circumstances in the construction sites. The company’s insurance cover includes credit
5
 insurance in case a client does not pay or a contract is cancelled and performance security insurance in case
a customer wrongfully calls a letter ofguarantee or in event of political risks.
The competitive advantage in our company is that we offer free employee training toimprove their technical
skills.

1.8.1Growth Strategy
i.The company will increase our shares to a chosen market to enable profitability in the company.
ii.We will create incentives for the repeat clients and changing the customer service policies for increased
appeal to its client. This way the company will know the directions to take and where it will take them.

6
CHAPTER TWO
2.0 Marketing Plan
Market research will be is to determine If there are enough customers in our marketwilling to purchase our
services. To determine this, we need to know the characteristics of our targeted customers, marketand
trends in our industry. Market research is important because it determines the company’s marketing
strategy.
Our targeted customers are government bodies and established clients who want to create arevenue from
real estate. After the market research is done, the company will then determine a marketing strategy. This
is the approach plan taken to provide our services to our targeted customers. A marketing strategy is done
by: -Identification of your target customers which we have alreadydone.
The market segment the company will compete in Unique services provided.
Pricing philosophy. The company will offer affordable building options which won’t drainclient’s pockets.
Sales plan will be considered.

2.1 Customers.
My potential clients are: -Government bodies which require county developments. Established clients
between 35- 70 years who like togenerate revenue from real estate. My customers want eligible housing
units, which are appealing to their targetedcustomers. According to the clients building need, our company
focuses in designing standardand prestigious houses especially if they are residential houses.

2.2 Market Share.

Table 3: Mjengo consultancy Group Enterprise market share.

Name of Other businesses % market share

Hakim construction limited 10%

Pole pole consultancy group 30%

Crossbow consultancy services 10%

Wakimani consultancy firm 10%

7
 2.3 Competition
2.3.1 Description of Potential Competitors.
Our potential competitors are other building construction groups located in Nairobi. Thecompetitors
reduce the market share. More established construction groups are preferred by clients unlike the
current ones which is disadvantageous to our company.
The location of the competitors determines the market price of services offered in the area.This can
force lower service prices which decreases profit margin for each services exchanged. The
advantage of competitors is that it motivates companies to thrive to meet client’sexpectations and
grow generally.
2.3.2 Comparison of the proposed product with those of potential competitors.
The company services will offer affordable pricing policies with will be so favorable to clients. The
company will have LIPA POLEPOLE services which will enable the client to build astructure without strain.
figure.1 Competitors Analysis

competitor analysis

1st Qtr pole pole hakin crossbow wakimani mjengo

8
2.4Method of Promotion and advertising
The company will use radio and tv stations to advertise the company services. The company will also use
billboards in Nairobi to advertise their services. Details of thecompany will be included in the advertising
methods. Radio and Tv methods are reliable because it will reach many people around Kenya and even
abroad.

On billboards, the advertisements will be done after every 2 months while for the tvand radio stations it will
be done after every 2weeks.The cost of advertisement for radio is 44,000 shillings per advert, For Tv is
100,000shilling per advert and for billboards are 50,000 shilling per day depending on the size.

2.4.1Promotion Strategy.
The company will sponsor community events. The company can decide on supporting local community
events mostly financial and then display the company’s name or information on event T shirts or flyers. To
offer discounts for client referrals is also a way of promotion strategy. Thecompany can offer free maintain
ace plans for each client referral.
Promotional methods to employ on a daily basis are: -Using google display Ads tobuild company’s brand.
The Ads normally pop up in google videos and are mostly used to catch viewers’ attention for they are given
a few seconds to run before returning the viewer’s content. If the viewer is interested in the ad, then he or
shecan access the ads information.
Another method is to launch Facebook ad Campaigns. This ad will be accessed bymany viewers because
Facebook is a global platform. To run cold outreach to other construction companies is another promotion
method.
This is using a large company to advertise your services. For example, our company can request a contract
from a larger construction company and when awarded the contract weadvertise our services to their
customers and offer them incentives for referring clients to our company.
Promotions costs; To measure effectiveness of the campaign we have to:
• clarify the company goals. This is keeping track of how your companybusiness is going.
• Set up data collection and analysis capabilities.
• Measure your campaign reach. This is how many people will see theadvertisements and respond to
it.
• Uncover your effective frequency.
• Identify touchpoints that need optimization.
• Take a closer look at your media mix.
• link campaign outcomes to the revenue.

9
2.5Pricing Strategy.
2.5.1Cost plus strategy.
In our case we can add a percentage mark-up to the total building cost. This can helpmaintain a good
profit margin and business competitiveness.

2.5.2Penetration pricing.
This pricing strategy helps a company gain customers by lowering the initial services. It also builds brand
loyalty. To build loyalty to the customers you must continue to delightcustomers after the first contract
agreement to either do cost transportation for free or offering discounts to the services provided. This
strategy pulls customers from competition.
Table 4

Advantages Disadvantages

There is more customers demand It has poor brand perception Offers market leadership
Can lead to possible price warsResult to less competition

2.5 Demand oriented pricing

This pricing strategy is based on the demand level of customers to a particular service. The demand
level is determined by the season. For example, in high peak periods companies see high demand
for products and services while in regular periods they see lowdemands.

2.5.1 Credit terms which will suit your services.

Trade discounts. Trade discounts fasten customers pay within an agreed period of time.

2.5.2 Pretoria used.

Capacity. Can your client pay your invoices? Character. It is important to determine that your trade
partner has the background andcredentials that indicate they are trustworthy and have a
reputation for sound business practice.
Collateral. To understand what assets your client has in case the invoices remain unpaid,he/she can
liquidate their assets. Capital. This is understanding the ability for the client to pay for your
services. Conditions. You should situations that will affect the client to indicate a potential chance
forlate payment.

2.6 Sales Tactics.

2.6.1 Selling methods
Value addition. This method aims at increasing customer satisfaction and widen thegap between
your company and your competitors and Referral Networks

2.6.2People involved in business sales

• Referrals. In construction business, your clients can be your referrals. Through yourclients you can
be able to gain more customers.
10
2.7 Distribution Strategy.
2.7.1 How will you get your services to customers?

Using direct channel. Our services will be done physically and there will be interactionsbetween
the company’s building team and the client. There will also be involvement of social media
platforms like ticktock, Instagram and Instagram to promote our services.
2.7.1 Distribution problems anticipated
• High cost of transportation.
• Unfavorable weather conditions
• Uncalculated building risks.
• High pricing of building materials

2.7.2How to solve the problems

• Put aside money in case of unforeseen building eventualities.

11
 CHAPTER THREE
3.0: The organization plan.
3.1: The organization structure.
Figure 2

GENERAL
MANAGER

PROJECT
MANAGER

SALES AND
MARKETING CONTRACTOR ADMINISTRATOR
TEAM

HUMAN
RESOURSE

STAFF

3.2 Managers and Qualifications

3.2.1General Manager.
3.2.1.1 Qualifications.
Bachelor’s degree in civil engineering or construction management,
Over 10years experience in the construction industry.
Proven track record of successful project delivery and completion.
Good banking records.
3.2.1.2 Responsibilities
Set project policies and processes.
Oversee recruitment and training.
Evaluate operational and financial performances
Allocate building resources.

12
 3.2.2 Project Manager.
3.2.2.1 Qualifications

Bachelor’s degree in Civil engineering/architecture.

At least 4years in the construction industry.
Must be comfortable delegating and have strong leadership skills.
3.2.2.2 Responsibilities.
Organize logistics.
Delegate work and keep track of spending
3.2.3 Marketing manager.
3.2.3.1 Qualifications.
Relevant Bachelor’s degree in Sales and Marketing in a recognized institution.
Must have at least 5years sales experience and 3 years being in the building and construction sector.
Must have impeachable communication skills
3.2.3.2 Responsibilities.
Responsible for developing, implementing and executing strategic marketing plans for an entire
organisation; so as to attract potential clients and retain existing ones.
Building sustainable relationships and partnerships with key players in the society.

3.2.4 Contractor.
3.2.4.1 Qualifications.
Bachelor’s degree in Civil Engineering.
More than 5years experience
Must have extensive knowledge of building materials, techniques and Standards.
3.2.4.2 Responsibilities.
He/she is responsible for planning, leading, executing, supervising and inspecting a building construction
project
3.2.5 Human Resource Manager.
3.2.5.1 Qualifications
Bachelor’s degree in Human Resource Management.
Must have at least 3Years HR management experience and 1year being in the building and construction
industry.
Must have good computer skills and impeccable communication skills.
3.2.5.2 Responsibilities.
Hire employees and help them get training and development to advance their careers.
They are instrumental in overseeing conditions of employment, contractual terms, pay negotiations and
issues relating to equality and diversity.

13
3.2.6 Administrator.
3.2.6.1 Qualification
Bachelor’s degree in construction management/construction science.
Must have strong organizational skills.
Must have 2-3years of experience in the construction industry.
Voluntary professional certification is an added advantage.
3.2.6.2 Responsibilities.
Monitor contracts.
Process billing
Keep track of company’s documents
Arrange project schedules.
Check on clients

3.3 Recruitment, training and promotion.

3.3.1 Recruitment.
1. Identify your needs. The need to hire is because we are starting a new company and it requires employees
for the company to run as planned.
2. Prepare the job description.
3. Create a recruitment plan. Determine who will be reviewing resumes, scheduling interview and deciding
on the right candidate. A board of members will be formed to conduct the interviews and decide on who to
employ.
4. Start searching. The elected members will weed put unqualified applicants and choose the best and worth
applicants.
5. Recruit Top tier candidates. The candidates left after the interviews will be kept in touch and notified to
have been shortlisted. Video screening is the most appropriate method to use to get to know the candidates
personally.
6. Conduct video screening. A list of best interview questions will be made.
7. Interview in person. The interviewees should know where the company is at recruiting people and how
long it will take to get back to them. The interview should not be long but the interviewer should be able to
interact with the interviewee.
8. Offer the job. A deal must be made that favours both the employee and the employer. Salary negotiations
and benefits should be good enough to make the interviewee to accept the job offer.
9. On boarding the new employees. An on boarding process should be implemented to make the new
employees get to understand and familiarize themselves with the company's operations. A mentee will be
assigned to each employs to keep them on track of the company’s progresses.

14
3.3.2 Training
Table 5 : Staff training and development

3.4. Promotion.
In our company, promotions will be awarded annually. Each work unit will be awarded according to the
achievements and work progress.
Promotion will be done in different ways. Financial promotions are the first one which will be by increasing
employee’s salary, gift will be given to various employees e.g. shopping vouchers and so much more.
3.5 Remuneration and Incentive
Table 6: renumerations and incentives

15
3.6 Support services
Book keeping: There will be few transactions in the business the proprietor will use skills gained in business
administration and at the end of each year an auditor will be hired to do auditing for the business.
Licence Since: all businesses are required to have some operation licenses, the business will get trade licenses
from the council to operate the business legally

16
CHAPTER FOUR
4.0 Operational Plan.
Mjengo Consultancy Group is committed in providing quality building and consultancy services to
potential clients. The company is visionary on building comfortable and affordable housing units with
better and effective methods to avoid building catastrophe.
The company will have professional workmen who will assist in designing and building the housing
units. Each member of the company will have respective obligations to attend to enable smooth running
of company’s operations.

4.1 Product and service design and development

♦ Mjengo Consultancy Group will be designed in a way that customers can access
quality and verified construction services and still access affordable housing units.
The company offers work labor so the client should not be worried in finding work
force.
♦-By carrying out user research. -By drawing up an initial design. -By identifying the people, materials
and processes required to produce it. -By setting a budget and a time schedule with measurable targets.
♦ Clear targets will be set for measuring the building success. In each project done,
the cost incurred will be calculated and the cost is used in other future projects. In
each project, machines will be fueled and repaired, materials will be bought,
employees will be paid etc. so also the cost of this expenses will be considered.
♦ In building construction, machines like bulldozers, excavators etc. will be used in
various project activities and also measuring equipment like theodolite, tape
measures etc. will be used.
♦ Machinery choice is so appropriate because there are different types of machines for
different type of work and this is a factor to consider when choiring machinery.

2.4 Production facilities and capacity

This explains how the plant intends to carry out its operation services in order to run effectively and
efficiently. Due to customer satisfaction the workshop has laid down various objectives which includes:

 Providing services which are of better qualities.

 Charging customers fair prices.

 Profit maximization to expand the firm.

 Acquiring large market share among the competitors.

 Job creation to people within the localities.

17
Table 7: Facilities Required for production/Operation

4.3 GROUNDS/OFFICE PLAN

Figure 3

18
 4.4 Other fixed assets
Other fixed assets of the business are:

• Land
• Buildings
• Motorbike

4.6 Production process/services activities

the production process is expected to be:

• Quotation-The business will first write the quotation concerning all the material used.
• Ordering-The quotation will be sent for ordering the materials.
• Receiving- The business will receive the materials which have been ordered.
• Storage-After receiving the materials, some will be kept in the store, others sold, while
• others will be issued in the workshop for other services.

4.7 Complying with operational Requirements

Table 8: Operational Requirements

19
20
CHAPTER FIVE
5.0 Pre-Operation costs
These are the costs incurred before the business start its operations and their amount
Table 9: Operational cost

5.1 Working Capital

This is the capital required for the first two years
Table 10: Working capital

21
5.2 PROJECT CASH FLOW STATEMENT FOR YEAR 1 YEAR
This is that part of financial plan which reflect cash inflow and cash outflow of the business
Table 11: Project cash projections

22
5.3 PROFORMA INCOME STATEMENT FOR YEAR 1
Table 12 Income Statement

23
5.4 Performance ratios
Table 13: Performance Ratios

5.6 Contribution statement

The proposed business will have a total of 200,000 into the first year while the total direct cost will
add up to 400,000.
Contribution margin=Sales – variable cost Sales=2,000,000
Variable cost=purchase + Expenses + Tax
=850,000+565,000+310,500=1,725,500
=2,000,000-1,725,500=274500
BEP =Contribution margin *100/sales
=274500*100/2,000,000
=13.7%[BEP]

5.7 Financial challenges

• Competition

• Taxes

• Unexpected expenses

• Too much debt

24
 • Bad credit
5.8 Remedies to the challenges
In unexpected expenses, you should create an emergency fund to keep cash ready for any
emergencies.

In taxes, you should invest more in marketing and deduct expenses, make charitable
contributions, Revisit employee compensation
In bad credit, you should pay down existing debt, get a secured credit card, apply for a credit
builder loan, monitor and dispute errors on your credit report.
In competition, find a niche in the market via storytelling and specialization, provide great
customer service, set competitive pricing etc.

25
REFERENCES
Davis, P. R., Love, P. E. D., & Baccarini, D. (2008). Building procurement methods. Journal of
Construction Engineering and Management, 134(12), 908-916.
https://doi.org/10.1061/(ASCE)0733-9364(2008)134:12(908)
Chong, W. K., & Wang, X. (2017). The impact of Building Information Modeling (BIM) on
construction safety and productivity. Automation in Construction, 84, 119-126.
https://doi.org/10.1016/j.autcon.2017.09.003
Ghaffar, A., Burman, M., & Braimah, N. (2020). Modular construction and its challenges in the
construction industry. International Journal of Construction Management, 20(3), 229-238.
https://doi.org/10.1080/15623599.2018.1484855
Tam, V. W., Zeng, S. X., & Deng, Z. M. (2016). Towards adoption of prefabrication in
construction. Automation in Construction, 18(2), 127-134.
https://doi.org/10.1016/j.autcon.2016.08.021

Khoshnava, S. M., Rostami, R., Zin, R. M., Štreimikienė, D., & Mardani, A. (2019). Sustainability
of building materials in construction. Sustainability, 11(4), 1202.
https://doi.org/10.3390/su11041202
Zou, P. X. W., Sunindijo, R. Y., & Dainty, A. R. J. (2014). A mixed methods approach to safety
culture in construction projects. Journal of Construction Engineering and Management, 140(3),
1-10. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000811
Ofori, G. (2018). Leadership in the construction industry: Developing leaders for tomorrow.
Construction Management and Economics, 36(5), 267-280.
https://doi.org/10.1080/01446193.2018.1449958

26
APENDIX
MAP OF LOCATION

27