Business plan for establishing a construction division in a renewable energy company

Desired outcome

The company, which is developing renewable energy projects in Cyprus ( ground and rooftop photovoltaic parks) is planning to open a construction division to realize the construction phase of its projects and to further develop the construction division in order to generate income.
The business plan in this case is necessary to make a decision on the feasibility of organizing this division or to use third-party construction companies.

Initial Problem Description

Our company is in the process of PV parks development, starting from selecting a suitable site, obtaining licenses from all authorities and ministries, determining the design of the PV park, engaging contractors for construction and finishing with commissioning and O&M.
Now we are considering a decision on the feasibility of creating a construction division, so as not to involve third-party companies and to close the construction by our own forces, which will allow us to control the timing and quality of construction. It is also necessary to envisage a marketing campaign to attract other clients for construction services.

Context

The strategic business plan of any company is essentially a digitization of the business development strategy. Therefore, it is very important in its preparation to carefully analyze the incoming information and make economic calculations to the sections of the plan.
In the construction industry the role of a strategic business plan increases even more, because this type of business depends on many external factors, is quite risky and requires external financing.

Connection to cross-cutting areas

Solar Key Cyprus - is the team of professionals with the reputation as a reliable and professional partner providing modern technological solutions in the field of renewables sources.
We believe that investing in solar power plants and increasing the independence of the energy system from fossil fuels will contribute to the economic prosperity of Cyprus and its community.
All our projects are developed with innovative technologies, which significantly increase the productivity and efficiency of the solar park. We are confident that through our work, we can contribute to the sustainable development of Cyprus and make our planet cleaner and healthier for future generations.

Input

It is possible to use an arbitrary form of business plan, following the general structure and covering the following sections:
- executive summary;
- description of the industry;
- description of services;
- sales and marketing;
- production plan;
- organizational plan;
- financial plan;
- evaluation of project efficiency;
- project guarantees and risks.

Expectations

Planning in the construction industry has its own specific features:
1. The result of construction and installation works (final product) is not products or works, but various facilities.
Therefore, the production cycle of a construction company is calculated in periods ranging from several months to several years, and the costs of work production are accounted for strictly separately for each object.
2. The income of a construction company is formed depending on its role in the process of work execution:
- contractor, who builds the object for the customer of the works, who, in turn, pays for their estimated cost. In this case, the income of the construction company is the money received from the customer for the completed works, formalized by acceptance certificates;
- subcontractor, who performs part of the work on the site under an agreement with the contractor. Here the company's income is money from the contractor for the work performed in accordance with the contract.
3. Construction companies plan revenues not only by type of income, but also for each of the construction projects on which they operate.
This is because, unlike mass production and sales of products, a construction company works with single large orders
4. Expenses of a construction company are divided into the costs of construction and installation works (directly on the objects) and general business expenses (related to the provision of the company's management process and do not depend on the availability and number of construction objects).
The production of construction works is classically material-intensive.
The next major item of expenditure is labor costs of personnel directly working on construction projects. These costs are also normalized and their amount depends on the planned volume of work in man-hours.
5. The need for significant investment in the renewal of production assets.

Desired Team Profile

Planning and research skills.
To accomplish certain work tasks, you may need to come up with an appropriate strategy and action plan. This may involve finding relevant information from a variety of sources. What matters is how you analyze, interpret, and report these results.
Commercial awareness.
To demonstrate commercial awareness, you will need to show that you have researched the company and the sector in which it operates.
When using the standards and regulatory guidelines for business plan design, it is important to keep the focus on the project and its goals.

Additional Information

Solar Key Cyprus - is an official distributor of the PEG technology (mounting system for solar power plants) developed by Jurgen Technology.
MAIN BENEFITS:
- Extremely high land use;
- Extremely cost-effective CAPEX (supply and installations);
- Low profile & shallow foundations, <1m above & below ground;
- Very light system, ~9 kg per kWp;
- Proven globally, over 420MWp installed;
- Patented design.
This state-of-the-art technology will provide a serious competitive advantage over standard solar park construction technology

Related Keywords

• Energy Technology
• Renewable Sources of Energy
• Phtovoltaics Technology