Business in CONSTRUCTION Sector

Small or medium sized business in Construction sector offers many opportunities in Pakistan. But it is important that those who want to select & pursue such business should have some knowledge, experience and most importantly passion for the Construction sector. Otherwise, the probability for failure may be high.

Below are some of the selected businesses in construction sector.  SMEDA has also made very good pre-feasibility studies on this sector.

For the complete detailed pre-feasibility reports, you will first have to register with SMEDA and then you can download it FREE.

For registration, you may click the link:  SMEDA Registration

Below are the summarized versions of the pre-feasibility reports by SMEDA on Business in Construction sector for you to get an idea before you download the full version.

1 - Housing Construction Company [Jun-2011]

Region: Punjab
Investment Size: PKR Between 10-20 Million

The proposed ‘Housing Construction’ business involves construction of residential houses in key areas of Lahore. The project will focus on modern design and superior quality material used for building. This pre-feasibility study proposes construction of houses covering an area of 5 Marla (1,125 sq. ft), 7 Marla (1,575 sq. ft) and 10 Marla (2,250 sq. ft) in Johar Town, Wapda Town, NFC, Multan Road, Ferozepur Road and Valencia Housing Society. Housing construction not only improves the living standards of the public but also contributes towards the overall economic growth. The construction sector is linked with more than 40 industries and thus has multiple effects on the economy. Moreover, given the situation of Pakistan - a continuous growth in population and a huge housing shortage faced by most cities, the demand for houses is highly unlikely to slow down. There is a rapid growth in urbanization and the continuous struggle towards better quality of life. Consequentially, as a first step towards higher standards of living, the housing sector experiences growth. The total project cost is estimated at Rs. 13.894 million. The project is financed through 50% debt and 50% equity. The Project’s NPV is around Rs. 120.657 million, with an IRR of 57% and payback period of 4.13 years. The legal business status of this project is proposed as ‘Sole Proprietorship’. The project will start up by constructing 2 units of 5 marla houses and 1 unit of 7 marla house in the first year and will increase the number of units in the upcoming years. Selection of good location and purchase of land at competitive price will be the key success factor in timely selling of houses and maximising profit of the construction company.

2 - Prefabricated Construction Blocks [Dec-2006]

Region: Sindh
Investment Size: PKR Between 1-2 Million

The proposed project envisages the setup of a prefabricated construction blocks manufacturing project. Construction blocks industry is an important industrial sector in the country engaged in producing blocks used as prefabricated material for various construction activities i.e. construction of road side pave ways, garage and parking floorings, walls making, block paved driveways, and floor coverings of commercial buildings, etc. It is easy to make a concrete block. The successful block yard must however make blocks of uniform quality and sell them at a price high enough to cover costs and make a reasonable profit. Before to start a block yard, it is essential therefore to investigate the economic feasibility of the venture. Determination of level of demand for blocks in the area (how many per month) and degree of competition from other block yards are important factors having a significant bearing on the feasibility of the venture. Then comes the cost estimation based on various methods of production and output. Factors which influence unit cost include: - Purchase price or rental of site - Cost of site improvements: fencing, paved areas for production and stockpiles, pathways, roadways and buildings - Cost of equipment: concrete mixer, block making machine and miscellaneous equipment - Cost of services: water and electricity - Material costs - Wastage - Maintenance costs of site and equipment - Output: number of blocks per day – dimensions of block, solid or hollow. - Labor costs - Cost of finance etc

For the complete detailed pre-feasibility reports, you will first have to register with SMEDA and then you can download it FREE.

For registration, you may click the link:  SMEDA Registration

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