Sakhile Construction Business Plan — People and Plant
The site and office establishment as the company grows, plant ownership versus hire, and the skills the grading ladder demands.
People and Plant
Jump to section
- Overview & contents
- i. Important Notice
- 1. Executive Summary
- 2. The CIDB Grading Ladder
- 3. The Market in 2026
- 4. Strategy: Private Work First
- 5. SWOT and Competitive Position
- 6. The Working Capital Problem
- 7. Retention and Guarantees
- 8. Unit Economics of a Contract
- 9. The Five-Year Roadmap and Gates
- 10. Funding
- 11. Estimating and Contract Control
- 12. People and Plant
- 13. Compliance and Registrations
- 14. Financial Projections
- 15. Break-Even
- 16. Sensitivity and Scenarios
- 17. Risk Management
- 18. Implementation Timeline
- 19. Returns
- 20. Key Performance Indicators
- 21. Key Assumptions
- 22. Conclusion
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Capital Schedules
- C. Appendix C: Funding and Debt Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
- 12.1 The organisation
- 12.2 Plant
12.1 The organisation
|
Function |
Year 1 |
Year 3 |
Year 5 |
Note |
|---|---|---|---|---|
|
Directors and management |
2 |
3 |
4 |
Founder as contracts director; a construction manager from Year 3 |
|
Site management |
0 |
3 |
6 |
Site agents and foremen; one per two to three concurrent contracts |
|
Estimating and quantity surveying |
0 |
2 |
4 |
Estimator from Year 2; a quantity surveyor from Year 4 |
|
Administration and finance |
1 |
2 |
4 |
Includes a dedicated credit controller from Year 3 |
|
Yard and workshop |
1 |
2 |
3 |
Plant maintenance and materials control |
|
Site labour |
Contract-based |
Contract-based |
Contract-based |
Carried in direct cost, not overhead |
|
R’000 |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|---|---|---|---|---|---|
|
Directors and management |
480 |
620 |
820 |
1 050 |
1 320 |
|
Site management |
— |
220 |
560 |
1 060 |
1 690 |
|
Estimating and quantity surveying |
— |
165 |
330 |
560 |
810 |
|
Administration |
120 |
175 |
270 |
395 |
555 |
|
Yard and workshop |
90 |
130 |
210 |
320 |
460 |
|
Total staff overhead |
690 |
1 310 |
2 190 |
3 385 |
4 835 |
|
As a share of turnover |
16.4% |
13.8% |
11.5% |
10.0% |
9.3% |
Staff overhead falls from 16.4 per cent of turnover to 9.3 per cent as the management layer is spread across a larger order book. The site management and estimating lines are both zero in Year 1 because the founder performs both functions personally on six small contracts — which is viable at R4.20 million of turnover and is precisely what fails at R19 million. Appointing the site management layer at Year 3 rather than Year 4 is a gate condition for that reason.
12.2 Plant
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
|---|---|---|---|---|---|
|
Capital expenditure, R’000 |
1 835 |
800 |
1 600 |
1 940 |
2 790 |
|
Cumulative capital, R’000 |
1 835 |
2 635 |
4 235 |
6 175 |
8 965 |
|
Depreciation, R’000 |
306 |
439 |
706 |
1 029 |
1 494 |
|
Net book value, R’000 |
1 529 |
1 890 |
2 784 |
3 695 |
4 991 |
|
Plant hire and site establishment, R’000 |
283 |
634 |
1 256 |
2 228 |
3 382 |
|
Capital as a share of turnover |
43.7% |
8.4% |
8.4% |
5.7% |
5.4% |