Analyzing Business Development Strategies in Construction Enterprises

This report provides an analysis of business development strategies within modern construction enterprises, using Fulton Hogan Limited as a case study. It examines market identification methods, client relationship management, supply chain integration, and risk management practices. The report details Fulton Hogan's approach to identifying target markets, maintaining client relationships through structured communication and technology, and integrating the supply chain from raw materials to project completion. Furthermore, it explores the company's risk management strategies, including risk assessment, hazard identification, and contingency planning. The report also discusses how Fulton Hogan measures project success using the Atkinson theory, considering both delivery and post-delivery stages, and addresses common construction issues with proactive solutions such as safety documentation, project schedules, and supplementary budgets. Desklib offers this and many other solved assignments for students.

Modern Construction enterprises 1
MODERN CONSTRUCTION ENTERPRISE
By (Name)
Course
Professor’s name
University name
City, State
Date of submission

Modern Construction enterprises 2
Fulton Hogan limited
Market identification
The process of identifying a target market for a construction business. Market
identification helps in attracting and retaining of a company’s market share. Over the years,
Fulton Hogan limited has been able to establish various methods of identifying their markets
(Gransberg, et al., 2010).Some of the steps Fulton Hogan takes to identify their markets include:
Research into the problems that their products solve, this ways they are able to identify the
people that need their products. Some of the analytical questions are:
1. What are the features of the products or services the business offers?
2. What benefits do the features have?
3. What benefit does the product give to the market?
4. What marketing methods are best to reach the market?
5. Is the potential market big enough for Fulton Hogan businesses investment?
The next step is to analyze the market that has bought their product or service and from that, they
refine their target market (Chambers, 2011). The various factors considered in the analyzing of
the market include:
1. Market demographics
2. Type of audience
3. The occupation of the target market and the income of the market segment
4. Location of the market
5. Gender
6. Ethnic background

Modern Construction enterprises 3
Client relationship
Maintaining a good client relationship stems from the communication an organization
observes in client contact. Fulton Hogan contact with clients is organized in such a way that
there is an internal chain of command that is written in the contract details (Muir, et al., 2012).
This allows the efficient communication between the teams on site with the clients. Those teams
includes: supervisors, contractors and sub-contractors and suppliers. With this, kind of a system
in place the client is only given one single point of contact that they can query over any concerns
that they have.
Defining of the rules of engagement with a client in a project is also very important. For instance
the frequency in which the client desires project updates and reports, the preferred
communication channels and the information required of the client.
Another way of Fulton Hogan organizing its contact with clients is by utilizing technology
(Gransberg, et al., 2010). This is through video clips pictures depicting the project progress on
site
Supply chain integration
This is the typical construction supply chain at Fulton Hogan (Snijders, 2007)
Raw material

Modern Construction enterprises 4
Building materials converted to
building products
Conversion of the building products to
substructure by the sub- contractors
Conversion of the building products to
the super structure by the sub-
contractors
Conversion if the building products to
services by the sub-contractors
Conversion of the building product to
interior finishing by the
subcontractors
Building commissioning
Occupation of the building by the
client
Designing of the
project
undertaken by
Architects and
engineers
Procurement of the
project and
appointment of the
main contractor to
undertake the
construction works
Requirement for a new building by
the client and the subsequent
demand for construction work.

Modern Construction enterprises 5
Management and Monitoring of project risks
Construction projects are risky and for that reason risk management and monitoring in
construction companies is a vital factor to ensure profitability of the venture and prevent losses
brought about by exposure to risks (Guo, et al., 2014). These include accidents on the site,
monetary losses and loss of time, Property damage, and a precedence of a bad reputation.
Management of risk in construction companies allows a company to plan in advance and monitor
the measures that are needed to prevent exposure to risk.
Monitoring involves the consistent checking of the quality of work delivered, the accuracy, and
the progress of the project.
The steps taken by Fulton Hogan in managing risk include:
1. Assessment of the exposure to risk that the company faces
2. Identification of the potential hazards as well as the assessment of the risk probability if
occurrence
3. Prioritizing of the risks and making of contingency plans
4. Determination of the risk control measures to be undertaken in case of an occurrence and
the required steps for mitigation of the risk
5. Evaluation of residual risks and any other risks that may be brought about by the risk
control measures
6. Development of contingency plans for residual risk
7. Progressive reviewing and revising of the risk management plan. The monitoring of the
site operations and modification of the risk assessment to fit the working conditions do
this.

Modern Construction enterprises 6
Some of the important areas considered in a project implementation in regards to risk include:
1. The environment of the construction
2. The control of the quality of work
3. The time factor in the project delivery
4. Performance of the suppliers and the negotiations there of
5. The safety and health if the human resource on site
6. The cost implication of the construction
7. The conformity of the architectural plans and specifications to the regulations of the
building location
Measurement of project success
The company measures the success of its projects using the Atkinson theory that involves
the separation of the criteria into delivery and post-delivery stages.
The delivery stages includes measures such as cost of the project, time taken in delivery and the
quality of work achieved all compared against the projected values in the beginning of the
project (Gransberg, et al., 2010).
The post-delivery stages of the success measurement include measures such as the benefit of the
project to the client, the society and the stakeholders of the project like the contractors
(Gransberg, et al., 2010). Other measures in the post-delivery stage include the maintainability if
the building project, its durability and the reliability there of.

Modern Construction enterprises 7
How issues that arise during construction are dealt with:
Some of these potential issues include exceeding of the budget, delays in the construction, low
labor productivity and safety issues
Some of the ways in which these issues are dealt with include:
1. Documentation of the safety concerns on site
2. Use of project production schedules
3. Proper communication and line of command on the construction site
4. Provision of supplementary budgets to counter unforeseen construction costs.

Modern Construction enterprises 8
References
Chambers, C., 2011. Operations Committee. Policy, 2, p.08.
Guo, F., Chang-Richards, Y., Wilkinson, S. and Li, T.C., 2014. Effects of project governance
structures on the management of risks in major infrastructure projects: A comparative
analysis. International Journal of Project Management, 32(5), pp.815-826.
Gransberg, D.D., Scheepbouwer, E. and Tighe, S.L., 2010, April. Performance-Specified
Maintenance Contracting—The New Zealand Approach to Pavement Preservation. In First
International Conference on Pavement Preservation, Newport Beach, California.
Gransberg, D.D., Scheepbouwer, E. and Tighe, S.L., 2010, April. Performance-Specified
Maintenance Contracting—The New Zealand Approach to Pavement Preservation. In First
International Conference on Pavement Preservation, Newport Beach, California.
Muir, C.A., Pampanin, S. and Bull, D.K., 2012. Background, design and construction of a two-
storey, two-by-one bay, reinforced concrete slotted beam superassembly. In Proc. of the fifteen
World Conference on Earthquake Engineering (15WCEE) (pp. 24-28).
Snijders, C., 2007. THE VALUE OF COLLABORATIVE WORKING IN ARCHITECTURE
(Doctoral dissertation, Unitec Institute of Technology).