Feasibility Study for a General Contracting Company in Egypt
Contracting is among the most profitable activities, and among the riskiest. Money goes out before it comes in: materials, labor and equipment, while the progress payment can be delayed. The calculation has to start from cash flow, not from the contract value.
Where your money goes
- Working capital for materials and labor until progress payments are released
- Equipment purchase or rental
- Engineers, technicians and social insurance
- Letters of guarantee and project bonds
- Registration with the authorities that regulate the activity
- Premises and a storage yard
Where the money comes from
- Subcontracting agreements
- Direct contracts with owners or companies
- Recurring maintenance and renovation work
What makes General Contracting businesses lose money
- Delayed release of progress payments
- Steel and cement prices rising during execution
- Delay penalties
- Errors in pricing and quantity take-off
What the study answers
- The working capital required for each project
- Your profit margin after material price swings
- How many projects you can run at the same time
- What happens if a progress payment is delayed
To make the numbers accurate, we ask about: Type of work, Average project value (EGP), Clients, How are you usually paid?.
The numbers are calculated for your project: your city, your capital and the size you plan to start with. Not generic figures copied from the internet.
Order a General Contracting feasibility study (EGP 2,500)