Construction business case template
CONSTRUCTION BUSINESS CASE
PROJECT TITLE: Greenfield Commercial Complex Development
COMPANY NAME: ABC Constructions Ltd.
123 Main Street
Metropolis, State, 56789
www.abcconstructions.com
01/01/2025
Classification Label: Confidential
BUSINESS CASE TABLE OF CONTENTS
- EXECUTIVE SUMMARY
- PROJECT
- BUSINESS NEEDS
- PROJECT SCOPE
- PROJECT BACKGROUND
- ANTICIPATED OUTCOMES
- PROJECT ASSUMPTIONS
- KEY PROJECT STAKEHOLDERS
- PROJECT REQUIREMENTS
- STATEMENT OF REQUIREMENTS
- STRATEGIC ALIGNMENT
- BUSINESS IMPACTS
- ALTERNATIVES
- RISK MANAGEMENT
- RISK ASSESSMENT
- MITIGATION STRATEGIES
- RISK COSTS
- COST ANALYSIS
- COSTS FOR ALTERNATIVES
- RECOMMENDATION
- ALTERNATIVE OVERVIEW
- PREFERRED ALTERNATIVE
- PROJECT SCHEDULE
- PROJECT DELIVERY STRATEGY
- AUTHORIZATION
- SIGNATURES
EXECUTIVE SUMMARY
ABC Constructions Ltd. proposes the development of a Greenfield Commercial Complex in Metropolis to cater to the rising demand for office and retail spaces. This project will address the shortage of commercial real estate and contribute to economic growth. The initiative aligns with our strategic goal of sustainable urban development while ensuring high returns for stakeholders. The project will incorporate green building technologies and smart infrastructure to maximize energy efficiency. Risks such as budget overruns, regulatory delays, and market fluctuations will be mitigated through proactive planning.
PROJECT
BUSINESS NEEDS
Metropolis has witnessed a 20% annual increase in business registrations, leading to a shortage of commercial spaces. This project aims to provide high-quality office and retail spaces in a strategically located area with excellent connectivity.
PROJECT SCOPE
- Location: Downtown Metropolis
- Size: 150,000 sq. ft. commercial space
- Facilities: Office units, retail shops, parking, green spaces
- Project Duration: 24 months (January 2025 – December 2026)
- Budget: $50 million
PROJECT BACKGROUND
- Increasing demand for commercial spaces in Metropolis
- Existing commercial spaces are outdated and lack modern infrastructure
- Government incentives for green buildings
ANTICIPATED OUTCOMES
| OUTCOME / DELIVERABLE | ESTIMATED COMPLETION DATE |
| Design Report | April 2025 |
| Development Report | June 2025 |
| Pre-Tender Report | August 2025 |
| Vendor Recommendation | October 2025 |
| Contract Award | December 2025 |
| Construction Completion | December 2026 |
| Building Commissioning | February 2027 |
PROJECT ASSUMPTIONS
- All necessary permits will be obtained within six months
- Construction materials will be available at current market rates
- No major economic downturn will impact funding
KEY PROJECT STAKEHOLDERS
| STAKEHOLDER | REQUIREMENTS |
| Investors | High ROI, risk mitigation |
| Local Government | Compliance with zoning laws, sustainability practices |
| Tenants | Modern infrastructure, competitive rental rates |
| Construction Team | Timely approvals, efficient supply chain |
PROJECT REQUIREMENTS
STATEMENT OF REQUIREMENTS
The project requires:
- Architectural and engineering designs
- Sustainable building materials
- Compliance with LEED certification standards
STRATEGIC ALIGNMENT
This project aligns with:
- The city’s urban expansion policy
- ABC Constructions’ sustainability initiatives
- Market demand for premium office spaces
BUSINESS IMPACTS
- Increased revenue generation through lease agreements
- Job creation during and post-construction
- Enhancement of Metropolis’ commercial real estate sector
ALTERNATIVES
| Alternative | Description | Reason for Exclusion |
| Status Quo | No new development | Fails to meet demand |
| Smaller-Scale Project | Limited retail spaces | Lower ROI, inefficiency |
| Different Location | Suburban development | Lower accessibility, demand |
RISK MANAGEMENT
RISK ASSESSMENT
| RISK DESCRIPTION | PROBABILITY | IMPACT |
| Regulatory Delays | Medium | High |
| Budget Overruns | High | High |
| Supply Chain Disruptions | Medium | Medium |
| Market Downturn | Low | High |
MITIGATION STRATEGIES
- Early engagement with regulatory bodies
- Cost buffer of 10%
- Diversified supplier network
- Flexible leasing models to attract tenants
RISK COSTS
| RISK EVENT | POTENTIAL COST |
| Permitting Delays | $2 million |
| Material Price Fluctuations | $3 million |
| Contractor Defaults | $5 million |
COST ANALYSIS
COSTS FOR ALTERNATIVES
| Alternative | Initial Cost | Ongoing Costs |
| Proposed Project | $50 million | $2 million per year |
| Smaller-Scale Project | $30 million | $1.5 million per year |
| Status Quo | $0 | Maintenance costs increase |
RECOMMENDATION
ALTERNATIVE OVERVIEW
| CRITERIA | ALTERNATIVE 1 | ALTERNATIVE 2 | ALTERNATIVE 3 |
| Business & Operational Impact | High | Medium | Low |
| Project Risk Assessment | Medium | Medium | Low |
| Cost / Benefit Analysis | High | Medium | Low |
PREFERRED ALTERNATIVE
Proceed with the proposed Greenfield Commercial Complex due to its alignment with market demand, strategic objectives, and financial viability.
PROJECT SCHEDULE
| PHASE | START DATE | END DATE |
| Design & Planning | Jan 2025 | Jun 2025 |
| Permitting | Jul 2025 | Dec 2025 |
| Construction | Jan 2026 | Dec 2026 |
| Commissioning | Jan 2027 | Feb 2027 |
PROJECT DELIVERY STRATEGY
- Project Manager: ABC Constructions Ltd.
- Governance Structure: Board of Directors oversees major decisions, project team handles execution
- Procurement: Competitive bidding process for contractors
- Monitoring & Evaluation: Monthly progress reports, stakeholder meetings
AUTHORIZATION
The undersigned approve the business case for submission.
| SIGNING AUTHORITY TITLE | NAME | SIGNATURE | DATE |
| CEO | John Doe | 01/01/2025 | |
| CFO | Jane Smith | 01/01/2025 |
DISCLAIMER
This document is for informational purposes only. ABC Constructions Ltd. does not guarantee project approval or funding based on this business case.