Organizational Structure of a Construction Company

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In many areas of the country, construction is a booming business. Construction companies play various roles in the development of buildings. Some companies acquire land and design the buildings, while others focus on the financial planning and execution of construction. The organizational structure of a construction company is carefully planned to ensure the right expert resources are available in the areas required.

Varying Structure of a Construction Company

The structure of a construction company will vary depending on the size of the company and the kind work they do. There are several different types of construction companies, each with different organizational structures:

  • Small renovation contractors: These businesses perform small home alterations and commercial work without a large crew.
  • General contractors: These companies may specialize in new buildings, alterations or public works. They may subcontract large portions of the project to other companies.
  • Owner-builders: Many of these businesses build homes for their personal ownership.
  • Real estate developers: These companies build to sell before or after completing construction.
  • Professional construction managers: These businesses oversee the administration, field supervision, requisitioning, payroll and other duties on behalf of the building’s owner.
  • Program managers: These companies perform the duties of general contractors with additional roles such as demolition, financial analysis, architecture and design.
  • Package builders: Both the design and construction are handled by these businesses, using professional engineers, architects and other licensed personnel.
  • Sponsor-builder: Typically seen in government-funded or subsidized projects, these companies handle design, construction, rental, management and building maintenance.

When you have an organizational chart established for your construction company, it’s important to keep it up to date with any new hires. Distribute it to contract workers or project hires so they're aware of who's in charge and who they need to speak with for specific queries. This can help to make project communication smooth and efficient.

Top of the Hierarchy

Regardless of what kind of construction company you run, the organizational structure begins with who's at the top. The leaders of the company can include a board of directors, the business owner and the general manager.

In smaller companies, these top-tier roles may all be played by one person. The upper management role guides the strategies of the entire organization, making decisions that affect both long- and short-term goals of the company. They decide what kind of projects to focus on, which areas of the company to allocate budget to and how to position the business to clients.

Management Team and Their Departments

Reporting to the top of the hierarchy is the management team and their respective departments. Depending on the size and focus of the construction company, the management team may be headed by individuals who are responsible for:

  • Project management.
  • Materials purchasing.
  • Engineering.
  • Human resources.
  • Finance.
  • Marketing.
  • Community relations.
  • Business development.
  • Sales.
  • Logistics and operations.
  • Risk management and insurance.

These management individuals report directly to the general manager or owner of the organization. In larger construction companies, each of these managers may have a functional team that reports to them, consisting of junior and senior personnel with experience in their respective departments. In a small construction company organizational chart, all of those roles may be performed by one person.

Supervisors and Trade Workforce

Reporting to the management team, and likely the project management or logistics and operations team, in particular, are the construction supervisors and the trade workforce. These resources are often hired by the construction company to work on specific projects instead of being full-time salaried employees.

Depending on the construction organizational chart template, a construction supervisor may manage a team of trade workers that specialize in a particular area, such as a carpentry team or a bricklaying team. For small projects, a supervisor can oversee several different kinds of tradespeople together. Many construction companies also hire general laborers for project-specific tasks or ongoing maintenance.

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About the Author

Anam Ahmed is a Toronto-based writer and editor with over a decade of experience helping small businesses and entrepreneurs reach new heights. She has experience ghostwriting and editing business books, especially those in the "For Dummies" series, in addition to writing and editing web content for the brand. Anam works as a marketing strategist and copywriter, collaborating with everyone from Fortune 500 companies to start-ups, lifestyle bloggers to professional athletes. As a small business owner herself, she is well-versed in what it takes to run and market a small business. Anam earned an M.A. from the University of Toronto and a B.A.H. from Queen's University. Learn more at www.anamahmed.ca.

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