Mubarak Al Hajri Jennifer Gasser Stephanie Hudson Zac Huffman Hanh Nguyen

 2011 US Total - $787.2 billion  2010 US Total - $797.3 billion  2011 $39.9 billion Private Commercial  Up 6.2% 2010 to 2011 Indicator % Change Construction Spending – (millions, seasonally adjusted annual rate) – U.S. Census Bureau Private Nonresidential Lodging$10,904$7,976$8,4556% Office$24,231$22,315$24,2508.7% Commercial$37,647$39,988$43,0507.7% Health Care$30,316$29,575$31,9608.1% Educational$13,356$13,424$13, % Power$66,601$75,105$82,0009.2% Manufacturing$37,478$34,956$37,7538% Total – All Industries$261,796$263,538$281,8366.9%  Estimated growth for 2012

 2011 to US new public and private nonresidential construction - 7% annual compounded  13% growth next 2 years Commercial and Heavy Construction Spending Growth Slows After Spike  Growth anticipated to taper down to 5% by 2016

Economy  Slowed economy  Tight financing environment for construction loans  “Bad construction loans and commercial mortgages could amount to more than $200 billion in losses.” Highly Cyclical Demand  Demand for new building can change rapidly  1995 to 2005 annual US construction increased by 75%  2006 to 2010, it fell 65%  Demand in local markets varies even more Uneven Revenue, Expenses  Amount retained after a project is complete  Bad weather can delay construction, creating uneven cash flow

Specialization  Roofing, framing, demolition and green construction  Existing customers Green Construction  Tax incentives  Green Investment Fund Joint Ventures  Larger projects  On-time costs  Pool expertise and financial resources

Small Company - Low  Need fewer pieces of equipment  Rent equipment, project-by-project basis Large company - High  Bonding  Human Capital

 Strong relationships within the commercial industry  Oregon Association of Minority Entrepreneurs  Bidding Posts  Tradeshows  Associated General Contractors: Oregon Columbia Chapter  AGC University – continuing education and training  Port of Portland | Small Business Development Program  Mentor-Protégé Program

BID SOURCES Contractor's Websites OAME AGC Networks WOM BID WALK THRU Thomas and Omar coordinate walk thru BID TRACKING Calendar Computer Software ie BidTrack BID PREPERATION Each bid has individual guidelines Bid Form Bid Bond List of Subcontractors BID SUBMISSION SUBMIT

 Scouting for a Residential Superintendent  Incorporate Thomas into his Business Development role  Omar’s focus will be monopolized by both residential and commercial

OMAR | Owner/President Commercial Employees Commercial Subcontractors EMPLOYEE 1 | Residential Superintendent (Hired in 2014) Residential Employees Residential Subcontractors BECKA | Owner/Business Manager THOMAS | Director of Business Development Networking Marketing Accountant/CPA Bookkeeping

 Urban Renaissance Group  Management firm  Repair and remodel buildings  Hoffman Construction Company  Wide range of job  Engineering News-Record’s Top 400 general contractors

 Political Factors | Minority owned business  Economic Factors | Low growth in construction  Social Factors | Shift in housing market  Technological Factors | LEED certificate  Environmental Factors | Energy efficient buildings  Legal Factors | Labor Law

 Networking  AGC | Mentorship  OAME  Tradeshows  Web-based  Company website  Social network site

STRENGTHS  Omar’s Engineering Background  Minority Owned Business  Carpentry and Framing Minority Niche  Becka’s Networking Relationships  Low Overhead WEAKNESSES  Cash Flow  Low Risk Taking  Human Resources  Low Market Share  Time OPPORTUNITIES  Minority Business Enterprise  Sustainable/Green Construction  LEED Certification THREATS  Cost Leadership  Competition  Need Financial Investment

 Year 1 goal: Save money to finance the risk associated with hiring an employee  Year 2 goal: Minimize losses through effective cost management  Year 3 goal: Work back to a profit; rebuild cash savings for internal financing of projects  Year 4 goal: Establish stability and financial norms

 Beginning cash savings of $10,000 (minimum)  Prevents borrowing  Allows internal financing for projects  Limits exposure, allowing the commercial segment to stay engaged in the market even in the face of sustained operating losses  Reinvest earnings to the cash savings balance, for all of the same reasons  The ability to finance projects with cash savings will make the company more attractive and provide new opportunities

*Starting initial investment of $10,000

 Hiring a supervisor  Altering the pricing structure for estimates  Initial investment in the commercial segment (cash savings balance)  Purchasing a vehicle for the commercial segment

 Note that our recommendations follow a strict budget and require financial milestones  Cash savings $10,000  Hire employee when cash savings exceed $25,000 and sales exceed $80,000  Maintain cost basis hourly rate of $50 with a premium gradually increasing from $10 to $35  Purchase a vehicle when cash savings exceed $35,000 and sales exceed $125,000

*50%, 25%, 12.5% Growth for years 2, 3, and 4 respectively