Unit 11 Financial Management & Business Practices in Construction Assignment Brief 2026

Unit 11 Financial Management & Business Practices in Construction Assignment Brief

Introduction

The contemporary construction company operates in a very competitive sector of the economy. The size of company ranges from small to large. The types of company includes sole traders, partnerships, limited companies and public limited companies, working in local, regional and multinational contexts. Construction companies have evolved their business practices to ensure economic survival and growth. However, they continue to be impacted by the construction market and external factors such as interest rates, government legislation and political and economic conditions. This unit introduces students to the concepts of business management and financial control. They will examine a range of factors that influence the ways in which companies grow, raise finance and control their costs and resources.

Topics included in this unit are: the legal status of building companies and how it impacts on raising finance; the different sources of finance and how a company manages them; contemporary management strategies; how the day-to-day management of the different resources used by a construction company have an impact on their success.

On successful completion of this unit, students will be able to analyse the legal status of different types of construction companies, their business strategies and how they raise and manage their finances, and the management of the resources available to them.

Learning Outcomes

By the end of this unit, students will be able to:

LO1 Explain the legal status of different types of construction companies

LO2 Explore different sources of finance available to a construction company and strategies used to manage finance

LO3 Evaluate different forms of company organisation in the contemporary construction industry

LO4 Illustrate the different strategies used by construction companies to manage resources.

Essential Content

LO1 Explain the legal status of different types of construction companies

Company types

Sole trader

Partnership and limited liability partnership (LLP)

Private company (e.g., limited by shares (Ltd), limited by guarantee, unlimited)

Public company (e.g., public limited (PLC))

Holding and subsidiary companies

Legal statutes surrounding companies

Company law

Responsibility to shareholders

Bankruptcy and insolvency

Key legal characteristics of registered companies

Company registration

Memorandum of Association

Articles of Association

Statement of capital and initial shareholdings Choosing a company name

Company closure

Winding-up/dissolution or liquidation

Members’ voluntary winding-up/dissolution

Creditors’ winding-up/dissolution

Compulsory ‘strike-off’

Insolvency

Bankruptcy

Administration

Secured and unsecured creditors

Distribution of assets

LO2 Explore different sources of finance available to a construction company and strategies used to manage finance

Types of capital

Short-term, medium-term, long-term

Investment types (e.g., owner, shareholder, bondholder, equity, banks, venture, lender/loan)

Types of finance

Equity

Debt and lease financing

Debentures

Shares (e.g., ordinary, preference, ‘called-up’, share values)

Managing finance

Simple interest and compound interest Future planning and present value

Sinking fund

Discounted cash flow techniques

Net present value

Capital gearing Leverage

Company accounts Trading position

Balance sheet analysis

Ratio analysis

Financial reporting

Cash flow analysis

LO3 Evaluate different forms of company organisation in the contemporary construction industry

Company organisation

Corporate governance

Operational strategies

Corporate ethics (e.g., corporate social responsibility, sustainability,  labour practices)

Organisation structures

Span of control

Communication

Matrix organisations

Head office and site management structures

Learning and development (e.g., education, training, professional development)

Health, safety, and welfare provisions

Certification schemes (e.g., Construction Skills Certification Scheme,

Considerate Constructors Scheme)

Management philosophies

Human resources development

Motivation and incentivisation

Leadership styles

Employment types (e.g., direct, sub-contract, agency labour) Collaboration and communication

LO4 Illustrate the different strategies used by construction companies to manage resources

Labour

Skilled or semi-skilled

Sub-contract or direct labour

Incentive schemes

Human resources reviews

Materials

Ordering

Delivery strategies

Storage

Transport

Plant and equipment

Hire, lease, or purchase

Depreciation

Selection process Setting hire rate

Project cost monitoring

Cost plan

Approved budget

Cost reporting

Roles in cost monitoring (e.g., client, quantity surveyor, project team)

Learning Outcomes and Assessment Criteria