Introduction

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Pubudu Constructions is a small scale contractor who is currently operating at the address-52/596, Bandaranayaka Mawatha, Anuradhapura. Founder of the Pubudu Constructions is Mr. Pubudu Kamal Perera and the company registered in ICTAD (Institution of Construction Training and Development) on 21st October 1998. It is registered in the number of 5741 under M.7/C.6 grade and currently it is operating as a C.6 grade contractor which is as the maximum level of small scale contractor. Its initial capital was around Rs.500000/=. There are around 10 employees as permanent staff. Number of labourers is depending on the work and normally it‘s around 30.
Achievements:-
 National constructions Association Merit Awards
(2011/2009/2007/2008)
 Excellency awards/Merit awards- in the field of buildings and in the field of roads
 The central for housing planning and building (CHPB)-Successfully completed special training modules in tendering and site measurements and preparation of bills for small and medium scale contractors.
As part of its growth and altered focus, Pubudu Construction is planning on changing its charter from a limited resourceful company to a top class C corporation registered in Sri Lanka. That will allow Pubudu constructions greater access to construction industry to fuel its growth.
Services:-
Pubudu Constructions offers comprehensive services designed allow the company to do whatever it takes to finish a project. Some of these services include; construction work, remodeling and alterations, permitting, site preparation, carpentry, cement foundations, painting, repairing and plumbing and utilities installation. In addition, skills Pubudu Constructions lacks can be subcontracted.
The logo of Pubudu Constructions :-

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Theoretical Background

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The construction Industry:-
The Anuradhapura area is booming at this moment, overall construction growth during the past seven years has averaged approximately 9.5% and is expected to continue for at least the next four years. This makes for a very attractive industry for Pubudu Constructions.
They will be concentrating on the constructions and renovations that will provide them with the greatest margin, in other words those clients desiring office building construction. This is the fastest growing segment of commercial clients requiring their services. The other categories that they will serve include the government segment, the special facilities segment, and all other potential commercial clients.
Financial Considerations:–
Pubudu Constructions has only a small amount of debt and intends to stay that way. They expect to see increased profits from their market shift efforts by the end of Year 2. Over the next three years they expect lower profits as they make inroads into this tough construction industry. They estimate that they will be able to reduce marginal development and maintain costs and increase overall profitability by Year 3 or Year 4 as they grow and take advantages of economies of scale.
Objectives:-
Pubudu Constructions plans to:
 Significantly expand into the commercial and office building contracting market to improve profit margins and increase local market share.
 Expand services and decrease costs by creating a permanent building crew, as well as adding a bookkeeper and an accountant to their staff.
 Begin to market and offer services in the Polonnaruwa area in preparation for opening an office there in Year 4.
Mission:-
Pubudu constructions strives to offer the finest quality design, site preparation, cost estimates, construction, repair, and alteration to clients needing large scale construction services, whether it be office buildings, warehouses, large apartment complexes, public works, etc. Pubudu construction maintains the highest standards of service in the commercial construction industry in Sri Lanka.

Keys to Success

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The local commercial construction market is booming at the moment. In order to achieve a defendable position in this environment, Pubudu constructions must concentrate on the following tasks.
 Secure at least five large scale commercial contracts over the next three years.
 Expand their customer base through expansion into other geographic areas to retain a sufficient level of profitability.
 Increase construction expenditures by 15%.
Operations:-
Pubudu constructions offers a comprehensive package of services designed to allow the client to work with one of their builders and create a project the company can carry forward to completion. Some of the myriad services Pubudu Constructions offers are:
 Construction & Design work
 Remodeling and alterations
 Permitting
 Repairing & renovation
 Site preparation
 Carpentry
 Cement foundations
 Painting
 Plumbing and utilities installation
 Exterior renovations
 Subcontractor assessment and evaluation.
Industry Segmentation:-
At the moment their potential list of clients includes all the various businesses in the Anuradhapura area and its suburbs. According to the ICTAD there are 512 firms of all types and sizes in the surrounding area. They will concentrate on the customers that can provide them with the greatest margin, in other words those clients desiring office building construction. This is the fastest growing segment of all the commercial clients requiring their services. The other categories that they will serve include the government building segment, the special facilities segment, such as school buildings, and roads, and a category which they will call “general”, encompassing all other potential commercial clients.

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Target Market Segment Strategy:-
Since office building construction has the highest average profit margin, they will focus most of our marketing and servicing toward these customers. Usually these clients require the largest projects in scope, land use, and cost. In addition, they tend to be the most sensitive to completion times. Therefore, they plan to accommodate these clients through a well-established and expeditious permitting program, strict cost accounting and supply management, and intensive and comprehensive project management capitalizing on Pubudu Constructions‘ experience in the field.
Service Business Analysis:-
The Anuradhapura area is booming at this moment, with overall business growth for the past seven years averaging approximately 9.5%. This growth level is expected to continue for at least the next four years. One of the prime reasons for this growth is the creation of the providing facilities by National Enterprise Development Authority (NEDA) comes under the purview of the Ministry of Industry & Commerce in Sri Lanka and is one of the prime state institutions that render valuable services and guidance to the small and medium scale entrepreneurs., that removed trade boundaries throughout our continent. Anuradhapura is ideally situated to take advantage of these new conditions and is experiencing a boom to prove it. This makes for a very attractive market for Pubudu Constructions.
The commercial construction industry is highly fragmented across the nation. More than 86% of all construction companies in the Sri Lanka consist of small parental style companies employing less than ten individuals. Contrasted to this are the large companies that engage in “heavy” construction such as roads, shopping malls, etc. who often have a nationwide scope and employ several thousands of workers. This creates a highly competitive market with low profit margins.
Overall Constructions Practice
Office Building constructions
Government Constructions
Special fascility Construction
General Construction
6 Companies wanting to create a defensible position in this market need some form of competitive edge, such as brand name, low cost advantages, or size.
Competition and Operating Patterns:–
Currently they have various major competitors within the Anuradhapura area. These are Seedevi Trading Company, Lohitha Construction, Saco construction & Motor Engineering and etc. Each of these companies targets the same clients as Pubudu Constructions and each has a fine reputation for customer satisfaction. However, the market in Anuradhapura is growing so fast that the demand is currently greater than supply. This is an excellent opportunity to gain market share and a defensible position in the industry.
One of the greatest limiting factors in this industry is its strong seasonality. During the rainy months, contracts and production drop off sharply, increasing the company’s short-term risk of cash flow shortfall.
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Pubudu Constructions plan to market itself through a variety of methods. Their plan will use referral systems, radio and published ads, leveraging of their pre-existing contacts with the local real estate companies, and industry contacts for tenders.
Pubudu constructions has been able to gain a very advantageous supplier contract that will allow Pubudu constructions to obtain its materials at a significant discount. This will allow the company to underbid its rivals and achieve a low cost leadership role.
Operations performed:-
 The Holiday Home at Anuradhapura for the National Construction Association of Sri Lanka.
 Construction of building for institution of women & children at police station, Anuradhapura.

Proposed divisional surveyor office building at Anuradhapura.
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Construction of Operation Theater at Anurathapura General Hospital.
Competitive Edge:-
In the construction industry the primary ways to compete are through low cost or better project management. One of the most important processes for winning a contract is the bid process. Pubudu Constructions has a unique competitive edge over most of its competitors. Mr. Pubudu perera, chairman of Pubudu Constructions, one of the Anuradhapura construction material supplier. Through this additional advantage, pubudu construction has been able to gain a very advantageous supplier contract allowing Pubudu constructions to obtain its materials at a significant discount. With this edge the company can underbid its rivals and achieve a low cost leadership role.
Industrial Strategy:-
Pubudu Constructions plans to market itself through a variety of methods. First, the company will use a referral system with local businesses. They will also air radio spots and publish ads in a variety of commercial construction trade magazines. In addition they will leverage their pre-existing contacts with the local real estate companies. Finally, as a member of the National construction association of Sri Lanka, they will be updated on new projects let out for bid.
Construction Strategy:-
The most critical part of constructions is not the marketing, but the bidding process, in which companies offer their designs, services, material quality, project timeline estimates, and costs. The company that offers the best combination of these variables is the most likely to get the contract. Therefore very detailed project planning, including supply agreements, labor needs, subcontractors, presentation, and other factors, is crucial for pubudu Constructions in winning contracts. They are designing a standardized method for doing this with all their contracts, with an emphasis on quality, timeliness, and low cost to outbid their competitors.

Management Summary

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Pubudu Construction’s management consists of Mr. Pubudu Perera. Mr. Pubudu Perera concentrates on client contacts and bidding along with overall management of the company. Mr. Perera is the company’s General Project Manager, coordinating all project management and concentrating on cost controls, suppliers, day-to-day project supervision, labor relations, etc. Mrs. Swarnalatha is the officer, handling client satisfaction, invoicing, permitting, and general book keeping. Most of their labor needs will be met through labourers living Anuradhapura area.
The company is planning to expand it personnel to add a number of job superintendents as soon as the number of projects increases. These superintendents will have the following duties:
 Direct supervision of all work at the job site.
 Quality control.
 Scheduling subcontractors and material deliveries.
 Verifying and insuring that all work is done in accordance with plans.
 Insuring that all work is performed in accordance with all ICTAD guidelines.
In addition, as business increases, they will hire additional job superintendents and project managers as neede

Interview with the Owner of Pubudu Constructions, Mr. Pubudu Perera

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1. How did you come up with your enterprise?
After my A/Ls I entered to textile business. While I was doing that business I entered to the construction industry. Major influences to enter the construction industry were my father who worked in the civil engineering industry and the experience I gained through the activities involved me by fathers‘ work. As another result of it my brother too became an architect. For the first time, my entrance happened by joining with two constructors who worked in Anuradhapura then. They are Jayawardana Construction Company and Techno Carters pvt ltd. Those two constructors invested the money, I done the supervision and profit is reasonably divided among us. Later on I registered in ICTAD as a sole constructer. It was 21/10/98 and I registered in M-7 grade. My first contract was repairing of the magistrate‘s official residence in Kakirawa urgently. Likewise, Pubudu constructions engaged a lot of buildings, roads constructions in past 14 years.
2. What were the challenges you faced?
I face often to find labourers is another challenge to me. Even though there are lots of people who suffer in unemployment, but still it is hard to find labourers for construction industry.
Also economical inflations affect to constructors in SL a lot. There the constructors who invest their money in banks suffer by such issues badly. Another challenge is the frequent change of price of goods and services in market.
3. What are the strengths of your company?
I owned two companies-Pubudu Constructions and I.A.P Entreprises. Pubudu Constructions works in construction industry while I A P Entreprises give facilities of construction equipment for hire. I think this is my great strength. I have all the necessary equipment I need in my construction work. While the equipment I currently not in use can make money by giving them for hire to other constructors. Also my fathers‘ experience in civil engineering industry, my brothers‘ knowledge of architecture are additional strengths to me.

4. How do you manage your company?
I worked as the manager in my business while technical side of the business manages by my technical officer Mr. Lahiru Manikdhivela Mrs Swarnalatha handles the accounting and office activities. Mr.P.A Sarath supervises in I.A.P Enterprises.
5. How did you supply with capital initially?
I invested the money that I earned from my pre-constructions. Also HNB and Peoples bank in Anuradhapura gave me loan facilities. Pubudu Constructions initial capital was about Rs.500000/=. Also I would thank to Mahanuwara hardware stores to the support they have given me in the very beginning by the terms of monetary and expertise.
6. What are your aspirations?
I want to go to the top grade of ICTAD as a successful constructor. So that successful & steady position of my company will lead me to spend a good family and personal life. So then I expect to send some amount of benefits that I will gain from my dignity to my area and I want to give my service to entire construction community.
7. What are the strategies you adapt to enhance employee efficiency?
 Giving a reasonable salaries and other facilities
 Giving specific targets which should accomplish in specific period of time
 Incentives & bonus
 Transport facilities
8. What is your goal in business?
I want to become a well-established and stable constructor in Anuradhapura when I will become 55 years old. Also I want to become the pioneer of equipment facility providers in Anuradhapura.
9. What is your future plan?
I want to achieve the M 5 grade in ICTAD in near future. So I have to collect the staff, machinery and equipment to achieve the above state. I want to enhance the facilities that provide by I A P Enterprise under the theme ―EVERYTHING UNDER THE SAME ROOF‖. I want to live freely after when I become senile.
10. What are your innovations that you added for newly in the construction industry?
I opened I A P Enterprise as construction equipment facility provider to other constructors for hire. The theme of it is ―EVERYTHING UNDER THE SAME ROOF‖. While I can use necessary equipment other equipment makes me money by giving for hire.

11. What is the support you get from your family members?
My mother was a teacher. She always directed me to my education. She never wanted me to become an entrepreneur. But I believe the destiny made me an entrepreneur. So my father continuously helps me to my work. My brother helps me in technological and creativity side. Though my wife doesn‘t directly involve in my business she gives me a great support immensely by take caring my children and make me free to concentrate my business without any trouble. Especially her dedication to my children‘s education is just phenomenon. My father-in-law also helps me in terms of monetary, knowledge and labour. Also my siblings have helped me in different periods of time to my work.
12. What is the support you expect from the current government?
 Give more and more facilities-loans, resources, training, encouragement programs
 Utilizing a justifiable approach when hand-overing tenders.
 Reduce the rate of taxes
 Reduce the rates of loan interests and bank drafts interests in government financial institutes
 Eliminate the delays of paying the amounts of money to constructors
 Eliminate the delay when checking related bills

Interviewee : Mr. Pubudu Perera
Contact Address : 52/596, Bandaranayaka Mawatha, Anuradhapura
Contact No : 0777356892 / 0717356892