What is Consolidated Construction Company – How They Can Benefit You

Consolidated construction company also known as consolidated contractors company, by some, is a term that presents a construction company with different construction wings merged under one umbrella.

Tomake it even more simple for you to understand, we will break it down—word to word.

When we say consolidated, we mean the combination of multiple things into a single entity. This is to achieve a unified whole.

For Example: adding chocolate, milk and sugar to form tea.

So, consolidate gives the idea of unifying or combining multiple units into a single, stronger and even better entity.

Having the above in mind, you should also know that construction involves using various materials and methods to build, assemble or create structures and infrastructure.

And, of course, the term company is a popular one. A company, as a legal entity, sells goods and services to make a profit.

To bring the whole idea together, hence the question: what is a consolidated construction company?

Note: consolidated construction company and consolidated contractors company will be used interchangeably in this article.

What is a consolidated construction company (CCC)

It's a construction company that offers the services of multiple divisions of the construction industry as an entity.

For Example, instead of a company focusing on just the construction of a building structure l, they might also include electrical,  mechanical and possibly other services as well including maintenance as well.

This is to say that a client will not need to go from several professionals to another for a single project.  A Consolidated contractors company comes with multiple packages already.

Who owns it?

They (CCC) are a team of multiple professionals under a single company.  This can likely be owned by an individual, family or group of entrepreneurs.

How many services do they offer?
There are sections in the construction industry with different professionals filling specific gaps; what a consolidated contractors company does is to bring at least some of these professionals together in a team to execute multiple tasks in a single project.

Let's use building construction, as we mentioned earlier, for instance.

There are different professionals you will need to get your building set. After the design from an architect or a draft man, an architect preferably.

You will need a builder to raise the structure, an electrical engineer to carry out the electrical aspect,  a mechanical engineer for the mechanical job,

So, the number of services offered will depend on a particular CCC and the number of professionals in their team.

Types of consolidation in the construction industry.

These include:

1. Horizontal Consolidation: this is the combination of two or more companies functioning in the same market segment (e.g., two general contractors)
2. Vertical Consolidation: this is when different stages of the construction process (e.g., design, build, operate) are integrated.
3. Conglomerate Consolidation: one word that we can represent this with is diversification. It is when unrelated (non-construction companies) are acquired to increase revenue.
4. Platform Consolidation: this is when multiple companies operate through a shared platform.
5. Roll-Up Consolidation: creating a larger company by merging multiple small companies.
6. Others include: Hybrid Consolidation, Operational Consolidation, Financial Consolidation and  Industry-Specific Consolidation.

The above Consolidations can be through any of the following: Mergers and Acquisitions (M&A), Joint Ventures (JV), Partnerships, Strategic Alliance and Organic Growth.

Now meet some global consolidated construction company: Examples of some CCCs you should know. (2024 update)

1. Bechtel Group Inc. (USA): 

A Global Engineering, Construction & Project Management company. Since 1898.

Headquarters location:12011 Sunset Hills Road, Reston, VA 20190-5918 USA

25k Projects Completed,  160 Countries Visited, and 7 Continents Explored.

Source: their website (https://www.bechtel.com)

2. China State Construction Engineering Corp. Ltd. (China):

Founded in 1982, China State Construction Engineering Corporation (hereinafter "China State Construction" and "CSCEC") is now a global investment and construction group featuring professional development and market-oriented operation.

Corporate address: CSC Fortune International Center, Building 3, Courtyard 5, Anding Road, Chaoyang District, Beijing

Source: their  website (https://english.cscec.com/AboutCSCEC/Companyprofile/)

3. AECOM Technology Corp. (USA)

AECOM launched when a handful of employees from design and engineering companies shared a dream of creating an industry-leading firm dedicated to delivering a better world.

We became an independent company formed by the merger of five entities. While our official founding was in 1990, many of our predecessor firms had distinguished histories dating back more than 120 years.

Since then, more than 50 companies have joined us and, in 2007, we became a publicly traded company on the New York Stock Exchange.

Global HQ: Dallas, 13355 Noel Rd #400 Dallas, Texas 75240.

Source: their website (https://aecom.com/about-us/)

Let's See Some Benefits of Consolidated Construction Company:

There's a saying that "when the purpose of a thing is not know, abuse is inevitable." If the idea behind consolidation in the construction industry is not know, abuse will likely occur.

The below benefits and even above what is listed should be the aiming point behind the consolidated contractors company.

1. Increased Efficiency: 

This is optimising resources, including processes and systems, to achieve maximum productivity, enhanced performance, minimum waste, improved quality and reduced costs.

Simple put; it is a streamlined processes, reduced overhead costs.

2. Improved Quality: 

Giving values! This is the enhancement of products, services, or processes to meet or exceed clients expectations, requirements, and industry standards.

3. Enhanced Customer Experience: 

This makes the client not to feel left out. With personalised and engaging interaction between the two parties (client and the company) across all touchpoints.

4. Cost Savings: 

It should same more cost having various professionals you need for a single project all delivering as an entity. Economies of scale reduced administrative burdens.

5. Innovation: 

Access to advanced technologies and experts, all in one consolidated construction company.

So, what do you think?🤔