Business Continuity Planning Example: What a Construction Company May Need If the Owner Is Out for 90 Days
The short answer. A business continuity plan for a construction company is a written record of who makes which decisions, who holds which relationships, and where the critical information lives when the owner cannot be reached. The example below assumes the owner is out for 90 days and shows who could cover signing, bonding, payroll, and change orders.
Why most continuity plan examples miss the real risk
Search for a sample business continuity plan and most of what comes back is built around fires, floods, and IT outages. Those events matter. But in an owner-led construction or trade company, the more likely disruption is quieter: the person who signs the contracts, talks to the bonding agent, approves payroll, and prices the work is suddenly not available.
That can be an illness, an injury, or a family emergency. Nobody did anything wrong, and the jobs on the schedule still need decisions every day. A plan built around that event is a different document from a disaster recovery plan, and it starts with a different question: if the owner is out for a stretch, what stops?
The scenario: the owner is unavailable for 90 days
Ninety days is a planning assumption, not a statistic. It is long enough to run into several payroll cycles, a round of pay applications, change orders on open jobs, and possibly a bonding or insurance renewal. It is short enough that the owner is expected to return, so the plan is about keeping the company steady, not about a sale or a transfer of ownership.
- The first few days. Someone needs authority to sign and to move money. Key customers and the crew leads hear a consistent message about who is covering what, and the owner's family knows who to call at the company.
- The first month. Payroll, payables, pay applications, and change orders keep moving under written limits. The bonding agent and the company's key customers hear from a named person, not a rumor.
- Days 30 to 90. Bids and renewals come due. The people covering for the owner are making real decisions, and the plan shows where they need a second approval or an outside professional's input.
A sample plan: who decides what
The table below is a simplified template. The column that matters most is the first one after the decision, because in many owner-led companies the honest answer today is the owner, informally, with nothing written down.
| Decision | Who covers it today | Who could cover it | What they would need |
|---|---|---|---|
| Signing contracts, checks, and bank transactions | The owner alone | A named second signer, such as a co-owner, spouse, or senior manager, under written authority | Authority documents prepared with the company's attorney, bank signature cards, a list of accounts |
| Talking to the bonding agent | The owner, often the only person the agent knows | The controller or a senior manager, introduced to the agent in advance | Current work-in-progress schedule, recent financial statements, the agent's contact details, a clear idea of what the surety expects |
| Key customer and general contractor relationships | The owner | A senior project manager or estimator for each major account | Contract list, open pay applications, contact names, a short script for what to say |
| Approving payroll and payables | The owner, or the bookkeeper without a second check | The bookkeeper or controller with a second approver and a spending limit | Payroll calendar, approval limits, bank access, a list of recurring vendors and obligations |
| Approving change orders and field decisions | The owner, by phone | Project managers up to a set dollar amount, a named person above it | A written authority matrix, contract terms, change order templates |
| Estimating and bid decisions | The owner or the lead estimator, with no written rule | The lead estimator, with a go or no-go rule agreed in advance | Bid log, pricing history, the company's practice on bid bonds and capacity |
| Licenses, certificates of insurance, and compliance dates | The owner, from memory | The office manager, with the license holder confirming requirements | A renewal calendar, copies of current certificates, contacts at each agency and carrier |
Illustrative example only, not based on any client. Every company's authority structure, contracts, bonding terms, and legal requirements differ, and a plan like this should be reviewed by your own attorney, accountant, and insurance professional.
Where the critical information should live
A plan only works if the people covering for the owner can find what they need. In many companies that information sits in the owner's phone, truck, or head. A usable plan puts a short list in one secure place and tells two or three people where it is.
- Authority and contacts. Who may sign, who may approve, and phone numbers for the bank, bonding agent, insurance professional, accountant, attorney, and top customers.
- Money. Bank accounts, payroll provider, loan and line of credit terms, and the schedule of payments due in the next 90 days.
- Jobs. Open contracts, work-in-progress, pay application status, and change orders waiting for a decision.
- Legal and insurance documents. Where the operating agreement, buy-sell agreement if there is one, powers of attorney, and insurance policies are kept, and who knows how to reach them.
- Access. A way for a trusted person to reach critical accounts and systems, set up with care and with the owner's attorney and IT support involved.
Where your accountant, attorney, and insurance professional fit
A continuity plan is not a replacement for the professionals you already work with. It gives each of them a clearer job.
- Your attorney drafts and reviews the documents that give someone authority to act, and confirms what state law and your company documents allow.
- Your accountant reviews cash controls, payroll approvals, and the financial information a bonding agent or lender may ask for while the owner is out.
- Your insurance professional reviews what coverage is in place today and how it responds to the owner's absence, and can tell you what the carriers need.
- Your bonding agent can tell you what the surety expects to see in a leadership gap, which is better learned in advance than during one.
Cornerstone's role is to coordinate these professionals around the owner's plan, so the pieces fit together instead of sitting in separate files. We do not replace any of them. The legal drafting stays with your attorney, surety decisions stay with your bonding agent, and tax questions stay with your accountant. Cornerstone does not provide legal or tax advice.
What a plan like this can and cannot do
A written plan may reduce confusion and make decisions faster when the owner is unavailable. It does not prevent an illness or an injury, it does not guarantee that customers, lenders, or a surety will respond in any particular way, and it needs to be reviewed as the company changes. People move on, contracts change, and the dependencies move with them.
Where to start
Start with the table above and fill in the honest answer for each row today. The rows where the answer is only the owner are the places to work on first. Our Business Continuity service is built around finding those single points of failure and working toward a backup for each one, and Reducing Owner Dependency covers the longer-term work of building a company that does not need the owner in every decision.
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Frequently asked
What are the components of a business continuity plan?
A business continuity plan typically includes a list of critical functions, who is responsible for each one, backup people and their authority limits, key contacts, where records and access information are stored, a communication plan, and a schedule for reviewing and updating it. For an owner-led construction company, the critical functions usually center on signing authority, bonding, customer relationships, payroll, and job-site decisions.
Who prepares a business continuity plan?
The owner usually leads it, because the owner knows where the dependencies sit. Managers contribute their own areas, and outside professionals review the parts in their field: the attorney on authority documents, the accountant on cash and payroll controls, the insurance professional on coverage, and the bonding agent on surety requirements. A financial advisor can help coordinate the process.
Is a business continuity plan the same as a disaster recovery plan?
No. A disaster recovery plan focuses on restoring systems and facilities after an event such as a fire, storm, or IT failure. A business continuity plan is broader and can cover any disruption, including the owner or a key person being unavailable for a period of time.
Why plan for 90 days in a business continuity plan example?
Ninety days is a planning assumption, not a prediction. It is long enough to reach several payroll cycles, pay applications, and change orders, which tests whether the people covering for the owner have the authority and information they need. Your own plan may use a shorter or longer period depending on your company.
Cornerstone may receive commissions from insurance carriers in connection with insurance policies implemented as a result of this content.
This article is for general educational purposes and does not constitute legal, tax, insurance, or investment advice. Continuity planning, signing authority, bonding, and insurance matters should be developed with your own attorney, accountant, insurance professional, and bonding agent based on your company's specific circumstances. The sample plan is hypothetical and is not a guarantee that any company will continue to operate without disruption.