Who should do the talking?
I was asked recently by an electrical supplier, “Why do general contractors often not want their subcontractors to have any communication with the home owner?”
Another Myth: Lower Your Markup for Larger Jobs
“I am working on designing a few jobs with the job costs starting around $125,000 and up. What is your opinion on markup when the job costs are getting bigger? I want to make sure I am staying competitive.”
Work Product Exclusion, Hiring Subcontractors
Last week’s article discussed the pros and cons of using employees or subcontractors to get jobs built. This week, Myles Corcoran of Myles F. Corcoran Construction Consulting Inc., presents another point of view.
Subs or Employees, That is the Question
Recently I’ve had a number of discussions with company owners about how to get their jobs built. It all comes down to using subs or employees, or as some like to say, “Should I be a paper contractor or a real contractor?”
Payment Schedules on Small Jobs
It’s important to manage the payment schedule on your jobs, but not all jobs are the same.
Penciling a Salesperson
If salespeople know the business owner will back them up and pay them fairly, they’re motivated to produce profitable sales. If they aren’t motivated to make sales, the business is in trouble.
Client Outrage
Real or fake outrage can be a client’s attempt to elicit an emotional response from you to get what they want. It often puts you in the position of questioning yourself and your company, not dealing with the subject at hand.
The Downside of Commission Sales
I’ve long been an advocate for paying salespeople on straight commission. Not everyone agrees, not even all the experts, but in my experience straight commission is the best way to go.
Generals and Subs: Working Together
It’s important to define the ground rules of your relationship.
Design Agreement Contract, Letter of Intent
A design agreement allows you to get paid for your work. Don’t waste your effort or your time.
A Few More Contract Issues
Retainage clauses, removing the finance charge clause on the last payment, “we’ll pay you when we get paid”.
Contract Language for Client-Caused Damage
What do you do when a client calls about a problem they created? Preventative measures make the difference between a profitable job and losses.
They Want a Bid Today
Every once in a while, your phone will ring and the potential client on the other end will tell you they want a bid today. What should you do?
Business Protection for Contractors
The popular belief is that contractors are the villains and homeowners are the victims. But if you’ve worked with the public for very long you know there are also dishonest clients.
Progress Payments: Keeping a Positive Cash Flow
We used to get three payments on jobs. 1/3, 1/3, 1/3. That’s not a smart business practice.
Money Changing Hands
It's easy to ask someone to do something; it's harder to hand over money. Your client isn't committed until they've written the first check.