Accounting – Keeping Track of Your Jobs
It’s easy to know if you’ve made a profit when every transaction is complete in a day. It isn’t as easy in construction, where a job might take a week, a month, or even more than a year to complete.
Pay Salespeople Fairly: Commission Sales
There are lots of opinions on how to pay a salesperson. Your salespeople have to be able to make a good living and provide for their family.
What’s Your Specialty?
If you're one of the many contractors who start an advertising message with, "We specialize in . . . ", good for you. But if you follow that statement with a long laundry list of things you do, you're hurting your business.
Supply and Demand
The services offered by construction businesses are in high demand right now. Can we look at this industry from another viewpoint?
The Games People Play
Why would a developer ask for a cost plus quote to replace a fixed price quote? Because he wants the very same work done at a lower price.
Getting Involved with a Storm Chaser
Last week, a contractor called to ask my opinion on getting involved with storm chasers that were in his area.
Getting Paid
If the payment schedule is adjusted after you’ve started a job and they aren’t willing to pay what’s owed, file liens. You must protect your right to be paid.
Getting Business as a Sub
One of the questions we’re asked most often is how a subcontractor can get jobs. How do you go about meeting general contractors and letting them know you’re available to build their jobs?
When Clients Do an End Run
Stay ahead of your clients. Write a detailed contract that protects you from as many unpleasant scenarios as possible, and work from written agreements with both your subcontractors and your employees.
Most Profitable Construction Business Model: Do You Need Employees?
What is the most profitable construction business model? Do you need employees? /p>
Subcontractors or Employees?
Sometimes they request you use employees instead of subs, or work on a T&M basis. Clients don’t understand how the construction world works. It’s your job to educate them.
When Should You Cut Your Markup?
As the economy slowly improves, we are being asked to revisit issues we haven’t discussed for many years.
Surprises Aren’t
Estimate your jobs properly so surprises don’t happen.
Making Money, Losing Money or Breaking Even, what now?
Last week we discussed knowing where you stand financially, whether you are making money, losing money, or breaking even. What now?
Making Money, Breaking Even, Losing Money
This is the criteria I use to tell if a company is making money. It isn’t the only measure, but it’ll give you an idea of how your business is doing.
Let’s Not Talk About the Backlog
A major mistake contractors make is to tell a client they can’t start the job for 3-4-5 months. “We are backlogged, can’t possibly start your job before then.”