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Solve Every Commercial Problem
If you want to increase your profits you need to be able to solve every problem.
There are nine basic tools that every contractor needs to make money.
In today’s issue, I want to go through the nine tools.
Tools 1 to 3 help you manage your tenders.
1. Decision Making Tool- Ensure you price the right opportunities that are going to make money. Every construction contractor needs a way of quickly deciding whether or not to price a tender. You need to make sure you don’t end up with a series of problem jobs.
2. Tender Quotation Template - How do you price a tender from first principles? You need a technical and a financial analysis to make sure you can do the work and make money.
3. Contract Review Guide - What happens if you sign up to a bad contract? You can lose fortunes. The words in the proposed contract reveal what the client’s intentions are.
Tools 4 to 6 help you manage your contract.
4. Budget and Forecast Template - Controlling costs to stop them escalating. You can’t be on site every day so you have to make sure the project team can control costs.
5. Application for Payment Template - You have to make sure you get paid in full and on time so you’re not financing the project. Some clients will look for any excuse not to pay you.
6. Reporting System - Get the reports right so you can make project-level decisions to maximise profits. You need to know where the problems are so you can implement profit improvement measures.
Tools 7 to 9 help you manage change on your projects.
7. Notification of Change System - Make sure that you pick up all the change within the time frames in the contract. Something alway changes and your client may try to avoid paying.
8. Change Quotation Template - You need to price change to maximise recovery. You don’t want a stack of unresolved events at the end of the project.
9. Agreement of Change Blueprint - You need to negotiate to make sure you hit your profit targets on every project. There are a lot of ways to get agreement. You need to know when to use the right tactic.
These are the basic you need to know. As your business grows, all of these will develop.
The first step is to identify which part of the process needs help right now.
That’s all for today.
See you next week.
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Here's how:
Construction Site - Cost Control Masterclass
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https://paulmcdonagh.me/masterclass
Construction Contractors - Double your Profit Blueprint
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https://paulmcdonagh.me/blueprint
Helping contractors deliver profits on construction projects
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