The language in your contract that addresses Change Work Orders should be specifically reviewed with your customers before they sign the primary contract.
Money Saving Tips
Don't buy new vehicles or equipment. Do a little research into what you need, and then start looking around.
Don't buy something just because it's needed on one or two jobs, and don't rent equipment or tools that you continually use. Use common sense and analyze each situation.
Every change work order should list 3 prices. This eliminates customer claims they didn’t know what the changes would cost or what the final price would be.
Change Work Orders cost you time and money. Most of the time, they happen because of a lack of good questioning to find out what the client really wants and can pay for.
It is far cheaper to pay for a few hours of your attorney's time upfront than to make a deposit of $1,500+ to defending you from an unhappy or unscrupulous customer.
Never use Cost Plus for any reason. This should probably be called a Profit Saving tip, rather than a Money Saving tip.
Review employee performance and pay once a year. This will save you much time and expense dealing with the same issue(s) over and over.
Keep your vehicle in good condition to avoid mechanical problems, running out of gas, etc.
Make sure all saw blades, bits and other tools are kept sharp and in good order.
If you have two or more employees who have trouble getting along, it is costing you money and probably lost time.
Have a written agreement with all subs that outlines how they are to be paid, which should be at least every week or every other week.
If you own the company, your time should be spent bringing in new projects. It should not be spent picking up and delivering materials to the job site.
Never pay bonuses based on the time of year or the holidays.
Only use Time and Materials (T&M) for service work, and preferably for jobs under $2,500.
Negotiate a fuel purchase agreement with a supplier close to your place of business for all your vehicles.
Be slow to hire, quick to fire. Take your time to do your research on a new employee, make sure it is a good fit.
Don't commit to estimates, designs or anything else that causes you to make a call back unless the potential customer is ready to commit to you.
If there is no work, everyone but the owner and/or straight commission salespeople go home. You can't afford to take money out of your own pocket to create work.
Time cards should be filled out and turned in daily, including signature and date.