Why cost plus and time & material contracts should be avoided, for both contractors and building owners.
At some point this health crisis will slow down and go away. When it does, there’s a good chance we’ll be doing some things differently. But some things won’t change.
Time and Material contracts are full of risk, especially on larger jobs.
I don’t think writing a check is old fashioned, but there are so many advantages to using a credit or debit card that it’s become the preferred payment method for many.
This note is a painfully perfect example of why you shouldn’t provide details on your pricing.
Don’t confuse profit with salary or hourly wages. Making a profit isn’t optional: Your business needs profit to survive.
A construction company building both new homes and remodeling needs to calculate a separate markup for each type of work.
Michael addresses a few different questions we’ve heard recently, primarily dealing with taxes and profit and calculating your markup.
Over the years, I’ve seen contract language evolve, shifting more and more responsibility to general and specialty contractors.
What do you do when your partner is listening to someone who knows nothing about construction, but still thinks they knows what’s best?
When I teach a class or webinar, sometimes I wonder if my listeners understand what I’m trying to say. After reading some of the questions that came in during a recent webinar, I realized I missed the mark.
Everyone, and I do mean everyone, who has ever compiled an estimate has made a math error that put knots in their stomach once it was realized.
You shouldn’t sign a contract that stipulates what you can charge, even if it’s just on the change orders.
When your books are set up properly, it’s easy to calculate your markup, and it’s also easy to compare your actual results to your estimates.
Should you take every opportunity to increase exposure for your business?
There are two schools of thought on pricing handyman projects and service work: time and material (T&M) pricing or upfront (flat rate) pricing. They both have advantages and disadvantages.
The note stated, “Because I’m the middle man, my subcontractor loses out a potential project.” That’s true, and it’s one reason you shouldn’t get into the position of being a middle man.
If your lawyer believes you have to justify your pricing just because someone doesn’t want to pay their bill, it’s time to find another lawyer.
Is transparency the way to go when selling? Be careful who you listen to.
If they tell you the formula to use will make you more profit, that’s baloney. It’s the numbers you use that determines your profit.