What contractors actually sell.
WHAT THE BUSINESS IS
Converting a client's requirement into a completed structure, at an agreed price, within an agreed time.
WHY IT IS DIFFICULT
The price is fixed before the work is understood.
WHAT THAT MEANS
Errors in pricing cannot be recovered afterwards.
WHAT FORMS OF WORK EXIST
New build Renovation and alteration Finishing and fit-out
Specialist trades: electrical, plumbing, tiling, roofing
Maintenance contracts
WHY RENOVATION IS RISKIER THAN NEW BUILD
What is behind existing walls is unknown until opened.
WHAT TO DO ABOUT THAT
Price renovation with explicit exclusions and provisional allowances.
WHAT DETERMINES PROFITABILITY
Accurate pricing Controlling variations Managing labour productivity Material wastage and theft Getting paid
WHY GETTING PAID BELONGS ON THAT LIST
Contractors are routinely owed money they never collect.
WHAT MOST SMALL CONTRACTORS DO NOT KNOW
Whether individual jobs made money.
WHY
Costs are not recorded against jobs.
WHAT TO ESTABLISH FIRST
Job costing: recording every cost against the job it belongs to.
WHAT THAT ENABLES
Knowing which work to pursue and what to charge.
WHAT TO TREAT THIS CATEGORY AS
Business guidance, with technical and structural matters from qualified professionals.
