Today’s video is 3 Expert Tips and Tricks for Contractors, watch it by clicking here or continue with this quick read.
Here are THREE commercial tips for civil contracting companies on how to reduce your downside.
This will allow you to
Make more money
And perform better…
Each type of company has different ways of functioning and making money.
There are also different levels of risk depending on what the business does.
There are different returns and considerations depending on the type of business.
Top Three Things…
Two of them are pre-award
One is post-award.
1. Eliminate or mitigate liquidated damages from the contract.
It’s unlikely you can eliminate them but you can reduce the effects.
A good rule of thumb is less than 1% per day or week of the contract value– up to a maximum of 5-10%.
This means you are in control of your risk and you understand it.
2. Warranty Period or Defects Liability Period.
What often gets ignored is the re-warranty period.
The re-warranty period is how long the basic defects liability period for that rectification works.
More often than not it applies to the whole project– this means you can get whacked with hidden costs from the original defects liability period.
This means you could be repairing things long after the project has ended… and doing it for FREE.
SO MAKE SURE THERE’S NO RE-WARRANTY PERIOD.
Or make sure that it’s capped.
3. Be Prepared for Issues and Disputes.
Watch out for liquidated damages.
Be prepared and make sure you’re on top of all your paperwork and delays.
Submit your notices.
It’s ALL ABOUT REDUCING AS MUCH RISK AS POSSIBLE.
We want you to be the MOST SUCCESSFUL you can possibly be. That’s why we put together content with tips and advice that is tried and tested.
For more contractual advice, Quantum Contract Solutions is here to guide and assist you through everything contract related. Let’s reduce risk in your contracts and save time and money, just click this link to get our FREE case study to show you how clients just like you are doing it.
