Here’s my 10 Things to Help You With Construction Management list.
Today’s video is 10 Construction Management WIns. You can click to watch it here or continue with this quick read.
So Here Goes…
1) Always run to Programs or Schedules
Internal Program: This is how you run the project timeline internally. Make sure you’re running your project according to what dates are set out in the contract.
External Program: This is how you run the project timeline externally. Here you communicate things like delays, scope changes, and anything that causes the timeline to be affected. Doing this means you can never be accused of not notifying them or not complying with the contract.
2) Volume is Vanity, Profit is Sanity, But Cash Flow is King in Construction
It’s not about how much money you appear to be making. I.e. the volume because the actual profit may be small.
More important is cash flow. You can be making a profit but your cash flow or liquidity may be poor. Poor cash flow means you won’t be able to realise your profit because of how money is flowing in and out of your business.
3) Be a Squeaky Wheel when it Comes to Payments
You need to follow up on everything and be an active communicator. Is it annoying to do this? Yes. Will you get paid first? Also yes.
The saying is a squeaky wheel gets the oil.
4) Make Sure You Understand the Escape Hatch
How do you get out of the contract? Look at the termination clause. Look at the dispute clause.
5) In Construction, You Have to Put Money Before Ego
The guy with the smallest ego typically has the biggest bank account. People with egos generally go in for disputes… and disputes cost a lot of money.
Put your ego aside, avoid a dispute, and save yourself money.
6) So Many Construction Companies Say “I’m In Construction” When the Reality is, You’re in the Business of Construction
If you don’t get paid for the work that you’re doing it’s not worth doing the work.
Construction has two parts:
- Being in construction
- How to get paid
7) So Many Subcontractors are Afraid to Comply with the Contract
They believe that this makes them look too commercial and difficult to deal with and this will put the client off.
On the contrary, it makes you look more professional.
8) Rule No. 1 Do Not Lose Money. Rule No. 2, See Rule No. 1
Warren Buffett said this.
Basically, don’t do work for free.
You need to get approvals and documents in.
YOU HAVE TO MANAGE YOUR CONTRACTS.
9) Prepare Yourself for the Final Quarter of a Construction Project
In Q4 this is where everything kicks off. So from Q1-Q3, you need to be managing the project and preparing for EVERYTHING you’re going to need in Q4 to get paid and avoid disputes.
10) Construction Used to Always Be About Relationships, It’s No Longer the Case
Sadly, although relationships are still important, it’s all about managing risk. It’s all about complying with contracts.
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.
