How much risk are you taking?
Think about it.
When you tender for work are you reviewing:
- The subcontract terms & conditions;
- The proposed programme to make sure its achievable;
- Your rates to ensure they suit the works, programme & site conditions;
- The attendances to ensure they are correct.
Do you also produce a cash flow forecast to show that the project will be cash flow positive & not a drain on resource.
During construction do you:
- Understand your obligations under the subcontract;
- Check & record site conditions before you commence & notify if something is not right;
- Record & notify change, delay & disruption; * Submit substantiated payment claims & project final accounts;
- Keep detailed records;
- Carry out regular project reviews & CVR’s.
Ensuring that you do the above will mitigate project risk & ensure that when you bid your price is right, the terms are fair, that the project won’t require financing & you understand your obligations & responsibilities during the construction phase also carrying out regular reviews will also flag up any issues so they can be managed early.
Less Risk = Better Cashflow = Healthier Margins