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