Consider new sources of work
Given the competition for landing contracts in this day and age contractors have to ensure that they are offering unique services to their customers. Therefore, contractors have to focus on the reinvention of their skills and services to land bids. Even the contractor offering the cheapest bid may not necessarily make a profit because the cost may exceed the amount they shall get from the submission.
Most contractors are reinventing themselves and looking for contracts in new jurisdictions. Successful settlement companies are being proactive to give them an edge over their competitors. Expansion to mew markets poses benefits and challenges. Case in point of public contracts which may require pre-qualifications before even applying for the job. One must access the risk and requirements of the job before application so as to benefit from the tender.
Marketing is significant!
In a done economy marketing a company is important to attract potential customers. In a construction boom, winning jobs is easy, and commercialization is not vital. However, in regular seasons marketing their services is a must. It is important to know what kind of contractor you are and where you are delivering the services. As a company, you may even require hiring a business development organ to assist in positioning in the firm; the department will understand how the company needs to place itself and where the business needs to be.
It is already difficult for businesses to land contracts. It is, therefore, key for the management to be efficient and effective in handling the cost. The cost system should be the kind that gives timely reports when required. The cost system to be adopted by the contractor depends on the size of the organization, the users of the system and the complexity of the business. The post-contract phase should also be reviewed, to ensures that you are aware of the cost of the contract and evaluate to see the efficiency of the contract.
Change orders – get paid
Most contractors get into the dilemma of getting work that is out of their scope. In many instances, they do the job as a way of value addition to the client just for the customer to refuse to pay as it is outside the contract. As a solution to this problem is to ensure that you have a contract, the clearly stipulates the charge of any additional work and how to treat work that is out of scope but necessary to be carried out.