Costs can quickly escalate on site. It begins with something small that suddenly snowballs, and before you know it, budgets are being blown.
However, with a level head, you can manage your site and deal with the situation before it gets completely out of control.
Here are 5 mistakes you should avoid when costs start to escalate.
Don’t wait for final account.
Keep your client up to speed on all project costs at every step. Being up front from the start saves a lot of stress and headaches. Submit variations or extras as they come up; don’t wait until final account.
Don’t bury your head in the sand.
Sure, it’s easier to walk away and hope everything resolves itself, but you’re kidding yourself if you think that’s really going to happen. Don’t bury your head in the sand; have the difficult conversation straight away to save the client relationship and the project.
Don’t forget to keep records.
This is a simple thing to do, but so many people forget. Keep a record of everything and stay on top of it. Document every little variation, every expense, no matter how insignificant. It keeps you organised and could be your saviour if any disagreements come up.
Don’t do extra work.
Only do works that have been agreed upon by the client. If you think it will benefit the project, don’t just do it out of the goodness of your heart. Remember, someone has to pay for it, and unless you’re going to foot the bill, make sure you clear it with the client first.
Don’t leave payment too late.
Agree on your fortnightly or monthly payments from the beginning. No matter how small they might be, look for them. Follow up and make sure the payment schedule is being followed. You need the cash for your business to keep operating. Imagine leaving 10-15k behind because you don’t bother to claim it. That’s ridiculous! Don’t leave any cash on the table that should be in your pocket.
Final Thoughts.
With so many moving parts on a site, it’s easy for costs to start creeping up, but that doesn’t have to mean all hell breaks loose.
Keep on top of your payments, make sure your records are meticulous and don’t leave money behind when you’re owed.
At Carroll Estimating, we’re here to help you get the most out of every project. Contact us today to find out how we can help you walk away with more cash in your back pocket.