Being a contractor is a constant juggling act. Between new tenders coming in, costings to be done, and final accounts to be produced, it’s easy to let something drop. We’re all guilty of taking on too much or not managing our time right every now and then.
But if it constantly feels like you’re some chaotic circus clown running around trying to keep everything going, be careful because it may not be long before you start to lose control, and your cash flow takes the hit. Here are four ways to effectively manage your time as a contractor and regain control of your cash flow.
Document Tender Deadlines.
Put a date against when your tenders are due. Whether you use CRM software, a whiteboard, or the old reliable calendar, make sure the date is always in front of you. Missing a tender deadline isn’t just a missed opportunity—it’s money left on the table.
Protect Your Payment Claim Agreement.
This is crucial for getting paid what you’re owed when you’re owed it. Keep your payment claim application dates front and centre. Know which project follows which payment schedule. You’ve made an agreement, so stick to it. If you agreed to get paid at foundations, you should get paid then. Don’t wait until the roof is complete. Follow up on delays, and remember it goes both ways. Keep your paperwork organised so you don’t hold anything up.
Keep on Top of Final Accounts.
Make sure you have all your invoices and payments ready for final accounts. The longer you leave it, the more your pocket feels the pinch. Watch your credit terms—are they 30, 60, or 90 days? These terms impact your cash flow.
For example, one large concrete pour could max out your credit terms in a single day. If you’ve poured €20k worth of concrete on the first of the month, your credit terms might be used up until the end of the month. Suddenly, your supplier won’t give you more concrete without payment upfront. Avoid things like that happening to you by managing your final accounts and credit terms closely
Review Your Client Recommendations.
Set some time aside at the start of the project to review your client recommendations. Are they paying you on account? That’s a major no-no. Whatever you do, don’t fall into the trap of paid on account. Make sure you’re being paid for the work you’ve done. It doesn’t just protect your cash flow, it protects your business and your future.
Conclusion
Managing your time is a skill. You want to say yes to everything, think you can handle it all and it’ll all work out. But at some point, it comes back to haunt you. Dropping the ball, missing deadlines or losing paperwork can have a seriously negative impact on your cash flow.
Getting it right from the start is half the battle. Keep yourself organised with key dates and terms at the front of your mind, and pay attention to what your client is asking for. You’ll soon feel more calm than chaotic.
If you need help managing your time and projects, contact us today at Carroll Estimating to learn how we can help you grow your business and make more money with a seamless process from tender bid to final account.
