Every builder needs a plan if they want to succeed in business. Nothing fancy, just a plan with solid goals and simple processes behind it.
The good news is the essential processes and procedures specific to building and construction projects are readily available in the marketplace. So really, there is no excuse for not having a plan in place to manage your projects.
The following Three Pillars for a Builders Project Plan are critical areas that need to be addressed when project planning:
Builders and subcontractors, especially in the smaller residential marketplace, trust too much on verbal agreements. A verbal agreement however is not enforceable. The terms and conditions surrounding your employment on a project must be agreed upon in a contract. This lowers risk of failure on your part and your clients’ part and protects both parties’ interests.
A compliant contract will help resolve differences of opinion on all issues surrounding a project. It can also be used with your subcontractors and suppliers to assist in stabilising profitability and the ability to successfully win work. This is achieved by:
- Period or one off subcontract and supplier agreements can manage your forecast costs.
- Protect company policies and procedures by enforcing them in a contract.
- Locking regular suppliers and contractors into set rates and conditions for a set period of time.
This might seem obvious for bigger projects but it is important you have a contract in place with your client no matter the size of the project. Not having a contract can lead to not getting paid. It’s as simple as that. A contact sets the benchmark for your organisation. It sets expectations from your client and sets expectations for the professionalism of your company.
COMPLIANT PROGRESS CLAIMS
Everyone wants to get paid right? To do that you must have a compliant Progress Claim process in place. It provides the best chance of getting paid 100% of the time. Without compliant Progress Claims you are at risk of being ripped off by your clients, resulting in cash flow issues and potentially your businesses failing.
COMPLIANT WORK, HEALTH AND SAFETY (WHS)
Your biggest asset is good staff so protect yourself, your business and your workers by having appropriate WHS practices and procedures in place.
Having the right WHS practices and procedures in place is a necessary process for sustainable business and keeping your workers safe. It also helps to prevent incurring damaging fines or even gaol time if a worker gets seriously injured or dies.
Excellent paperwork protects small builders and contractors. The above Three Pillars for a Builders Project Plan are an excellent start to ensuring success.
For more advice on how to do project planning compliantly call us at Small Builders on: 02 0896 8576.