Setting the parameters under which your company is willing to work is very important. Typically, contracts or terms created by clients can be difficult, as they are not familiar with your schedules, specific timelines or need for subcontractors. Laying out your scheduling needs, proposed timelines, payment terms and invoicing with accuracy and detail will provide clients with an easier understanding of your construction-project estimates. This will also help establish a higher level of professionalism that can help you when negotiating higher billing rates.
Contract Terms Agreement
Prior to the start of your proposed project, it is ultimately important for both parties to agree on a set of terms. These terms will include your fees, estimates, billing, percentage down payment, acceptable payment types, late payment penalties and project timelines. Keeping these terms clear and concise will make for an easier understanding for the client, ensuring there is no miscommunication.
Accurate Estimates
In today’s competitive construction industry, contractors need to have the ability to bid accurately based on actual labour, material costs, and equipment and subcontract expenses to win more bids. With online estimating software, the estimation can be produced to determine the job’s true cost, and you can develop a selling price that is beneficial to your company and your client. Above all, one of the most notable benefits of integrating computerized estimating software into your contracting business is speed. Keeping in mind that your workday revolves largely around time management, this software increases productivity and makes estimates an effortless, streamlined process.
Down Payments
Part of the quotation process is an agreement upon down payment. Down payments are an effective way to ensure the commitment of your client. For remodeling projects, typically anywhere from 20% – 40% of your estimated cost is suitable for a client down payment. Any higher than this could result in customer dissatisfaction and negatively impact the relationship with the client. New-home construction or larger builds require a much lower down payment, typically 10% – 15% of the projected cost. As the construction is usually financed through a third party, commitment to the project is not a high-level issue.
Billing and Invoices
Billing and invoicing manually can take hours of deliberation on top of creating a template that meets your company’s needs. Ensure that no important details are forgotten, and allow each transaction to be completed with ease by using electronic invoices. Internet electronic invoices arrange client information, billing information and services to be incorporated and accessible through one online location. Not only are your overhead costs reduced because of the elimination of print and postage, but also clients can receive their invoices in a timelier manner.
Online Payments
Providing clients with the option of paying online can speed up payment by up to 30%. With online banking and transactions becoming very popular among clients, the convenience of paying with the click of a button continues to be a preferred option. Combining online payments with online invoices, accessible through tablets, computers and mobile phones will give your clients the convenient accessibility they want on the timeline you need.