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The Contract is the Customer – A Bad Belief
The topic of this blog is the belief that drives the marketing efforts of many contractors and why “customer service” is a rare commodity in construction. After some contractors sign a contract, they tend to believe marketing is over. They get on with building out the project as quickly and … Read the rest “The Contract is the Customer – A Bad Belief”
If You Walk Like a Commodity And Talk Like a Commodity You Are a Commodity
The Construction Customer
Our research indicates that the majority of owners and designers engaged in construction projects come at the experience with a “commodity mind-set”. To them, the contractor merely performs a function that any contractor could perform so the job goes to the lowest bidder because there is no … Read the rest “If You Walk Like a Commodity And Talk Like a Commodity You Are a Commodity”
An Approximation Based on Two Guesses
How is it possible that construction concerns being run by professional managers in the 21st century often run out of cash and suddenly cease operations? Most modern industrial companies have heads-up enough to file a bankruptcy and ask the court to help them work out their problems. Suddenly ceasing operations … Read the rest “An Approximation Based on Two Guesses”
News Flash: Construction Profits Exposure Under Sudden Avalanche of Risk
Breaking News:
Construction Profits Exposure Under Sudden Avalanche of Risk
-Materials Inflation
-Labor Shortage
-Supply Chain Interruptions
-Rising Taxes
-Cybersecurity Threats
Profits… Read the rest “News Flash: Construction Profits Exposure Under Sudden Avalanche of Risk”
WIP Accounting – Critical and Often Misunderstood
In a study of thousands of construction company audited financial statements testing the profit projected on work in progress (WIP) reports over five years to the final reports of completed project profits, I found the average difference to be a little over 1% profit bleed. This suggests that industry-wide reported … Read the rest “WIP Accounting – Critical and Often Misunderstood”
The King of Cash
This blog is the culmination of our series on the CFO’s role in the management of construction companies. I have been attempting to lay out the “Best in Class” management practices that apply to the CFO. The feedback from the accounting profession has been overwhelmingly positive but most contractors still … Read the rest “The King of Cash”
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