Tampa Company Shares Tips for Growing an Independent Contracting Business

Contractors Reporting Services has over fifty years of experience in Florida assisting contractors of all types by guiding them through all the nuances and typical challenges that contractors face when dealing with contractors licensing, incorporation, renewals, annual reporting, credit reports, bonds, and more. The mission of Contractors Reporting Services is to meet the needs of clients by helping them navigate the licensing process while staying current on state and county requirements.

Independent contractors play an essential role in the economy. Without them, homes and businesses would fall to pieces. The consequence of this dependence on contractors is that starting a contracting business can be financially lucrative. Contractors Reporting Services offers these tips on how to build and grow a stable, thriving contracting business.

Tip #1: Operate the company using the best business practices.

Put in place systems and procedures that improve efficiencies and allow for growth. Business volume may increase. Business operating systems need to be able to scale with increased sales growth. Starting out fresh using best practices prevents a company from having to make significant structural or operational changes that require intensive labor and funding. A business consultation with Contractors Reporting Services, an IT managed solutions provider, and an accounting firm or CPA could save thousands of dollars and hundreds of hours.

Tip #2: Assess the internal organization of the business in its current condition.

After choosing a system that uses the best practices, conduct an extensive evaluation of the company. Examine these areas:

• Financial stability
• Repeat sales
• Customer referrals
• Online customer reviews
• Workforce stability: turnovers, absenteeism, productivity

Focus on areas that need improvement before growing the business at a faster rate. If receivables are lagging and cash flow becomes a struggle, revisit accounting strategies. If customer complaints surface regularly, some changes might be needed in personnel, training, and quality control.

Tip #3: Be accessible to clients and prospective customers.

Having a real person answer the phone in a business that is people-oriented is a necessary component of customer service. Forwarding business calls to a cell phone when out of the office ensures a human voice answers the phone. Return calls promptly.

Avoid any confusion by clearly stating business hours on business cards, the website, and social channels. Have automated email and social media messages set up during non-business hours. Sending a simple message to inform customers that their message was received and that they will receive a response within 24 hours is adequate.

Tip #4: Join an industry association.

Industry associations are great for networking, developing essential business skills, and acquiring crucial product and services information.

Tip #5: Engage a robust market strategy.

Have an online presence and interact with a specific audience through email, social media, and blog posts. Demonstrate how the business provides solutions. Focus on the local market.

• The company’s address, phone number, and hours of operation are available online and easily searchable.
• Network in the community, both online and offline. Attend chamber of commerce meetings. Advertise the business on social networks like Facebook.

Tip #6: Identify funding sources.

Find ways to access lines of credit and obtaining loans for when cash flow is problematic. Having detailed and organized records is essential for securing funding.

Tip #7: Find a mentor.

Having someone to act as a resource and confidant is essential in an industry that requires a broad knowledge base, as well as people skills.

Tip #8. Hire up.

This strategy solves micromanagement problems and keeps them from returning. Hiring competent employees who can be trusted enables the owner to focus on growing the contractor business.

Tip #9. Carefully manage overhead and expenses.

Scrutinize overhead expenses and note any additional costs before accepting a job. Make sure the bids factor in all the costs involved with the project. Keep invoicing current.

Tip #10: Be different from competitors.

Capitalize on the services that make the business different from others in the area. Also, offer a balanced menu of products or services that appeals to a wide audience while focusing on specialized services or a niche market. Choose customers who will be good customers and pay their bills. The goal is to have a solid return on investment.

Tip #11. Outsource if necessary.

Accounting and IT managed solutions are two areas most contractors would want to outsource. These two areas require special training and are very time-consuming for the novice. A third area that can easily and affordably be outsourced is reporting. Securing the services of a company such as Contractors Reporting Services in Tampa Bay saves time and reduces the risk of failing to file on time. A contractors reporting service can manage permits, mechanics liens, notices of commencement, surety bonds, and other documentation associated with the construction industry. It is like having an employee that only has to be paid when they provide a service. A competent full-service reporting service can scale with a growing business.

Focus on work rather than paperwork! Contractors Reporting Services in the Tampa Bay area can help new and existing contracting companies with Florida contractors license needs and other services. Contact the office at (813) 932-5244 or email info@activatemylicense.com.

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The post Tampa Company Shares Tips for Growing an Independent Contracting Business appeared first on Contractors Reporting Services.

Tampa Company Shares Tips for Growing an Independent Contracting Business

Contractors Reporting Services has over fifty years of experience in Florida assisting contractors of all types by guiding them through all the nuances and typical challenges that contractors face when dealing with contractors licensing, incorporation, renewals, annual reporting, credit reports, bonds, and more. The mission of Contractors Reporting Services is to meet the needs of clients by helping them navigate the licensing process while staying current on state and county requirements.

Independent contractors play an essential role in the economy. Without them, homes and businesses would fall to pieces. The consequence of this dependence on contractors is that starting a contracting business can be financially lucrative. Contractors Reporting Services offers these tips on how to build and grow a stable, thriving contracting business.

Tip #1: Operate the company using the best business practices.

Put in place systems and procedures that improve efficiencies and allow for growth. Business volume may increase. Business operating systems need to be able to scale with increased sales growth. Starting out fresh using best practices prevents a company from having to make significant structural or operational changes that require intensive labor and funding. A business consultation with Contractors Reporting Services, an IT managed solutions provider, and an accounting firm or CPA could save thousands of dollars and hundreds of hours.

Tip #2: Assess the internal organization of the business in its current condition.

After choosing a system that uses the best practices, conduct an extensive evaluation of the company. Examine these areas:

• Financial stability
• Repeat sales
• Customer referrals
• Online customer reviews
• Workforce stability: turnovers, absenteeism, productivity

Focus on areas that need improvement before growing the business at a faster rate. If receivables are lagging and cash flow becomes a struggle, revisit accounting strategies. If customer complaints surface regularly, some changes might be needed in personnel, training, and quality control.

Tip #3: Be accessible to clients and prospective customers.

Having a real person answer the phone in a business that is people-oriented is a necessary component of customer service. Forwarding business calls to a cell phone when out of the office ensures a human voice answers the phone. Return calls promptly.

Avoid any confusion by clearly stating business hours on business cards, the website, and social channels. Have automated email and social media messages set up during non-business hours. Sending a simple message to inform customers that their message was received and that they will receive a response within 24 hours is adequate.

Tip #4: Join an industry association.

Industry associations are great for networking, developing essential business skills, and acquiring crucial product and services information.

Tip #5: Engage a robust market strategy.

Have an online presence and interact with a specific audience through email, social media, and blog posts. Demonstrate how the business provides solutions. Focus on the local market.

• The company’s address, phone number, and hours of operation are available online and easily searchable.
• Network in the community, both online and offline. Attend chamber of commerce meetings. Advertise the business on social networks like Facebook.

Tip #6: Identify funding sources.

Find ways to access lines of credit and obtaining loans for when cash flow is problematic. Having detailed and organized records is essential for securing funding.

Tip #7: Find a mentor.

Having someone to act as a resource and confidant is essential in an industry that requires a broad knowledge base, as well as people skills.

Tip #8. Hire up.

This strategy solves micromanagement problems and keeps them from returning. Hiring competent employees who can be trusted enables the owner to focus on growing the contractor business.

Tip #9. Carefully manage overhead and expenses.

Scrutinize overhead expenses and note any additional costs before accepting a job. Make sure the bids factor in all the costs involved with the project. Keep invoicing current.

Tip #10: Be different from competitors.

Capitalize on the services that make the business different from others in the area. Also, offer a balanced menu of products or services that appeals to a wide audience while focusing on specialized services or a niche market. Choose customers who will be good customers and pay their bills. The goal is to have a solid return on investment.

Tip #11. Outsource if necessary.

Accounting and IT managed solutions are two areas most contractors would want to outsource. These two areas require special training and are very time-consuming for the novice. A third area that can easily and affordably be outsourced is reporting. Securing the services of a company such as Contractors Reporting Services in Tampa Bay saves time and reduces the risk of failing to file on time. A contractors reporting service can manage permits, mechanics liens, notices of commencement, surety bonds, and other documentation associated with the construction industry. It is like having an employee that only has to be paid when they provide a service. A competent full-service reporting service can scale with a growing business.

Focus on work rather than paperwork! Contractors Reporting Services in the Tampa Bay area can help new and existing contracting companies with Florida contractors license needs and other services. Contact the office at (813) 932-5244 or email info@activatemylicense.com.

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The post Tampa Company Shares Tips for Growing an Independent Contracting Business appeared first on Contractors Reporting Services.

How Is COVID-19 Affecting Contractors?

Americans are emerging from the COVID-19 cocoon wrestling with the new normal and how permanent the changes will be. Businesses, whether essential or non-essential, felt the impact of the efforts to quell the spread of the virus. The day-to-day policies and procedures on the worksite have seen a transformation of business-as-usual. Workers are wondering how long these newly implemented and, at times, inconvenient changes will last. That revised job site safety protocols are protecting workers, clients, vendors, and collateral personnel is undeniable.

The new reality of COVID-19 has impacted the construction industry far beyond the physical work site. The novel coronavirus has shaken the foundations of the entire sector. These economic challenges are gargantuan in comparison to initial job safety modifications. The financial adjustments and re-calibrations could signal the end of construction companies and general contractors who lack the financial means, workforce, and technology to adapt and move forward under new guidelines and constraints.

Conditions under COVID-19 are compelling many contractors to re-think and refine their processes and project performance. Contractors Reporting Services, a company that provides help with Florida contractor license requirements, provides some examples.

1. Expansion of Technology

The pandemic has undeniably accelerated the proliferation of technology and its use in helping people perform tasks that were usually or only done in person. Though construction does not immediately appear to be an industry where zoom meetings or tech tools could be as widely adopted as they have been in other industries, developers and construction workers will likely see increased use of technology – from more clearly defined procedures and project phasing to the most routine work tasks.

Some of the technological advancements being tested and implemented in construction include:

• Web-based video tools that enable virtual meetings to discuss estimates, proposals, and project management
• Remote technology processes to help inspectors conduct inspections.
• Worksite health-monitoring technology tools that remotely take workers’ temperatures
• Equipment and safety gear integrated with technology such as hard hats with social distancing alerts

2. Longer Project Timelines

The safety overburden and the inconvenience and inefficiencies of revised work methods and patterns translate into elongated project timelines. A reduced workforce, the additional time required for disinfecting, and the demand for proper PPE and preparation may eliminate project fast-tracking by making it so expensive. Labor is a significant cost component in the construction industry. The impact of labor costs inflated by the significantly longer timelines is to be seen, measured, and evaluated.

3. Elevation of Union Influence

Since World War II, the percentage of unionized construction workers has declined. During the pandemic, trade unions have assumed more influential advocacy roles for workers’ interests, while keeping worksites operational and safe when possible. As the work and business environment morphs to adapt to shifts in policies and procedures, the prominence of unions will evolve to meet the challenges.

4. Broader Remote Work

A robust telework strategy during lean seasons can help a general contractor manage costs and shift the savings into safety measures that keep onsite workers safe.

5. Supply Chain Disruptions and Prefabrication

Sourcing and construction supply chain concerns are real. Solutions include the construction industry increasing domestic manufacturing and tapping nearby sources such as Mexico.

Recalibrating supply chains while improving workplace safety may foster the use of processes that rely on offsite construction and prefabrication. Factory production is attractive because it is efficient, economical, and safer for workers.

6. Project Variations

Demand for different project types will evince some fluctuation in the future. Retail, entertainment, and hospitality building projects may decline in this season of social distancing, sheltering in place, and lockdowns. Demand for medical supply factories and health care facilities could proliferate. Construction demands for innovative workspaces that shift to a more private, segmented environment can enhance social distancing and ease worker concerns.

U.S. companies may remedy supply chain obstacles by increasing inventory. Construction for distribution, warehouse, and manufacturing facilities may see a growth in demand. The public sector seems to be responding to the pandemic by allocating monies to modernize facilities and infrastructure, such as roads and bridges.

Conclusion

General contractors and construction will need to reach deep into their tool kit to find innovative solutions to the ongoing challenges of COVID-19. New technologies in different applications seeking better outcomes, remote working, production and supply chain adjustments, and the agility to shift with construction demands will be necessary to survive and thrive. Contractors Reporting Services brings administrative, licensing, permitting, and regulatory solutions that provide competitive advantage and ROI to general contractors and construction companies pursuing efficiencies that create value, improve production, and keep everyone safe and healthy.

To learn more about how Contractors Reporting Services offers their help through innovative solutions and help general contractors, and construction companies thrive amid the challenges of the COVID-19 epidemic, visit the website at www.activatemylicense.com. Contact the office by phone at (813) 932-5244.

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The post How Is COVID-19 Affecting Contractors? appeared first on Contractors Reporting Services.

How Is COVID-19 Affecting Contractors?

Americans are emerging from the COVID-19 cocoon wrestling with the new normal and how permanent the changes will be. Businesses, whether essential or non-essential, felt the impact of the efforts to quell the spread of the virus. The day-to-day policies and procedures on the worksite have seen a transformation of business-as-usual. Workers are wondering how long these newly implemented and, at times, inconvenient changes will last. That revised job site safety protocols are protecting workers, clients, vendors, and collateral personnel is undeniable.

The new reality of COVID-19 has impacted the construction industry far beyond the physical work site. The novel coronavirus has shaken the foundations of the entire sector. These economic challenges are gargantuan in comparison to initial job safety modifications. The financial adjustments and re-calibrations could signal the end of construction companies and general contractors who lack the financial means, workforce, and technology to adapt and move forward under new guidelines and constraints.

Conditions under COVID-19 are compelling many contractors to re-think and refine their processes and project performance. Contractors Reporting Services, a company that provides help with Florida contractor license requirements, provides some examples.

1. Expansion of Technology

The pandemic has undeniably accelerated the proliferation of technology and its use in helping people perform tasks that were usually or only done in person. Though construction does not immediately appear to be an industry where zoom meetings or tech tools could be as widely adopted as they have been in other industries, developers and construction workers will likely see increased use of technology – from more clearly defined procedures and project phasing to the most routine work tasks.

Some of the technological advancements being tested and implemented in construction include:

• Web-based video tools that enable virtual meetings to discuss estimates, proposals, and project management
• Remote technology processes to help inspectors conduct inspections.
• Worksite health-monitoring technology tools that remotely take workers’ temperatures
• Equipment and safety gear integrated with technology such as hard hats with social distancing alerts

2. Longer Project Timelines

The safety overburden and the inconvenience and inefficiencies of revised work methods and patterns translate into elongated project timelines. A reduced workforce, the additional time required for disinfecting, and the demand for proper PPE and preparation may eliminate project fast-tracking by making it so expensive. Labor is a significant cost component in the construction industry. The impact of labor costs inflated by the significantly longer timelines is to be seen, measured, and evaluated.

3. Elevation of Union Influence

Since World War II, the percentage of unionized construction workers has declined. During the pandemic, trade unions have assumed more influential advocacy roles for workers’ interests, while keeping worksites operational and safe when possible. As the work and business environment morphs to adapt to shifts in policies and procedures, the prominence of unions will evolve to meet the challenges.

4. Broader Remote Work

A robust telework strategy during lean seasons can help a general contractor manage costs and shift the savings into safety measures that keep onsite workers safe.

5. Supply Chain Disruptions and Prefabrication

Sourcing and construction supply chain concerns are real. Solutions include the construction industry increasing domestic manufacturing and tapping nearby sources such as Mexico.

Recalibrating supply chains while improving workplace safety may foster the use of processes that rely on offsite construction and prefabrication. Factory production is attractive because it is efficient, economical, and safer for workers.

6. Project Variations

Demand for different project types will evince some fluctuation in the future. Retail, entertainment, and hospitality building projects may decline in this season of social distancing, sheltering in place, and lockdowns. Demand for medical supply factories and health care facilities could proliferate. Construction demands for innovative workspaces that shift to a more private, segmented environment can enhance social distancing and ease worker concerns.

U.S. companies may remedy supply chain obstacles by increasing inventory. Construction for distribution, warehouse, and manufacturing facilities may see a growth in demand. The public sector seems to be responding to the pandemic by allocating monies to modernize facilities and infrastructure, such as roads and bridges.

Conclusion

General contractors and construction will need to reach deep into their tool kit to find innovative solutions to the ongoing challenges of COVID-19. New technologies in different applications seeking better outcomes, remote working, production and supply chain adjustments, and the agility to shift with construction demands will be necessary to survive and thrive. Contractors Reporting Services brings administrative, licensing, permitting, and regulatory solutions that provide competitive advantage and ROI to general contractors and construction companies pursuing efficiencies that create value, improve production, and keep everyone safe and healthy.

To learn more about how Contractors Reporting Services offers their help through innovative solutions and help general contractors, and construction companies thrive amid the challenges of the COVID-19 epidemic, visit the website at www.activatemylicense.com. Contact the office by phone at (813) 932-5244.

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The post How Is COVID-19 Affecting Contractors? appeared first on Contractors Reporting Services.

How Is COVID-19 Affecting Contractors?

 Americans are emerging from the COVID-19 cocoon wrestling with the new normal and how permanent the changes will be. Businesses, whether essential or non-essential, felt the impact of the efforts to quell the spread of the virus. The day-to-day policies and procedures on the worksite have seen a transformation of business-as-usual. Workers are wondering how long these newly implemented and, at times, inconvenient changes will last. That revised job site safety protocols are protecting workers, clients, vendors, and collateral personnel is undeniable.

The new reality of COVID-19 has impacted the construction industry far beyond the physical work site. The novel coronavirus has shaken the foundations of the entire sector. These economic challenges are gargantuan in comparison to initial job safety modifications. The financial adjustments and re-calibrations could signal the end of construction companies and general contractors who lack the financial means, workforce, and technology to adapt and move forward under new guidelines and constraints.

Conditions under COVID-19 are compelling many contractors to re-think and refine their processes and project performance. Contractors Reporting Services, a company that provides help with Florida contractor license requirements, provides some examples.

1. Expansion of Technology

The pandemic has undeniably accelerated the proliferation of technology and its use in helping people perform tasks that were usually or only done in person. Though construction does not immediately appear to be an industry where zoom meetings or tech tools could be as widely adopted as they have been in other industries, developers and construction workers will likely see increased use of technology – from more clearly defined procedures and project phasing to the most routine work tasks.

Some of the technological advancements being tested and implemented in construction include:

• Web-based video tools that enable virtual meetings to discuss estimates, proposals, and project management
• Remote technology processes to help inspectors conduct inspections.
• Worksite health-monitoring technology tools that remotely take workers’ temperatures
• Equipment and safety gear integrated with technology such as hard hats with social distancing alerts

2. Longer Project Timelines

The safety overburden and the inconvenience and inefficiencies of revised work methods and patterns translate into elongated project timelines. A reduced workforce, the additional time required for disinfecting, and the demand for proper PPE and preparation may eliminate project fast-tracking by making it so expensive. Labor is a significant cost component in the construction industry. The impact of labor costs inflated by the significantly longer timelines is to be seen, measured, and evaluated.

3. Elevation of Union Influence

Since World War II, the percentage of unionized construction workers has declined. During the pandemic, trade unions have assumed more influential advocacy roles for workers’ interests, while keeping worksites operational and safe when possible. As the work and business environment morphs to adapt to shifts in policies and procedures, the prominence of unions will evolve to meet the challenges.

4. Broader Remote Work

A robust telework strategy during lean seasons can help a general contractor manage costs and shift the savings into safety measures that keep onsite workers safe.

5. Supply Chain Disruptions and Prefabrication

Sourcing and construction supply chain concerns are real. Solutions include the construction industry increasing domestic manufacturing and tapping nearby sources such as Mexico.

Recalibrating supply chains while improving workplace safety may foster the use of processes that rely on offsite construction and prefabrication. Factory production is attractive because it is efficient, economical, and safer for workers.

6. Project Variations

Demand for different project types will evince some fluctuation in the future. Retail, entertainment, and hospitality building projects may decline in this season of social distancing, sheltering in place, and lockdowns. Demand for medical supply factories and health care facilities could proliferate. Construction demands for innovative workspaces that shift to a more private, segmented environment can enhance social distancing and ease worker concerns.

U.S. companies may remedy supply chain obstacles by increasing inventory. Construction for distribution, warehouse, and manufacturing facilities may see a growth in demand. The public sector seems to be responding to the pandemic by allocating monies to modernize facilities and infrastructure, such as roads and bridges.

Conclusion

General contractors and construction will need to reach deep into their tool kit to find innovative solutions to the ongoing challenges of COVID-19. New technologies in different applications seeking better outcomes, remote working, production and supply chain adjustments, and the agility to shift with construction demands will be necessary to survive and thrive. Contractors Reporting Services brings administrative, licensing, permitting, and regulatory solutions that provide competitive advantage and ROI to general contractors and construction companies pursuing efficiencies that create value, improve production, and keep everyone safe and healthy.

To learn more about how Contractors Reporting Services offers their help through innovative solutions and help general contractors, and construction companies thrive amid the challenges of the COVID-19 epidemic, visit the website at www.activatemylicense.com. Contact the office by phone at (813) 932-5244.

How General Contractors Can Survive the COVID-19 Crisis

Despite all the economic turmoil and challenges generated by the ongoing COVID-19 pandemic, general contractors can still experience success as long as they avoid costly mistakes. Contractors Reporting Services, a Tampa, FL, company that specializes in Florida contractor license requirements, is providing a  survival checklist designed to help contractors avoid pitfalls and thrive throughout the difficult months ahead.

Tip #1. Identify and Attend to Pressing Legal Matters.

In the current economic climate, a business may have legal issues and challenges that need immediate attention. The conscientious contractor feels the pressure to address each one as soon as possible. At the moment, contractors have live jobs and live construction contract obligations. It is important to identify the contractual obligations to make sure there is protection against negative impacts during these turbulent times. Possibly, some of these negative impacts are already at the company’s doorstep.

File notice provisions.

Many contracts require notice be given within a very short timeframe for any delays, change orders, etc. Often, courts strictly enforce these notice provisions. Complete the notice provisions as required and avoid unnecessary and unwanted headaches.

Identify voided contracts.

Is it possible to void any contracts amid the pandemic? Many contracts have provisions in them that take into consideration “acts of God” or force majeure provisions. Carefully read these provisions to clearly understand how delay provisions may affect a contractor’s rights and obligations during a pandemic.

Create new agreements.

All involved parties benefit by anticipating and bringing early remedy or avoidance to potential conflicts or disagreements. If one is not already in place, compose a compliance policy and procedure document with appropriate provisions for the exercise of reasonable precautions to prevent the spread of COVID-19.

Consult with a construction attorney on these matters.

The COVID-19 pandemic, the response to the pandemic, and the economic fallout from the pandemic are uncharted territory with unknown hazards and an unforeseeable future.

Tip #2. Be Unyielding in the Protection of Lien Rights.

Exercise strict protection of lien rights. If and when payment is made now hinges on many factors out of a contractor’s control. Pay attention to two simple items.

Send a preliminary notice on all jobs.

Preliminary notices are essential to protect against payment problems on a job, especially issues that are not the contractor’s fault. In 2020, job and payment delays are very probable. Contractors who have significant cash stress or who file bankruptcy may very well be the source of these payment delays. Contractors who failed to send preliminary notices will have little recourse. The courts uphold the rights of those construction companies or contractors that followed the appropriate procedure, which includes filing the appropriate preliminary notices.

When payment begins to lag, act quickly.

If payment begins to lag on a job, the contractor should immediately escalate the matter to protect his or her rights. This escalation means sending a notice of intent to lien or filing a mechanics lien. Under normal circumstances, many contractors are willing to give customers and other participants more time to pay. More caution is required of construction contractors in the current environment with coronavirus. Tight cash circumstances can have a cascading effect. Promptly dealing with early warning signs is the most effective way to keep the cash pipeline open and flowing.

Pay close attention to lien deadlines and take prompt action.

With COVID-19, county recorder offices are closing and limiting availability to important information. The mail system is stretched. Knowing how to file remotely can save a contractor’s business.

Tip #3. Monitor Changes in the Payment Behavior of General Contractors.

General contractors on most jobs are experiencing a significant disruption with coronavirus. They will struggle with the project schedule, legal disputes, worker shortages, and cash flow issues. Consider the following questions:

• Are there any increases in payment problems?
• Are payments to contractors flowing more slowly?
• Are retainage practices changing?

The best contractors perform well in difficult times, such as the period that the nation is currently facing. Accountability and consequences can be effective tools to keep everyone on their toes.

Tip #4. Expand Cash Reserves.

Cash is king in times of crisis. Accessing cash and managing cash flow form a critical pathway to success. The following options are available and helpful.

Seek out working capital loans.

Take immediate action to apply for working capital loans, even if the need is not pressing. The future may hold unforeseen and unanticipated challenges.

Secure material procurements with longer payment terms.

By taking advantage of programs that allow for the purchase of materials with longer payment terms, cash flow needs on jobs throughout 2020 can be more easily managed.

Get cash from slow-paying accounts.

Most contractors tolerate some slow-paying jobs on the books. Convert these delinquent receivables into cash. Less cash is better than no cash.

Tap SBA loans.

The Small Business Administration is preparing loan offerings for contractors impacted by the coronavirus. Use these loans for cash for the business.

Conclusion

Take strategic action now to avoid future pain resulting from restricted cash flow. The impact of COVID-19 on the construction industry and the general contractor is unpredictable and somewhat speculative, but there are some certainties.

• The virus is having and will continue to have at least some negative effect on the global economy. Grasping this reality can inform and enhance planning for the future.
• Construction companies and general contractors will experience extreme cash flow challenges.
• General contractors have a number of pre-emptive strategies in their toolbox to keep the cash flowing and the business above water.

For more information, visit the Contractors Reporting Services website at activatemylicense.com. Contact the office by phone at (813) 932-5244.

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The post How General Contractors Can Survive the COVID-19 Crisis appeared first on Contractors Reporting Services.

How General Contractors Can Survive the COVID-19 Crisis

Despite all the economic turmoil and challenges generated by the ongoing COVID-19 pandemic, general contractors can still experience success as long as they avoid costly mistakes. Contractors Reporting Services, a Tampa, FL, company that specializes in Florida contractor license requirements, is providing a  survival checklist designed to help contractors avoid pitfalls and thrive throughout the difficult months ahead.

Tip #1. Identify and Attend to Pressing Legal Matters.

In the current economic climate, a business may have legal issues and challenges that need immediate attention. The conscientious contractor feels the pressure to address each one as soon as possible. At the moment, contractors have live jobs and live construction contract obligations. It is important to identify the contractual obligations to make sure there is protection against negative impacts during these turbulent times. Possibly, some of these negative impacts are already at the company’s doorstep.

File notice provisions.

Many contracts require notice be given within a very short timeframe for any delays, change orders, etc. Often, courts strictly enforce these notice provisions. Complete the notice provisions as required and avoid unnecessary and unwanted headaches.

Identify voided contracts.

Is it possible to void any contracts amid the pandemic? Many contracts have provisions in them that take into consideration “acts of God” or force majeure provisions. Carefully read these provisions to clearly understand how delay provisions may affect a contractor’s rights and obligations during a pandemic.

Create new agreements.

All involved parties benefit by anticipating and bringing early remedy or avoidance to potential conflicts or disagreements. If one is not already in place, compose a compliance policy and procedure document with appropriate provisions for the exercise of reasonable precautions to prevent the spread of COVID-19.

Consult with a construction attorney on these matters.

The COVID-19 pandemic, the response to the pandemic, and the economic fallout from the pandemic are uncharted territory with unknown hazards and an unforeseeable future.

Tip #2. Be Unyielding in the Protection of Lien Rights.

Exercise strict protection of lien rights. If and when payment is made now hinges on many factors out of a contractor’s control. Pay attention to two simple items.

Send a preliminary notice on all jobs.

Preliminary notices are essential to protect against payment problems on a job, especially issues that are not the contractor’s fault. In 2020, job and payment delays are very probable. Contractors who have significant cash stress or who file bankruptcy may very well be the source of these payment delays. Contractors who failed to send preliminary notices will have little recourse. The courts uphold the rights of those construction companies or contractors that followed the appropriate procedure, which includes filing the appropriate preliminary notices.

When payment begins to lag, act quickly.

If payment begins to lag on a job, the contractor should immediately escalate the matter to protect his or her rights. This escalation means sending a notice of intent to lien or filing a mechanics lien. Under normal circumstances, many contractors are willing to give customers and other participants more time to pay. More caution is required of construction contractors in the current environment with coronavirus. Tight cash circumstances can have a cascading effect. Promptly dealing with early warning signs is the most effective way to keep the cash pipeline open and flowing.

Pay close attention to lien deadlines and take prompt action.

With COVID-19, county recorder offices are closing and limiting availability to important information. The mail system is stretched. Knowing how to file remotely can save a contractor’s business.

Tip #3. Monitor Changes in the Payment Behavior of General Contractors.

General contractors on most jobs are experiencing a significant disruption with coronavirus. They will struggle with the project schedule, legal disputes, worker shortages, and cash flow issues. Consider the following questions:

• Are there any increases in payment problems?
• Are payments to contractors flowing more slowly?
• Are retainage practices changing?

The best contractors perform well in difficult times, such as the period that the nation is currently facing. Accountability and consequences can be effective tools to keep everyone on their toes.

Tip #4. Expand Cash Reserves.

Cash is king in times of crisis. Accessing cash and managing cash flow form a critical pathway to success. The following options are available and helpful.

Seek out working capital loans.

Take immediate action to apply for working capital loans, even if the need is not pressing. The future may hold unforeseen and unanticipated challenges.

Secure material procurements with longer payment terms.

By taking advantage of programs that allow for the purchase of materials with longer payment terms, cash flow needs on jobs throughout 2020 can be more easily managed.

Get cash from slow-paying accounts.

Most contractors tolerate some slow-paying jobs on the books. Convert these delinquent receivables into cash. Less cash is better than no cash.

Tap SBA loans.

The Small Business Administration is preparing loan offerings for contractors impacted by the coronavirus. Use these loans for cash for the business.

Conclusion

Take strategic action now to avoid future pain resulting from restricted cash flow. The impact of COVID-19 on the construction industry and the general contractor is unpredictable and somewhat speculative, but there are some certainties.

• The virus is having and will continue to have at least some negative effect on the global economy. Grasping this reality can inform and enhance planning for the future.
• Construction companies and general contractors will experience extreme cash flow challenges.
• General contractors have a number of pre-emptive strategies in their toolbox to keep the cash flowing and the business above water.

For more information, visit the Contractors Reporting Services website at activatemylicense.com. Contact the office by phone at (813) 932-5244.

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