article thumbnail

Service Agreements Can Improve Contractors Cash Flow And Profits

Contractor Bookkeeping

Why Sell Service Agreements? Service agreement holders are more likely to be clients that add more value to your construction company because they represent the most loyal segment of your customer base. Every service agreement customer represents a future work. Every service agreement customer represents a future work.

article thumbnail

How Much Does Rework Really Cost Your Job and What Can You Do to Stop It?

Construction Junkie

Unsatisfied with stopping at direct cost, the researches at Navigant then turned their attention to overhead costs, which include managerial, supervisor, and site safety costs. Pre-Construction Design Freeze After agreements are made, there must be a point in which no more changes can be made and the work can start without worry.

professionals

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

JOC Tutorial #71 – Terms

Job Order Contracting

j) “Project labor agreement” – an agreement that meets the requirements of applicable regulations. (k) The prices shall not include overhead and profit. (i) “Project” – the specific requirements and work to be accomplished by the job order contractor in connection with an individual job order. (j)

article thumbnail

ConstructionPro Network blog: Diverse, high-level information to help make better project management decisions

Construction Marketing Ideas

It is part of the contractor’s general and administrative overhead. In those cases, the cost of legal, accounting and consultant services are recoverable as extra work in the administration of a contract. Generally, the cost of administering a contract is built into the fixed contract price.

article thumbnail

Common Types of Construction Contracts And Their Use

cnstrctr

Under a lump sum contract the consultants are typically engaged by the owner and the contractor falls under a separate contract with the owner. The contract is typically governed by the prime consultant. Contractors and owners are used to working under this type of agreement.

article thumbnail

Some vital construction documents for a construction project

Construction Cost Estimating

Contract Agreements and Contracts: It should be utilized by the contracting officer (owner) as well as the contractor. This type of document also involve overhead costs, what to claim and your rights. It should contain all drawings from consultants and will compose the whole project being contracted.

article thumbnail

10 Contract Terms for Higher Profitability

PSMJ Resources

With government clients, this term can reduce overhead, making your contract price more attractive. Also, by working overtime for private sector clients, you may be able to charge clients at your normal billing rate without incurring additional salary or overhead costs. Include a streamlined form of billing and payment.