Remove Liability Remove Negotiation Remove Overhead Remove Profitability
article thumbnail

10 Contract Terms for Higher Profitability

PSMJ Resources

Most clients are demanding more work for lower fees, and firms that do not reexamine the terms of their contracts usually find themselves without enough income to break even, let alone make a profit. When negotiating a contract, insert as many of the following terms into the contract as possible: 1. Shorten the billing/payment cycle.

article thumbnail

Army Job Order Contracts FAIL to meet AFARS requirements MOST OF THE TIME

Job Order Contracting

JOC unit prices include direct material, labor and equipment costs, but not indirect costs or profits which are addressed in the coefficient(s). general and administrative and other overhead costs, insurance costs, bonding and alternative payment protection costs, protective clothing, 5117.9002 Applicability. (a) c) Limitations. (1)

Contract 228
professionals

Sign Up for our Newsletter

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

article thumbnail

Service Agreements Can Improve Contractors Cash Flow And Profits

Contractor Bookkeeping

They may call your contracting company for future work or they may decide to shop the competition and use the information they find to negotiate for a lower price. The Balance Sheet is the summary report which shows all of the assets minus the liabilities which equals the "Book Value" or owner''s equity.

article thumbnail

Setting up a Job Order Contract Using Best Management Practices

Job Order Contracting

general and administrative and other overhead costs, insurance costs, bonding and alternative payment protection costs, protective clothing, equipment rental, sales tax and compliance with tax laws, and also contractor’s profit). the JOC contractor formally accepts the order, as mutually agreed, with real property owner. (e)

Contract 100
article thumbnail

#98:  Good Faith Limits on Termination for Convenience

NH Construction Law

Contractor shall not be entitled to receive payment for any lost profits. ” Summary judgment was entered for the painting subcontractor on liability, leaving for another day the issue of damages. In Hate to Paint , lost profits after termination for convenience were specifically excluded.

article thumbnail

Best Practice Job Order Contracting

Job Order Contracting

general and administrative and other overhead costs, insurance costs, bonding and alternative payment protection costs, protective clothing, equipment rental, sales tax and compliance with tax laws, and also contractor’s profit). through discussions and negotiations. After agreement, a fixed-price bilateral order is prepared.

Contract 100
article thumbnail

New And Restarting Contractors

Contractor Bookkeeping

They seek out "Clients" who respect them and pay a fair price for their services, not "customers" who want to chisel, negotiate and try to get something for nothing. Maybe you began your company with a few friends and relatives and thought your overhead expenses would be low since you worked out of your home. We can help you!