How to Properly Manage Your Finances as a Subcontractor

When you are supervising a crew of tradesmen and working for a general contractor, you’ll be required to manage a myriad of jobs that contribute to the success of your subcontracting business. To be successful you must meet deadlines, pay your crews on time, order materials needed on your jobsite, and interact with vendors who deliver items to your project. The first step that you must take to remain competitive is to be organised and keep documentation of all of the aspects of the project on which you are working. Attending to minute details can protect your company, the men working for you, and the general contractor who will be offering you future jobs if you perform up to standards on your current one. Let’s take a look at how to manage your finances properly so that your other duties will flow smoothly.

supervising

  1. It’s important to develop a good working relationship with your general contractor so that you will know what is expected of you on each and every project. If you don’t understand the plans or you have queries about the payment schedule be sure to have everything clarified before work commences. You will be directly responsible for the pay for your tradesmen so it’s imperative that you provide them with an honest schedule for when they can expect to be paid for their work.
  2. After you have been awarded the job, meet with your tradesmen to share with them your expectations for the job to be done. You should ask them to plan their expenses for the timeframe for which they will be paid so that they won’t experience a cashflow problem with their personal finances. You should also plan to pay your own bills in accordance with the pay schedule provided to you by the general contractor. If you anticipate cashflow problems, you should visit the website ultimatefinance.co.uk so that you can review the options you have for honouring your financial obligations with help from a team of construction finance professionals. These experts can also provide you with help in finding what you are doing to prompt cashflow challenges so that you can remedy your strategies before your next project comes along.
  3. It is wise to keep a portfolio of your expenses for your current project, how you met financial deadlines, and notations for making sure you prevent future cashflow situations. You must always plan for slow-paying clients or clients who are not pleased with some of the work and withhold payment until they are satisfied. This will keep your subcontracting business running smoothly without any cashflow issues.

Close attention to the money that you have on hand, the expenses that you are incurring on your current project, and when you will be paid by the general contractor are all issues that impact the success of your business. By keeping accurate documentation and copies of all contracts you will be prepared to manage your business effectively and meet challenges with confidence.

 

Image courtesy of dan/FreeDigitalPhotos.net

Add a Comment

Your email address will not be published. Required fields are marked *

Home |About |Become a Contributor |Sitemap | Privacy Policy | Contact |