How to Avoid Poor Contractor Performance for Roofers
A recent survey of more than a hundred global construction clients revealed that more than half of them had experienced underperforming contracts in the past year and only a third admitted to having a high level of trust in their chosen contractors. A massive 60% or respondents disclosed that they only had a “moderate” degree of trust and poor performance by contractors was cited as the largest single reason for projects underperforming. This is worrying news for the construction industry as a whole here in the UK where the contractors are among the best in the world.
While it’s understandable that every contractor will work on a bad project from time to time, the reasons why this should be so can be difficult to identify. The site team usually blames the planners and estimators, head office will blame the site team and the board usually blames an absence of good process. Furthermore, the MD often blames the previous MD and just about everybody involved blames the design team at some point or another! However, one of the biggest reasons that projects underperform is that the wrong work is undertaken by the construction company so today we’re taking a look at some way in which this can be avoided.
Only take on projects that you fully understand. During the economic downturn, it’s probably been tempting to take on any work you can get, resulting in so many construction companies taking on a project that is wrong for them. However good your team is, it’s essential that you’re confident that they can complete any project taken on successfully. Ask yourself “who will build this and have they successfully done this type of work in the past?” If you can’t answer in the affirmative, then don’t take on that particular project – focus your resources on finding work that you know you can complete successfully.
Make sure you have sufficient resources to deliver – whether it’s project staff, labour or sub-contractors. Be proactive and invest in the people and resources you will need to complete the job within deadline and budget.
Re-engineer solutions – if you’ve taken on a project that lacks scope, then you’ll need to re-engineer the project out of any problems and into profit in order to complete successfully. Be on the lookout for projects where your expertise offers you an advantage.
Avoid unfair contract conditions – it’s often the case that a lucrative job comes with unfairly harsh terms. Don’t take on any risk unless you’re confident that you can manage it.
Avoid over ambitious growth – this can lead you into all manner of problems and a bad choice of contract will erode both your profit margins and, ultimately, your bank balance. Don’t take on difficult or unsuitable contracts just to bring in some short term cash. The secret to success is to grow your business sensibly and focus on what you do best. You’ll need to manage the balance between risk and opportunity to protect the future of your business.