var g_txt=[
{t:"101 to Help Make Your Construction ",p:1,x:565,y:372,w:400,h:120},
{t:"Business More Proftable",p:1,x:730,y:483,w:178,h:19},
{t:"Practical Strategies",p:1,x:641,y:420,w:211,h:30},
{t:"101 Practical Strategies to Help Make Your Construction Business More Proftable",p:2,x:59,y:1241,w:528,h:17},
{t:"1",p:2,x:952,y:1246,w:6,h:13},
{t:"TABLE OF CONTENTS",p:2,x:270,y:320,w:178,h:21},
{t:"Customer Relations and Marketing ...............................................................2",p:2,x:274,y:359,w:608,h:21},
{t:"Managing Your Workforce ............................................................................7",p:2,x:274,y:396,w:608,h:21},
{t:"Estimating and Scheduling the Job ...............................................................9",p:2,x:274,y:432,w:608,h:21},
{t:"Project Management ..................................................................................12",p:2,x:274,y:469,w:608,h:21},
{t:"Managing Payroll ........................................................................................18",p:2,x:274,y:506,w:608,h:21},
{t:"Vendors and Key Resources .......................................................................20",p:2,x:274,y:542,w:608,h:21},
{t:"Managing Equipment and Inventory ............................................................22",p:2,x:274,y:579,w:608,h:21},
{t:"Accounting and Financial Matters ...............................................................25",p:2,x:274,y:616,w:608,h:21},
{t:"WE’D LIKE TO THANK THE FOLLOWING  ",p:2,x:270,y:754,w:362,h:21},
{t:"CONTRIBUTORS TO THIS PUBLICATION.",p:2,x:270,y:775,w:360,h:21},
{t:"Dennis Feidner, Principal, CFO on the go",p:2,x:273,y:820,w:261,h:17},
{t:"Peggy Simmons Parr, Contractors Business Service",p:2,x:273,y:850,w:323,h:17},
{t:"Leslie Shiner, The ShinerGroup",p:2,x:273,y:880,w:198,h:17},
{t:"2",p:3,x:954,y:1247,w:6,h:13},
{t:"A Picture’s Worth 1,000 Words",p:3,x:270,y:318,w:357,h:29},
{t:"Your prospective customers want to know one thing: will they be satisfed, or even thrilled, when the job is done? ",p:3,x:270,y:361,w:665,h:16},
{t:"Persuade them with photographs. Here’s how: Ask your happy clients and their families to pose in front of the ",p:3,x:270,y:382,w:670,h:16},
{t:"completed project and, as they smile widely , snap away. After obtaining their written permission, you could place",p:3,x:270,y:404,w:674,h:16},
{t:"these photos in a presentation album, complete with friendly captions. Then, as you negotiate new contracts, ",p:3,x:270,y:426,w:667,h:16},
{t:"show this album to prospects, making sure to speak fondly of your former customers. This simple act says you ",p:3,x:270,y:447,w:677,h:16},
{t:"value customer satisfaction—and have delivered it repeatedly. Best of all, this strategy works for all kinds of ",p:3,x:270,y:469,w:653,h:16},
{t:"clients, from homeowners to large commercial enterprises. ",p:3,x:270,y:490,w:360,h:17},
{t:"Make Your Offce Sell",p:3,x:270,y:557,w:256,h:29},
{t:"Your offce will make an impression on prospects who come to visit, so make sure it’s a good one. Keep the ",p:3,x:270,y:600,w:658,h:16},
{t:"space tidy and handsomely decorated. But most important, pr",p:3,x:270,y:621,w:379,h:16},
{t:"ominently display your contractor’",p:3,x:636,y:621,w:205,h:16},
{t:"s license, business ",p:3,x:833,y:621,w:114,h:16},
{t:"and trade group affliations, and the smiling customers from Strategy 1, along with any awards you may have ",p:3,x:270,y:643,w:663,h:16},
{t:"received. Another way to make your offce sell is to stock a showroom with remodeling and decorator options. ",p:3,x:270,y:665,w:674,h:16},
{t:"These measures announce your professionalism, stress your commitment to customer satisfaction, and give ",p:3,x:270,y:686,w:661,h:16},
{t:"you the opportunity to talk about your successful projects.",p:3,x:270,y:708,w:353,h:16},
{t:"Give a Portrait As a Gift and Enduring Reminder",p:3,x:270,y:775,w:567,h:29},
{t:"When the project is complete and you’ve been fully paid, don’t just walk away. Select one of the photographs ",p:3,x:270,y:817,w:667,h:16},
{t:"you’ve taken for Strategy 1, have it enlarged, pr",p:3,x:270,y:840,w:288,h:16},
{t:"ofessionally framed, and inscribed. Then present it to your clients.",p:3,x:551,y:840,w:394,h:16},
{t:"Profts in Action: Such a portrait can be cherished and displayed for years in the home or corporate ",p:3,x:270,y:884,w:654,h:17},
{t:"lobby, where it will remind clients of your work and could generate repeat and referral business for you.",p:3,x:270,y:904,w:659,h:17},
{t:"1 ",p:3,x:194,y:238,w:71,h:129},
{t:"2 ",p:3,x:187,y:476,w:71,h:129},
{t:"3 ",p:3,x:187,y:693,w:71,h:129},
{t:"Customer Relations and Marketing",p:3,x:269,y:81,w:471,h:33},
{t:"101 Practical Strategies to Help Make Your Construction Business More Proftable",p:3,x:59,y:1241,w:528,h:17},
{t:"3",p:4,x:954,y:1247,w:6,h:13},
{t:"Customer Relations and Marketing",p:4,x:58,y:82,w:498,h:35},
{t:"Manage Your Customer’s Expectations",p:4,x:270,y:268,w:462,h:29},
{t:"If a customer relationship sours, it’s almost always because the customer’s expectation differed from what you ",p:4,x:270,y:311,w:671,h:16},
{t:"delivered. So always try to “under sell, over deliver.” Setting customer expectations just below what you know ",p:4,x:270,y:332,w:667,h:16},
{t:"you can deliver is especially valuable when planning schedule milestones. ",p:4,x:270,y:354,w:448,h:16},
{t:"For example, tell your clients that",p:4,x:731,y:354,w:200,h:16},
{t:"schedules will probably change due to bad weather , out of stock items, etc. Also, communicate constantly",p:4,x:270,y:376,w:660,h:16},
{t:"throughout the job, making sure customers know what to expect at every turn.",p:4,x:270,y:397,w:478,h:16},
{t:"Profts in Action: Include a Critical Path Management (CPM) schedule from Sage Master Builder with every ",p:4,x:270,y:437,w:660,h:16},
{t:"invoice to remind customers of the current schedule and anticipated completion date. The schedule also includes",p:4,x:270,y:457,w:684,h:16},
{t:"billings as well as upcoming decision points, further reminding customers of their contract obligations. You may ",p:4,x:270,y:479,w:676,h:16},
{t:"want to keep one schedule for your staff and another one for your clients. ",p:4,x:270,y:500,w:450,h:17},
{t:"Promise 100 Percent, Deliver 110 Percent",p:4,x:270,y:567,w:491,h:29},
{t:"Picking up wher e Strategy 4 leaves of f, the sur est way to satisfy customers is to supply a little extra on each pr",p:4,x:270,y:610,w:656,h:16},
{t:"oject. ",p:4,x:908,y:610,w:35,h:16},
{t:"The best extra to deliver is service. If done effciently",p:4,x:270,y:631,w:315,h:16},
{t:",  the cost can be very low; in fact, it could make you money",p:4,x:576,y:631,w:366,h:16},
{t:". ",p:4,x:932,y:631,w:7,h:16},
{t:"Supply extra service on each project, and customers will think of you frst whenever they need help and they will ",p:4,x:270,y:653,w:682,h:16},
{t:"refer you to their friends and associates—the least expensive way to acquire new clients.",p:4,x:270,y:675,w:538,h:16},
{t:"Profts in Action: Obtaining a new customer is generally much costlier than reselling your services to current ",p:4,x:270,y:716,w:666,h:16},
{t:"ones, so do your best to retain your customers for future work.",p:4,x:270,y:737,w:381,h:17},
{t:"Negotiate an Early Completion Bonus",p:4,x:270,y:805,w:446,h:29},
{t:"After the customer has agr eed to your contract amount, try to negotiate an early completion bonus. If you’ve",p:4,x:270,y:847,w:664,h:16},
{t:"followed Strategy 4, your contractual completion date should leave you room for fnishing the project early—and ",p:4,x:270,y:869,w:680,h:16},
{t:"many customers are happy to pay for the privilege. This bonus could be a percentage of the customer’s carrying ",p:4,x:270,y:890,w:685,h:16},
{t:"costs, for which an earlier start date translates directly into a quicker return on the customer’s investment. Such ",p:4,x:270,y:912,w:655,h:16},
{t:"customers may be willing to r",p:4,x:270,y:934,w:178,h:16},
{t:"eward you with a portion of their savings.",p:4,x:441,y:934,w:248,h:16},
{t:"Profts in Action: You can use this payment as an incentive for your crew and subcontractors, rewarding them ",p:4,x:270,y:975,w:679,h:16},
{t:"if they complete the work sooner than scheduled. Completing the job ahead of schedule helps save expenses ",p:4,x:270,y:997,w:671,h:16},
{t:"and frees you to take on other work.",p:4,x:270,y:1019,w:220,h:16},
{t:"4 ",p:4,x:184,y:188,w:71,h:129},
{t:"5",p:4,x:187,y:518,w:41,h:89},
{t:"6 ",p:4,x:185,y:722,w:71,h:129},
{t:"Customer Relations and Marketing...continued",p:4,x:269,y:82,w:486,h:27},
{t:"101 Practical Strategies to Help Make Your Construction Business More Proftable",p:4,x:59,y:1241,w:528,h:17},
{t:"4",p:5,x:954,y:1247,w:6,h:13},
{t:"Customer Relations and Marketing",p:5,x:58,y:82,w:498,h:35},
{t:"Make Sure Clients Appreciate the Quality of Your Work",p:5,x:270,y:268,w:649,h:29},
{t:"Why do some family sedans sell for three times or more the price of other family sedans? Quality, you say? ",p:5,x:270,y:311,w:672,h:16},
{t:"Almost: it’s the perception of quality that really matters. Customers cannot value quality, or willingly pay for it, if ",p:5,x:270,y:332,w:670,h:16},
{t:"they don’t know it exists. Much of the quality you build into every project is hidden from your clients; your job is ",p:5,x:270,y:354,w:676,h:16},
{t:"to reveal it. Show your customers around the job site and point out how you’re delivering a quality project. Even ",p:5,x:270,y:376,w:681,h:16},
{t:"simply meeting local building code requirements is an opportunity to inform clients about the important safety ",p:5,x:270,y:397,w:666,h:16},
{t:"features built into their projects. Remember to sell quality, not price, throughout the job.",p:5,x:270,y:418,w:528,h:17},
{t:"Impress Prospects with Pr ofessional Customer Documents",p:5,x:270,y:486,w:690,h:29},
{t:"Be sure to show prospective clients examples of professional schedules, change orders, and billing documents ",p:5,x:270,y:528,w:678,h:16},
{t:"and explain in detail how they will get bills and schedule updates throughout the job. Establishing a high level of ",p:5,x:270,y:550,w:679,h:16},
{t:"professionalism could help you negotiate higher billing rates and to get paid sooner once the pr",p:5,x:270,y:571,w:577,h:16},
{t:"oject is underway",p:5,x:820,y:571,w:106,h:16},
{t:".",p:5,x:920,y:571,w:3,h:16},
{t:"Profts in Action : ",p:5,x:270,y:613,w:115,h:16},
{t:"Include sample Sage Master Builder Change Order, Invoice, Statement, and Critical Path  ",p:5,x:389,y:613,w:564,h:16},
{t:"Management (CPM) Schedule documents with your proposal.",p:5,x:270,y:635,w:375,h:16},
{t:"Become a Community Leader",p:5,x:270,y:701,w:353,h:29},
{t:"Spend some time every week on charitable work and join one or more community action clubs in your area.  ",p:5,x:270,y:744,w:661,h:16},
{t:"Use these opportunities to network with potential prospects.",p:5,x:270,y:765,w:367,h:16},
{t:"Profts in Action",p:5,x:270,y:807,w:104,h:16},
{t:": Being recognized as a community leader could have a dir",p:5,x:369,y:807,w:356,h:16},
{t:"ect impact on your success. Y",p:5,x:713,y:807,w:184,h:16},
{t:"ou may ",p:5,x:888,y:807,w:47,h:16},
{t:"attract better employees and mor",p:5,x:270,y:829,w:203,h:16},
{t:"e-proftable customers. At the same time, impr",p:5,x:464,y:829,w:281,h:16},
{t:"oving your community makes it mor",p:5,x:734,y:829,w:217,h:16},
{t:"e ",p:5,x:942,y:829,w:11,h:16},
{t:"likely that local buildings will be er",p:5,x:270,y:850,w:203,h:16},
{t:"ected and r emodeled—which, not coincidentally",p:5,x:462,y:850,w:290,h:16},
{t:", can help impr ove your business.",p:5,x:741,y:850,w:200,h:16},
{t:"Enlist Your Current Customers to Find New Ones",p:5,x:270,y:917,w:581,h:29},
{t:"The best way to get referral business is quite simple: Ask for it! When your job is complete and you’ve given ",p:5,x:270,y:959,w:658,h:16},
{t:"your clients a portrait (see Strategy 3: Give a Portrait), ask them to spr",p:5,x:270,y:981,w:424,h:16},
{t:"ead the word among friends and associates.",p:5,x:678,y:981,w:268,h:16},
{t:"Hand out stacks of your business car",p:5,x:270,y:1003,w:226,h:16},
{t:"ds and brochures. Customer r eferrals are a wonderful sour ce of new  ",p:5,x:504,y:1003,w:437,h:16},
{t:"business—and repeat business fr om the same customer is even better",p:5,x:270,y:1024,w:436,h:16},
{t:". This strategy works well because",p:5,x:713,y:1024,w:210,h:16},
{t:"people who hire contractors usually know other people who might hire contractors.",p:5,x:270,y:1046,w:504,h:16},
{t:"Profts in Action: Your happy customers will sell you to their friends if you give them the opportunity and the ",p:5,x:270,y:1088,w:664,h:16},
{t:"tools to do so.",p:5,x:270,y:1109,w:87,h:16},
{t:"7 ",p:5,x:186,y:188,w:71,h:129},
{t:"8",p:5,x:186,y:436,w:41,h:89},
{t:"9 ",p:5,x:185,y:618,w:71,h:129},
{t:"10 ",p:5,x:143,y:834,w:113,h:129},
{t:"Customer Relations and Marketing...continued",p:5,x:269,y:82,w:486,h:27},
{t:"101 Practical Strategies to Help Make Your Construction Business More Proftable",p:5,x:59,y:1241,w:528,h:17},
{t:"5",p:6,x:954,y:1247,w:6,h:13},
{t:"Customer Relations and Marketing",p:6,x:58,y:82,w:498,h:35},
{t:"Stay in Touch",p:6,x:270,y:268,w:159,h:29},
{t:"Related to Strategy 10, stay in touch with former customers to tap one of the biggest sour",p:6,x:270,y:311,w:547,h:16},
{t:"ces of referral business ",p:6,x:804,y:311,w:140,h:16},
{t:"available to you. Try this: Pay a personal visit to the pr oject three months, six months, and one year after the",p:6,x:270,y:332,w:666,h:16},
{t:"date of completion; use this opportunity to r",p:6,x:270,y:354,w:266,h:16},
{t:"e-establish a friendly r elationship and fx any pr oblems that may ",p:6,x:542,y:354,w:397,h:16},
{t:"have developed. If appropriate, send a personal card on special occasions.",p:6,x:270,y:376,w:456,h:16},
{t:"Create a Clear Vision Statement for Your Business",p:6,x:270,y:442,w:596,h:29},
{t:"You can’t be great at everything, so learning your strengths, communicating them clearly to the world, and  ",p:6,x:270,y:485,w:652,h:16},
{t:"staying focused is critical to your success. ",p:6,x:270,y:506,w:260,h:16},
{t:"A well-defned vision statement will help you make day-to-day",p:6,x:538,y:506,w:374,h:16},
{t:"business decisions and give you cr edibility with prospects and customers. Review this statement annually ,  ",p:6,x:270,y:528,w:667,h:16},
{t:"at least, to see if it still tells your story. Revise as necessary. ",p:6,x:270,y:550,w:362,h:16},
{t:"Example of a vision statement: ",p:6,x:270,y:581,w:189,h:16},
{t:"A. Homes creates elegant homes of distinction and quality",p:6,x:466,y:581,w:354,h:16},
{t:". Each home is an ",p:6,x:828,y:581,w:116,h:16},
{t:"individual masterpiece that is custom designed to match the owners’ lifestyle and dr",p:6,x:270,y:603,w:509,h:16},
{t:"eams with tasteful elegance ",p:6,x:772,y:603,w:170,h:16},
{t:"and practical functionality.",p:6,x:270,y:625,w:156,h:16},
{t:"Learn to Manage Complaints",p:6,x:270,y:691,w:345,h:29},
{t:"Dealing effectively with customer complaints—and no matter how exceptional your business, ther",p:6,x:270,y:734,w:592,h:16},
{t:"e will be ",p:6,x:874,y:734,w:54,h:16},
{t:"complaints—removes one of the most important r",p:6,x:270,y:755,w:300,h:16},
{t:"oadblocks to a pr oftable business. You can train yourself and",p:6,x:563,y:755,w:366,h:16},
{t:"your employees to manage an unhappy customer; it is not as diffcult as it might seem. T",p:6,x:270,y:777,w:538,h:16},
{t:"ry following these steps:",p:6,x:789,y:777,w:146,h:16},
{t:"First ask for a minute to write down the complaint, noting you want to avoid this situation in the future.  ",p:6,x:285,y:809,w:627,h:16},
{t:"This should take the heat off you and force your customers to think about what they are saying.",p:6,x:284,y:830,w:578,h:16},
{t:"Repeat the complaint, so customers are assured of being heard and there’s no room for misunderstanding.",p:6,x:285,y:862,w:649,h:16},
{t:"Ask for more details—as well as other problems. Flush out every gripe you can.",p:6,x:285,y:894,w:484,h:16},
{t:"Thank the customers and show empathy for their plight.",p:6,x:285,y:925,w:340,h:16},
{t:"Ask them what they think you should do to resolve the situation.",p:6,x:285,y:957,w:389,h:16},
{t:"Commit to a next step and follow through on it.",p:6,x:285,y:989,w:287,h:16},
{t:"Profts in Action: Customers who point out valid problems can actually help you improve your business. More ",p:6,x:270,y:1030,w:677,h:16},
{t:"good news: when you successfully manage unhappy clients, they ar",p:6,x:270,y:1052,w:414,h:16},
{t:"e often transformed into excellent r",p:6,x:670,y:1052,w:211,h:16},
{t:"eferences.",p:6,x:874,y:1052,w:62,h:16},
{t:"11 ",p:6,x:153,y:188,w:113,h:129},
{t:"12",p:6,x:145,y:391,w:83,h:89},
{t:"13 ",p:6,x:145,y:610,w:113,h:129},
{t:"Customer Relations and Marketing...continued",p:6,x:269,y:82,w:486,h:27},
{t:"101 Practical Strategies to Help Make Your Construction Business More Proftable",p:6,x:59,y:1241,w:528,h:17},
{t:"6",p:7,x:954,y:1247,w:6,h:13},
{t:"Customer Relations and Marketing",p:7,x:58,y:82,w:498,h:35},
{t:"Use Custom Binders to Make Every Proposal Special",p:7,x:270,y:268,w:629,h:29},
{t:"After you’ve fnished an accurate takeof",p:7,x:270,y:311,w:240,h:16},
{t:"f of the project, conclude your marketing ef",p:7,x:518,y:311,w:263,h:16},
{t:"fort by creating a custom ",p:7,x:788,y:311,w:161,h:16},
{t:"binder. Be sure to include the customer’",p:7,x:270,y:332,w:247,h:16},
{t:"s name and type of pr",p:7,x:524,y:332,w:134,h:16},
{t:"oject on the cover . Include photos of similar",p:7,x:664,y:332,w:269,h:16},
{t:", ",p:7,x:941,y:332,w:7,h:16},
{t:"successfully completed projects with letters of recommendation from happy customers. Make your presentation ",p:7,x:270,y:354,w:683,h:16},
{t:"clearly say, “I offer professional services that are well worth the price.”",p:7,x:270,y:376,w:420,h:16},
{t:"Find a Market Niche and Fill It",p:7,x:270,y:442,w:354,h:29},
{t:"Research your local area to determine which construction specialties ar",p:7,x:270,y:485,w:436,h:16},
{t:"e in demand but have only a few",p:7,x:714,y:485,w:197,h:16},
{t:"practitioners. Choose the market niche of gr",p:7,x:270,y:506,w:267,h:16},
{t:"eatest interest to you, then examine those businesses to lear",p:7,x:545,y:506,w:370,h:16},
{t:"n ",p:7,x:924,y:506,w:11,h:16},
{t:"how you can improve on them in some important way.",p:7,x:270,y:528,w:330,h:16},
{t:"Profts in Action: Specialists command higher rates and, with less competition, can more easily leverage an ",p:7,x:270,y:570,w:664,h:16},
{t:"excellent reputation.",p:7,x:270,y:591,w:122,h:16},
{t:"Stay Up to Date to Stay Ahead",p:7,x:270,y:658,w:360,h:29},
{t:"Learn as much as you can about your portion of the industry. Talk to your suppliers and visit the manufacturers ",p:7,x:270,y:700,w:677,h:16},
{t:"of the products you install. Keep abr east of changes in your market, tools, and pr",p:7,x:270,y:722,w:498,h:16},
{t:"oducts. Find out which new ",p:7,x:774,y:722,w:177,h:16},
{t:"products can improve your production effciency. Read trade journals and attend industry group meetings.",p:7,x:270,y:744,w:644,h:16},
{t:"Profts in Action: If you constantly look for ways to be more productive, you could start seeing more proft in ",p:7,x:270,y:785,w:667,h:16},
{t:"every job.",p:7,x:270,y:807,w:58,h:16},
{t:"Guarantee Your Work",p:7,x:270,y:872,w:254,h:29},
{t:"Guaranteeing your work helps assur",p:7,x:270,y:914,w:219,h:16},
{t:"e your prospective clients of your commitment to quality",p:7,x:498,y:914,w:342,h:16},
{t:". This in tur n ",p:7,x:851,y:914,w:85,h:16},
{t:"could encourage prospects to choose to work with you, and it promotes a respectful relationship. To limit your ",p:7,x:270,y:936,w:672,h:16},
{t:"exposure, however, guarantee your workmanship only, not materials. Because guarantees have signifcant legal ",p:7,x:270,y:958,w:679,h:16},
{t:"implications, please consult with an attorney before making this offer.",p:7,x:270,y:979,w:418,h:16},
{t:"14 ",p:7,x:141,y:188,w:113,h:129},
{t:"15",p:7,x:144,y:395,w:83,h:89},
{t:"16 ",p:7,x:142,y:575,w:113,h:129},
{t:"17 ",p:7,x:143,y:789,w:113,h:129},
{t:"Customer Relations and Marketing...continued",p:7,x:269,y:82,w:486,h:27},
{t:"101 Practical Strategies to Help Make Your Construction Business More Proftable",p:7,x:59,y:1241,w:528,h:17},
{t:"7",p:8,x:954,y:1247,w:6,h:13},
{t:"Reward Performance, Not Effort",p:8,x:270,y:322,w:382,h:29},
{t:"Before you can reward performance, you have to measur e it. One way is to ask your employees to agr ee to ",p:8,x:270,y:364,w:668,h:16},
{t:"complete all work in fewer hours than you’ve estimated and reward them with a bonus if they do (see Strategy ",p:8,x:270,y:386,w:672,h:16},
{t:"6: Negotiate an Early Completion Bonus). Giving managers an annual bonus based on company proft can also ",p:8,x:270,y:407,w:677,h:16},
{t:"be a great motivator. It rewards exactly the behavior you want to foster: proft for the company.",p:8,x:270,y:429,w:572,h:16},
{t:"Profts in Action: Sage Master Builder enables you to budget hours as well as dollars for every task. Review ",p:8,x:270,y:471,w:666,h:16},
{t:"this data with your employees at the outset and then at r",p:8,x:270,y:492,w:343,h:16},
{t:"egular intervals so they know how they ar e performing.",p:8,x:605,y:492,w:326,h:16},
{t:"Take Steps to Prevent On-Site Accidents",p:8,x:270,y:559,w:482,h:29},
{t:"Few things can stop your business faster and colder than a serious accident. Make accident prevention a top ",p:8,x:270,y:601,w:667,h:16},
{t:"priority if you want to continue being proftable—or just stay in business. Assign one employee on every job to ",p:8,x:270,y:623,w:669,h:16},
{t:"be the safety engineer. Hold regular safety meetings and ensure your safety training is up to date.",p:8,x:270,y:645,w:589,h:16},
{t:"Keep Your Job Sites Clean",p:8,x:270,y:711,w:316,h:29},
{t:"A messy job site not only increases risk of injury and impedes workfow, it could also discourage prospects and ",p:8,x:270,y:754,w:678,h:16},
{t:"upset customers—especially when you are performing remodel work.",p:8,x:270,y:775,w:421,h:16},
{t:"Profts in Action: A clean job site could be a simple way to get more interested prospects, happier customers, ",p:8,x:270,y:817,w:680,h:16},
{t:"fewer accidents, and higher productivity.",p:8,x:270,y:839,w:245,h:16},
{t:"Let Go of Unproftable Employees When Necessary",p:8,x:270,y:902,w:609,h:29},
{t:"When employees are unable to meet minimum productivity standards after repeated coaching, the best thing ",p:8,x:270,y:944,w:665,h:16},
{t:"you can do is replace them. Carelessness, accidents, and shoddy workmanship will adversely affect company ",p:8,x:270,y:966,w:671,h:16},
{t:"morale and proftability.",p:8,x:270,y:988,w:139,h:16},
{t:"Profts in Action: Sage Master Builder can help you monitor employee productivity by analyzing budgeted  ",p:8,x:270,y:1034,w:657,h:16},
{t:"to actual job hours, and you can use its Daily Field Reports to track incidents, meetings, absence reasons,  ",p:8,x:270,y:1056,w:652,h:16},
{t:"required training, and more. As a business manager, one of your primary functions is to constantly improve ",p:8,x:270,y:1078,w:650,h:16},
{t:"your team through training, coaching, and, as required, hiring and fring.",p:8,x:270,y:1099,w:434,h:16},
{t:"18 ",p:8,x:143,y:240,w:113,h:129},
{t:"19 ",p:8,x:144,y:480,w:113,h:129},
{t:"20 ",p:8,x:142,y:628,w:113,h:129},
{t:"21 ",p:8,x:153,y:821,w:113,h:129},
{t:"Managing Your Workforce",p:8,x:271,y:78,w:351,h:33},
{t:"101 Practical Strategies to Help Make Your Construction Business More Proftable",p:8,x:59,y:1241,w:528,h:17},
{t:"8",p:9,x:954,y:1247,w:6,h:13},
{t:"Use Temporary or Contract Labor for Quick Fixes",p:9,x:270,y:268,w:586,h:29},
{t:"If a pr oject is running behind schedule and liquidated damages may potentially kick in, you may fnd it is faster",p:9,x:270,y:310,w:662,h:16},
{t:", easier",p:9,x:894,y:310,w:43,h:16},
{t:", ",p:9,x:934,y:310,w:7,h:16},
{t:"and cheaper to fnish the job using temporary staff. Many “labor pool” companies provide short-term workers.  ",p:9,x:270,y:331,w:674,h:16},
{t:"But remember: each job site r equires an experienced supervisor to ensur",p:9,x:270,y:352,w:435,h:16},
{t:"e productivity .",p:9,x:697,y:351,w:82,h:17},
{t:"Teach Your Employees to Be More Productive",p:9,x:270,y:410,w:543,h:29},
{t:"Spend a little time every week coaching each of your employees. Most employees want to work effciently, but ",p:9,x:270,y:451,w:672,h:16},
{t:"many simply do not know how or believe they ar",p:9,x:270,y:472,w:293,h:16},
{t:"e constrained by conditions they cannot contr",p:9,x:573,y:472,w:278,h:16},
{t:"ol. One of the ",p:9,x:861,y:472,w:89,h:16},
{t:"best ways to help employees achieve higher productivity is simply to ask them how they think they could work ",p:9,x:270,y:493,w:672,h:16},
{t:"smarter or more effectively. Then add your own observations and, together, develop simple tactics they can use ",p:9,x:270,y:514,w:682,h:16},
{t:"every day to improve job site productivity.",p:9,x:270,y:535,w:250,h:16},
{t:"Profts in Action : Even small productivity improvements can have huge ef fects when maintained over time.",p:9,x:270,y:565,w:665,h:16},
{t:"And when employees pr oduce the same or gr eater results in less time, you could pay less in base wages,",p:9,x:270,y:585,w:649,h:16},
{t:"payroll taxes, workers’ compensation, and other benefts.",p:9,x:270,y:606,w:348,h:16},
{t:"Learn from Your Employees How to Be Productive",p:9,x:270,y:664,w:596,h:29},
{t:"When poor management or planning interferes with productivity, it’s important your employees have a way to ",p:9,x:270,y:705,w:663,h:16},
{t:"easily communicate the breakdowns to you. One method is to add an area on daily timecards for reporting  ",p:9,x:270,y:726,w:655,h:16},
{t:"production slowdowns, such as “Production was slowed today because ___________.” This could help you  ",p:9,x:270,y:747,w:659,h:16},
{t:"spot opportunities to improve production through better communication and planning.",p:9,x:270,y:769,w:522,h:16},
{t:"Hire Professional Offce Staff",p:9,x:270,y:826,w:344,h:29},
{t:"With progress billings, pre-lien notices, lien waivers, union r eporting, payroll taxes, certifed payr oll, change orders, ",p:9,x:270,y:868,w:677,h:16},
{t:"and more to manage, an effective offce staff and accounting system is a must, not a luxury. If you’ve gone from ",p:9,x:270,y:888,w:680,h:16},
{t:"being a hired hand to running your own business, you may feel you ought to be involved in every offce detail. ",p:9,x:270,y:909,w:666,h:16},
{t:"Fight that urge.",p:9,x:270,y:930,w:92,h:16},
{t:"Profts in Action: One of the fastest ways to go broke, particularly in commercial construction, is to become ",p:9,x:270,y:960,w:665,h:16},
{t:"overwhelmed by your offce procedures.",p:9,x:270,y:981,w:244,h:16},
{t:"Invest in Training for Field and Offce Staff",p:9,x:270,y:1038,w:499,h:29},
{t:"Train your staff to handle new products, materials, technologies, and techniques; this helps reduce waste, limit ",p:9,x:270,y:1081,w:673,h:16},
{t:"accidents, and increase productivity over time.",p:9,x:270,y:1102,w:282,h:16},
{t:"Profts in Action: Without proper employee training, all the new products (and materials, etc.) in the world ",p:9,x:270,y:1132,w:651,h:16},
{t:"won’t help your business become more proftable.",p:9,x:270,y:1152,w:304,h:16},
{t:"22 ",p:9,x:144,y:188,w:113,h:129},
{t:"23 ",p:9,x:144,y:331,w:113,h:129},
{t:"24 ",p:9,x:140,y:583,w:113,h:129},
{t:"Managing Your Workforce...continued",p:9,x:269,y:81,w:387,h:27},
{t:"25 ",p:9,x:144,y:745,w:113,h:129},
{t:"26 ",p:9,x:144,y:955,w:113,h:129},
{t:"101 Practical Strategies to Help Make Your Construction Business More Proftable",p:9,x:59,y:1241,w:528,h:17},
{t:"9",p:10,x:954,y:1247,w:6,h:13},
{t:"Post the Project Schedule",p:10,x:270,y:318,w:309,h:29},
{t:"Keep project schedules up to date and post them in plain sight so everyone involved in the project knows when ",p:10,x:270,y:361,w:680,h:16},
{t:"they are expected to complete their work.",p:10,x:270,y:382,w:253,h:16},
{t:"Note Items Missing From Plans",p:10,x:270,y:449,w:371,h:29},
{t:"When putting together your job bid, be sure to compile a detailed list of plan items that are either unclear or ",p:10,x:270,y:491,w:654,h:16},
{t:"should be included but are missing. Include this list with your bid. Otherwise, your customers may assume ",p:10,x:270,y:513,w:648,h:16},
{t:"you’re responsible for work you either didn’t understand or didn’t intend to accept. This could lead to you  ",p:10,x:270,y:535,w:648,h:16},
{t:"taking on extra work, which comes out of your proft, or upsetting your client. Neither is a happy outcome.",p:10,x:270,y:556,w:643,h:16},
{t:"Create a Schedule Before Estimating the Cost",p:10,x:270,y:623,w:546,h:29},
{t:"Generate a rough schedule before you start estimating the work. The schedule will serve two ways: as the basis ",p:10,x:270,y:665,w:684,h:16},
{t:"for estimating your cost of general conditions and as a reality check for your labor estimate.",p:10,x:270,y:687,w:553,h:16},
{t:"Allow One Half-Day Per Week for Miscellaneous",p:10,x:270,y:750,w:570,h:29},
{t:"Build a half-day per week into your project schedule. The time will likely be consumed collecting timecards, ",p:10,x:270,y:793,w:654,h:16},
{t:"picking up materials, and other minor project delays.",p:10,x:270,y:814,w:318,h:16},
{t:"Bill Expensive, High-Proft Work Early in the Project",p:10,x:270,y:874,w:611,h:29},
{t:"When submitting an itemized bid that you’r",p:10,x:270,y:916,w:260,h:16},
{t:"e billing on a per centage-complete basis ( see Strategy 87: Use Pr ogress ",p:10,x:521,y:916,w:407,h:16},
{t:"Billing), allocate a greater percentage of the overhead—and proft—to tasks early in the job. This could help ",p:10,x:270,y:938,w:653,h:16},
{t:"improve your cash fow and help you stay ahead of costs as the project progresses. Caveat: be careful not to ",p:10,x:270,y:959,w:666,h:16},
{t:"frontload items that might be taken out of the contract. In fact, it’s smart to lower overhead allocation on items ",p:10,x:270,y:981,w:671,h:16},
{t:"you feel the owner may strike fr",p:10,x:270,y:1003,w:189,h:16},
{t:"om the contract. This leaves you with higher pr",p:10,x:452,y:1003,w:284,h:16},
{t:"oft margins on the r emaining items.",p:10,x:727,y:1003,w:212,h:16},
{t:"Profts in Action: Use the Sage Master Builder Progress Billing to Update Percentage from Cost option when ",p:10,x:270,y:1044,w:673,h:16},
{t:"creating your billing. You’ll be able to bill the entire amount, including proft and overhead, once your costs ",p:10,x:270,y:1066,w:646,h:16},
{t:"match your budget for the item. ",p:10,x:270,y:1087,w:197,h:17},
{t:"27 ",p:10,x:144,y:236,w:113,h:129},
{t:"28 ",p:10,x:144,y:368,w:113,h:129},
{t:"29 ",p:10,x:143,y:541,w:113,h:129},
{t:"30",p:10,x:143,y:698,w:83,h:89},
{t:"31",p:10,x:153,y:827,w:83,h:89},
{t:"Estimating and Scheduling the Job",p:10,x:272,y:78,w:470,h:33},
{t:"101 Practical Strategies to Help Make Your Construction Business More Proftable",p:10,x:59,y:1241,w:528,h:17},
{t:"10",p:11,x:947,y:1247,w:12,h:13},
{t:"Use Production Rates When Estimating Labor",p:11,x:270,y:268,w:545,h:29},
{t:"When estimating labor for a pr",p:11,x:270,y:311,w:183,h:16},
{t:"oject, use pr oduction rates (hours) instead of dollar",p:11,x:463,y:311,w:312,h:16},
{t:"-based unit pricing.",p:11,x:787,y:311,w:117,h:16},
{t:"This enables you to estimate consistently when wage rates change and gives you the ability to compar",p:11,x:270,y:332,w:622,h:16},
{t:"e hours  ",p:11,x:878,y:332,w:52,h:16},
{t:"estimated to hours worked. The easiest way to do this is to use an assembly-based estimating system that ",p:11,x:270,y:354,w:654,h:16},
{t:"utilizes production rates adjusted for the project’s degree of diffculty.",p:11,x:270,y:376,w:415,h:16},
{t:"Profts in Action: Sage Master Builder will calculate the cost of labor from hourly production rates for each of ",p:11,x:270,y:417,w:671,h:16},
{t:"the different types of labor required for project completion. This enhances the accuracy of your cost estimates ",p:11,x:270,y:439,w:669,h:16},
{t:"and helps you to better allocate manpower.",p:11,x:270,y:461,w:263,h:16},
{t:"Standardize Project Schedules",p:11,x:270,y:527,w:365,h:29},
{t:"Create a standar d Critical Path Management (CPM) schedule for the work you typically perform, including all of the",p:11,x:270,y:570,w:690,h:16},
{t:"tasks and r elationships r equired to do the work. Then use this schedule as the starting point when you bid a new job.",p:11,x:270,y:591,w:698,h:16},
{t:"Simply update the task durations to match the new job’s requirements and adjust the variable dependencies.",p:11,x:270,y:613,w:660,h:16},
{t:"Profts in Action : Standardized project schedules provide a basic task system for every schedule and help r",p:11,x:270,y:655,w:653,h:16},
{t:"educe ",p:11,x:915,y:655,w:41,h:16},
{t:"the time required to bid a new job.",p:11,x:270,y:676,w:208,h:16},
{t:"Create a Pre-Bid “Score Sheet”",p:11,x:270,y:743,w:372,h:29},
{t:"Prior to estimating a job, create a check list of criteria you’ll use to evaluate the project’s attractiveness: quality ",p:11,x:270,y:785,w:670,h:16},
{t:"of site conditions, job duration, diffculty of work, inspector r",p:11,x:270,y:807,w:362,h:16},
{t:"eputation, client disposition, str",p:11,x:618,y:807,w:189,h:16},
{t:"ength of other bidders,",p:11,x:800,y:807,w:139,h:16},
{t:"special equipment needs, and more. Involve everyone responsible for estimating and production in rating each ",p:11,x:270,y:829,w:674,h:16},
{t:"item on a one-to-fve scale. The results should help you evaluate whether, and how, to bid the project.",p:11,x:270,y:850,w:619,h:16},
{t:"Profts in Action: Sage Master Builder can generate a form that merges job and client data, saving you time ",p:11,x:270,y:892,w:662,h:16},
{t:"when creating a form for each new project.",p:11,x:270,y:914,w:261,h:16},
{t:"Read Your Contracts Carefully",p:11,x:270,y:977,w:360,h:29},
{t:"Before going through all the trouble of bidding a job, be sure to read the contract you will have to sign. Look for ",p:11,x:270,y:1019,w:678,h:16},
{t:"onerous conditions that will make it diffcult for you to be proftable or collect your money. This is especially true ",p:11,x:270,y:1041,w:678,h:16},
{t:"for subcontractors, who typically have little or no control over the contract wording. Better yet, consider creating ",p:11,x:270,y:1063,w:683,h:16},
{t:"your own contract template and try using it whenever possible.",p:11,x:270,y:1084,w:382,h:16},
{t:"Profts in Action: ",p:11,x:270,y:1126,w:112,h:16},
{t:"It’ s less costly to walk away before bidding the job than after you’ve invested a lot of time and ",p:11,x:385,y:1126,w:570,h:16},
{t:"effort in the estimating process.",p:11,x:270,y:1148,w:191,h:16},
{t:"32 ",p:11,x:144,y:186,w:113,h:129},
{t:"33 ",p:11,x:144,y:443,w:113,h:129},
{t:"34 ",p:11,x:141,y:663,w:113,h:129},
{t:"Estimating and Scheduling the Job...continued",p:11,x:269,y:81,w:485,h:27},
{t:"35",p:11,x:144,y:929,w:83,h:89},
{t:"101 Practical Strategies to Help Make Your Construction Business More Proftable",p:11,x:59,y:1241,w:528,h:17},
{t:"11",p:12,x:947,y:1247,w:12,h:13},
{t:"When Bidding a Job, Look for Pitfalls",p:12,x:270,y:268,w:440,h:29},
{t:"Create a risk-management plan for tasks that could cause a signifcant cost overrun or make collecting payment ",p:12,x:270,y:311,w:684,h:16},
{t:"diffcult. If you are not familiar with the work r",p:12,x:270,y:332,w:276,h:16},
{t:"equired for part of a pr",p:12,x:553,y:332,w:138,h:16},
{t:"oject, it’s generally a good idea to either",p:12,x:696,y:332,w:243,h:16},
{t:"subcontract the work, provide additional supervision and monitoring, add a cost overrun allowance, or remove ",p:12,x:270,y:354,w:673,h:16},
{t:"the work from your contract scope.",p:12,x:270,y:376,w:214,h:16},
{t:"Profts in Action : Use Sage Master Builder job cost r",p:12,x:270,y:417,w:324,h:16},
{t:"eports to identify cost overruns on pr",p:12,x:586,y:417,w:224,h:16},
{t:"evious jobs. Then decide",p:12,x:802,y:417,w:151,h:16},
{t:"how to manage this risk before bidding a new project.",p:12,x:270,y:439,w:327,h:16},
{t:"Solicit Subcontract Bids First",p:12,x:270,y:506,w:347,h:29},
{t:"Before signing a prime contract, make sure you have solid bids from (at least) your major subcontractors and ",p:12,x:270,y:548,w:664,h:16},
{t:"suppliers. Pay special attention to unique or unconventional work or materials; think things through and have ",p:12,x:270,y:570,w:662,h:16},
{t:"frm prices in hand before submitting your bid. Otherwise, your estimate may not refect actual costs.",p:12,x:270,y:591,w:610,h:16},
{t:"Profts in Action : Continue to “buy out” a job—look for better bids and estimates on subcontracts and",p:12,x:270,y:633,w:631,h:16},
{t:"materials—until you have committed to pricing.",p:12,x:270,y:655,w:285,h:16},
{t:"Include a “Not in Contract” Addendum",p:12,x:270,y:721,w:457,h:29},
{t:"Generate a detailed list of items not in your contract to ensure your customers cannot later argue they never ",p:12,x:270,y:764,w:658,h:16},
{t:"agreed to such exclusions. ",p:12,x:270,y:785,w:167,h:16},
{t:"Be especially scrupulous about noting excluded items that would normally be",p:12,x:443,y:785,w:469,h:16},
{t:"included in the scope of this work: W ithout such a list in your contract, a court might easily construe these items",p:12,x:270,y:807,w:675,h:16},
{t:"were included.",p:12,x:270,y:829,w:88,h:16},
{t:"Obtain a Release of Liability Form",p:12,x:270,y:892,w:401,h:29},
{t:"If your client requires you to perform work that, in your judgment, could result in future liability, you’d be smart  ",p:12,x:270,y:934,w:670,h:16},
{t:"to either r equest a r elease of liability agr",p:12,x:270,y:956,w:246,h:16},
{t:"eement or allow your client to contract that particular work fr",p:12,x:523,y:956,w:366,h:16},
{t:"om  ",p:12,x:909,y:956,w:28,h:16},
{t:"someone else.",p:12,x:270,y:978,w:88,h:16},
{t:"36 ",p:12,x:144,y:186,w:113,h:129},
{t:"37 ",p:12,x:144,y:423,w:113,h:129},
{t:"38 ",p:12,x:143,y:641,w:113,h:129},
{t:"39",p:12,x:143,y:843,w:83,h:89},
{t:"Estimating and Scheduling the Job...continued",p:12,x:269,y:81,w:485,h:27},
{t:"101 Practical Strategies to Help Make Your Construction Business More Proftable",p:12,x:59,y:1241,w:528,h:17},
{t:"12",p:13,x:947,y:1247,w:12,h:13},
{t:"Document All Change Orders",p:13,x:270,y:322,w:348,h:29},
{t:"Not getting paid for changes can make a good job go bad quickly. Establish with your customer the necessary ",p:13,x:270,y:364,w:674,h:16},
{t:"procedures to be paid for a change or",p:13,x:270,y:386,w:229,h:16},
{t:"der—don’t accept verbal commitments—and then follow those pr",p:13,x:493,y:386,w:398,h:16},
{t:"ocedures ",p:13,x:880,y:386,w:59,h:16},
{t:"to the letter. Ensure that forms are available on the job site so customers can authorize spur",p:13,x:270,y:407,w:561,h:16},
{t:"-of-the-moment ",p:13,x:838,y:407,w:102,h:16},
{t:"changes that haven’t gone through proper channels.",p:13,x:270,y:429,w:319,h:16},
{t:"Profts in Action: With Sage Master Builder, you can quickly and easily create a professional change order and ",p:13,x:270,y:471,w:681,h:16},
{t:"track all changes. This helps you manage change orders through to approval.",p:13,x:270,y:492,w:470,h:16},
{t:"Plan Your Purchasing",p:13,x:270,y:559,w:254,h:29},
{t:"Question: How much does a box of T100 staples cost? Answer: About $3.00 at the hardware store. But if a ",p:13,x:270,y:601,w:658,h:16},
{t:"carpenter is sent to the store while work grinds to a halt, the total cost of the staples (including the carpenter’s ",p:13,x:270,y:623,w:670,h:16},
{t:"labor and benefts costs, transportation expenses, job site down time, etc.) will be considerably higher",p:13,x:270,y:645,w:618,h:16},
{t:". Not having ",p:13,x:872,y:645,w:75,h:16},
{t:"the right materials when and where you need them is one of the biggest causes of lost productivity. Improve ",p:13,x:270,y:666,w:657,h:16},
{t:"your purchase planning and you could add big dollars to your bottom line.",p:13,x:270,y:688,w:449,h:16},
{t:"Profts in Action : Use the Sage Master Builder assembly-based Estimating option to cr",p:13,x:270,y:730,w:538,h:16},
{t:"eate purchase orders ",p:13,x:817,y:730,w:136,h:16},
{t:"that include the materials amounts required for each unit of work. Then use your purchasing reports to monitor ",p:13,x:270,y:751,w:674,h:16},
{t:"your purchasing effciency. Every trip you save means extra proft for your business.",p:13,x:270,y:773,w:504,h:16},
{t:"Use a Taxi Instead of an Employee and a Truck",p:13,x:270,y:840,w:553,h:29},
{t:"If you need a critical part from a supplier, arrange with your supplier and a local taxi company to deliver the part ",p:13,x:270,y:882,w:677,h:16},
{t:"directly to the job. This keeps your employees working and you incur only the cost of a one-way ride. In Strategy",p:13,x:270,y:904,w:681,h:16},
{t:"41, we saw how the cost of a small part (a box of staples) could be greatly infated if you send a production ",p:13,x:270,y:925,w:676,h:16},
{t:"worker to get it. Another option is to of",p:13,x:270,y:947,w:234,h:16},
{t:"fer to pay the supplier (an amount less than the cost of a taxi ride, of",p:13,x:513,y:947,w:414,h:16},
{t:"course) to deliver the part.",p:13,x:270,y:969,w:159,h:16},
{t:"40 ",p:13,x:143,y:238,w:113,h:129},
{t:"41 ",p:13,x:152,y:478,w:113,h:129},
{t:"42 ",p:13,x:146,y:758,w:113,h:129},
{t:"Project Management",p:13,x:271,y:78,w:282,h:33},
{t:"101 Practical Strategies to Help Make Your Construction Business More Proftable",p:13,x:59,y:1241,w:528,h:17},
{t:"13",p:14,x:947,y:1247,w:12,h:13},
{t:"Charge a Change Order Fee",p:14,x:270,y:268,w:332,h:29},
{t:"Don’t use the same overhead and markup rates for change work as for work cover",p:14,x:270,y:311,w:504,h:16},
{t:"ed in the main contract  ",p:14,x:786,y:311,w:152,h:16},
{t:"if change work requires additional supervision, delays the entire project, reduces productivity, or might require ",p:14,x:270,y:332,w:666,h:16},
{t:"materials that may be unavailable. Every change order eats up proft, and the cost of overhead and general ",p:14,x:270,y:354,w:653,h:16},
{t:"conditions for the lost time should be borne by the customer, not you.",p:14,x:270,y:376,w:424,h:16},
{t:"Profts in Action: Use the markups on the Sage Master Builder Change Order option to calculate the billing ",p:14,x:270,y:417,w:661,h:16},
{t:"price for change work. Be sure to build in the additional costs for general conditions and supervision required  ",p:14,x:270,y:439,w:669,h:16},
{t:"by the change work.",p:14,x:270,y:461,w:124,h:16},
{t:"Charge More for Change Work",p:14,x:270,y:527,w:363,h:29},
{t:"Similar to Strategy 43, charge a change or",p:14,x:270,y:570,w:257,h:16},
{t:"der fee (fr om $50 to $250) to cover your time, r",p:14,x:515,y:570,w:282,h:16},
{t:"e-ordering, re-scheduling, ",p:14,x:787,y:570,w:153,h:16},
{t:"materials return, etc. Change order fees make the customer think twice about making changes. You can always ",p:14,x:270,y:591,w:682,h:16},
{t:"waive the fee if the change order is small or at your suggestion.",p:14,x:270,y:613,w:383,h:16},
{t:"Profts in Action: You can proft from change orders, but you have to charge enough to cover your costs and ",p:14,x:270,y:655,w:672,h:16},
{t:"additional overhead.",p:14,x:270,y:676,w:123,h:16},
{t:"Hold Retention on Subcontractors",p:14,x:270,y:743,w:407,h:29},
{t:"When negotiating subcontracts, add a contract provision withholding 5 to 10 percent of payment until the  ",p:14,x:270,y:785,w:648,h:16},
{t:"project is complete. This gives you leverage to get items fxed and work completed near the end of a pr",p:14,x:270,y:807,w:624,h:16},
{t:"oject.  ",p:14,x:882,y:807,w:40,h:16},
{t:"Use this extra cash fow to receive your early pay discounts (see Strategy 67: Take Advantage of Early Pay  ",p:14,x:270,y:829,w:652,h:16},
{t:"Discounts) and to pay subcontractors as they complete each phase of their work. Your subcontractors will  ",p:14,x:270,y:850,w:653,h:16},
{t:"be happy to be paid in a timely fashion and you’ll have better control of their timely performance.",p:14,x:270,y:872,w:585,h:16},
{t:"Profts in Action: Sage Master Builder can help you manage retention on each subcontract invoice, making  ",p:14,x:270,y:914,w:667,h:16},
{t:"it easy to keep track of retained amounts and pay retention when the subcontractor has completed all work.",p:14,x:270,y:935,w:656,h:16},
{t:"43 ",p:14,x:144,y:185,w:113,h:129},
{t:"44 ",p:14,x:140,y:445,w:113,h:129},
{t:"45 ",p:14,x:144,y:661,w:113,h:129},
{t:"Project Management...continued",p:14,x:269,y:82,w:331,h:27},
{t:"101 Practical Strategies to Help Make Your Construction Business More Proftable",p:14,x:59,y:1241,w:528,h:17},
{t:"14",p:15,x:947,y:1247,w:12,h:13},
{t:"Use Schedules to Complete Your Projects Faster",p:15,x:270,y:268,w:580,h:29},
{t:"One of the best ways to complete pr ojects more quickly is to build a detailed schedule befor",p:15,x:270,y:311,w:553,h:16},
{t:"e starting the project ",p:15,x:816,y:311,w:126,h:16},
{t:"and then keep it current every day. This will help you allocate manpower, keep subcontractors on schedule, and ",p:15,x:270,y:332,w:683,h:16},
{t:"anticipate material ordering. Every saved day could mean lower overhead costs, less labor , happier customers, ",p:15,x:270,y:354,w:672,h:16},
{t:"and less risk. Plus you can take on mor e work and potentially make mor e proft using the same cr ew.",p:15,x:270,y:376,w:599,h:16},
{t:"Profts in Action: Use Sage Master Builder Critical Path Management (CPM) tools to quickly and easily update your ",p:15,x:270,y:417,w:686,h:16},
{t:"schedules. By adjusting task leads and lags, you can cr",p:15,x:270,y:439,w:337,h:16},
{t:"eate a more-effcient workfow and get your pr oject done ",p:15,x:600,y:439,w:342,h:16},
{t:"faster. You can also send Pr oject Notices to your subcontractors to keep them informed about schedule changes.",p:15,x:270,y:461,w:685,h:16},
{t:"Quickly Notify Subcontractors of Schedule Changes",p:15,x:270,y:527,w:619,h:29},
{t:"Ever have subcontractors show up too soon or not at all—because you failed to notify them of schedule changes? ",p:15,x:270,y:570,w:683,h:16},
{t:"The sad truth is, you’re both losing money. A simple solution is to provide subcontractors with a report that lists ",p:15,x:270,y:591,w:679,h:16},
{t:"the status of all your jobs and the subcontractor’s relevant tasks and due dates. Given adequate notice and the ",p:15,x:270,y:613,w:678,h:16},
{t:"promise of rapid payment, most subcontractors will be happy to show up when expected and complete the",p:15,x:270,y:635,w:654,h:16},
{t:"work in a timely fashion.",p:15,x:270,y:656,w:145,h:16},
{t:"Use a Purchase Order System",p:15,x:270,y:723,w:357,h:29},
{t:"Many contractors do not use a formal purchase order system because it looks like too much work. Actually, the ",p:15,x:270,y:765,w:680,h:16},
{t:"opposite is true: pur chase orders can save you a gr eat deal of time by str eamlining purchasing and the pr ocessing ",p:15,x:270,y:787,w:678,h:16},
{t:"of payable invoices. Without purchase orders, you have no easy way to verify invoice pricing, anticipate cash",p:15,x:270,y:809,w:662,h:16},
{t:"fow, detect employee theft, or get reports on committed costs. Purchase orders also force you to think through ",p:15,x:270,y:830,w:681,h:16},
{t:"the process of obtaining materials, which should result in more-effcient production.",p:15,x:270,y:852,w:504,h:16},
{t:"Profts in Action : The Sage Master Builder pur chase order system is fully integrated with Estimating, Inventory",p:15,x:270,y:894,w:667,h:16},
{t:", ",p:15,x:927,y:894,w:7,h:16},
{t:"Accounts Payable, Service Receivables, and Job Cost Reporting, helping you save time and effort in processing ",p:15,x:270,y:915,w:683,h:16},
{t:"accounts payable.",p:15,x:270,y:937,w:111,h:16},
{t:"Compare Invoices to Purchase Orders",p:15,x:270,y:998,w:454,h:29},
{t:"To ensure you’re being properly billed for the materials you’ve ordered, compare the prices on the invoices you ",p:15,x:270,y:1040,w:674,h:16},
{t:"receive to your purchase orders. This is exactly the kind of task you can turn over to your software system.",p:15,x:270,y:1062,w:646,h:16},
{t:"Profts in Action: With Sage Master Builder, you simply enter the purchase order number and the invoice will fll ",p:15,x:270,y:1104,w:684,h:16},
{t:"out automatically with the correct pricing and job cost information.",p:15,x:270,y:1125,w:401,h:16},
{t:"46 ",p:15,x:143,y:186,w:113,h:129},
{t:"47 ",p:15,x:144,y:445,w:113,h:129},
{t:"48 ",p:15,x:143,y:641,w:113,h:129},
{t:"49 ",p:15,x:143,y:916,w:113,h:129},
{t:"Project Management...continued",p:15,x:269,y:82,w:331,h:27},
{t:"101 Practical Strategies to Help Make Your Construction Business More Proftable",p:15,x:59,y:1241,w:528,h:17},
{t:"15",p:16,x:947,y:1247,w:12,h:13},
{t:"Automate Your Subcontract Forms",p:16,x:270,y:268,w:413,h:29},
{t:"Create a subcontract form that includes your standard contract language and use your computer system to  ",p:16,x:270,y:311,w:661,h:16},
{t:"mail merge the subcontract information into your form. Cr",p:16,x:270,y:332,w:349,h:16},
{t:"eating complex subcontracts for every pr",p:16,x:631,y:332,w:249,h:16},
{t:"oject  ",p:16,x:888,y:332,w:38,h:16},
{t:"doesn’t have to be daunting.",p:16,x:270,y:354,w:174,h:16},
{t:"Profts in Action: The Form Design option in Sage Master Builder can build a standard subcontract that can  ",p:16,x:270,y:396,w:670,h:16},
{t:"be merged with detailed information for each new project.",p:16,x:270,y:417,w:351,h:16},
{t:"Standardize Subcontractor Forms",p:16,x:270,y:482,w:403,h:29},
{t:"Give your subcontractors a standard billing form, which should include the subcontract number, the job name, ",p:16,x:270,y:525,w:672,h:16},
{t:"and any other information that will be helpful in processing the subcontract invoice, such as the cost codes for ",p:16,x:270,y:546,w:672,h:16},
{t:"the work. Give them a separate form for billing change work; this will keep the billing for the original contract",p:16,x:270,y:568,w:654,h:16},
{t:"separate from change work billings, making it easier to audit the original subcontract. ",p:16,x:270,y:590,w:519,h:16},
{t:"Profts in Action",p:16,x:270,y:632,w:104,h:16},
{t:": By standar dizing all subcontractor billings, you’ll cut down on paperwork and minimize mistakes.",p:16,x:369,y:631,w:594,h:16},
{t:"Take Photographs of Projects In Progress",p:16,x:270,y:698,w:495,h:29},
{t:"Getting sued years after fnishing a pr oject is one of the most exasperating things that can happen to you—",p:16,x:270,y:740,w:656,h:16},
{t:"especially when the problem actually resulted from alterations made after you left the project. Unfortunately, it ",p:16,x:270,y:762,w:664,h:16},
{t:"is all too common. Taking photographs of work as it progresses is one way to help prevent this type of lawsuit. ",p:16,x:270,y:784,w:674,h:16},
{t:"Attorney fees and court settlements come out of your proft, so take steps to avoid legal actions.",p:16,x:270,y:805,w:585,h:16},
{t:"Stop Taking on Unproftable Jobs",p:16,x:270,y:868,w:396,h:29},
{t:"Question: Would you be better off taking an unproftable job or going fshing? Answer: Try fshing; you stand  ",p:16,x:270,y:910,w:662,h:16},
{t:"a better chance of enjoying yourself and it’",p:16,x:270,y:932,w:257,h:16},
{t:"s a lot cheaper . Too often contractors accept unpr oftable work because ",p:16,x:519,y:932,w:431,h:16},
{t:"they don’t have job-cost information that accurately compar",p:16,x:270,y:954,w:362,h:16},
{t:"es budgeted costs to actual costs for every task.",p:16,x:625,y:954,w:296,h:16},
{t:"Profts in Action: If your average proft margin is 5 percent, you’ll need $20,000 of work to make up for a ",p:16,x:270,y:995,w:646,h:16},
{t:"$1,000 loss—and you won’t recover the lost proft until you make another $20,000. Use the Sage Master ",p:16,x:270,y:1017,w:642,h:16},
{t:"Builder Bonding Report to see which kinds of jobs have made you the most proft and then focus on getting ",p:16,x:270,y:1039,w:658,h:16},
{t:"more of them.",p:16,x:270,y:1060,w:85,h:16},
{t:"50 ",p:16,x:143,y:186,w:113,h:129},
{t:"51 ",p:16,x:154,y:401,w:113,h:129},
{t:"52 ",p:16,x:146,y:618,w:113,h:129},
{t:"53 ",p:16,x:144,y:786,w:113,h:129},
{t:"Project Management...continued",p:16,x:269,y:82,w:331,h:27},
{t:"101 Practical Strategies to Help Make Your Construction Business More Proftable",p:16,x:59,y:1241,w:528,h:17},
{t:"16",p:17,x:947,y:1247,w:12,h:13},
{t:"Stop Doing Unproftable Work",p:17,x:270,y:268,w:356,h:29},
{t:"This tip is similar to Strategy 53, but here the focus is on learning which parts of projects are not proftable  ",p:17,x:270,y:311,w:649,h:16},
{t:"or have inordinate risk. If, for example, your crews are not effcient at foundation work, it might be wise to  ",p:17,x:270,y:332,w:643,h:16},
{t:"subcontract these tasks. Or perhaps you’re making money on the foundation work, but subcontracting it  ",p:17,x:270,y:354,w:644,h:16},
{t:"would allow you take on other work that would be even mor",p:17,x:270,y:376,w:364,h:16},
{t:"e proftable. The most reliable way to make  ",p:17,x:642,y:376,w:276,h:16},
{t:"these decisions is with accurate cost/estimate comparisons that you review after each project.",p:17,x:270,y:397,w:572,h:16},
{t:"Profts in Action: Use Sage Master Builder to compare costs across projects.",p:17,x:270,y:439,w:478,h:16},
{t:"Take Photographs of Accident Scenes",p:17,x:270,y:504,w:453,h:29},
{t:"Document injury and accident scenes as soon as possible. A photographic record establishes the location  ",p:17,x:270,y:546,w:655,h:16},
{t:"of materials, equipment, and other relevant items, which may help you in a lawsuit or claim for damages.",p:17,x:270,y:568,w:633,h:16},
{t:"Document to Help Reduce Litigation Risk",p:17,x:270,y:635,w:492,h:29},
{t:"Court cases ar e often settled on the basis of who said what to whom. ",p:17,x:270,y:677,w:424,h:16},
{t:"Keep a database of pr oject correspondence ",p:17,x:683,y:677,w:263,h:16},
{t:"and documents to protect yourself in case of litigation. If it’s true that in court the side with the best paper wins, ",p:17,x:270,y:699,w:678,h:16},
{t:"an organized set of project documents might just save you a bundle.",p:17,x:270,y:720,w:416,h:16},
{t:"Profts in Action: Sage Master Builder has a complete project document control system that includes RFIs, ",p:17,x:270,y:762,w:661,h:16},
{t:"RFPs, Correspondence, Daily Field Reports, Plan Records, Punch Lists, and a Project Hot List for staying on  ",p:17,x:270,y:784,w:666,h:16},
{t:"top of important communications.",p:17,x:270,y:805,w:206,h:16},
{t:"Attach Current Plans to Your Contract",p:17,x:270,y:868,w:451,h:29},
{t:"Before signing the contract, submit a current set of plans and specifcations and make sure you reference these ",p:17,x:270,y:910,w:680,h:16},
{t:"plans by revision number and date. It’s critical all parties to a contract base their obligations on the same set of ",p:17,x:270,y:932,w:674,h:16},
{t:"drawings, especially after multiple plan revisions. Taking this step helps you establish the exact basis of your bid ",p:17,x:270,y:954,w:680,h:16},
{t:"and helps to ensure your clients cannot later dispute what was included in, or excluded from, the contractually ",p:17,x:270,y:975,w:672,h:16},
{t:"mandated work.",p:17,x:270,y:997,w:99,h:16},
{t:"Profts in Action: Use Sage Master Builder Plan Records to track all plan versions and revisions.",p:17,x:270,y:1044,w:590,h:16},
{t:"54 ",p:17,x:143,y:188,w:113,h:129},
{t:"55 ",p:17,x:144,y:423,w:113,h:129},
{t:"56 ",p:17,x:143,y:553,w:113,h:129},
{t:"57 ",p:17,x:144,y:786,w:113,h:129},
{t:"Project Management...continued",p:17,x:269,y:82,w:331,h:27},
{t:"101 Practical Strategies to Help Make Your Construction Business More Proftable",p:17,x:59,y:1241,w:528,h:17},
{t:"17",p:18,x:947,y:1247,w:12,h:13},
{t:"Distribute the Most Current Plans",p:18,x:270,y:268,w:398,h:29},
{t:"Set up a procedure to help ensure your feld personnel, subcontractors, and suppliers are always working off the ",p:18,x:270,y:311,w:685,h:16},
{t:"most current set of plans. Also, indicate all previous changes either on the current plans or on a transmittal form. ",p:18,x:270,y:332,w:686,h:16},
{t:"It’ s a good idea to assign this task to the project manager, so there is clear ownership. Before starting a project, ",p:18,x:270,y:354,w:680,h:16},
{t:"generate a list of subcontractors and suppliers who will need to r",p:18,x:270,y:376,w:393,h:16},
{t:"eceive plan updates. ",p:18,x:679,y:376,w:129,h:16},
{t:"Otherwise, it may be",p:18,x:815,y:376,w:125,h:16},
{t:"your fault if obsolete plans result in costs or delays—and there goes your proft.",p:18,x:270,y:397,w:481,h:16},
{t:"Profts in Action",p:18,x:270,y:439,w:104,h:16},
{t:": Sage Master Builder can track subcontractors with plans, indicating plan r",p:18,x:370,y:439,w:460,h:16},
{t:"evisions and mor e.",p:18,x:811,y:439,w:110,h:16},
{t:"Keep Copies of All Plans and Revisions",p:18,x:270,y:504,w:466,h:29},
{t:"Save all your documents and plans after completing each pr",p:18,x:270,y:546,w:365,h:16},
{t:"oject. Legally, you need to keep documents for",p:18,x:647,y:546,w:287,h:16},
{t:"a specifed period (check the state or states laws in which you do business) or as long as you warrant your",p:18,x:270,y:568,w:646,h:16},
{t:"work. Create, maintain, and archive lists showing the location of the documents. Keep the documents in a safe  ",p:18,x:270,y:590,w:680,h:16},
{t:"and dry location with good access.",p:18,x:270,y:611,w:213,h:16},
{t:"Keep Track of Subcontractor Insurance Certifcates",p:18,x:270,y:678,w:614,h:29},
{t:"Track whether your subcontractors are keeping their insurance certifcates up to date and hold payments for ",p:18,x:270,y:720,w:660,h:16},
{t:"those who do not. This may shield you fr",p:18,x:270,y:742,w:246,h:16},
{t:"om large losses if a subcontractor is involved in an accident. Also, you’ll",p:18,x:506,y:742,w:435,h:16},
{t:"easily be able to present all necessary certifcates if audited, saving you time and trouble when trying to locate ",p:18,x:270,y:764,w:669,h:16},
{t:"subcontractor certifcates for past work.",p:18,x:270,y:785,w:242,h:16},
{t:"Profts in Action : Use Sage Master Builder to track insurance certifcation and hazar",p:18,x:270,y:827,w:513,h:16},
{t:"dous materials compliance ",p:18,x:769,y:827,w:165,h:16},
{t:"for all subcontractors. The software will alert you whenever you prepare checks for subcontractors.",p:18,x:270,y:849,w:600,h:16},
{t:"Constantly Improve Your Processes",p:18,x:270,y:911,w:425,h:29},
{t:"Even if you’ve done a good job cr",p:18,x:270,y:954,w:204,h:16},
{t:"eating effcient pr ocedures for your company ther",p:18,x:464,y:954,w:292,h:16},
{t:"e’ s always r oom for impr ovement ",p:18,x:749,y:954,w:196,h:16},
{t:"and, as conditions change, you’ll always need to adapt. ",p:18,x:270,y:975,w:342,h:16},
{t:"So make time to regularly evaluate (at least twice a",p:18,x:623,y:975,w:310,h:16},
{t:"year) your company’s primary processes such as estimating, pur chasing, and billing. Then make adjustments ",p:18,x:270,y:997,w:685,h:16},
{t:"you feel will improve effciency.",p:18,x:270,y:1019,w:184,h:16},
{t:"Profts in Action: Regular process reviews will bring focus back to the core processes that drive your company ",p:18,x:270,y:1060,w:683,h:16},
{t:"and help to make you more proftable.",p:18,x:270,y:1082,w:231,h:16},
{t:"58",p:18,x:143,y:218,w:83,h:89},
{t:"59 ",p:18,x:144,y:421,w:113,h:129},
{t:"60 ",p:18,x:143,y:594,w:113,h:129},
{t:"61",p:18,x:153,y:862,w:83,h:89},
{t:"Project Management...continued",p:18,x:269,y:82,w:331,h:27},
{t:"101 Practical Strategies to Help Make Your Construction Business More Proftable",p:18,x:59,y:1241,w:528,h:17},
{t:"18",p:19,x:947,y:1247,w:12,h:13},
{t:"Collect Timecards Every Day",p:19,x:270,y:320,w:342,h:29},
{t:"When employees track their time by the week, they can easily under",p:19,x:270,y:362,w:413,h:16},
{t:"estimate time missed and over estimate time ",p:19,x:674,y:362,w:265,h:16},
{t:"worked; that is simply human nature. In fact, by processing payroll daily instead of weekly, your business could ",p:19,x:270,y:384,w:674,h:16},
{t:"save an average of one hour per week for every feld employee. ",p:19,x:270,y:406,w:388,h:16},
{t:"That can really add up. You could save mor e ",p:19,x:672,y:406,w:283,h:16},
{t:"than one full week of pay for every feld employee each year (assuming 50 weeks of work). ",p:19,x:270,y:427,w:551,h:16},
{t:"Saving that kind ",p:19,x:841,y:427,w:104,h:16},
{t:"of money certainly justifes the extra effort of collecting timecards each day. Using daily timecards also enables ",p:19,x:270,y:449,w:671,h:16},
{t:"you to better monitor production, spread out your offce workload, and spot inconsistencies in reporting ",p:19,x:270,y:471,w:648,h:16},
{t:"sooner rather than later.",p:19,x:270,y:492,w:144,h:16},
{t:"Profts in Action: Use the Daily Payroll option in Sage Master Builder to enter payroll for the previous day.  ",p:19,x:270,y:534,w:652,h:16},
{t:"At the end of the pay period, simply process the daily records into timecards and print your checks.",p:19,x:270,y:556,w:603,h:16},
{t:"Segregate Time Worked to Save On Workers’ Comp",p:19,x:270,y:621,w:615,h:29},
{t:"Many states allow construction companies to utilize a workers’ compensation rate specifc to the task being ",p:19,x:270,y:663,w:658,h:16},
{t:"performed. Segregating a worker’s time into the most appropriate risk group can save you a lot of money.",p:19,x:270,y:685,w:640,h:16},
{t:"It works like this. Say one of your employees spends four hours forming sidewalks and four hours framing the ",p:19,x:270,y:716,w:666,h:16},
{t:"sub-foor on a house. On that employee’s timecard, refect the two different tasks so your business can receive ",p:19,x:270,y:738,w:675,h:16},
{t:"the lower workers’ compensation rate for sidewalk forming. ",p:19,x:270,y:760,w:364,h:16},
{t:"Assuming that the workers’ compensation rate for carpentry work is 25 percent, the sidewalk workers’ compensation ",p:19,x:270,y:791,w:682,h:16},
{t:"rate is 9 percent, and the employee’s pay rate is $20 per hour (for both types of work) for an eight-hour day, the ",p:19,x:270,y:813,w:680,h:16},
{t:"math works as follows:",p:19,x:270,y:835,w:139,h:16},
{t:"Without segregating the employee’s time, here’s what you would pay for workers’ compensation:  ",p:19,x:284,y:866,w:596,h:16},
{t:"8 x $20 x .25 = $40.00",p:19,x:285,y:888,w:140,h:16},
{t:"What you pay now: (4 x $20 x .25) + (4 x $20 x .09) = $27.20",p:19,x:284,y:920,w:372,h:16},
{t:"You save: $12.80 on every $160.00 in wages.",p:19,x:284,y:951,w:278,h:16},
{t:"Profts in Action: This savings represents 100 percent pure proft and Sage Master Builder can do all of the ",p:19,x:270,y:993,w:661,h:16},
{t:"work for you.",p:19,x:270,y:1015,w:79,h:16},
{t:"62",p:19,x:146,y:269,w:83,h:89},
{t:"63 ",p:19,x:144,y:538,w:113,h:129},
{t:"Managing Payroll",p:19,x:271,y:78,w:233,h:33},
{t:"101 Practical Strategies to Help Make Your Construction Business More Proftable",p:19,x:59,y:1241,w:528,h:17},
{t:"19",p:20,x:947,y:1247,w:12,h:13},
{t:"Try to Reduce False Workers’ Compensation Claims",p:20,x:270,y:268,w:618,h:29},
{t:"Few things strike mor e fear into a contractor’",p:20,x:270,y:311,w:269,h:16},
{t:"s heart than a large workers’ compensation claim. Sadly",p:20,x:533,y:311,w:341,h:16},
{t:", false claims ",p:20,x:864,y:311,w:79,h:16},
{t:"cost many contractors many thousands of dollars. While it may be impossible to stop an employee from fling a ",p:20,x:270,y:332,w:678,h:16},
{t:"false claim, many contractors believe an ef",p:20,x:270,y:354,w:257,h:16},
{t:"fective deterr ent is to add a signatur",p:20,x:516,y:354,w:215,h:16},
{t:"e line and the following statements ",p:20,x:725,y:354,w:214,h:16},
{t:"to ",p:20,x:930,y:354,w:16,h:16},
{t:"employees’ daily timecards:",p:20,x:270,y:376,w:168,h:16},
{t:"I was/was not injured today.",p:20,x:285,y:407,w:169,h:16},
{t:"Describe injury in detail __________________________________________________________________________",p:20,x:285,y:439,w:664,h:16},
{t:"I did/did not witness an injury today.",p:20,x:285,y:492,w:218,h:16},
{t:"Describe injury in detail __________________________________________________________________________",p:20,x:285,y:524,w:664,h:16},
{t:"Profts in Action : Use the Sage Master Builder T imecard Report to print a pr oject-specifc timecar d that includes ",p:20,x:272,y:566,w:670,h:16},
{t:"all cost codes for the project. Ask employees to complete one and drop it in a lockbox on the job  ",p:20,x:271,y:587,w:597,h:16},
{t:"site before leaving for the day.",p:20,x:271,y:609,w:181,h:16},
{t:"Leverage Qualifed Benefts on Prevailing Wage Projects",p:20,x:270,y:674,w:669,h:29},
{t:"As a non-union contractor who performs pr",p:20,x:270,y:716,w:264,h:16},
{t:"evailing wage work, you must pay the r",p:20,x:540,y:716,w:237,h:16},
{t:"equired benefts in cash. ",p:20,x:784,y:716,w:156,h:16},
{t:"However, if you have a qualifed health care or vacation beneft program, you can offset the cash requirement ",p:20,x:270,y:738,w:663,h:16},
{t:"with the value of your qualifed plan. This requires establishing the hourly value of your qualifed beneft plan prior ",p:20,x:270,y:760,w:684,h:16},
{t:"to calculating the payroll, then deducting this value from the required cash beneft.",p:20,x:270,y:781,w:497,h:16},
{t:"Profts in Action: Use Sage Master Builder to make automatic qualifed beneft calculations when payroll is  ",p:20,x:270,y:823,w:657,h:16},
{t:"processed. Simply enter the value of your qualifed benefts as the of",p:20,x:270,y:845,w:413,h:16},
{t:"fset to the pr evailing wage rates; all r",p:20,x:669,y:845,w:219,h:16},
{t:"eporting ",p:20,x:882,y:845,w:52,h:16},
{t:"and tax calculations will then be generated.",p:20,x:270,y:866,w:262,h:16},
{t:"Save Workers’ Compensation on Pr evailing Wage Benefts",p:20,x:270,y:933,w:682,h:29},
{t:"When you pay pr evailing wage benefts in cash, the vacation portion is not normally subject to workers’",p:20,x:270,y:975,w:628,h:16},
{t:"compensation. By excluding these vacation amounts from the workers’ compensation calculation, you may  ",p:20,x:270,y:997,w:659,h:16},
{t:"be able to save a sizable amount of money.",p:20,x:270,y:1019,w:263,h:16},
{t:"Profts in Action: Sage Master Builder can make this calculation for you. Simply set the cash vacation benefts ",p:20,x:270,y:1060,w:679,h:16},
{t:"to exclude workers’ compensation on the payroll calculation screen. Your workers’ compensation reports and ",p:20,x:270,y:1082,w:669,h:16},
{t:"your job costs can refect the correct amounts.",p:20,x:270,y:1103,w:284,h:17},
{t:"64",p:20,x:141,y:218,w:83,h:89},
{t:"65 ",p:20,x:144,y:590,w:113,h:129},
{t:"66",p:20,x:143,y:884,w:83,h:89},
{t:"Managing Payroll...continued",p:20,x:269,y:81,w:291,h:27},
{t:"101 Practical Strategies to Help Make Your Construction Business More Proftable",p:20,x:59,y:1241,w:528,h:17},
{t:"20",p:21,x:947,y:1247,w:12,h:13},
{t:"Take Advantage of Early Pay Discounts",p:21,x:270,y:322,w:464,h:29},
{t:"Math quiz: How much interest could you earn in a year if you received, say, a 2 percent early pay discount on ",p:21,x:270,y:364,w:666,h:16},
{t:"materials every time you paid a bill 10 days from the date of invoice instead of 30? The answer is 36 percent ",p:21,x:270,y:386,w:660,h:16},
{t:"annualized income!",p:21,x:270,y:407,w:116,h:16},
{t:"Here’s how this works. You are essentially loaning the vendor your money for 20 days; in return, you receive a ",p:21,x:270,y:439,w:668,h:16},
{t:"2 percent “bonus.” If you could continuously earn 2 percent “bonuses” every 20 days, your annualized income ",p:21,x:270,y:461,w:673,h:16},
{t:"would improve by 36 percent (2 percent x 360/20). To generate the cash fow you need to take advantage of ",p:21,x:270,y:482,w:663,h:16},
{t:"early pay discounts, see Strategies 84 (Bill Early, Bill Often) and 87 (Use Progress Billing). Where else can you ",p:21,x:270,y:504,w:664,h:16},
{t:"earn 36 percent interest per year?",p:21,x:270,y:526,w:206,h:16},
{t:"Profts in Action: Sage Master Builder will calculate early pay discounts when you enter an invoice and set the ",p:21,x:270,y:567,w:679,h:16},
{t:"date for the discount—with no extra work on your part.",p:21,x:270,y:589,w:334,h:16},
{t:"Negotiate Higher Early Pay Discounts",p:21,x:270,y:654,w:446,h:29},
{t:"At the end of every year, visit your biggest suppliers and subcontractors and negotiate a higher discount rate for ",p:21,x:270,y:696,w:682,h:16},
{t:"early pay. Offer to pay in fve days instead of ten if this will get you higher discount rates. Another quiz: If the 2 ",p:21,x:270,y:718,w:669,h:16},
{t:"percent early pay discount example in Strategy 67 earns you 36 percent annualized income, how much will a 3, ",p:21,x:270,y:740,w:681,h:16},
{t:"4, or 5 percent discount ear n? The answers ar e 54 percent, 72 percent, and a whopping 90 per",p:21,x:270,y:761,w:570,h:16},
{t:"cent respectively . ",p:21,x:834,y:761,w:104,h:16},
{t:"There may be no better way in the world to make this kind of return on your money.",p:21,x:270,y:783,w:506,h:16},
{t:"Get Vendors to Do More of Your Work",p:21,x:270,y:850,w:447,h:29},
{t:"By utilizing Strategies 6 (Negotiate an Early Completion Bonus) and 85 (Pay Early",p:21,x:270,y:892,w:490,h:16},
{t:", Pay Often), you’ll have vendors",p:21,x:738,y:892,w:196,h:16},
{t:"wanting mor e of your business. Leverage their enthusiasm to lower your labor costs. Her",p:21,x:270,y:914,w:535,h:16},
{t:"e are just a few examples:",p:21,x:781,y:914,w:156,h:16},
{t:"Ask your material suppliers to manage job inventory for you. Ask them to warehouse and deliver materials to ",p:21,x:270,y:935,w:660,h:16},
{t:"specifc job sites to lower your labor costs. Then pay them on time to keep them happy or pay early and collect ",p:21,x:270,y:957,w:679,h:16},
{t:"your early pay discounts.",p:21,x:270,y:979,w:151,h:16},
{t:"Profts in Action : Use Sage Master Builder to generate Purchase Orders by Task to automate scheduled material ",p:21,x:270,y:1025,w:676,h:16},
{t:"deliveries for a job. Every dollar you save getting suppliers to work for you is 100 percent proft.",p:21,x:270,y:1047,w:575,h:16},
{t:"67",p:21,x:143,y:273,w:83,h:89},
{t:"68 ",p:21,x:142,y:571,w:113,h:129},
{t:"69",p:21,x:143,y:799,w:83,h:89},
{t:"Vendors and Key Resources",p:21,x:271,y:79,w:379,h:33},
{t:"101 Practical Strategies to Help Make Your Construction Business More Proftable",p:21,x:59,y:1241,w:528,h:17},
{t:"21",p:22,x:947,y:1247,w:12,h:13},
{t:"Replace Unproftable Subconcontractors and Suppliers",p:22,x:270,y:268,w:658,h:29},
{t:"When suppliers or subcontractors delay your jobs, cause callbacks, create litigation risks, and generally make ",p:22,x:270,y:311,w:668,h:16},
{t:"your life miserable, it’s time to look for replacements. Recruiting more productive vendors is as important as  ",p:22,x:270,y:332,w:658,h:16},
{t:"recruiting better employees. At least once a year",p:22,x:270,y:354,w:293,h:16},
{t:", meet with your vendors to let them know how they ar",p:22,x:574,y:354,w:331,h:16},
{t:"e ",p:22,x:920,y:354,w:11,h:16},
{t:"performing for you, as well as to get feedback about how you can help them be more effcient. By effectively ",p:22,x:270,y:376,w:660,h:16},
{t:"managing these relationships and creating teamwork, your jobs could become more effcient and proftable.",p:22,x:270,y:397,w:652,h:16},
{t:"Profts in Action : With Sage Master Builder , you can use Original to Actual Schedule Reports to help determine",p:22,x:270,y:439,w:676,h:16},
{t:"which subcontractors are performing well and which are not.",p:22,x:270,y:461,w:368,h:16},
{t:"Use Tax Accountants Familiar With Your Industry",p:22,x:270,y:526,w:579,h:29},
{t:"The Internal Revenue Service has numer ous tax codes written specifcally for the construction industry",p:22,x:270,y:568,w:626,h:16},
{t:". An  ",p:22,x:905,y:568,w:32,h:16},
{t:"experienced accountant with construction expertise can steer you toward tax savings and tax deferral methods ",p:22,x:270,y:590,w:679,h:16},
{t:"while helping you avoid the traps. For example, IRS codes cover dif",p:22,x:270,y:611,w:408,h:16},
{t:"ferent methods for recognizing income. ",p:22,x:689,y:611,w:248,h:16},
{t:"Many contractors now qualify to use the cash method of accounting, which, r",p:22,x:270,y:633,w:470,h:16},
{t:"elative to the accrual method,",p:22,x:753,y:633,w:180,h:16},
{t:"presents numerous tax-deferral advantages.",p:22,x:270,y:655,w:268,h:16},
{t:"Profts in Action: A general rule of thumb: one income reporting method is appropriate for fnancial statements, ",p:22,x:270,y:696,w:685,h:16},
{t:"while another method should be used to report income for tax purposes. If you don’t have two methods, talk to ",p:22,x:270,y:718,w:680,h:16},
{t:"your tax advisor and fnd out why.",p:22,x:270,y:740,w:204,h:16},
{t:"Improve Your Ability to Obtain Surety Credit",p:22,x:270,y:806,w:518,h:29},
{t:"For many contractors, sur ety credit is the lifeblood of the organization. Such cr",p:22,x:270,y:849,w:481,h:16},
{t:"edit can be diffcult to obtain,",p:22,x:759,y:849,w:176,h:16},
{t:"so it pays to become familiar with the factors affecting your ability to get it. Meet with your bonding agent and ",p:22,x:270,y:870,w:667,h:16},
{t:"specifcally ask what assets incr ease your company’s bonding capacity and what liabilities count against you.",p:22,x:270,y:892,w:666,h:16},
{t:"Improving your company’s fnancial strength may help you obtain a lower bonding rate. A good relationship with ",p:22,x:270,y:914,w:680,h:16},
{t:"your surety agent can save you money",p:22,x:270,y:935,w:232,h:16},
{t:", so be sur e to supply curr ent, accurate, user",p:22,x:493,y:935,w:265,h:16},
{t:"-friendly fnancial information.",p:22,x:753,y:935,w:176,h:16},
{t:"Finally , remember that all sur",p:22,x:270,y:957,w:169,h:16},
{t:"ety bonds ar e not created equal; shop ar",p:22,x:433,y:957,w:242,h:16},
{t:"ound for the best prices.",p:22,x:670,y:957,w:149,h:16},
{t:"Profts in Action",p:22,x:270,y:999,w:104,h:16},
{t:": Sage Master Builder can generate a Bonding Report for any time period. Y",p:22,x:370,y:999,w:464,h:16},
{t:"ou can run a r eport ",p:22,x:814,y:999,w:116,h:16},
{t:"for current projects, or all projects, to demonstrate your frst-time bonding ability or ongoing bonding capacity. ",p:22,x:270,y:1020,w:669,h:16},
{t:"The Sage Master Builder Bonding Report can help you quickly pr",p:22,x:270,y:1042,w:395,h:16},
{t:"oduce critical information such as",p:22,x:675,y:1042,w:203,h:16},
{t:"estimated ",p:22,x:889,y:1042,w:65,h:16},
{t:"proft, percent of budget complete, proft to date, over/under billings, and cost to complete by project.",p:22,x:270,y:1064,w:618,h:16},
{t:"70",p:22,x:141,y:218,w:83,h:89},
{t:"71 ",p:22,x:152,y:443,w:113,h:129},
{t:"72",p:22,x:144,y:758,w:83,h:89},
{t:"Vendors and Key Resources...continued",p:22,x:269,y:79,w:411,h:27},
{t:"101 Practical Strategies to Help Make Your Construction Business More Proftable",p:22,x:59,y:1241,w:528,h:17},
{t:"22",p:23,x:947,y:1247,w:12,h:13},
{t:"Consider Renting Instead of Buying",p:23,x:270,y:322,w:422,h:29},
{t:"Always perform a lifecycle cost analysis when contemplating an equipment purchase. You may be better off ",p:23,x:270,y:364,w:657,h:16},
{t:"renting; many contractors ar e making payments on equipment that’",p:23,x:270,y:386,w:404,h:16},
{t:"s sitting idle in the war",p:23,x:665,y:386,w:134,h:16},
{t:"ehouse. To accurately  ",p:23,x:794,y:386,w:138,h:16},
{t:"determine your return on investment, you must weigh the rental rate against the ownership and operational ",p:23,x:270,y:407,w:652,h:16},
{t:"costs (cost per hour or day) and how much you will use the equipment. Go with whichever is most cost ef",p:23,x:270,y:429,w:642,h:16},
{t:"fective.",p:23,x:894,y:429,w:43,h:16},
{t:"Profts in Action: The Equipment Cost Recovery screen in Sage Master Builder can make this calculation for ",p:23,x:270,y:471,w:669,h:16},
{t:"both owned and rented equipment.",p:23,x:270,y:492,w:215,h:16},
{t:"Allocate Your Small Tool Costs to Projects",p:23,x:270,y:557,w:501,h:29},
{t:"You can allocate small tool costs to projects by adding an additional calculation to project labor. Simply divide ",p:23,x:270,y:600,w:667,h:16},
{t:"the total hours of project labor into the small tool costs (purchase and repair) for the same timeframe. The result ",p:23,x:270,y:621,w:679,h:16},
{t:"will give you an hourly amount to charge to projects when payroll is done. The same rate can be used when you ",p:23,x:270,y:643,w:683,h:16},
{t:"are estimating a project. While your actual costs may be higher or lower on individual projects, your estimations ",p:23,x:270,y:665,w:677,h:16},
{t:"should, on average, be much more accurate.",p:23,x:270,y:686,w:274,h:16},
{t:"Profts in Action: Sage Master Builder can add calculated small tool costs to projects every time payroll is ",p:23,x:270,y:718,w:652,h:16},
{t:"calculated, enabling you to include these costs in your billings.",p:23,x:270,y:740,w:377,h:16},
{t:"Allocate Your Equipment Costs to Projects",p:23,x:270,y:806,w:507,h:29},
{t:"When you allocate equipment costs to projects using a reliable cost recovery rate for each piece of equipment, ",p:23,x:270,y:849,w:675,h:16},
{t:"your billings will be more accurate and your accounting will refect the true cost of performing the work. Use ",p:23,x:270,y:870,w:655,h:16},
{t:"these same rates when estimating the work. In this way, you can improve your estimating by comparing the ",p:23,x:270,y:892,w:656,h:16},
{t:"actual costs to your original budget for every cost item.",p:23,x:270,y:914,w:334,h:16},
{t:"Profts in Action: Sage Master Builder can assign the costs of equipment operation to each project and it  ",p:23,x:270,y:955,w:654,h:16},
{t:"provides a revenue entry for the equipment when equipment is used. This can help you identify proftable  ",p:23,x:270,y:977,w:643,h:16},
{t:"and nonproftable pieces of equipment.",p:23,x:270,y:999,w:238,h:16},
{t:"73",p:23,x:144,y:271,w:83,h:89},
{t:"74 ",p:23,x:142,y:476,w:113,h:129},
{t:"75",p:23,x:144,y:756,w:83,h:89},
{t:"Managing Equipment and Inventory",p:23,x:269,y:78,w:479,h:33},
{t:"101 Practical Strategies to Help Make Your Construction Business More Proftable",p:23,x:59,y:1241,w:528,h:17},
{t:"23",p:24,x:947,y:1247,w:12,h:13},
{t:"Upgrade Your Equipment",p:24,x:270,y:268,w:299,h:29},
{t:"Review all your equipment for productivity improvements at least once a year. Replace equipment that breaks ",p:24,x:270,y:311,w:668,h:16},
{t:"down and delays pr ojects. If new equipment could impr",p:24,x:270,y:332,w:333,h:16},
{t:"ove employee pr oductivity , consider making the investment.",p:24,x:593,y:332,w:356,h:16},
{t:"To determine whether the cost of new equipment exceeds the pr",p:24,x:270,y:354,w:393,h:16},
{t:"oductivity gains it will pr",p:24,x:650,y:354,w:143,h:16},
{t:"oduce for your business,",p:24,x:787,y:354,w:150,h:16},
{t:"compare the equipment’ s cost recovery rate with the payr",p:24,x:270,y:376,w:344,h:16},
{t:"oll savings fr om improved productivity .",p:24,x:608,y:376,w:223,h:16},
{t:"Profts in Action: Use Sage Master Builder equipment reports to identify equipment in need of repair, under ",p:24,x:270,y:417,w:661,h:16},
{t:"heavy use, or causing project delays and lost proft.",p:24,x:270,y:439,w:312,h:16},
{t:"Upgrade Your Software",p:24,x:270,y:499,w:277,h:29},
{t:"If you are using outdated construction management softwar",p:24,x:270,y:541,w:361,h:16},
{t:"e, you may be wasting time and missing opportunities",p:24,x:623,y:541,w:327,h:16},
{t:"to make your operations more effcient. A fully integrated construction management software system, such as ",p:24,x:270,y:563,w:671,h:16},
{t:"Sage Master Builder, could reduce data entry work, provide more accurate and timely reporting, and enable you ",p:24,x:270,y:585,w:683,h:16},
{t:"to take advantage of many of the strategies presented here.",p:24,x:270,y:606,w:363,h:16},
{t:"Bill Your Equipment on Time & Materials Contracts",p:24,x:270,y:666,w:603,h:29},
{t:"When you perform time and materials work, don’t overlook the costs of equipment or assume you’ll recover the ",p:24,x:270,y:709,w:680,h:16},
{t:"costs in the overhead markup. It is better to bill equipment separately, and using an hourly or daily rate enables you ",p:24,x:270,y:730,w:677,h:16},
{t:"to bill in excess of what you have to pay out. ",p:24,x:270,y:752,w:273,h:16},
{t:"You can charge overhead and pr",p:24,x:535,y:752,w:199,h:16},
{t:"oft on equipment listed as a separate",p:24,x:728,y:752,w:228,h:16},
{t:"line item on the invoice, which is not the case if you include equipment in your overhead rate. Customers generally",p:24,x:270,y:774,w:692,h:16},
{t:"accept this practice because your cost rate is normally lower than the equipment r",p:24,x:270,y:795,w:499,h:16},
{t:"ental yard rate, which is their only",p:24,x:751,y:795,w:200,h:16},
{t:"basis for comparison.",p:24,x:270,y:817,w:131,h:16},
{t:"Finance Equipment Purchases to Improve Cash Flow",p:24,x:270,y:873,w:629,h:29},
{t:"If cash fow is an issue for you, fnance your equipment pur",p:24,x:270,y:915,w:356,h:16},
{t:"chases and use the cash to captur e early pay discounts, ",p:24,x:616,y:915,w:338,h:16},
{t:"pay your subcontractors on time, and otherwise grow your business.",p:24,x:270,y:937,w:418,h:16},
{t:"Buy For the Job, Not For Inventory",p:24,x:270,y:993,w:409,h:29},
{t:"Unless you are a service contractor or you repeatedly perform the same type of work, stocking an inventory ",p:24,x:270,y:1035,w:656,h:16},
{t:"of construction materials is usually not cost effective. The reasons for this are as follows: inventory requires ",p:24,x:270,y:1057,w:649,h:16},
{t:"expensive building space; construction inventory depreciates rapidly; inventory is easily stolen or damaged by ",p:24,x:270,y:1079,w:668,h:16},
{t:"employees; you must bear the cost of delivery to the job site; and damaged inventory is a total loss.",p:24,x:270,y:1100,w:604,h:16},
{t:"Profts in Action: Your supplier has already added the materials inventory and delivery cost to the price you ",p:24,x:270,y:1142,w:660,h:16},
{t:"pay, so avoid paying inventory costs twice.",p:24,x:270,y:1164,w:259,h:16},
{t:"76",p:24,x:143,y:216,w:83,h:89},
{t:"77 ",p:24,x:145,y:416,w:113,h:129},
{t:"78",p:24,x:143,y:613,w:83,h:89},
{t:"Managing Equipment and Inventory...continued",p:24,x:269,y:81,w:492,h:27},
{t:"79",p:24,x:143,y:822,w:83,h:89},
{t:"80",p:24,x:141,y:944,w:83,h:89},
{t:"101 Practical Strategies to Help Make Your Construction Business More Proftable",p:24,x:59,y:1241,w:528,h:17},
{t:"24",p:25,x:947,y:1247,w:12,h:13},
{t:"Use Virtual Inventory",p:25,x:270,y:268,w:247,h:29},
{t:"If you need access to inventory for service work, ask your supplier to stock and manage a portion of their",p:25,x:270,y:310,w:638,h:17},
{t:"warehouse for you in exchange for your commitment to buy your materials fr",p:25,x:270,y:332,w:464,h:16},
{t:"om the supplier exclusively .  ",p:25,x:746,y:332,w:178,h:16},
{t:"You’ll gain the advantage of a r eadily accessible inventory without the cost of managing it. ",p:25,x:270,y:354,w:553,h:16},
{t:"Another option  ",p:25,x:834,y:354,w:100,h:16},
{t:"is to ask your supplier to maintain the inventory in your war",p:25,x:270,y:376,w:356,h:16},
{t:"ehouse. This removes a lot of inventory headaches ",p:25,x:615,y:376,w:310,h:16},
{t:"and risks and lets you focus on your core business.",p:25,x:270,y:397,w:312,h:16},
{t:"Profts in Action: Inventory that loses value—and inventory will only rarely, if ever, gain value while sitting in  ",p:25,x:270,y:439,w:658,h:16},
{t:"your warehouse—reduces your proft.",p:25,x:270,y:461,w:229,h:16},
{t:"Manage Your Vehicles as if They Were Employees",p:25,x:270,y:521,w:588,h:29},
{t:"To help you spot when employees inappr opriately use company vehicles for personal use, estimate travel mileage",p:25,x:270,y:563,w:682,h:16},
{t:"(to and from job sites and for material pickups) and keep track of starting and ending mileage for company vehicles",p:25,x:270,y:585,w:695,h:16},
{t:"on a weekly basis. You could save money on vehicle wear and tear as well as fuel and maintenance expenses. ",p:25,x:270,y:605,w:674,h:17},
{t:"Paint and Label All Equipment",p:25,x:270,y:640,w:357,h:29},
{t:"The cost of replacing lost or stolen equipment, from the small to the large, can really mount up. Paint all pieces ",p:25,x:270,y:682,w:674,h:16},
{t:"of equipment in, say, an easy-to-spot fuorescent color, and engrave them with your company name and phone ",p:25,x:270,y:704,w:679,h:16},
{t:"number; a lot more of your equipment should fnd its way home. Y",p:25,x:270,y:725,w:399,h:16},
{t:"ou can also make employees dir",p:25,x:660,y:725,w:196,h:16},
{t:"ectly responsible ",p:25,x:851,y:725,w:102,h:16},
{t:"for their own equipment.",p:25,x:270,y:747,w:148,h:16},
{t:"81",p:25,x:153,y:216,w:83,h:89},
{t:"82 ",p:25,x:145,y:440,w:113,h:129},
{t:"83",p:25,x:144,y:589,w:83,h:89},
{t:"Managing Equipment and Inventory...continued",p:25,x:269,y:81,w:492,h:27},
{t:"101 Practical Strategies to Help Make Your Construction Business More Proftable",p:25,x:59,y:1241,w:528,h:17},
{t:"25",p:26,x:947,y:1247,w:12,h:13},
{t:"Bill Early, Bill Often",p:26,x:270,y:322,w:225,h:29},
{t:"Bill as soon as possible, and often, to help set your customers’ payment expectations and demonstrate your ",p:26,x:270,y:362,w:663,h:16},
{t:"professionalism. More frequent billing results in smaller invoices, which makes it easier for your customers to ",p:26,x:270,y:382,w:661,h:16},
{t:"write checks. You’ll also fnd out sooner if your customers are having fnancial problems or are dissatisfed with ",p:26,x:270,y:402,w:673,h:16},
{t:"your work. And your cash fow should impr",p:26,x:270,y:422,w:260,h:16},
{t:"ove, which could in tur",p:26,x:540,y:422,w:137,h:16},
{t:"n help you take advantage of early pay",p:26,x:683,y:422,w:234,h:16},
{t:"vendor discounts (see Strategy 67: Take Advantage of Early Pay Discounts).",p:26,x:270,y:442,w:461,h:16},
{t:"Profts in Action",p:26,x:270,y:482,w:104,h:16},
{t:": Sage Master Builder makes billing fast and easy by importing your actual job costs and",p:26,x:378,y:482,w:539,h:16},
{t:"change orders automatically. Works equally well for AIA, Percent Complete, Unitary, or Time & Materials billings.",p:26,x:270,y:504,w:676,h:16},
{t:"Pay Early, Pay Often",p:26,x:270,y:564,w:239,h:29},
{t:"Pay your bills weekly to take advantage of early pay discounts, to please your vendors with prompt payment, ",p:26,x:270,y:605,w:664,h:16},
{t:"and to maximize your cash fow. Because you’re also billing early and often (see Strategy 84), you could have  ",p:26,x:270,y:625,w:669,h:16},
{t:"increased cash fow to pay vendors on time, which, not coincidentally",p:26,x:270,y:645,w:422,h:16},
{t:", could also get you the best service",p:26,x:701,y:645,w:219,h:16},
{t:"possible from materials suppliers and subcontractors.",p:26,x:270,y:665,w:325,h:16},
{t:"Profts in Action: The only cost to you is printing checks more often, which can be completely automated with ",p:26,x:270,y:705,w:679,h:16},
{t:"Sage Master Builder . The savings you get should far outweigh the cost of printing and mailing extra checks.",p:26,x:270,y:726,w:648,h:16},
{t:"Use a Standardized Cost Code System",p:26,x:270,y:786,w:460,h:29},
{t:"Instead of creating a separate list of cost codes for each job, use a standard set for all jobs. Then print the cost ",p:26,x:270,y:827,w:677,h:16},
{t:"codes involving labor on the back of timecar",p:26,x:270,y:847,w:268,h:16},
{t:"ds. This should help employees fll out their timecar",p:26,x:549,y:847,w:310,h:16},
{t:"ds, create  ",p:26,x:872,y:847,w:71,h:16},
{t:"consistent feld r eporting, and pr ovide a consistent basis for comparing pr",p:26,x:270,y:867,w:456,h:16},
{t:"oduction effciency and budget",p:26,x:736,y:867,w:187,h:16},
{t:"against actual numbers across all jobs.",p:26,x:270,y:889,w:237,h:16},
{t:"Use Progress (AIA) Billing to Improve Cash Flow",p:26,x:270,y:950,w:571,h:29},
{t:"When negotiating your contract, ask to use percentage of completion (progress or AIA) billing instead of fxed ",p:26,x:270,y:990,w:664,h:16},
{t:"draws based on completed project stages. Progress billing enables you to send invoices on a regular calendar ",p:26,x:270,y:1010,w:673,h:16},
{t:"basis that more closely matches your need for cash. As your cash fow improves, you’ll be better able to take ",p:26,x:270,y:1030,w:666,h:16},
{t:"advantage of early pay discounts and other incentives. And if the project is held up, you can still bill and get paid ",p:26,x:270,y:1050,w:684,h:16},
{t:"for the work completed to date.",p:26,x:270,y:1070,w:192,h:16},
{t:"Profts in Action: Customize the Sage Master Builder Progress Billing forms with your company logo and the ",p:26,x:270,y:1110,w:670,h:16},
{t:"information you want to show your customer. The software can then update from job costs and change orders, ",p:26,x:270,y:1130,w:678,h:16},
{t:"helping to make your billing fast and accurate. ",p:26,x:270,y:1151,w:283,h:17},
{t:"84",p:26,x:141,y:271,w:83,h:89},
{t:"85 ",p:26,x:145,y:481,w:113,h:129},
{t:"86",p:26,x:144,y:738,w:83,h:89},
{t:"87",p:26,x:145,y:900,w:83,h:89},
{t:"Accounting and Financial Matters",p:26,x:276,y:78,w:453,h:33},
{t:"101 Practical Strategies to Help Make Your Construction Business More Proftable",p:26,x:59,y:1241,w:528,h:17},
{t:"26",p:27,x:947,y:1247,w:12,h:13},
{t:"Remind Your Customers to Pay",p:27,x:270,y:268,w:372,h:29},
{t:"Your cash fow depends on getting paid in a timely manner, so don’t be shy about asking for the money that’s ",p:27,x:270,y:311,w:668,h:16},
{t:"due to you. Many contractors worry they’ll damage customer r",p:27,x:270,y:332,w:383,h:16},
{t:"elations by asking too assertively to get paid.",p:27,x:661,y:332,w:272,h:16},
{t:"But a friendly reminder can be a help to both parties. ",p:27,x:270,y:354,w:326,h:16},
{t:"An end-of-month statement summarizing outstanding",p:27,x:604,y:354,w:326,h:16},
{t:"amounts is a good way to gently remind your customers of their obligation.",p:27,x:270,y:376,w:454,h:16},
{t:"Profts in Action: Sage Master Builder can do most of the work for you by producing a statement, formatted ",p:27,x:270,y:417,w:669,h:16},
{t:"for a window envelope, that you can send along with a friendly letter addressed to the customer. Add your logo ",p:27,x:270,y:439,w:678,h:16},
{t:"to these documents for a professional look.",p:27,x:270,y:461,w:263,h:16},
{t:"Collect the Money That Is Owed to You",p:27,x:270,y:521,w:462,h:29},
{t:"In addition to r eminding your customers to pay",p:27,x:270,y:563,w:280,h:16},
{t:", you need to develop r egular (weekly) pr ocedures for monitoring ",p:27,x:544,y:563,w:384,h:16},
{t:"and collecting your accounts r",p:27,x:270,y:585,w:183,h:16},
{t:"eceivable. Begin investigating as soon as invoices become past due.",p:27,x:441,y:585,w:416,h:16},
{t:"Many customers,",p:27,x:835,y:585,w:105,h:16},
{t:"rather than telling you about a problem they’re having with your work, simply don’t pay—and the older an invoice ",p:27,x:270,y:606,w:670,h:16},
{t:"gets, the harder it is to collect. Be certain to document all conversations with customers and project managers ",p:27,x:270,y:628,w:673,h:16},
{t:"regarding past due invoices.",p:27,x:270,y:650,w:171,h:16},
{t:"Profts in Action: Sage Master Builder enables you to keep notes of your conversations in the job record and ",p:27,x:270,y:691,w:672,h:16},
{t:"then run A/R Aged Call Sheets with Job Notes to assist your collection process.",p:27,x:270,y:713,w:485,h:16},
{t:"Thwart Embezzlers",p:27,x:270,y:773,w:228,h:29},
{t:"Many construction companies lose large amounts of money to embezzlement—and most losses ar",p:27,x:270,y:815,w:602,h:16},
{t:"e not recovered ",p:27,x:852,y:815,w:96,h:16},
{t:"or reimbursed by insurance. To limit an embezzler’s odds of success, try the following: send bank statements to ",p:27,x:270,y:837,w:681,h:16},
{t:"the owner’s or offcer’s home address; review these statements and scan checks for suspicious entries; assign ",p:27,x:270,y:859,w:674,h:16},
{t:"someone other than the bookkeeper to handle deposits; don’ t authorize the bookkeeper as a signer on any cash  ",p:27,x:270,y:880,w:684,h:16},
{t:"accounts; r eview job cost r",p:27,x:270,y:902,w:159,h:16},
{t:"ecords regularly for suspicious costs; and r",p:27,x:423,y:902,w:258,h:16},
{t:"eview payr oll records for non-existent employees.",p:27,x:668,y:902,w:293,h:16},
{t:"Profts in Action: A bulletproof audit trail is a critical part of any embezzlement detection and prevention plan. ",p:27,x:270,y:944,w:673,h:16},
{t:"Sage Master Builder maintains every transaction in its original form so you can get a comprehensive audit of any ",p:27,x:270,y:965,w:684,h:16},
{t:"account. You can also use its security options to prevent unauthorized employees from printing checks. ",p:27,x:270,y:986,w:632,h:17},
{t:"Put Your Excess Cash to Work",p:27,x:270,y:1048,w:361,h:29},
{t:"Have excess cash at the end of the day? Many banks offer a “sweep account,” which pays you in exchange for ",p:27,x:270,y:1090,w:680,h:16},
{t:"using your funds for a few hours. Talk to your banker and see what’s available. ",p:27,x:270,y:1111,w:478,h:17},
{t:"88",p:27,x:141,y:219,w:83,h:89},
{t:"89 ",p:27,x:142,y:438,w:113,h:129},
{t:"90",p:27,x:141,y:721,w:83,h:89},
{t:"91",p:27,x:151,y:998,w:83,h:89},
{t:"Accounting and Financial Matters...continued",p:27,x:269,y:86,w:472,h:27},
{t:"101 Practical Strategies to Help Make Your Construction Business More Proftable",p:27,x:59,y:1241,w:528,h:17},
{t:"27",p:28,x:947,y:1247,w:12,h:13},
{t:"Fabricate Work Offsite for Prevailing Wage Jobs",p:28,x:270,y:268,w:569,h:29},
{t:"Non-union employers running prevailing wage jobs are not normally required to pay prevailing wages for offsite ",p:28,x:270,y:309,w:672,h:16},
{t:"fabrication work. This could save your business a large amount of money. ",p:28,x:270,y:329,w:450,h:16},
{t:"Profts in Action",p:28,x:270,y:369,w:104,h:16},
{t:": On your Sage Master Builder T",p:28,x:369,y:369,w:198,h:16},
{t:"imecard entry , set the Certifed Payr",p:28,x:560,y:369,w:212,h:16},
{t:"oll column to “No” to indicate",p:28,x:766,y:369,w:177,h:16},
{t:"offsite work. In this way, your job costs will refect the cost of the work but the Certifed Payroll Report will ",p:28,x:270,y:389,w:658,h:16},
{t:"exclude this time and the employee will be paid the lower rate.",p:28,x:270,y:411,w:378,h:16},
{t:"Use Separate Overhead and Proft Rates",p:28,x:270,y:464,w:482,h:29},
{t:"Instead of using a 20 percent rate for overhead and proft, use 10 percent for overhead and 10 percent for proft. ",p:28,x:270,y:505,w:686,h:16},
{t:"This nets you an additional 1 percent because you’re actually charging proft on overhead. Here’s how the math ",p:28,x:270,y:525,w:680,h:16},
{t:"works on a $100,000 job:",p:28,x:270,y:546,w:156,h:16},
{t:"Using 20 percent overhead and proft: $100,000 x .20 = $20,000",p:28,x:285,y:578,w:395,h:16},
{t:"Using 10 percent overhead and 10 percent proft: $100,000 x.10 (overhead) = $10,000;  $110,000 x .10   ",p:28,x:285,y:610,w:648,h:16},
{t:"(proft) = $11,000; $10,000 + $11,000 = $21,000",p:28,x:284,y:631,w:299,h:16},
{t:"Bill Employees at an Hourly Rate",p:28,x:270,y:685,w:388,h:29},
{t:"Bill your employees at an hourly rate, instead of cost plus, for the ability to r",p:28,x:270,y:725,w:456,h:16},
{t:"ecover costs for small tools and payr",p:28,x:705,y:725,w:223,h:16},
{t:"oll ",p:28,x:919,y:725,w:16,h:16},
{t:"administration beyond the actual cost of the employees to you. If you can include additional overhead in your ",p:28,x:270,y:745,w:664,h:16},
{t:"hourly rates, you’ll be earning overhead—as well as proft on overhead.",p:28,x:270,y:765,w:431,h:16},
{t:"Profts in Action: Use the wage rate tables in the Sage Master Builder Time & Materials billing option to set ",p:28,x:270,y:805,w:659,h:16},
{t:"up hourly rates for employees. Be sur",p:28,x:270,y:825,w:227,h:16},
{t:"e to include the full cost of labor",p:28,x:488,y:825,w:194,h:16},
{t:", including the highest workers’ compensation",p:28,x:672,y:825,w:279,h:16},
{t:"rates that might be charged. Then when you utilize a lower rate, the difference will be additional proft. ",p:28,x:270,y:846,w:620,h:17},
{t:"Negotiate Retention",p:28,x:270,y:896,w:238,h:29},
{t:"If you’ve signed a contract with r",p:28,x:270,y:937,w:197,h:16},
{t:"etention, negotiate to be r eleased from non-performance items such as permits",p:28,x:461,y:937,w:476,h:16},
{t:"and fees. Once these costs ar e incurred, there is little risk that you might not complete the work and no r",p:28,x:270,y:957,w:627,h:16},
{t:"etention ",p:28,x:886,y:957,w:51,h:16},
{t:"on non-performance contract items is common.",p:28,x:270,y:977,w:291,h:16},
{t:"Profts in Action: Dropping retention on non-performance items can help your cash fow, which could enable ",p:28,x:270,y:1017,w:671,h:16},
{t:"you to take advantage of early pay discounts and other incentives.",p:28,x:270,y:1039,w:402,h:16},
{t:"Keep Your Overhead Low",p:28,x:270,y:1088,w:302,h:29},
{t:"Be diligent about keeping your overhead as low as possible without sacrifcing good business management. ",p:28,x:270,y:1129,w:659,h:16},
{t:"Your ability to scale overhead in response to changing business conditions can mean the difference between ",p:28,x:270,y:1149,w:662,h:16},
{t:"proftability and loss.",p:28,x:270,y:1170,w:123,h:16},
{t:"92",p:28,x:144,y:218,w:83,h:89},
{t:"93",p:28,x:145,y:411,w:83,h:89},
{t:"94",p:28,x:141,y:634,w:83,h:89},
{t:"95",p:28,x:145,y:845,w:83,h:89},
{t:"96",p:28,x:146,y:1038,w:83,h:89},
{t:"Accounting and Financial Matters...continued",p:28,x:269,y:86,w:472,h:27},
{t:"101 Practical Strategies to Help Make Your Construction Business More Proftable",p:28,x:59,y:1241,w:528,h:17},
{t:"28",p:29,x:947,y:1230,w:12,h:13},
{t:"Shop for Better Workers’ Compensation Rates ",p:29,x:270,y:268,w:559,h:29},
{t:"If your company has maintained a low accident rate, use it as leverage to negotiate discounts with the private ",p:29,x:270,y:311,w:666,h:16},
{t:"carriers and public agencies that supply workers’ compensation insurance.",p:29,x:270,y:332,w:455,h:16},
{t:"Profts in Action: Sage Master Builder Workers’ Compensation reports can show which risk groups you are  ",p:29,x:270,y:374,w:668,h:16},
{t:"using and what types of work your employees are doing. Every dollar you save on workers’ compensation is ",p:29,x:270,y:396,w:660,h:16},
{t:"100 percent proft, so try to negotiate better rates. ",p:29,x:270,y:416,w:308,h:17},
{t:"Enter Payable Invoices Immediately",p:29,x:270,y:451,w:423,h:29},
{t:"Record all accounts payable invoices as you receive them. Your computerized reports will always be up to date ",p:29,x:270,y:493,w:677,h:16},
{t:"and included in customer billings. Y",p:29,x:270,y:515,w:215,h:16},
{t:"ou’ll also be able to print a list of invoices for appr",p:29,x:479,y:515,w:300,h:16},
{t:"oval by the project manager . ",p:29,x:771,y:515,w:172,h:16},
{t:"If an invoice is overflled, simply enter a cr",p:29,x:270,y:536,w:250,h:16},
{t:"edit against it; in this way",p:29,x:512,y:536,w:152,h:16},
{t:", your records will match your vendor accounts,",p:29,x:658,y:536,w:287,h:16},
{t:"making reconciliation easier",p:29,x:270,y:558,w:165,h:16},
{t:".",p:29,x:430,y:558,w:3,h:16},
{t:"Profts in Action: Set the Sage Master Builder Vendor Invoice status default to “Review” for those vendors ",p:29,x:270,y:600,w:654,h:16},
{t:"whose invoices require project manager approval. This reduces your risk of paying before approval and gives ",p:29,x:270,y:621,w:663,h:16},
{t:"you an easy way to print an item approval list for the project manager. Use the Hot List feature for invoices  ",p:29,x:270,y:643,w:650,h:16},
{t:"that need immediate attention.",p:29,x:270,y:665,w:185,h:16},
{t:"Understand Your Financial Statements",p:29,x:270,y:718,w:457,h:29},
{t:"Every construction business owner must have a basic understanding of fnancial reports. Spotting trends in your ",p:29,x:270,y:760,w:683,h:16},
{t:"fnances, predicting future cash needs, obtaining loans and bonds, and understanding how overhead relates to ",p:29,x:270,y:782,w:677,h:16},
{t:"your direct expenses are all critical to your proftability.",p:29,x:270,y:804,w:326,h:16},
{t:"Pay Payroll Taxes When Due, Not Early or Late",p:29,x:270,y:853,w:550,h:29},
{t:"Many contractors pay payroll tax penalties because they don’t know when their tax payments are due. On the ",p:29,x:270,y:895,w:670,h:16},
{t:"fip side, tax payments can be large, so help your cash fow by not paying early. If you are assessed a penalty, ",p:29,x:270,y:917,w:667,h:16},
{t:"ask the Internal Revenue Service (IRS) for a penalty abatement. For pr",p:29,x:270,y:939,w:421,h:16},
{t:"eviously clean r ecords (generally , no penalties ",p:29,x:681,y:939,w:271,h:16},
{t:"over the prior three years), the IRS often waives the penalty.",p:29,x:270,y:960,w:361,h:16},
{t:"Plan Cash Requirements",p:29,x:270,y:1010,w:293,h:29},
{t:"Before you begin a project, compare your schedule with your estimate and see how much cash you will need ",p:29,x:270,y:1052,w:666,h:16},
{t:"every week. Be sure your billing or loan draw schedule allows you to pay bills on time.",p:29,x:270,y:1074,w:520,h:16},
{t:"Profts in Action: Sage Master Builder integrates the schedule with estimating, making it a simple matter to get ",p:29,x:270,y:1115,w:684,h:16},
{t:"a cash requirements report.",p:29,x:270,y:1137,w:167,h:16},
{t:"97",p:29,x:144,y:218,w:83,h:89},
{t:"98",p:29,x:142,y:400,w:83,h:89},
{t:"99",p:29,x:141,y:668,w:83,h:89},
{t:"100",p:29,x:100,y:803,w:125,h:89},
{t:"101",p:29,x:111,y:963,w:125,h:89},
{t:"Accounting and Financial Matters...continued",p:29,x:269,y:86,w:472,h:27},
{t:"© 2008 Sage Software, Inc. All rights reserved. The Sage Software logo and the Sage Software product and service names mentioned herein are registered trademarks or trademarks of Sage Software, Inc. or its affliated entities. ",p:29,x:31,y:1279,w:837,h:11},
{t:"All other trademarks are the property of their respective owners. ",p:29,x:31,y:1290,w:230,h:11},
{t:"08-50319 0608",p:29,x:922,y:1278,w:65,h:10},
{t:"101 Practical Strategies to Help Make Your Construction Business More Proftable",p:29,x:59,y:1241,w:528,h:17},
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