Self Test #2:
Special Needs of the Contractor
| 1. Once I have priced a job, I don't second-guess myself because I have complete confidence in my estimating and pricing methods. |
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| 2. I can access current, accurate, and understandable job-related reports whenever I want. | |
| 3. I run my accounting on an accrual basis (rather than a cash basis) so I always know how much my customers owe me compared with what I owe others. | |
| 4. My Profit and Loss Statement shows earned income rather than dollars invoiced or collected, so that my achieved gross profit margin is accurate from month to month. | |
| 5. I know what kinds of jobs make me money, and I have documented evidence to support my beliefs. | |
| 6. I estimate and job cost using similar categories at different levels of detail. This allows me to get meaningful, apples-to-apples job cost reports without unduly burdening my data entry staff. | |
| 7. I communicate effectively with my customers, particularly in the areas of contracts, change orders, and invoices. | |
| 8. I know what it costs my company to put a production worker in the field for an hour, including time that is paid (vacation, breaks, travel to the jobsite, materials pickup, meeting with subs or customers, etc.) but non-productive. | |
| 9. I track, quantify, and include in my estimates allowances for non-productive time, supplies, and other costs that are difficult to attribute to individual jobs. | |
| 10. My employees don't refer to me as "the bottleneck" because I have delegated the majority of the lower-level decision making to competent employees who operate according to a system. |
Scoring Your Results
Count 1 point for every statement that's TRUE about your company.
Is anything less than 10 good enough?
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