There are hundreds of contractors in every country and millions all over the world. These consultants do the job of securing contracts from organizations and governments. Execution of contracts has become a very difficult task whether you are in the industry of construction or procurement.
But how do contractors make their execution smoother? There are some common mistakes that every contractor tend to commit. Avoiding them can ensure they never experience same problems again. Here are the 5 biggest mistakes a contractor usually commits:
This is one of the biggest mistakes every contractor makes. In order to secure the contract and impress the client, they promise more than they are capable of performing. The problem with this is that there is a high chance you may not be able to deliver your promise and even if you successfully deliver, you may go out of your budget.
It is highly recommendable to do a job that is within your margin of competence. When you fall short on your promise, you develop an untrustworthy image in the industry.
Working for bad client
Do not work with bad clients at all. They will always try to bring the entire contract to a ridiculous fee. They are not concerned about your pricing needs and would remain stubborn on their offer or ask you to leave.
Avoid these kind of clients who are not ready show some flexibility. They wouldn’t even refer your services to anyone else. All you efforts may go in vain.
Not knowing the full cost
When contractors do the job that is not under their ordinary realm, they make mistakes of delivery and especially costing. The main reason is not that they were not experienced to do so but the fact that they are excited too much about the potential of contract and would make big costing mistakes just to get it.
When the job is finally awarded, they realize what they have put themselves into and get to know the grave results of it.
Contract payments are of an unpredictable nature. Contractors tend to spend carelessly and have an impulsive approach. They pay less attention to their accounts and when the year ends they realize that a lot of deliveries are pending and a lot of thing didn’t go as they were initially planned.
The main reason behind this is poor planning. Planning can be tiresome but it is essentially crucial to your work’s success. Make sure you plan out each and every aspect of your business to make sure everything remains on track.
Low pricing is one of the biggest mistakes a contractor makes. Do not neglect the concern of price just in order to get the contract. Your business will not keep going without fair sum.
There is no reason to charge your client too low until and unless it is your first time and you are trying to establish the beginning relationship. Charge according to the situations and ensure that it is reasonable for both the sides.