Contractors: How We Can Help

If you own a contracting business, you are entitled to the rewards of your contracting business. Many contractors, however, who fail to install the necessary methods, systems, and controls for their business suffer financial insolvency.  International Development Services can help you enable those systems which will secure your business and your financial future:  estimating, cost controls, organization structure, internal communication; financial planning, financial control, implementation of performance standards for employees; and controlling overhead, tool expense, and equipment.

International Development Services can assist you in setting up the management structure required for you to control your operating expenses, so that you can reduce your costs, which will yield higher profits.  To accomplish this goal of higher profits, you must take the time to revise your operations.  Every contractor needs an independent, third party, objective point of view.  This will provide you with a much clearer overview of your operations.  That’s what we do.  We give you a second pair of eyes to see your business with greater clarity.  Once our review is complete, IDS will put practices in place to maximize profits.  International Development Services will help you establish the following objectives:

 Sales/Marketing

• Identify customers for better target marketing;
• Evaluate your use of lead sources;
• Review your advertising initiatives;
• Supply sales activity planning and the monitoring of results;
• Establish customer-based marketing initiatives;
• Investigate quality control initiatives using customer follow-up.

 Management of Administrative Responsibilities

• Is the management authority and responsibility clearly defined?
• Examine organizational efficiencies;
• Assess operating procedures; and
• Productivity-based incentives for employees;
• Do you practice excess profit-based decision making?

Cost Control for Jobs

• Do you have a purchasing control system?
• Are materials monitored so they can be controlled?
• Streamline the system to ensure continuity from estimating to project completion, where the actual versus estimate is compared and feedback is provided within the estimating process;
• Are production personnel managed effectively?

Tool and Equipment Maintenance and Repair

• Is the responsibility and authority for management clearly defined?
• What organizational relationships facilitate efficient operation?
• Enhancement of profits with a well-defined operating system;
• Do you have a productivity-based, excess profit employee compensation program?
• Do you have a well-defined profit-based decision making process?

Financial Management and Planning

• Management for a positive cash flow;
• Flex budgets;
• How do you determine breakeven levels?
• How do you determine overhead?
• How do you determine labor burden rates?
• Do you have well-established credit and collection procedures?

Estimating and Job Costing

• Do you have a variable-based budget?
• Do you know how to lower your costs through B/E analysis?
• Are you determining your actual job costs per order to develop accurate markups?
• What system are you using to predict cash flow needs 12 weeks out?

Results Management

• Utilize job descriptions to create accountability;
• Do you have your policies and procedures in a manual?
• Grade your organizational communication;
• Do you currently have a system for performance reviews and evaluations of employees?
• How often do you have job progress meetings?
• Institute daily, weekly, monthly reporting.