Subcontractors should treat contracts like blueprints, not paperwork. Careful negotiation, tracking variations, and enforcing delay clauses can boost profitability by 10 to 15 percent.
Chapters
A mindset shift that every subcontractor needs to make is that the contract isn't just paperwork. It is the one thing standing between you and financial ruin, essentially. What's in that contract is all the terms of what could happen in any different outcome of a business. It's just like the legal side of construction where you've got your engineering drawings that will show you the structure of a business, architectural drawings, specifications show you a specific thing. The contract says what happens in circumstances. And if you just don't bother to negotiate that, or you don't bother to comply with the changes or the variations, this is where you lose money because returns are in the terms they say. So if you can negotiate a contract properly and then follow the changes and the delays section down to a T, ultimately you're gonna make a lot more money. Ultimately, they actually say it's about 10 to 15% if you manage your contracts properly.