construction's one way street syndrome

construction's one way street syndrome

Posted on Sunday March 06, 2011 at 11:09PM

Having a profitable work isnt an easy task. It involves lots of steps to ascertain a good quality work. The more formalized internally and externally the better a work acquisition process. Having scientific and monitorable approach is the key in getting and closing for a deal.

There is a harsh rule about pricing and proposing construction work.

- too high and theres no phone call, no chance of winning a job.

- too low and phone call everytime to contract you to a money losing proposition.

- any mistake done will greatly affect the companys name and owners credibility.


if the price is so high from estimating, no client will buy and the cost of estimating is sunk with nothing generated.


- the sunk cost, labor,materials and other cost to produce the estimate

- the opportunity cost. that is the cost of the bisiness still exists and has to be paid at the end of the month, but there is nothing to pay for it due to this missed job.


- the use of a formal pricing policy gives sureties to clients

- it gives them prospective  idea on what you are really offering them

- it gives them more confidence about the service operation you;re offering.


Author: Recovery Renos


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