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How Does A Lump Sum Contract Work? 5 Things To Consider
Construction Management

How Does A Lump Sum Contract Work? 5 Things To Consider

While you may not realize it, Lump-Sum Contracts are extremely common. Although they’re not always designed as “Lump Sum”, or even a contract at all, Lump Sum Contracts are used in many different industries, including on construction projects, hiring vendors, making purchases and more. So how does a Lump Sum Contract work? In this article, we’ll go through what a Lump Sum Contract is, when they’re used and 5 things to consider before and after signing one! Let’s get started.

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Pat Finnegan June 17, 2020
What Should Be Included In A Schedule Of Values - 7 Tips For Contractors
Construction Documents & Templates

What Should Be Included In A Schedule Of Values? Free Template + 7 Tips For Contractors

When it comes time to pay our cable bill or buy groceries, the process is fairly straightforward. We look at the bill or cash register, get out our wallets and cough up the money. Then we’re on our way. In the construction industry, the billing process is a bit more complicated. Projects that are in full swing have workers onsite from several different trades, materials getting delivered, equipment in use and other costs like that. The Owners of these projects release progress payments as the project continues (often monthly). The amount paid is supposed to represent the amount of work done since the last time they paid a bill. What determines how much any particular task of work is worth in comparison to the entire project? That’s where the Schedule of Values (SOV) comes in! So what should be included in a schedule of values? Here are 7 tips for contractors!

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Pat Finnegan December 16, 2019
10 Things To Exclude From A Construction Bid, Proposal Or Contract
Construction Documents & Templates

10 Things To Exclude From Construction Bids, Proposals & Contracts

All construction projects begin on paper. Tied with drawings, the most important pieces of paper on a construction project are those included in the legal documents. Legal terms are found most defined in the final contract executed between a client and contractor, but even the terms and conditions submitted as part of a construction bid or proposal are critical and carry legal implications, too. This is why it’s essential that contractors understand what to exclude from a construction bid, proposal or contract. In this article, we’ll cover 10 must-know things to exclude in your next construction project.

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Pat Finnegan December 9, 2019
What Do RFP & RFQ Mean In Construction? Free RFP & RFQ Templates
Construction Documents & Templates

What Do RFP & RFQ Mean In Construction? Free RFP & RFQ Templates

The execution of a construction project heavily relies on making purchases. While it’s no mystery that budgeting and cost control are vital aspects of construction management, the actual act of making purchases is important in and of itself. Whether we’re purchasing material and equipment or contracting out a portion of our work, there’s an art and a science behind the procurement process of a project. Within this process are some common acronyms, specifically RFP and RFQ. What do RFP and RFQ mean in construction? That’s what we’re exploring in this article. We’re also giving away a FREE RFP Word template – scroll to download section!

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Pat Finnegan December 4, 2019
How To Manage Vendors Effectively As A Project Manager - 10 Crucial Tips
Construction Management

How To Manage Vendors Effectively As A Project Manager: 10 Crucial Tips

Vendors serve as the backbone of many projects. As a matter of fact, vendors play a critical role for any type of business. Vendors provide businesses with supplies, technology, equipment, services and about a million other things. Without these vendors, most businesses could not survive. The same can be said for projects – a bad vendor can make or break a project under the right circumstances. Project Managers must learn to manage vendors effectively from day one to maximize their relationship, while protecting the project from possible downsides. In this article, we’re exploring how to manage vendors effectively as a Project Manager, along with 10 crucial tips for success!

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Pat Finnegan December 3, 2019
Our Comprehensive List Of 25 Ways Contractors Lose Money
Construction Management

Our Comprehensive List Of 25 Ways Contractors Lose Money

Construction is a high risk, high reward business. While working on a job site is high risk from a safety perspective, the industry as a whole carries a high financial risk for contractors. With this risk comes the chance to make large profits when successfully completing projects, but the chance to lose a tremendous amount of money, too! Many contractors declare bankruptcy each year, while others barely cover their costs with little left to show for it. Other contractors do exceptionally well. So why do some contractors run into financial issues? This article will be solely focused on a comprehensive list of ways contractors lose money!

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Pat Finnegan October 22, 2019
Construction Documents & Templates

Change Order Best Practices: What Contractors & Clients Need To Know

Let’s start this off with a picture of two boats: one is a large, expensive boat and the other an inflatable dingy the owner uses to ferry out to the big boat from land. The small dingy is named “original contract” while the large, luxurious boat is named “change order”. I first saw this picture in college and laughed, but didn’t quite understand. After working for many years on a variety of commercial projects, it makes a lot more sense. While this picture is funny but obviously way off scale, the point is clear. Regardless of what the original contract consists of, projects can be made or broken by change orders – that goes for clients AND contractors! In this article, we’ll be discussing a variety of change order best practices that will benefit both owners and contractors alike.

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Pat Finnegan October 21, 2019
What Is A Construction Purchase Order?
Construction Documents & Templates

What Is A Construction Purchase Order? 13 Things To Include In A PO

When we buy groceries, it’s a fairly straightforward process. We pick what we want, pay for them and leave. No paperwork or conditions required. When buying materials, building components or renting equipment, things are a bit more complicated. It makes sense – there’s not much risk in buying a dozen eggs and a gallon of milk. What’s the worst that can happen? In construction, we must consider schedule, timeframes, payments, scope of work and performance specifications – and that’s just the basics. What is the seller can’t or won’t uphold their end of the deal? What if there’s improper workmanship, poor quality, accidents like fires and floods? Damage during transportation? With so many factors to consider, simply buying materials and riding off into the sunset isn’t an option. This is the purpose of a Purchase Order (P.O.) in construction. What is a construction Purchase Order, exactly? Here are 13 things to always include in a P.O., plus a sample Purchase Order to reference!

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Pat Finnegan September 24, 2019
Time & Material Contract: Advantages And Disadvantages
Construction Management

Time & Material Contracts In Construction: Advantages & Disadvantages

In construction, time and material refers to a contractual arrangement where the client pays the contractor for their exact costs of construction, plus a fixed overhead and profit margin. The costs the client pays are the exact costs of the contractor, including labor, equipment, materials and other subcontractors. Overhead and profit margins are typically billed on a percentage of the costs. There are many differences between a lump sum contract and a time and material contract. Let’s explore the advantages and disadvantages of time and material contracts, plus some tips!

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Pat Finnegan July 23, 2019

About This Topic

Learn the basics of contracts in project management and construction, along with common terms and conditions to be aware of.

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