Red Flags You Should Watch For.
Is the pandemic taking a bite out of your profits? Many metal roofing professionals can relate. Some projects have been postponed while others have been cancelled altogether. But don’t let the current economic climate force you into making unwise business decisions. Like using sub-quality metal roofing ventilation or accessories to save a few bucks will cost you in long-term performance and customer satisfaction, taking on a risky job may cost you as well.
While “doing whatever it takes to survive” sometimes includes taking on low-margin or even no-margin projects to keep the cash flowing and employees working, it’s always best to weigh the consequences. Here are some red flags to watch for before you take on that borderline commercial project:
Who is the owner?
Is this their first project? Do they have a bad reputation? A search for lawsuits between the owner and previous contractors, as well as for mechanics’ liens, could be an indicator of what you could expect.
Is the project organized?
The lack of an approved set of drawings and up-to-date specifications should send warning signs.
How is the financing?
The right to verify financing is standard in many contracts. If it’s not there, or they seem reticent to share proof of adequate funding, ask yourself why? Are they new? Do they not have the funds?
What are the contract provisions? Double-check the contract. You may need the work badly, but what if the owner wants you to be responsible for all conditions, known or unknown, visible or not visible? Is that a risk you are willing to take?
Are you the first on the job?
Have others turned down this project? Worse, have others already been on the project and you are replacing them? Either one could signal rough waters ahead if you step in.
Even in these times when work may be scarce for some, taking on a risky job may not be the boost you are hoping for your bottom line. Always look for red flags and make a careful, educated decision.
To learn more about Marco, visit www.MarcoIndustries.com. To contact Marco directly, you can email them here or call 1-800-800-8590.