Recently I interviewed three large contractors to find how their business had changed to better understand how distributors, manufacturers and reps might possibly better serve them. Two of the contractors were members of NECA, with the third being nonunion. My original intention was to expand beyond the three to determine if there might be a difference between being union or not. I found, for the most part, they had very similar concerns and faced the same issues. Electrical Contractor Issues Lack of Profitability. Margin Restrictions on Change Orders Each contractor’s greatest new challenge is the lack of profitability on jobs. This is caused, mostly, by new contracts designed by general contractors that deny increased profitability for change orders. Change orders are frequently necessary because bids are mostly sent between 50-70% completed. The contractors bid on what is given to them, but far more is needed later. The contracts from the…
Contractors, News
Electrical Contractor Issues in a Changing Environment
Recently I interviewed three large contractors to find how their business had changed to better understand how distributors, manufacturers and reps might possibly better serve them. Two of the contractors were members of NECA, with the third being nonunion. My original intention was to expand beyond the three to determine if there might be a difference between being union or not. I found, for the most part, they had very similar concerns and faced the same issues. Electrical Contractor Issues Lack of Profitability. Margin Restrictions on Change Orders Each contractor’s greatest new challenge is the lack of profitability on jobs. This is caused, mostly, by new contracts designed by general contractors that deny increased profitability for change orders. Change orders are frequently necessary because bids are mostly sent between 50-70% completed. The contractors bid on what is given to them, but far more is needed later. The contracts from the…
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