How can contractors improve profitability without simply raising prices? Chavon WilcoxConstruction Industry Leader and Audit PartnerAprio The construction profession is shifting from volume-driven growth to margin-driven discipline, and the contractors who recognize that shift first are the ones protecting profitability without touching price. Job selection is where that discipline starts. A formal go/no-go process, weighing owner creditworthiness, contract terms, schedule risk and crew availability, keeps low-margin work from consuming capacity that better-fit projects need. Declining the wrong bid is the single most reliable margin decision a contractor can make, and it requires treating every opportunity as a capital allocation decision, not just a revenue opportunity. The most profitable jobs are often the ones a contractor chooses not to pursue. Change-order discipline follows close behind. Unpriced, undocumented or verbally authorized scope changes are margin surrendered in real time. Getting changes priced and signed before work begins, and tracking them through to…
How can contractors improve profitability without simply raising prices? Chavon WilcoxConstruction Industry Leader and Audit PartnerAprio The construction profession is shifting from volume-driven growth to margin-driven discipline, and the contractors who recognize that shift first are the ones protecting profitability without touching price. Job selection is where that discipline starts. A formal go/no-go process, weighing owner creditworthiness, contract terms, schedule risk and crew availability, keeps low-margin work from consuming capacity that better-fit projects need. Declining the wrong bid is the single most reliable margin decision a contractor can make, and it requires treating every opportunity as a capital allocation decision, not just a revenue opportunity. The most profitable jobs are often the ones a contractor chooses not to pursue. Change-order discipline follows close behind. Unpriced, undocumented or verbally authorized scope changes are margin surrendered in real time. Getting changes priced and signed before work begins, and tracking them through to…
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