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Of the four methods used to recognize income, costs, and profits on construction contracts, cash and accrual are most familiar. The best accounting method for remodeling projects is percentage of completion because it recognizes revenue, cost, and gross profit throughout the life of each contract...
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Whether design is in-house or subcontracted, most companies require homeowners to sign a separate design contract. Mike Holmes usually charges for design at an hourly rate, but has a flat rate for certain kinds of projects.
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With the advent of computer technology and automated estimates, we can put in all the specifics in microscopic detail, without having to spend money to do it.
The client's on the phone, saying he has lost his job, filed for divorce, or been diagnosed with a terminal illness. Like many remodelers, Kacey Fitzpatrick, owner of Avalon Enterprises in Mountain View, Calif., says she is seeing "more people back off on projects." Just like at Avalon Enterprises...
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Several years ago, Ron Dimon of Dimon Construction in Manlius, N.Y., built an addition for a client whose harassment, threats, and needling demoralized his staff and delayed completion of the project. "Once it started, it kind of snowballed," Dimon recalls, with the client holding back all funds...
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There was a time when change orders represented a large part of a company's profit on a project. It's also easy for them to conclude that the price is too high and that the project must also be overpriced. Failure to write up the change order, get signatures, and collect promptly can also be...