5 Effective Strategies for General Contractors to Cut Costs

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StrategyDriven Managing Your Finances Article | 5 Effective Strategies for General Contractors to Cut CostsContractors need to devise ways to cut costs in order to remain profitable. With increased competition, the need to cut costs has become important now more than ever.

Eliminating people is not the right way to cut costs. This will only stifle the ability of your firm to make a profit. Instead, you should look for other ways to cut costs and boost profitability.

1. Cost Audit

The first step in cutting costs should begin with a complete audit of the existing expenses. You should consider ways to reduce operational expenses.

You can relocate the office to a location where the rent is lower. Also, you can consider the shift from in-house to cloud operations to cut overheads.

A lot of contractors subscribe to different software services yet don’t use most of them. Consider whether the services really add value to your business by saving time or improving efficiency. If not, it’s better to cancel the subscription.

2. Time and Contract Clause

Instead of Under-the-contract-price, you should consider adding the add-to-exceed clause. In the former case, the owner of the project only has to pay a fixed cost that includes overhead and profit. This is not necessarily the most cost-effective approach.

Instead, you should consider the time and materials contract. This is a type of contract consist of the following three terms.

  • Actual material costs
  • Actual direct labor costs at a specific hourly rate
  • Agree on add-on to cover profit and overhead

The main benefit of this type of contracting is flexibility. This cost structure allows you to adjust requirements, replace features, and cater to changed user requirements without taking a hit on the bottom-line.

3. Seek Multiple Bids

When working with a sub-contractor, you should consider multiple bids. This may take additional time, but the effort will be worth it in the end.

You may have to send lots of emails and hammer the phones. But this will allow you to lock in on subcontractors that offer services at the least costs. This extra work will help in significantly reduce the internal expenses.

4. Inspect Your Schedule

You should keep an eye on your schedule for any potential stacking or acceleration of activities. Compressing the schedule will allow you to squeeze cost advantages. Time is money and any time that is saved will have a positive impact on the company’s bottom-line.

5. Financial Prequalification

You should prequalify all subcontractors to reduce the risk in case of cost escalation. This is particularly important if the subcontractor will bear most of the risks. It will help in absorbing any deviances in a project that result in increased cost.

By financial prequalification, you can get assurance that the subcontractors will be able to absorb any costs overruns. Some of the criteria that you should consider include pipeline, days of cash, and work in progress.

The above tips can help in greatly reducing the contracting costs. Consider adding an escalation clause in all your projects as well. This will pass on the risk of cost increase to the project owners.

How To Find People To Connect With In Your Industry

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StrategyDriven Entrepreneurship Article |Connection in Business|How To Find People To Connect With In Your IndustryWhen it comes to owning your own business, one of the best things you can do in terms of growth is to connect with people in your industry. When people say ‘it’s not what you know, but who you know’, they are 100% right. Connecting with people within your industry could not only lead you to incredible opportunities, but also to making some lifelong friends that understand what you’re going through on a daily basis. It will help grow your business, give you a better understanding of the industry and allow you to enjoy what you do even more than you already do. With that in mind, here are a number of ways to find people to connect with in your industry:

Use LinkedIn To Search For People In Your Industry

One of the best ways to find people that are in the same industry as you is to use LinkedIn. As a social network that has been designed for professionals, this is a great way to connect with people that follow the same line as work as you. Whilst you may find it difficult to build your connections up at first, once you start having meaningful interactions with people your followers will grow. Once connected, you can regularly engage with the content they share or open up a private discussion in their messages. For a guide to using LinkedIn as a business owner, you can visit this site here.

See Who Else Is Using Your Popular Industry Hashtags

Within your industry, the chances are there will probably be some popular hashtags that are used. The best thing to do is do some research into what hashtags your competitors are using on popular social platforms, following them so you can interact and engage with people in your industry. If you’re looking to follow more people in your industry, you can scroll through the hashtags and connect with people that you think sit perfectly within in your niche. Whilst it does take time, it is one of the best ways to connect with people in your industry. For a guide to finding people using hashtags, you can visit this site here.

Use Public Directories And Search By Occupation

If you want to find people in your industry but you don’t feel as though they will have a strong presence on social media, it may be worth using public directories to search by occupation. With directories that provide both email and phone numbers, you will be able to reach out to anyone that you feel may be a worthwhile connection. For an example of a public directory page, you can visit the Aubrey Ferrao page here.

Think About Attending Industry Events And Conferences

Finally, attending industry events and conferences is one of the best ways to connect with new people. You will have plenty of options to meet with people in person, giving you much more of a starting point that if you were to meet someone online. It may be daunting, but it’s the best way to find people that have things in common with you.

Learn about the Penalties for Mortgage and Real Estate Fraud in Florida

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StrategyDriven Entrepreneurship Article |Real Estate Fraud|Learn about the Penalties for Mortgage and Real Estate Fraud in FloridaThere has been a substantial rise in the number of cases related to real estate fraud over the past couple of years, particularly as the real estate market has started to flourish once again. The reason for this increase in real estate fraud is mainly because the pay off is substantial for the scam, but the penalties for this crime are also extremely harsh.

To ensure that you’re always on the right side of the law, and learn to protect yourself from real estate fraud, we are going to break down exactly what is real estate fraud, and what kind of penalties are attached with it. You can also check out this great article for more information.

Understanding Real Estate Fraud

There are different kinds of real estate fraud, with the common theme being that they are all designed to take advantage of their victim and leave them helpless. If you’re working in the real estate industry, and notice any of the red flags, you shouldn’t hesitate to take legal action against the perpetrators. If you’re in a position where you can commit fraud, you should stop. Committing real estate fraud in Florida comes with harsh penalties, and you will be registered as a convict for the remainder of your life.

Types of Fraud

Real estate fraud comes in many different types, all of which are connected to the different stages of processes involved in real estate. These may include the following:

  • Rental fraud
  • Land fraud
  • Fraudulent loan origination
  • Illegal flipping
  • Equity skimming
  • Home improvement fraud

If it seems like a scam, it’s probably because it really is a scam.

For instance, one of the main types of fraud involved in real estate is the foreclosure rescue. This fraud involves businesses preying on families facing foreclosure, desperately trying to keep their homes. Businesses in this type of fraud will try to convince families that their homes can be saved if they sign a temporary title transfer to the business.

The business will pay only a fraction of the real worth of the house on the market for this. This is essentially a leaseback, where the family can remain in the home and pay rent to the business for the length of the transfer title.

However, the business will sell the home, as soon as they get the title from the owners, which leaves the owners stuck in payments that they were paying on their mortgage.

Mortgage Fraud

One of the most common types of real estate fraud found today is mortgage fraud, which focuses mainly on mortgages, where people are already vulnerable and in debt. Mortgage fraud essentially has two main types, which include:

  • Fraud for housing
  • Fraud for profit

The main difference between the two types is based on who is getting conned: the lending institution or the homeowners.

Fraud for housing is committed by potential homeowners with the intention of maintaining or acquiring home ownership.

Fraud for profit is committed by people in the industry, who have in-depth knowledge of the mortgage system and know how to steal money. Their goal isn’t to acquire home ownership.

There is an extensive range of potential frauds that are found in these two types of mortgage fraud, which include:

  • Inflated purchase price
  • Silent second mortgages
  • Employment income falsification
  • Mortgage elimination programs
  • Occupancy claims by non-occupants
  • Kickbacks

For instance, mortgage elimination programs are one of the most common fraud-for-profit scams. Homeowners are convinced in these programs that their mortgage can be wrapped up quickly if they pay a premium for the services. This doesn’t happen obviously, and the homeowners end up with even more debt than they started with.

A common house-for-profit scam is the inflated purchase price. For example, you’ve got two different purchase contracts, and one of them is a fake with a sales price that is significantly higher. You’ll be committing mortgage fraud if you send the fake contract to the lender so that you can get a higher appraisal value.

Penalties for Mortgage and Real Estate Fraud

You’ll be facing some serious penalties and convictions if you’re charged with either mortgage or real estate fraud. To give you a clearer idea, we are going to discuss how fraud is defined in Florida law and then discuss the penalties you may face in such cases.

Florida Laws on Fraud

Statute 817.545 governs mortgage and real estate fraud in Florida state law. Under the rules of this law, a person is guilty of mortgage fraud if they have acted knowingly, and plan on defrauding, while:

  • Misrepresenting facts to try and get a loan
  • Help in misrepresenting facts
  • Gain material proceeds by misrepresenting facts
  • Filing documents during the mortgage process that misrepresents facts

If you misrepresent information in the real estate and mortgage process, willingly and knowingly, or attempt to gain any material benefit due to misrepresentation, you’ll be charged with committing fraud.

Documents to Consider

Before we go ahead, it’s important that we discuss what documents can be used for misrepresentation of facts in the mortgage process. These may include the following:

  • HUD-1 settlement statements
  • Residential loan applications
  • Inspection reports
  • Appraisals
  • Mortgage documents
  • Deeds

Personal documents that are required in the loan application can also be used for misrepresentation of facts, and they include:

  • Relevant disclosures
  • Employment verification
  • Income verification
  • Bank statements
  • W2 forms
  • Payroll stubs
  • Tax returns

You’ll be charged with committing fraud if you have misrepresented information on any of the documents mentioned for mortgage loans, acquiring real estate, or for material gain.

Penalties for Fraud

You can face all kinds of penalties if you’ve committed real estate fraud in Florida, and you’ll face harsher penalties if you’re charged at the federal level. It’s a good chance that you’ll face penalties for several laws since the crime includes federal and state laws.

Real estate fraud is charged as a felony in most cases, even if the sum is under $1,000. You’ll be charged with a third-degree felony if the sum is below $100,000, and anything above that figure will be a second-degree felony.

Penalties will be given out based on the type of offense, and they include fines, prison time, restitution, and probation. You could also end up paying fines for up to $1 million for real estate fraud if you’re prosecuted at the federal level.

You may also face prison penalties, and the length of the sentence will be longer if you’re charged at the federal level. It can go up to 30 years in jail, and you’ll also be paying restitution to any third-parties that suffered financially because of the fraud.

Should Your Business Be Thinking About Making Sustainable Choices?

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StrategyDriven Managing Your Business Article |Sustainability|Should Your Business Be Thinking About Making Sustainable Choices?You can feel the wind of change in business and you only have to witness the growing numbers of CEO’s who are pledging their support for climate change and promising action to realize that sustainability is topic that is very much on-trend.

With that in mind the question is should your business be embracing the idea of making sustainable choices and what strategies should you be considering to make a difference?

There are so many options when it comes to the subject of sustainability and that extends to finance too, so when you contact Commerce Trust, for instance, they can tell you all about sustainable investments.

It is hard to argue against the view that sustainable initiatives are not just good for the planet but they are good for business as well. Here are some pointers on how to make sustainability an integral part of your business.

Making sustainability the new normal

A good starting point would be to work on ways of incorporating sustainability into your company culture and making it something that everyone in the business is greatly aware of and committed to.

Some of the major corporations around the world are already investing in environmental stewardship initiatives and many of these organizations have subsequently managed to take actions that go above and beyond the basic requirements laid out by governments.

Whether it is sourcing a reliable form of green energy to power your production line or seeking out suppliers with similar green credentials, it is clear that embracing a culture of sustainability within your business is going to be good for the planet and promotes your company as one that cares about what their customers and suppliers think about them.

Start with some easy changes

When you start to embrace sustainability it can soon become obvious that there are so many practices that you can adopt, some that you can implement immediately and others that might take a little longer before you feel the benefit.

One of your first tasks could be to make some basic changes to the way you do things in your office and figure out some initiatives that help you achieve the goal of achieving a good level of sustainability.

A simple but effective action would be to change your old light bulbs in your building and replace them with some LED alternatives.

This move is a real no-brainer as LED’s use less energy than a halogen or incandescent bulb and their lifespan is expected to be in the region of 25% longer than halogen or incandescent options.

You will pay more for a LED bulb but it lasts a lot longer than its counterparts and the amount of energy they use is substantially less than an old-fashioned bulb, meaning some noticeable cost savings are eminently deliverable.

Ditch the plastic bottles

Thankfully, there is greater awareness than ever before about the damage that plastic is doing to our planet and millions of tons of plastic waste are generated each and every year around the globe.

A simple solution that will boost your business’s green credentials would be to encourage a ban on plastic water bottles in your office and install a water filtration system that will help keep everyone hydrated without the waste associated with discarded plastic bottles.

Your supply partners should be a reflection of your own sustainability credentials

If you choose your supply partners with care and ask lots of searching sustainability questions when appointing a new supplier this should ensure that you develop a relationship with like-minded organizations.

Some major companies won’t even use certain suppliers if their green credentials are not up to standard and you can follow suit by using companies who use energy efficient vehicles and seem to be constantly working hard to find ways to reduce their carbon footprint.

Become a recycle champion

There are already tons of waste being sent to landfill sites every week and there is bound to be a percentage of that waste that could be recycled and reused rather than being buried under the surface.

Encourage everyone in your business to adopt a culture of recycle and reuse, which means thinking carefully about what is being put into the trash bin.

As well as recycling what you can of your own waste you can also do your bit for the planet by committing to using recycled paper products and buying recycled ink that has already been around the block rather than end up in a landfill.

Keeping it clean

You will quickly discover that turning green often involves making a number of small incremental changes to the way you do things that all add up over time to make a big difference.

With that in mind, simple suggestions such as switching to some green cleaning products that tick all the right environmental boxes will create a more eco-friendly culture. Using these items will keep your work environment sparkling and clean without harming the planet and is just one example of a sustainable choice.

Sustainable development simply cannot be achieved alone by an individual or some smaller businesses. It is a matter of collective responsibility, but that is not to say that you can’t lead the way in encouraging others to come around to your way of thinking.

Gain a competitive edge

There is nothing wrong with wanting something to show for your efforts of keeping everything in your business as green as possible and when you boost your green credentials it can give your company a competitive edge.

If customers and suppliers know you are championing the the cause for making sustainable choices you could find that customers with similar ideals are more likely to give their business to you rather than to a rival who doesn’t seem to have the same set of impressive green credentials.

The argument seems clear. If you develop a company culture which is centered around making sustainable choices there is a fair chance that you will be rewarded with a better bottom line performance as well as enjoying a clearer conscience that you are doing your bit for the planet.

6 Main Stakeholders That Guarantee Business Success

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StrategyDriven Entrepreneurship Article |Stakeholders|6 Main Stakeholders That Guarantee Business SuccessThe success of every business lies in the hands of its stakeholders. Therefore, you have to be careful with the way you treat each of them if you want to take your brand to the next level. For instance, have a CRM software will make sure that your business is focusing more on social connections and collaboration and not individual performance. All players must embrace one another to make sure that the business succeeds. Here are the key stakeholders that will make sure that your business succeeds.

Executives

The sign-off from the higher-ups will make sure that the company has the right technology in place. The business leaders will also change the brand’s approach to customer relationship management, productivity definitions, employee goals, and corporate culture among others. These changes should also encompass instilling the ‘open door’ policy so that employees at all levels can engage with the executive managers. The executives should be leaders on social by using technology to embrace new ideas and share information. You cannot transform your business unless the executives have the right attitude.

The Tech Team

The IT team play a critical role in the process of deployment. These experts integrate the social media tools and the other business technologies that your organization has. The IT team will also help you to evaluate costs, management, and training needs for any new services and software.

The Legal Department

A business is a legal entity and hence may require legal representation from time to time. You need well trained and highly experienced lawyers to help in crafting contracts for employees. Some disputes end up in court, and you will require lawyers to give you legal representation. Most businesses leaders will tell you that it is tricky to hire a full legal department because of the associated costs. You can outsource some of these services to professionals whenever a need arises. You need to choose a lawyer depending on the type of lawsuit that you are pursuing. Law Offices of Tad Nelson & Associates can help you, especially when dealing with criminal offenders in the workplace.

Human Resources

HR comes in handy when you want to change the way you compensate and motivate your employees. The team also helps you to set appropriate policies like the way you use social media in the workplace. You also need to involve HR in training of new technology like the cultural and social mores.

Employees

Your workers are the ones that will be using the social media tools that you deploy in your organization. These workforces will also be dealing with your customers directly to help you achieve the overall goals of your organization. Therefore, you have to empower your employees in the best way possible so that they can offer exemplary services to your customers. Give them the tools of trade that they need to carry out their daily tasks with the highest level of precision. You also need to pay your employees well so that they will not be seeking for greener pastures.

The other business stakeholders include suppliers, investors, business partners among others. Make sure that you are handling everyone well for great business success.