Construction is a complex industry. Contractors operate on sheetrock blade-thin margins, constantly juggle unforeseen jobsite issues, and are currently facing an economic chokehold with pricing and access to resources. With so many variables at hand, the risk of financial disaster is sky high. The slightest problem on the job or in the office can be the difference between making money and losing it.
You need money to make money. If you start a project with no funding or proper payment terms in contracts, you’re guaranteed to be in the red. Projects can’t progress to the next phase without cash on hand. Materials need to be ordered ahead of time, salaries need to be paid, and deposits on equipment rentals need to be made. Lack of funding can cause a hold-up in the project, creating a domino effect with scheduling delays, increased budgets, and upset stakeholders.
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