Recently a reader wrote to me: “Dear Paul Netscher could you share your opinion on this painful problem please? If my quote was too low for a project and we only notice after we started the project and are losing money like blood…. What can be done? Is there a mutual agreement system established so that we can be dismissed from the project (of course not quit) or talking frankly to the customer? If something like that happened to you how would you handle it?”
I think we’ve all had a construction project that seems to bleed money before it even begins due to be under-priced. The takeoff or quote is messed up and the project is haemorrhaging money every day. I really felt for the guy. No matter what we seem to do on these projects the losses continue. You feel like walking away. Every day is a nightmare. Unfortunately, as we also know, these projects often only get worse. Other problems erupt. The painful losses increase.
So what can be done to stop the financial bleeding?