Bottom Line

4 confrontationgenerating mistakes that can cost you

(and how to avoid them)

We’ve all been there. A project has commenced. The work is being completed on time. The profit margin is looking great. And then trouble starts. Maybe a homeowner wants to add a hallway, a GC wants touch-ups, an employee doesn’t show up to work and production slips or, perhaps worst of all, you discover your estimate was inaccurate.

No matter the issue, the resulting sticky question is the same: who’s going to pay for what?

Contrary to what you might feel in that moment, most people don’t like confrontation. Social psychologists tell us that unless the risk of uncomfortable confrontation is reduced to almost zero, most people will avoid doing business and interacting with you. That’s important to know because creating a smooth interaction that ensures a predictable and pleasant experience is crucial to continued and repeat business.

Here’s a look at a few of the most common mistakes that can lead to confrontation and tense conversations, and contractor-proven solutions for avoiding them:

Mistake #1: Inaccurate estimate

Solution: You simply CANNOT estimate from the gut. Those days are over. You need to know the production rate of your team, and you need to use consistent processes, technology and materials. Anything less is downright medieval.

Mistake #2: No clearly communicated plan for accidents or unforeseen difficulties

Solution: You need to have clearly communicated terms, conditions and processes that your customer can see and acknowledge from the very outset. You can’t prevent every obstacle, but you can have a contingency plan in place. Research shows that customers who are aware that you have a firm change order process that is communicated up front are less likely to throw in half-hearted requests with unrealistic expectations, and are more likely to accept professionally formatted and guaranteed upsells.

Mistake #3: Underperforming employees

Solution: Simply put, if your company’s not running on all cylinders, you’ll never hit your production goals. Measure performance, use accurate time-keeping tools, schedule individual reviews, promote advancement pathways, and consistently train to the next level. Your employees have to know that you are invested in their continually improving performance. What’s not measured doesn’t improve.

Mistake #4: No process for additional requests

Solution: Some contractors just say “No.” Others say, “We’d love to do that for you—for an additional fee.” If you fall in the second camp, you need to have the right tools in place. Your change order has to be clear and detailed, and it needs to stand out from the previously approved project scope. If it is not distinct, misunderstanding can result.

It’s also important that the process for creating a change order needs to be painless for those involved in generating it. Estimating and sales-enablement software are ideal for this task as they provide the consistency and clarity of preloaded templates and language.

A well-executed change order process provides the customer with a record of two accepted proposals that outline the different scopes of work and balance due after the change order. The software ensures the contractor will have the specifics of the change order available to them at all times, even after the project closes. Which, by the way, can come in very handy for training and performance review if the change was due to operational inefficiencies or under-performing employees.

From start to finish, clear and consistent processes are key to keeping work moving, meeting expectations, and smoothing the path for repeat business. CHRIS SHANK is the education and engagement manager at Estimate Rocket. He manages the organization’s RIVAL workshops and VISION Conference that help business owners build on past successes and become stronger competitors in the marketplace. EstimateRocket.com