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How To Find The Hidden Profits

It is of utmost importance for London flooring contractors to know how to make the best of their income of every project. The requirement of producing schedule rates for use in pricing variations is incorporated in most contracts. The normal reaction is to price the variations at the rates in the schedule without considering that further. But where are the chances to enhance the prices in the schedule of rates? London flooring professionals explain that the JCT contracts state that contract rates must only be applied when the work described in the variation is:

  • the conditions under the task will be carried out will be the same;
  • it is of a similar character
  • there is no significant/ drastic change in quantity

But what needs to be considered?

  • London flooring specialists explain that floor coverings that are laid in small confined spaces are not classed as similar to floorcoverings in large open spaces.
  • Another thing to note is that undertaking project in we winter months is not the same as in summer months.
  • By the term ‘significant’ when speaking of change in quantities, even a small amount can be stated as such if it affects the timing and manner to the ordering of the materials and goods, therefore, the unit price.
  • Flooring experts in London point out if other work is affected by the variation, the JCT contract provides for payment of an extra. For instance, a change to the specifications part way through a job might disrupt the follow up works.
  • If the variations case delay, its costs are recoverable – this pretty much means that every additional pound secured when considering the variations is added to the bottom line.

London flooring professionals highly recommend keeping good records so you can increase your recovery from variations. A contract usually states that there must be proper written instructions, otherwise you won`t get paid for your action variations. You should always make sure you comply with the contract. In some cases verbal instructions are allowed – you should ensure you have a confirmation of verbal instruction system (referred to as CVIs). Keep detailed breakdowns and proper records – drainage, scaffolding and foundations. Also, enlist if there are issues related to access to parts of the site, bad weather conditions or lack of proper instructions. Having the aforementioned tips in mind you will find those hidden profits for sure!

Inspired by www.contractflooringjournal.co.uk