5 Best Contractor Do’s and Don’ts
The Five Best Contractor Do’s and Don’ts for Running a Successful Construction Company.
#1 Do honest work and don’t hide problems.
It’s easiest if everything is done right the first time; however, even when you think you’ve done things right, things can go wrong. When this happens, the best option is to be upfront, discuss the problem and come up with a satisfactory solution.
#2 Do listen to an accountant and tax preparer for advice, and don’t ask an accountant or tax preparer to act “unethical.”
Treat all business partners with respect and learn from them. You are hiring professionals to help guide you and make sound business decisions. This partnership should aim to meet the goals of complying with all applicable laws.
#3 Do pay your subcontractors promptly and don’t make your subcontractors have to ask for payment.
A well-written contract will help maintain a cash flow to pay subcontractors within a reasonable time frame. If work is satisfactory, pay promptly, or that relationship will be lost.
#4 Do keep business transactions separate from personal financial dealings, don’t pierce the corporate veil.
Moving money from one bank account to another may seem pretty benign; however, this may create a liability to the company. Always have checks written to your business and deposit the funds into a business account. Pay only business expenses from the business account, not personal expenses.
#5 Do comply with all regulations and don’t conduct business without being properly licensed and insured.
The construction industry is regulated at the federal, state, and local levels. Noncompliance can cause fines or, worse yet, shut down your business. The best practice is to follow applicable laws.