Covid-19 has caused disruptions worldwide. Lockdown and limits on movement and travel are affecting business and the economy. But, in this time of crisis, let’s look at the positive steps you, as a General Contractor, can take. In this guide, we will look at 6 business tips for General Contractors to help you adapt and prepare for a bounce-back once the uncertainties have passed. Don’t let Covid-19 stall your plans. Now is the perfect time to future-proof your business.
6 Business Tips for General Contractors
- Review Active Contracts and Mitigate Risks: Your active contracts that may have been disrupted by lockdowns should be a top priority. Depending on the terms of the contracts, you may be held responsible for delays and cost overruns. Read the fine print of your ‘Force Majeure’ clause. This is an unforeseen event that neither you nor the project owner could have prevented or controlled. See if it can be applied to protect your business from losses. Try and renegotiate the terms of the contract with the project owner. Either to waive timelines or penalties for terminations and defaults.
- Update your Construction Insurance: Also, with regards to active contracts, now is the time to check on your insurance coverage. Consult with a professional on how extended delays impact your coverage. What extensions on your General Contractor Liability and Builder’s Risk coverages might you need in these uncertain times?
- File your tax returns: With this extra time on your hands, you can file your taxes! Get in there before the deadlines. Avoid unnecessary penalties or fines that can cost a pretty penny.
- Research policy relief funding and send applications: The government has rolled out several financing programs to provide relief to businesses in the face of the Covid-19 crisis. Research which policy packages, such as tax deferrals, grants or business loans you qualify for. Then send out the applications.
- Prepare logistics for supply chain disruptions: Since Covid-19 is impacting the whole world, it is inevitable that supply chains will be disrupted. While the situation may change from day to day, stay informed. Check out material prices, possible bottlenecks and alternative sources, so you have contingency plans in place for when you resume work.
- Upskill yourself and your team on BIM Software: The construction industry is changing rapidly with the adoption of digital technologies. Now is the time for you and your team to learn how to use BIM (Building Information Modelling) software. Research which BIM software would be most appropriate for your construction business. Then invest the hours in learning the ropes. According to a Mckinsey survey, 75% of companies that adopted use of BIM software reported a greater return on investment.
Your Post Covid-19 Business Plan
A time of quiet can be a time of reflection, planning and rejuvenation. It is the nature of business is to encounter crisis in its lifetime. Keep calm, prepare, stay informed and plan with the flexibility to adapt to the unexpected changes that may come post Covid-19.
At Farmer Brown Insurance, we remain available and ready to help your construction business navigate these unexpected circumstances with the right insurance coverage to protect you from losses at an affordable cost. For the best construction insurance in 50 states, call us today on (888) 973-0016.