“To this day I still don’t think we would have any idea of what is going on in the finances if we hadn’t brought you in ………………….”. I received a phone call from a subcontractor, as they were experiencing financial losses on many contracts, and painful amounts of cash flowing out.
Following meetings at their offices, and gaining an understanding of the business, several staff changes were made and new systems introduced. The problem had been that, as many contractors experience, that the sales order book had taken a priority over deliverability. So much so, that many orders had been underpriced, they were taken on without consideration of when they had to be delivered and whether adequate resources were available. The result was dissatisfied clients, prolific claims and contra charges and huge losses.
A major factor concerning the investors was poor and inaccurate financial reporting, to a point they had little idea of the financial state of the company. This was affecting their confidence greatly.
What we did, as a team, was to change the management, get on top of all the current jobs, contest any unreasonable claims, and concentrate on getting money in which had been withheld by clients. The financial reports are now accurate and real.
Today, they have new cost control systems in place and are completely in control of their finances, and a new smaller team in place delivering the same amount of work. Waste has been cut out, estimates are being carried out properly, the jobs are being managed well, and the finances are in control.
A business reborn, that produces a fantastic product now looking towards the future. I helped that happen with the help of an essentially great team from within their company.
Quantity Surveyor in Sheffield