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Profiting from Project Conclusion, Part 2

Profiting from Project Conclusion, Part 2How do you break a job into billable “mini-jobs” with clear completion points? Analyze the job for logical breaks such as “units of completion.” Examples:

  • A subsystem is ready for customer use. For example, you’ve installed the main section of the process equipment, but not the finishing area or the conveyors. The customer can use what’s installed for operator training, process set-up, etc.
  • A major unit is done. For example, you’ve bought $185,000 in roof chiller units and are installing them. When each one is finished, you do a walk-through/sign-off with the customer. Invoice that portion immediately.
  • In a multiple building project, you’ve finished the work in one building. Similar thing applies to areas within a building, for example you’ve installed the lighting over the press area but not the stamping area. Bill for what’s completed.

If you wait until the entire project is completed, the composite walk-throughs and sign-offs must be done as a block. The customer may lack the resources to do all of this in one shot. So if, for example, the total time works out to nine hours the customer may spread this across two or three days due to meetings and other obligations. The customer can more easily work into his schedule an hour here and an hour there as the project progresses. Use this flexibility as a selling point during project negotiations.

« Part 1 | Part 3 » | Source: Mark Lamendola | Mindconnection