In the aftermath of a disaster, there is a need and a desire to rebuild.
This can present enormous opportunities for your contractor clients. It can also present unique challenges that they must take into account as they work to help their communities rebuild and recover.
Here are five things they should consider as they step in to help rebuild after a disaster.
1. Finding Workers
In recent years, it has become harder than ever for contractors to find skilled labor for their teams. After a disaster, the demand dramatically increases as individuals and businesses compete for the skilled laborers that they need to get the job done.
For your contractor clients, maintaining good relations with team members and developing a deep bench of additional workers will be necessary when loyalty is the only thing keeping workers on your projects instead of your competitors.
To stay competitive, it may be necessary for them to pay more competitively for labor and to factor this into their budget estimates. It may also require recruiting workers or subcontractors from outside the area and providing room, board, and other benefits.
2. Purchasing Materials
Another area where demand will outstrip supply is with the ability of vendors to provide construction materials. Available supplies of building materials are already stretched thin, and after a disaster, demand will explode as availability drops.
For your contractor clients, building and maintaining good relations with vendors will be critical to getting the materials, and adjusting timetables for ordering and delivery will also need to be factored into their budget estimates and work schedules.
3. Worker Safety
Rebuilding after a disaster adds another level of complexity to your client’s normal safety operations. Concerns about toxic mold, structural damage, and debris all factor into their planning. That’s why making sure their teams are equipped and trained to handle these concerns will be critical to maintaining worksite safety.
This is also a case where your contractor clients may want to review their workers’ compensation insurance to make sure that they have sufficient coverage.
4. Managing Cash Flow
When demand is high, there is also the risk of your project owners getting financially over-extended, especially if a project owner’s ability to receive project funding is delayed due to insurance adjustments. Make sure your contractor clients stay in contact with their bank and financial team to make sure that they have the necessary liquidity to take on more projects.
This is also when good bookkeeping and project accounting will be necessary for them to maintain good cash flow.
5. Getting Bonded for Government Projects
If your contractor clients are interested in working on government related recovery and rebuilding projects, it’s likely that they’ll need to get a bond through a U.S. Treasury approved (“T-Listed”) surety. To be considered for these projects, it’s also a good idea to get registered with the appropriate government agencies.
This is a topic we’ll discuss in our next article.
Work with the Right Partners
Working with Cinium can also help your contractor clients in case of an emergency. Our project accounting service can help them to organize your back office, and because we’re managing the books, they have the extra time they need to focus on rebuilding in their community.
If they are facing cash flow shortfalls, they can take advantage of a Requisition Cash Advance to help cover the cost of labor and materials. Also, if they use our Discounted Payroll Service, all their payroll and tax information is stored safely in the cloud. This allows them to maintain accurate records for their employees, and track hours so that everyone can get paid on time and in full.
Looking to take advantage of Cinium’s Contractor Credit Program? Schedule a free consultation today, or call (855) 4-CINIUM.