Epi 204: If You Quote Jobs Like THIS You Will Run Out Of Cash | Nick Clements

Nick Clements runs YourQS, an estimating firm operating across New Zealand and Australia. He exposes the exact pricing errors actively bankrupting residential builders. Nick explains why guessing labor hours and relying on square meter rates causes companies to run out of cash before the build is finished.This episode details the fatal flaw of accepting a ten percent margin and ignoring escalation clauses on fixed price contracts. Nick explains how to secure highly profitable contracts by adding a business markup directly on top of your standard labor charge-out rates. He shares the exact framework one builder used to increase their markup to 53 percent while maintaining their sales strike rate.Nick outlines how to control your work in progress by securing strict sub-trade quotes and building contingency buffers to protect your bottom line.Links & Promotions Mentioned: YourQS Special Offer: Get $1,000 off your first project with YourQS (Mention the podcast!) New Zealand Builders: Visit yourqs.co.nz or email [email protected] Australian Builders: Visit yourqs.com.au or email [email protected] 🕒 Timestamped Key Points00:00 How one builder secured a 53 percent markup01:30 The danger of operating without a true margin02:40 How poor scoping destroys company cash flow05:30 Structuring fixed price contracts with escalation clauses10:00 Why charging by the square meter bankrupts companies12:30 Forecasting actual labor hours to protect profit16:00 Pricing setup time for smaller site tasks20:00 Presenting quality assurance systems to command higher margins23:30 Using an independent QS to secure progress payments24:40 The Belmont build mistake that cost thousands of dollars*** The Professional Builder has helped over 3,100+ building companies around the world get more Profit, more Time and Succeed in Selling their Business. https://tinyurl.com/tpb-yt Subscribe to our channel for weekly, actionable insights. Tailored to help you grow a profitable construction business. Want to Join our coaching program? Or just speak to one of our team to see if it's the right fit for you? Hit the link below. Everything you need is there! https://tinyurl.com/tpb-ythttps://www.facebook.com/groups/TPBmember: https://www.facebook.com/TheProfessionalBuilderSee omnystudio.com/listener for privacy information.