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BUSINESS AND TRAINING
typically those of the acoustics and / or landscaping consultant that may significantly influence the final design solution – most of whom are happy to give such input on the condition that they will be appointed when the project is formally‘ given the go-ahead’.
• Certain employers dictate the professional fee they are prepared to pay – typically resulting in proportionally reduced services with a consequent increase in‘ requests for information’ from contractors which may result in delays and / or errors on site, entitling the contractor to a revision of the date for practical completion and / or an adjustment of the contract value.
1.2) Determine the appropriate method and time to acquire construction services:
• By negotiation dealing with preferred competent service providers but not necessarily at the best value for money depending on market conditions
• By invitation based on an advanced design solution to involve contractors with particular skills, a product licence or specialised construction equipment for a hybrid design and build solution
• Appointment by invitation implies that the contractor has the ability to execute the project to the specified quality within the time period allowed from previous experiences – at a fair price, but not necessarily at the most competitive price
• By open tender implies that any contractor with a specified CIDB grading can submit an offer – requiring careful analysis and background checking of all submissions, discarding non-complying tenders to compile a short list of, say, 3-5 contractors for final consideration. By taking the average of the three to five tender lowest prices received, the contractor whose offer is closest to the median is likely to have realistically priced the all aspects of the works without strategic omissions or an opportunistic profit.
1.3) Establish and confirm site conditions:
• Discrepancies between actual site conditions and survey and / or historical or as-built records and new construction information
• Undocumented below ground services not shown in any servitudes or as-built records
• Unexpected founding conditions not identified in the geotechnical survey
• During excavations, discovery of historical relics
• Obstructive neighbouring owners
1.4) Construction information:
• All contract documents should be clear and well drafted to suit the application
• Scope creep is the silent killer of delivery – within budget, on time, to the specified quality
• Clarity prevents conflict
• Unilateral changes instigated by the employer to SfCC, or by the contractor to standard-form subcontracts, which, in addition to altering the balance of the respective rights and obligations of the parties, may affect the works insurance and the consultants’ professional indemnity insurance cover PA
To be continued in part two …
Pricing for profit, not just for work
By
Rob Burger, small business finance and strategy consultant, 2XR Business Solutions
Most plumbers work hard. Extremely hard. Working long days, doing physical work, and solving problems under pressure. Yet many still struggle to make decent money at the end of the month.
The reason is rarely a lack of work. It is pricing.
Too many jobs are priced to stay busy, not to earn a real profit. That keeps cash moving, but it does not build a business. It simply creates exhaustion with very little to show for it.
Let’ s change how pricing is viewed.
The most common mistake Many tradespeople price jobs by asking,“ What will the customer accept?” or“ What does the guy down the road charge?”
That mindset turns a business owner into a price-taker. It focuses on winning the job, not on whether the job is worth doing.
Every price must cover three things. First, the real cost of the job. Second, your time, skill and experience. Third, a profit that allows the business to grow and survive.
If one of those is missing, you are paying for the job with your own effort.
Markup versus margin Markup and margin are often confused, and this misunderstanding quietly destroys profitability. Markup is what you add to your costs. Margin is what remains after the job is completed and paid for.
If a job costs R1 000 and you add a 20 % markup, the selling price becomes R1 200. The profit is R200. That is not a 20 % margin. It is only a 16.7 % margin.
www. plumbingafrica. co. za @ plumbingonline @ plumbingonline @ PlumbingAfricaOnline April 2026 Volume 32 I Number 02