Tuesday, June 10, 2014

5 Reasons to Turn Down a Project

1. Too Small. Every firm has its fee floor for profitability. Below this limit, the firm, by its nature, cannot produce profits, as it will automatically invest too many resources. Turn these projects over to smaller organizations which will not compete with you on larger projects from that client.

2. Too Large. Any project which represents a significant portion of a firm’s annual gross is too risky for the firm. If that project is a failure, will the whole firm risk failing? Instead, consider participating in a joint venture.

3. Wrong Client. Do not accept work from a client who is wrong for you. That includes: financial instability, litigiousness, unreasonable expectations, or even conflict of personality.

4. Professional Liability Risk. Certain types of projects are high risk. Asbestos connected, hazardous waste, rehab and condominium projects may all carry high liability potential. Evaluate your risk before accepting such work.

5. Expertise. Do not accept work which calls for expertise which you do not have. You may be unable to meet the client’s expectations or will probably subject yourself to unexpected costs.

No comments:

Follow @PSMJ_Resources