Answers for contractors and remodelers.
Change orders, draw schedules, subs who ghost, bids you lose on purpose, and the job that eats the whole year.
40 questions, 40 of them with a word-for-word script, the actual math, or a template you can copy.
Pricing
All pricing →How do I price a change order and get it signed before work starts?
Price it like a mini bid, cost plus your normal markup, and get a signature before a single hour goes into it. No signature, no work.
Script The math TemplateWhat markup and margin should I carry on a remodel?
Most remodelers run 20 to 35 percent markup on cost, which lands around 17 to 26 percent margin. Know the difference or you will underprice every job.
The math ChecklistHow do I raise prices across the board without it feeling like a scramble?
Pick a date, calculate the number from your actual cost increases, announce it once in writing, and apply it to everyone the same way. A clean, universal increase reads as confidence. A quiet, selective one reads as something to hide.
Script The math
Finance
All finance →How do I set a draw schedule that keeps me from financing the customer?
Draws should always run slightly ahead of your actual cost curve, never behind it. If you're ever more into a job than you've been paid, you're the bank.
The math TemplateHow much deposit can I take, and what does my state allow?
There is no national number. Many states cap deposits by percentage or a flat dollar amount, so check your state's rules before you write it into a contract.
ChecklistThe job went over budget. How do I tell the customer?
Tell them as soon as you know, not at the final invoice. Bring the number and the reason, not an apology tour.
ScriptWhat do I need to know about final payment and mechanics liens?
Get the punch list signed off and the final payment collected before you release lien rights. Your state's lien process has specific deadlines, check them before you need them.
ChecklistWhat do I do when material prices move mid-job?
Put a price escalation clause in every contract before you need it, and if you didn't, absorb small moves and talk through big ones honestly and early.
The math TemplateHow do I track job cost while the job is running instead of after it's done?
Check cost against percent complete weekly, not at the final invoice. Finding out you're over on the last day means you can't do anything about it.
The math ChecklistHow do I pay myself a real wage instead of whatever's left over?
Set a fixed weekly or biweekly owner paycheck based on a market wage for your role, and pay it on payroll like everyone else. Profit distributions come later and separately, not instead of it.
The math ChecklistHow do I collect from a customer who refuses to pay?
Escalate in stages, in writing, with dates, before you call a lawyer or small claims court. Most non-payers cave once they see you're organized and not going away.
Script TemplateWhat numbers should I actually look at every week to run the business?
Pick five to seven numbers you can pull in fifteen minutes every Monday, not a forty-tab spreadsheet nobody keeps updated. Cash, sales booked, jobs completed, and one leading indicator of trouble beat a dozen vanity metrics.
Template ChecklistHow do I manage cash flow when customers are stretching out how long they take to pay?
Tighten terms going forward, chase the aging receivables aggressively, and build a cash buffer sized to your actual collection lag, not your best-case assumption. You can be profitable on paper and still run out of cash if collections slip.
The math ChecklistShould I buy or lease my next big piece of equipment?
Buy what holds its value and you'll run for years past the loan term. Lease what changes fast, gets used seasonally, or you'd want to upgrade in three years anyway.
The mathShould I take on debt to grow the business?
Only if the debt funds something that generates more cash than it costs, on a timeline you can survive even if growth is slower than planned. Debt to cover a cash shortfall from an already-struggling operation is a different and much riskier decision.
The math Checklist
Sales
All sales →A customer won't sign the change order but wants the extra work done. What do I do?
Stop and hold. Doing unsigned extra work trains every future customer that your paperwork is optional, and you'll never collect for it.
ScriptShould I bid on jobs I expect to lose?
Yes, sometimes, on purpose. A high bid on a job you don't want protects your schedule and your price, it's not a wasted bid.
The mathHow many bids should I give away for free versus charge for design?
A straightforward walk-and-price bid is free. Real design work, drawings, or multiple concept revisions is a paid service, always.
Script The mathHow do I handle scope creep from a homeowner who's home all day watching the job?
Set the ground rules on day one about who talks to the crew and how requests get handled. Waiting until it's already a problem makes it personal instead of procedural.
ScriptWhen should I walk away from a customer during the sales process?
Walk away when they're negotiating you down before you've even started, or treating a free estimate like they already own your time. Both are previews of the whole job.
Script ChecklistHow do I fire a bad customer without burning a bridge or looking unprofessional?
Be brief, be honest that it's not a fit, and don't relitigate every past incident. You're allowed to stop serving someone who costs you more in stress and margin than they're worth, and doing it calmly protects your reputation more than tolerating them does.
Script Checklist
Operations
All operations →My sub didn't show up. How do I replace him mid-job?
Give him one direct conversation and a real deadline. If he misses that too, you already have your answer, get someone else lined up before you cut him loose.
Script ChecklistHow do I close out a punch list that never seems to end?
Cap it at one walkthrough with one written list and one deadline. Rolling, informal punch lists never end because nobody agreed on when they would.
Template ChecklistShould I take on a job outside my normal type of work?
Only if you can price the unknown honestly and you have someone on the crew who's actually done it before. 'We'll figure it out' is how bids turn into losses.
ChecklistHow do I run two crews when I can only physically be on one site?
You need a lead on the site you're not at who can make real decisions, not just relay questions to you. Without that, two crews just means two things going wrong at once.
ChecklistHow do I build an employee handbook I'll actually use, not just a binder that sits on a shelf?
Write ten pages of the policies that come up every year, in plain language, and actually enforce every line in it. A fifty-page handbook nobody reads protects you less than a ten-page one everyone has actually opened.
Template ChecklistHow do I cover my own vacation without the business shutting down while I'm gone?
Build coverage in stages over months, not the week before you leave, starting with a written list of every decision only you currently make. If that list has more than a few items on it, that's your actual project before you can leave.
Template Checklist
Hiring
All hiring →Should I pay subs or hire employees?
Subs give you flexibility and lower fixed cost, employees give you control and consistency. Most GCs need a mix, not an either-or.
The mathWhen should I hire a project manager or lead carpenter?
When your own schedule is the bottleneck on how many jobs you can run, not before. Hiring one too early is an overhead cost with no volume to justify it.
The mathHow do I know if I can actually afford my first hire?
Run the fully loaded cost against the revenue you're already turning away, not against your current cash balance. If the math doesn't clear with room to spare, you can't afford it yet.
The math ChecklistHow do I write up an employee and actually document performance problems?
Write it down the same day, in plain facts, with a clear expectation and a deadline, and have them sign it. A folder of dated write-ups is what protects you and gives the employee a real chance to fix it.
Script TemplateWhat's the right way to fire someone so it doesn't blow up on me?
Make the decision before the meeting, keep the meeting short and factual, and have logistics ready so there's no ambiguity about what happens next. The meeting itself should take five minutes, not thirty.
Script ChecklistHow do I write a job posting that actually filters out the wrong people?
Put the real pay, the real hours, and the real hard parts of the job in the posting, on purpose. A posting written to attract everyone attracts everyone, including everyone wrong for the job.
Template ChecklistHow do I know when it's time to hire a manager, and how do I find the right one?
Hire a manager when the business has outgrown your personal attention span, not your patience. Look inside first for someone who already has the trust of the team, and only go outside if nobody internal is close.
Script ChecklistWhat do I do when a key employee suddenly quits?
Cover the immediate gap first with a short-term plan, then find out honestly whether it was preventable before you rush to backfill the exact same role the exact same way. A rushed replacement hire often repeats whatever problem drove the last person out.
Script Checklist
Leadership
All leadership →How do I get out of the truck/bay and actually start running the business instead of just working in it?
Replace yourself one skill at a time, starting with the task that's easiest to hand off, and protect a fixed block of office time on your calendar like it's a customer appointment. You won't get pulled out all at once, and trying to will just put you right back in the field within a week.
The math ChecklistHow do I set a real vacation policy for myself as the owner, not just whenever I can sneak away?
Put your own time off on the calendar for the year, in writing, the same way you'd schedule payroll, and treat moving it as the exception, not the norm. If you don't schedule it in advance, it will always lose to whatever feels urgent that week.
Template ChecklistHow do I handle a serious disagreement with my business partner?
Separate the business decision from the relationship, get it in writing once you agree, and use your partnership agreement before you use your feelings. If you don't have a partnership agreement that covers this kind of dispute, fix that the moment things calm down, not after the next one.
Script ChecklistHow do I know if my business could actually survive a week without me?
Run the test for real, not hypothetically: leave for a genuine week with your phone off except for a true emergency line, and see what actually breaks. What breaks is your real to-do list, not a guess.
The math Checklist
Every owner hits these
Not specific to your trade, but they show up in every shop that has employees, customers, and a bank account.
- How do I raise prices without losing customers?
- What do I say when a customer says my price is too expensive?
- How do I follow up with leads without being annoying?
- How fast should I respond to a new lead?
- How do I close more sales?
- Should I give discounts?
- Should I give free estimates?
- Why do customers ghost after a quote?