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Secret Construction Definitions Unique To High Profit Contractors – “P,Q,R”

How To Make $100,000 A Year

This is a guest post from Randal DeHart at FastEasyAccounting.com.

I have been involved with construction beginning in the mid 1960’s as a kid working in the family construction company through the present time.

Over the decades I have gathered and documented a comprehensive list of terms that describe construction. Some of them are meant to bring a smile to your face, some are serious and the rest I hope are simply entertaining.

This Article Contains Definitions That Begin With The Letter “P,Q,R”

PAM – Production / Accounting after checks bounce and letters for back taxes / Marketing word of mouth

Personal Assistant – Someone who works part time with big red “S” on back of their cape (Superman / Superwoman) able to run personal and business errands, answer phones, make deliveries, clean restrooms, take messages, memorize a verbal list of to-do items from contractor without writing any of them down, schedule jobs, listen to customer and staff complaints, babysit children and pets, wipe runny noses, clean up spills, make and serve coffee, pay bills, open the mail, go make bank deposits, work on tiny desk, no air conditioning in summer, limited heat in winter, bad lighting, fix broken computers and printers and do the bookkeeping for multiple companies

Peter Principle In Construction – Promoting a journeyman to Project Manager or working foreman without formal training. Leads to Construction Train Wrecks.

People Dependent Vs. Process Dependent – Construction contractors who insist on getting control of people, employees, vendors, suppliers and stakeholders are like Sisyphus doomed to “Push a heavy rock up a hill for all eternity or until the go out of business. Construction contractors who are process dependent are more likely to enjoy the finer things of life that money and freedom can buy.

Pioneer – Contractor with flaming arrows in the back from asking the bookkeeper for accurate reports

Poor Contractors – Have hundred dollar conversations with their mentors and attend the business round table

Process – System to produce predicable quality results and reap dividends for the owners

Process Development – Do it, Document it, and Delegate it

Professional Contractor – Serious construction business owner with construction strategy and definitely in construction business to earn a worthwhile profit. One of the Four Types Of Contractors

Profit – Cash is a fact and profit is an opinion. One will put a roof over your head, clothes on your body and groceries on the table. The other one will impress your banker. Keep your priorities straight.

Project Manager – The conductor of an orchestra in which every musician is in a different union

Project Management – Combination of skills and construction project software

Purpose Of Your Construction Company – Acquire clients, satisfy their needs and repeat as often as possible to increase cash flow and profits.

QuickBooks For Contractors – Accounting software for construction companies

Rain Maker – The person in the contractors firm that acquires new clients

Real Money – In Construction the real money is made in the office; not in the field.

Remodel Process – Forming (Honeymoon), Storming (demolition), Norming (Rough-In), Performing (Paint)

Retail Bookkeeper – Worked at store somewhere, thinks all accounting is the same, expensive lesson for contractors

Retired – Means you got tired of them, or they got tired of you

Rich – Income exceeds outgo

Right Vs. Rich – Right Vs. Rich is all about giving your customer or client what they want, not what you think is best

ROI – Risk of Incarceration; in most cases the business owner is responsible for unfiled taxes and missed payments, not the bad bookkeeper.

About The Author:

Randal DeHartRandal DeHart, PMP, QPA The Construction Accountant. Randal DeHart, PMP, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington and Fast Easy Accounting. He is the leading expert in outsourced construction bookkeeping and accounting services for small construction companies across the USA. He is experienced as a Contractor, Project Management Professional, Construction Accountant, Intuit ProAdvisor, QuickBooks For Contractors Expert and Xero Accounting Specialist and Bill.Com Certified Guru. Visit http://www.fasteasyaccounting.com/ to learn more. Follow Randal on Google+

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