How much do you think Past Performance impacts your bottom line? Do you think what you did 5 years ago, 10 years ago or even 20 years ago matters today?
Even though the business of construction has evolved over the last few years, past performance matters more than most people care to know. Things in your past such as complaints at the Contractor's Licensing Boards, liquidated damages or projects delayed without good cause, all impact how you are viewed for future contracts especially in negotiated work.
In government contracting, your performance matters in every contract especially when you consider that they don't always take the lowest bid, but the most 'qualified' bid. Qualifying for these bids means submitting ALL of your past performance on projects including any issues involving completion of projects.
Projects that have had delays or problems with
- safety,
- supervision,
- budgets,
- subcontractors,
- payments,
- liquidated damages,
- contract documents,
- complaints,
- certified payroll,
- schedules,
- lien releases,
- or any other issues can become an issue on future projects.
I hate to see companies put days and weeks into a bid only to be disqualified at the bid opening based on past performance. Make sure things that happen on projects are dealt with promptly and courteously (yes, you have to be nice).
Documenting everything and working with your subcontractors and suppliers to resolve any issues in a timely manner will go a long way in keeping your past performance records clean.
Remember, what you do today will follow you tomorrow, not only in your personal life but also in your business life. If you need help, don't hesitate to ask for it. It is far better to admit that you need help than to be denied projects and opportunities later.
Happy Contracting !!
Charlene S. Reed
www.MyConstructionOffice.com
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