When Should You Turn Down a New Contract?
Under most circumstances, securing a new contract is a cause for celebration, especially when working primarily in remediation and restoration. It means guaranteed work moving forward and, most importantly, a paycheck. This isn't always the case, however. When should a contractor turn down a new contract, and how can they do so without burning bridges?
When Should Contractors Reject Contracts?
It might seem like contractors are expected to accept every contract that comes their way, especially for new companies trying to make a name for themselves in an incredibly competitive industry. However, there are a few different scenarios where it may be best for them to consider turning down a new contract that crosses their desk.
Inadequate Money
If a restoration and remediation business sees a new contract and knows it'll leave them at a loss regarding income, they're well within their rights to decline it. If they work at a loss for long enough, they'll eventually run their company into the ground.
A business doesn't have to make a massive profit on every job, but they need to make enough to cover expenses while still keeping their heads above water.
Too Many Deadlines
It's not necessary to accept every offered contract, especially if a company already has a full docket. A business should focus on their existing clients and looming deadlines before taking on new jobs.
Loading up their plates with responsibilities won't help them achieve more work. If anything, it could damage productivity, making it take even longer to meet existing deadlines. If a contractor rushes through jobs and delivers substandard work, they could ruin their professional reputation.
Negative Client Reputation
Construction companies aren't under any obligation to work with any particular client, especially if they have a bad reputation among contractors and professionals in that area. Business managers should avoid subjecting their teams or themselves to cruel, unprofessional or endlessly unpredictable clients who will make the job harder than necessary.
Looking for quick answers on restoration, remediation and cleaning topics?
Try Ask R&R, our new smart AI search tool.
Ask R&R →
Miscellaneous Reasons
Maybe a construction contractor is not yet confident in their ability to complete a job to their client's satisfaction. Maybe they have a full plate. Or, perhaps they just don't want to take on the job. No business or contractor has to agree to every available contract, and they don't need a reason to decline them — beyond the fact that they don't want to take on the job.
Acting Diplomatically
Refusing to accept a contract doesn't mean contractors need to start burning bridges. They can turn down any contract that doesn't fit with their schedule — or that they simply don't want to do — but they should also ensure diplomacy. It's always essential to be polite while easing out of the relationship.
Restoration businesses do not owe clients an explanation for why a contract was rejected, even though clients may expect one. A contractor can simply say the job doesn't work with their schedule instead of telling a client they don't want to work with them because they've heard horror stories from other local companies. Offering alternatives is also helpful. This can be a useful tool to help placate angry customers who want to cause a scene after rejection.
Doing What's Best for the Business
Contacts and clients will come and go. That's just part of being a contractor. When it comes down to the nitty-gritty, construction enterprises and contractors are not obligated to take on any and all assignments. They should first ensure both the job and client mesh with their needs and values.
If anything feels off, they can turn them down effectively and politely and wait for the next job to come down the pipe. Doing what's best for the business will help everything else fall into place.
Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!
