![]() When your business first starts up, any set up costs may have been a considerable outlay. Therefore, even before your first day of trading when you make your first sale or start to provide your services, you are likely to have incurred various costs. It is also likely that you may have to spend a fair amount of money to get your new business off the ground. These costs prior to the commencement of your trade will be varied in nature. Whether you are a sole trader or you have your own company, you will incur costs before you start up. It is also key to know what you can claim for and as a result, your business will receive tax relief on these. Therefore, it is important to make sure that you are aware of pre incorporation expenses treatment. It may be expensive when you set up a new company or new business. In business, most new start-ups will incur pre trading expenses businesses before they are formally set up. It may therefore provide valuable information when bidding jobs in the future.When you start your own business, can you claim for your pre incorporation expenses / expenditure? Pre trading expenses are costs that you incur prior to starting your trade. The current pandemic is most certainly going to have a lasting effect and may change the way jobsites operate going forward. Even if you believe it is unlikely that these costs will be reimbursable, it would still be advisable to track for informational purposes. It is advisable to set these cost codes up now while costs are being incurred - identifying them later may be impractical, if not impossible. Having superintendents or other parties familiar with jobsites keep notes on additional restrictions that were not previously in place may also provide valuable information. In much the same way that office employees being forced to work from home has caused technology and other issues that are difficult to quantify, jobsites are encountering their own unique issues.įor instance, many jobsites are instituting best practices around social distancing, which places constraints on man lifts and other confined spaces. Technology costs to implement digital owner, architect, contractor meetings, and/or inspections.Labor costs incurred which cannot be moved during jobsite shutdowns.Travel costs - are employees traveling separately whereas they could previously car-pool?.Increased equipment needs - are two boom/scissor lifts now needed to avoid having workers in close proximity?.Costs of additional personal protection equipment or health inspections.Overtime if jobs are under rush to complete - think emergency medical services.Inspection delays or additional costs incurred with updated inspections processes.Material cost increases for production delays and supply chain disruption.A few examples of unforeseen costs and time delays could include: ![]() However, the best way may be to set up one or several new costs codes that can be used to track the various COVID-19 costs on a job by job basis. Tracking applicable costs can be accomplished in multiple ways: a new general ledger account or job being the simplest. In order to provide change order documentation to general contractors or owners, unforeseen costs must be both identified and quantified. The current pandemic is certainly causing additional unforeseen costs and delays - costs that could not have been predicted a month ago, let alone at the time of original contract. ![]() Between liquidated damages, back charges and additional labor hours, time can often be just as costly. This isn’t just for costs, but also time. If you have yet to incur costs associated with COVID-19, it is most likely just a matter of time.Ĭontractors often find themselves in a unique position when it comes to contract costs, constantly evaluating whether the work we are being asked to perform on an ongoing basis is within the scope of the original contract or is unique and therefore should be negotiated into a change order.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |