Secret Construction Definitions Unique To High Profit Contractors – “M,N,O”

Last Updated on May 12, 2016

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 “M,N,O”

Mastermind Team – BCA Staff and Clients who mentor BCA contractor clients

Makers Vs. Takers – Makers believe it is better to make than to take; whereas Takers believe it is better to take than to make.

MAP – Marketing / Accounting / Production / formula for success

Maximize – The process of building and running your construction business to generate highest possible profits for short run so you can spend it all quickly and go broke. Similar to running your pickup truck on the race track as fast as it will go without proper maintenance so it lasts for about ten hours and 1,000 miles before it is destroyed

Money Is Made – In the office; not in the field. Strategy vs. Tactics

MR>MC – Wherever marginal revenue exceeds marginal cost do the job

Nepotism Is Relative – Construction company owner hires and promotes his relatives who proceed to chase off qualified field technicians and office staff in an effort to level the contractor down and out of business.

No Financial Reports – Driving on the highway, at night, windows blacked out and being surprised by the crash

Non-Construction Accountant – Dim-bulb wanna be bookkeeper without any construction bookkeeping skills trying to jam retail accounting methods into construction accounting

Not Listening – Contractor who gives their clients what the contractor likes not what the client wants

OSHA – A protective coating made by half-baking a mixture of fine print, red tape, split hairs and baloney

Optimize – The process of building and running your construction business to generate normal and economic profits for the long haul and provide you with a substantial income for current living expenses and a comfortable retirement. Similar to running your pickup truck on the roads and highways at normal safe speeds with proper maintenance so it lasts for ten years and 200,000 miles or more

O.P.M. – Other People’s Money! Cash flow and bad bookkeepers are the #1 and #2 reason construction companies go out of business, bankrupt or worse. When doing a construction project do not be the banker! Invoice early and often and get change orders signed.

OSHA – A protective coating made by half-baking a mixture of fine print, red tape, split hairs and baloney

About The Author:

Randal 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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