Rising demand for contractors could result in higher profits
The fact that the demand for contractors is significantly outstripping expectations has led international construction company Mace to be optimistic about the potential for independent professionals to cash in during 2015. Their cost consultants have forecast a one per cent rise in tender costs as a result of improving contractor margins and growing demand for the services of contractors in the industry.
This could result in an increase in profits for contractors, who should be able to counteract rising costs by passing on the price of overheads to their clients and the potential to factor in higher profit margins for themselves as well. However, Mace is also keen to highlight the ongoing issue of the skills shortage in a number of sectors which has left demand for contractors at a high which could be used as leverage by canny contractors who wish to capitalise on their experience and expertise.
After six years of recession, the opportunity for contractors to improve their margins is one which is sure to be welcomed by those who work for themselves. This also means that contractors are in a better position to negotiate with clients over the more complex projects for which their skills are required. As far as the construction industry is concerned, the fact that, in general, the cost of materials has stabilised over recent weeks has been welcomed.
Anyone considering a career in contracting should ensure that they are not undervaluing their skills and the benefits that they bring to their clients. With shortages of qualified professionals in a number of different sectors, a proactive approach to negotiation can yield higher margins for projects where your skills could be instrumental to their success.
If you are considering a career as a contractor then there are a number of useful resources which can help you plan a successful transition to working for yourself. Our contractor calculator can help you to work out what you could expect to earn and our handy online guides can provide some insight into the kinds of issues you might face, such as the advantages and disadvantages of operating as a limited company. We can offer advice on everything from how to keep track of your expenses to planning for the future.
We understand that it can be a daunting prospect to go it alone, but with the help of an experienced accountant, you can rest assured that you are in good hands. Because we specialise in representing contractors, we can ensure that all your financial records are kept up to date, check that you aren’t paying more tax than you need to and make sure that you have all the support you need to succeed.
For more information about our services or to have a chat about what life is like as a contractor, give our friendly team a call today on 01442 275789 or email: firstname.lastname@example.org.