Your painting company has just won the tender to paint 25 townhouses inside and out. the contract price is $400,000 incl gst.this is your first large project and tou have to set up a proper financial plan business plan and cash flow facility to support this project.
important details for this project
1.you have equity in your home of $500k
2.the builders trading terms are payment after 30 days from invoice minus 10% from each draw a 12 months defects period exists and the builder will hold 10% of the contract price minus gst.
3.fixed price contract-no variations.
4. the builder wants 10 painters on site at all times.
5. this is a 26 weeks project and penalties of $1,500 weeks apply after this date.
6.drawings each week are estimated at between $10-12k.
7.the a verage cash flow of your business to date is about $20k month.
8.material cost of this project is about $20k inclgst.
9.you have estimated a 15% profit margin on the project.
10.you need assistance to run this job.