10/13/2026
A big contract can look like a great opportunity, but before you sign, make sure the numbers make sense for your business.
Here are five things to check before taking on a big project:
1. Expected profit
Calculate the contract price minus labor, materials, subcontractors, equipment, and other project costs. Make sure the expected profit justifies the work involved.
2. Your team's capacity
Can your team handle the new project alongside existing jobs? Consider staffing, equipment, deadlines, and the potential cost of overtime or delays.
3. Payment terms
Find out when you'll get paid. Deposits, progress payments, and final payments all affect how you manage your cash flow.
4. Upfront costs
Estimate how much you'll need to spend on materials, payroll, equipment rentals, and subcontractors before receiving payment from your customer.
5. Unexpected expenses
Account for possible material price increases, project delays, and additional work. Know how these costs could affect your expected profit.
A big project should support your business's growth without putting unnecessary pressure on your cash flow or existing commitments.
Before you say yes, review your costs, payment schedule, and expected profit.
How do you decide if a project is worth taking on?