Business - Business Strategy Essay Example | Topics and Well Written Essays - 2000 words

Business - Business Strategy - Essay Example The company is responsible for day to day oversight of ongoing project to track the work performance. It needs to effectively manage the vendors as well as the traders who are related to the project. General contractors provide wide range of services to the clients for a tendered fee and a possible duration of completion of the project under an authorised contract for proposed services. Contractor can charge the fees for its services by hour of work basis, by day or lump sum basis. They generally ask for payment from the clients after completion of each part of the whole project or they can charge in pre-mentioned work duration. General contractors take contracts of new project as well as renovation of an old or damaged project. For this type of services they do an effective site visit fpo0r proper understandings of the current situation of the project which is essential for the projection of required work on that project as well as to estimate the overall cost for the renovation. In the process of estimating the total cost of a project they consider the cost of required raw materials as well as the labour and other possible costs. All these are mentioned in detail in the budget. General contractors who work for government agencies are referred as prime contractor. For a business owner perspective, they hired contractor than a group of permanent employees to get the cost advantage. Contractors provide services in a competitive rate as there is also huge competition in contracting market. Apart from this, the client can release the contractor after one project and they do not need to provide training. Subcontractor Subcontractor works under main contractor and their task and obligations are assigned by the main contractor. In a complex project or a long term project, the main contractor generally hire subcontractor to complete different part of the project. Subcontractors are generally expertise of a particular type of work for project and this they are hired by the main contractor for effective completion of the total work. When a wide range of capabilities are required for a project then subcontracting become very useful. The subcontracting part of a project is generally not under the core competencies of the main contractor and for this reason it may assist to the main contractor in diversifying the overall risk and keeping costs under control. So the general contractor receives a better service from the subcontractor which it could not have provided by itself at a lower risk. Many subcontractor works for same companies which allow them to become specialised in a particular skill. In UK, there need to respond to the frequently changing environment and to service a diverse areas of the infrastructure. It has encouraged the subcontractor community for the flexible and diversified work and they have been providing specialised skills and expertise to many general contractor companies (Wrigleys Solicitors LLP, 2009). Financial Analysis for r ecommendation Table 1: Balance sheet of the company LIABILITIES Amount(?) ASSETS Amount(?) Issued(fully paid up) share Capital 200 Fixed Assets 100000 Revenue Reserves 60000 Depreciation 5000 Loans 200000 Â   95000 Overdraft 120000 Stock and work-in-progress 400000 Estimated Tax payable 20000 Debtors 100000 Trade Creditors 195000 Cash 200 Balance 595200 Â   595200 Table 2: Profit and loss statement of the company Particulars Amount(?) Amount(?) Sales