Dispatch #21 - Save Money When G&A Contracts Like Insurance and Phones Renew
When an insurance policy, office lease, software subscription or other general administrative (G&A) contract expires, it’s an opportunity to save money.
Ask your Controller to list all such contracts, their expiration date, and whether they are on auto-renew.
Then:
Consider taking contracts off auto-renew so you can favorably structure their renewal terms
Eliminate unnecessary capacity (phone lines, data allowances, software licenses, revenue estimates on general liability insurance, etc.)
Negotiate favorable features, pricing and other contract terms, including early payment discounts
Look for cashback/rewards (corporate credit cards) or volume-based supplier rebates
If the expenses are employee-driven (most commonly fuel cards), be able to monitor and control usage through an online platform
Avoid hidden high-interest payment plans (common on certain leases and insurance installment plans)
Start the renewal process early enough to allow time to get other quotes if needed
Clarify what the company’s annual budget is for this expense, and who’s in charge of it (accountability).
Examine month-to-month contracts in a similar manner, looking for ways to reduce expenses.
Below is a list of some common contracts:
Insurance policies
Office, warehouse, and yard leases
Phones
Software subscriptions
Office equipment leases
Corporate credit cards
Car leases
Merchant card service (accepting credit cards)
PEO/payroll services
Need help with this or other financial matters faced by construction contractors? Let’s talk!
David Stern CFO makes every effort to provide useful and accurate information. This content, however, is not intended as a substitute for specific business-related financial advice. We disclaim all warranties and liabilities from its use.