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A Great Loss Prevention Idea for A/E Firms: by Andy HarmelinPresident, A.I. Consulting, LLC
The practices of Architecture and Engineering are professionally challenging balancing contractual terms and conditions, with providing a professional and aesthetically pleasing design within budgetary guidelines.
Unfortunately, the design professional has to occasionally deal with a difficult or unhappy client. This client may feel that the architect did not design exactly what they envisioned, that some part of the work product was delivered sub-standard, that their budget was exceeded or disregarded, or simply that the project took too long to complete. Once a design professional starts down the path with an unhappy client it becomes a slippery slope, leading to lost revenues and possible litigation.
Fortunately many of these situations can be avoided with a small ounce of prevention in the form of a Peer Review of your Credit and Collection practices and procedures. Our firm has recently performed this type of Peer Review for several of our A/E client firms. As an independent third party we are able to evaluate the subject firm's credit and collection practices and procedures with a "fresh set of eyes". It has been said that "a peer review is as important to (a) firm's health as a physical is to yours."
We have developed the following Peer Review evaluation to better assess a firm's present credit and collection operations. The areas to be examined all pertain to boosting the firm's cash flows and preventing disputes. The evaluation consists of meeting with key operations and office staff to examine the firm's credit policy towards prospective clients, contracting process, routine collection efforts and key personnel involvement in the resolution of client issues and collection process. We interview each staff member involved with the following areas for about 30 to 45 minutes getting their feedback on what is working well and what needs improvement.
Credit Policy: ____________________________________________________________ A.I. CONSULTING, LLC |
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