Four things, every month
It's the job nobody in a small business has time for, and the one that decides whether you make money. It comes down to four things, and they run in order — what you price, what you keep, what you can see coming, and how long it takes to turn into cash.
Pricing
Getting the number right before it goes out, so the job makes what it should rather than what you guessed.
- Rates checked and built up from actual cost, not carried forward from the last job
- Preliminaries and on-costs built properly — supervision, plant standing time, travel, accommodation, compliance
- The contract read before you sign it, and the parts that will cost you pointed out while you can still do something about them
- Qualifications and departures written down, so what you priced is what you are held to
Margin
The gap between what the job was priced to make and what it is actually making — measured while the job is still running, not discovered at the end.
- Cost to date and cost to complete tracked against the priced allowance, job by job
- Variations priced and submitted rather than absorbed — unpriced extra work is the most common way margin disappears
- Subcontractor and supplier costs reconciled to what was ordered, and back-charges actually raised
- Retention tracked from the first claim and recovered at the end
Retention is money the head contractor holds back from every payment — usually a set percentage of every claim — and keeps until the job is finished and the defects period is over. A lot of small businesses never chase it. On a decent-sized job that's real money sitting somewhere else.
Forecasting
Knowing what is coming before it arrives. Most businesses this size run on the bank balance, which tells you where you have been, not where you are going.
- Cash in and cash out mapped forward across the jobs you are running — when claims get certified, when they get paid, and when wages, fuel and hire fall due against that
- The gap between the two identified early enough to do something about it, whether that is a claim brought forward, a payment negotiated, or finance arranged before it is urgent
- Work in hand against capacity — what you have committed to, what you have the crew and plant for, and where the next gap in the programme is
- Forecast margin at completion updated each month, so a job heading the wrong way is visible while there is still job left to fix it
Quote-to-cash
The whole chain from the number you quoted to the money in your account. Every step in it is a place the money can stop.
- Written down at the time. Extra work, delays, changes on site. If it isn't recorded when it happens, you don't get paid for it later.
- Claims in on time. Every month, in the right form, with the backup attached and within the window the contract and the legislation set.
- Variations submitted and argued. Priced, substantiated, and pushed back on when they get knocked back.
- Money followed up. What's owed, how old it is, and the payment legislation used when it needs to be.
- Job closed out. Final claim, defects, and your retention back.
The payment legislation referred to above is WA's security of payment regime. The full position, including what happens if a payment schedule is not served in time, is set out once on the contract administration page.
Why not just hire someone?
Because the numbers don't work. A decent commercial manager in WA is a full-time salary once you add super, a vehicle, and the rest. A business the size of most Kimberley subcontractors can't carry that against one or two jobs at a time.
And it doesn't get easier as you grow. The work grows, but so does everything else. Most Kimberley businesses reach a point where they need the function well before they can afford the person.
Fractional means you share. You get someone experienced for the days you need them, and you don't pay for the days you don't.
How the retainer works day to day
It's not a report you get at the end of the month. It's someone in your business, on your jobs, for an agreed number of days on a standing monthly retainer.
- An agreed number of days a month, set at the start
- On site and in your office, not just on the phone
- Your claims go in on your letterhead, prepared and checked
- You get told what's coming — what's due, what's at risk, what needs a decision
- Available between visits when something lands and you need an answer
What it costs you
This is the part most people don't expect. Once you win a job, the cost of a commercial manager belongs in the price of that job — the same way your supervisor, your insurance and your plant do. The head contractor pays for it through your rates. It is a normal thing to include and buyers expect to see it.
Tender support
We help you put the tender together. Fixed fee, capped hours, agreed in writing before we start.
Ongoing commercial management
You win, and we stay on and run the commercial side for the length of the job. Monthly fee, minimum term.
Buy-out
If you'd rather run the commercial side yourself after award, you can. A one-off buy-out fee applies.
Being straight about Stage 1: that money is at risk. If the tender doesn't get up there's no job to put it in, so you've spent it for nothing. We keep it small on purpose. It's there to make sure we're both committed before anyone does a lot of work, not to make money on tenders that don't win.
We don't publish fees, because the right number depends on how big the job is and how long it runs. Ask and you'll get a figure before you commit to anything.
More on how engagements are structured →
What Stage 1 covers
Tender support is a service in its own right, and what it includes — pricing and rate checks, preliminaries and on-costs, the commercial response, schedules, departures and a final review before submission — is set out in full under tendering and estimating. Engaged as Stage 1 of a retainer it is the same scope, priced as the entry point rather than as a standalone job.
Where the money runs out
The fixed fee has an hours cap, and we tell you in writing when 80% of it is used up. After that, nothing more happens unless you agree in writing — either to a higher fee or to an hourly rate. You will never get an invoice for hours you didn't approve.
Something you should know
Nausicaa also works for contractors from outside the region — possibly the same ones you tender to. We say so openly. We will not act for two businesses on opposite sides of the same job, and we will not use anything you tell us to help someone else, during the engagement or after it. We check before taking on new work and we write that check down.