Beginning of the Year Checklist for Contractors

a blue pen writing on a checklist

Let’s face it – when you’re knee-deep in projects, the last thing on your mind is administrative planning. Taking the time at the start of the year to get organized is a necessary investment to ensure your business’s success. We’ve created this comprehensive checklist to help you tackle the essential tasks that will set your contracting business up for success this year.

1. Legal and Administrative Tasks: Getting Your House in Order

First things first – let’s handle the must-dos that keep your business legally sound. Pull out your calendar and mark these priorities:

 

  • License Renewals: Check expiration dates on your contractor’s license and any specialty certifications. Set reminders 60 days before they’re due to avoid last-minute scrambling.
  • Insurance Review: Don’t just auto-renew your policies. Meet with your insurance agent to review:
    • General liability coverage
    • Workers’ compensation
    • Equipment insurance
    • Vehicle coverage Pro tip: Many contractors overlook cyber insurance, but with increasing digital threats, it’s worth considering.
  • Business Registration: Ensure your business entity (LLC, Corporation, etc.) is current with state requirements and annual reports.

2. Financial Planning: Numbers That Matter

Money matters can make or break your business. Here’s what needs your attention:

Annual Budget Creation

    • Review last year’s actual vs. projected expenses
    • Factor in inflation and price increases
    • Plan for equipment replacements
    • Include a contingency fund (aim for 10% of projected revenue)

  • Cash Flow Management Create a month-by-month projection considering:
    • Seasonal fluctuations
    • Large equipment purchases
    • Tax payment schedules
    • Payroll increases

3. Business Operations Review: Fine-Tuning Your Machine

Think of this as your business’s annual physical.


Equipment Inventory- List all major equipment with:

    • Age and condition
    • Maintenance schedule
    • Replacement timeline
    • Repair history


Vehicle Fleet –  Document for each vehicle:

    • Mileage
    • Maintenance needs
    • Registration renewal dates
    • Fuel efficiency


Technology Assessment – Evaluate your current tools:

    • Project management software
    • Accounting systems
    • Communication platforms
    • Estimating tools

4. Marketing and Business Development: Growing Your Presence

Your reputation is everything in contracting. Here’s how to build it.


Digital Presence – Update your website with:

    • Recent projects
    • Current contact information
    • Customer testimonials
    • Service areas


Lead Generation – Develop strategies for:

    • Referral programs
    • Online advertising
    • Social media presence
    • Industry partnerships

5. Safety and Compliance: Protecting Your Team

Safety isn’t just about checking boxes – it’s about protecting your most valuable asset: your people.

Safety Protocol Review: 

    • Update safety manuals 
    • Schedule regular toolbox talks 
    • Review accident reports from previous year 
    • Update emergency contact information


OSHA Compliance: 

    • Schedule required training 
    • Update safety data sheets 
    • Review new regulations 
    • Plan safety audits

6. Project Management: Streamlining Operations

Get your project management systems running smoothly.

Review and update:

    • Project templates
    • Change order processes
    • Quality control checklists
    • Communication protocols

Evaluate subcontractor relationships:

    • Update preferred vendor lists
    • Review pricing agreements
    • Check insurance certificates
    • Update contracts

7. Team Development: Building Your A-Team

Your people make or break your success. 

    • Training and Development: 
    • Identify skill gaps 
    • Schedule certifications 
    • Plan leadership development 
    • Cross-training opportunities


Hiring Strategy: 

    • Review staffing needs 
    • Update job descriptions 
    • Develop recruitment plans 
    • Create onboarding processes

8. Goal Setting: Charting Your Course

Make your goals SMART (Specific, Measurable, Achievable, Relevant, Time-bound).

Financial Goals:

    • Revenue targets
    • Profit margins
    • Overhead reduction
    • Collection rates

Operational Goals:

    • Project completion times
    • Customer satisfaction rates
    • Safety incidents
    • Employee retention

Technology and Innovation: Staying Competitive

Don’t get left behind.

New technology adoption:

    • Building Information Modeling (BIM)
    • Drone surveys
    • Mobile apps for field reporting
    • Digital payment systems

Process improvements:

    • Automated scheduling
    • Digital documentation
    • Remote project management
    • Cloud-based collaboration

Action Steps to Implementation

    1. Schedule a team meeting to review this checklist
    2. Assign responsibilities for each area
    3. Set deadlines for completion
    4. Create a tracking system for progress
    5. Schedule quarterly reviews

Remember, this checklist isn’t set in stone. Adapt it to your business’s unique needs and circumstances. The key is to be thorough but realistic. Don’t try to tackle everything at once – prioritize based on your most pressing needs and available resources.

Final Thoughts

Starting the year with a solid plan doesn’t guarantee success, but it certainly improves your odds. Want to make this process easier? Download our free, customizable contractor checklist template. It includes all these points in an easy-to-use format, complete with tracking tools and reminder functions.

Remember, the best time to plan for success was yesterday. The second best time is now. Let’s make this your best year yet.

Need help with implementing any of these items? Our team specializes in contractor financing solutions that can help you achieve your business goals. Reach out to learn more about how we can support your growth this year.