The grading permit clock isn't on your schedule
Third resubmittal on the grading permit, the power pole relocation is six months out, and your crew and iron cost money while no party in your contract chain is at fault.
A submittal to an architect has a contract behind it and a GC who can push on it. A plan reviewer and a power company work order queue have neither, and civil is the only scope that can't turn a wheel until both of them clear. Every other trade's delay clock doesn't even start until you're already in the ground.
The size of it
You hold two to four months of schedule with the crew and iron still costing money, and then you get a compressed field schedule you priced at normal production. None of it becomes a change order, because no party in the contract chain caused it.
Bid the permit clock as its own line of risk, because the party holding it has no contract with you or with the GC. Before a blade moves you need a grading or clearing permit, an NOI filed and posted, an approved stormwater plan, and separate water and sewer authority approvals for the tie-in with their own tap fees, and each one runs in review cycles. Every resubmittal restarts that review clock at zero, and dry utility relocations for power poles and gas mains live entirely on the franchise utility's work order queue where no contract language can compel a date. When the permit finally clears, the GC's only lever is to compress the field schedule, so you get asked to hit a shorter duration at the production rate you priced for the original one.
Three moves, in order
Step 06: Project management
Billing dates, change orders, and notices, written as standards that work without anyone chasing them.
What else costs civil contractors money
The same mechanism in other trades
What civil owners ask
Grading permit resubmittals and a power pole relocation are holding up my start date?
Third resubmittal on the grading permit, the power pole relocation is six months out, and your crew and iron cost money while no party in your contract chain is at fault.
What does it cost?
You hold two to four months of schedule with the crew and iron still costing money, and then you get a compressed field schedule you priced at normal production. None of it becomes a change order, because no party in the contract chain caused it.
What do I do first?
At bid time, ask for permit status and the dry utility relocation work order number. If either is still open, put a start-date assumption and a standby rate in the proposal.
What are civil contractors supposed to be making?
Civil runs 21% gross margin, 14% overhead and 7% net profit before taxes at $1M–$5M. The all-trade average is 7%, so this trade is right on it. The CFOS target is 10.5%.
Which part of the system fixes it?
The step is number 06, project management. Billing dates, change orders, and notices, written as standards that work without anyone chasing them. It comes from chapter 6 of CONTROL: The Construction Financial Operating System.
Everything on this page is something you can install yourself, andCONTROL is the order to do it in. If you would rather buy the finished result, SPM The Construction CFO does this work for civil contractors as a service. It is a separate firm, Sulphur Prairie Management, LLC, run by the same author.
Wrote CONTROL, the 8 step system behind these figures. More about the author.