Four Clocks Own Your Start Date And You Own None
The machine is on the pad, the crew is standing around, and everyone is waiting on a letter from the gas company. None of the clocks that release your start belong to you.
Other subs wait on the trade ahead of them, and that trade is on the same job with the same GC pushing it. Demolition waits on a lab result, a federal notification window, and four utilities that have no contract with you and no reason to hurry. The 10 working day NESHAP clock can't be shortened by paying anybody, and it doesn't begin until the notification is filed correctly.
The size of it
You hold two to six weeks of schedule with iron already mobilized and a crew on payroll. If you moved equipment for a date that slipped, you pay mobilization twice and there's no pay app to charge either one to.
Start the permit chain before the subcontract is signed, and track every clock as a line item with one owner and a date. A demolition permit typically needs an asbestos and hazmat survey, a NESHAP notification with a 10 working day waiting period, signed disconnect and cap letters from gas, water, sewer, and electric, a rodent abatement letter, and an OSHA 1926.850 written engineering survey by a competent person. Every one of those belongs to somebody else: the lab, the air district, the utility, and the exterminator. If the survey finds regulated asbestos containing material, the job converts to an abatement job with a licensed sub in front of you, which is a different schedule and a different contract. Mobilize when the letters are signed and delivered, because the GC's start date isn't a permit.
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 demolition contractors money
The same mechanism in other trades
What demolition owners ask
Why can't we start demo until the asbestos survey and utility letters come back?
The machine is on the pad, the crew is standing around, and everyone is waiting on a letter from the gas company. None of the clocks that release your start belong to you.
What does it cost?
You hold two to six weeks of schedule with iron already mobilized and a crew on payroll. If you moved equipment for a date that slipped, you pay mobilization twice and there's no pay app to charge either one to.
What do I do first?
Build a one-page start gate covering the survey, the NESHAP filing and release dates, the four utility letters, the rodent letter, and the engineering survey. Nothing rolls until every box has a date.
What are demolition contractors supposed to be making?
Demolition runs 20% gross margin, 16% overhead and 4% net profit before taxes at $1M–$5M. The all-trade average is 7%, so this trade is 3 points below it. The CFOS target is 10%.
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 demolition 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.