A Hairline Crack Costs You a Whole Elevation
It's a hairline off a window corner and the industry calls that normal, and you still rent a lift to refinish the elevation to the nearest control joint.
Most trades get callbacks on defects. You get called back on something the industry itself defines as normal, on a monolithic surface where the cosmetic repair is bounded by control joints and has nothing to do with the size of the crack. Because the call comes in a year after close, the cost sits in overhead and never touches the job that caused it.
The size of it
A $250 crack turns into a $5,000 to $9,000 elevation refinish, and warranty work in this trade routinely runs 1 to 3 points of revenue.
SMA's crack policy says owners should expect hairline cracks and diagonal cracks running off window and door corners, and that industry practice is to repair cracks exceeding a sixteenth of an inch. The catch is that cured, weathered stucco can't be patched invisibly, so a spot repair reads as a patch under the same critical light the acceptance walkthrough used. The honest fix is a fog coat or a full refinish of the elevation to the nearest control joint, plus access equipment to get back up a three story wall, plus mobilization for about one man day of real work. Those calls come in after the first full thermal and freeze cycle, six to eighteen months past acceptance, which is well after you closed the job in your books.
Three moves, in order
Step 01: Job cost structure
Seven cost categories and three levels of granularity, built so the estimate and the ledger use the same words.
What else costs eifs and stucco contractors money
The same mechanism in other trades
What eifs and stucco owners ask
How do i track stucco warranty callbacks after the job is closed?
It's a hairline off a window corner and the industry calls that normal, and you still rent a lift to refinish the elevation to the nearest control joint.
What does it cost?
A $250 crack turns into a $5,000 to $9,000 elevation refinish, and warranty work in this trade routinely runs 1 to 3 points of revenue.
What do I do first?
Open a warranty cost code under the original job number and keep the job open in job cost for two years past acceptance, so callbacks get charged where they belong.
What are eifs and stucco contractors supposed to be making?
EIFS and stucco runs 23% gross margin, 15% overhead and 8% net profit before taxes at $1M–$5M. The all-trade average is 7%, so this trade sits 1 points above it. The CFOS target is 10%.
Which part of the system fixes it?
The step is number 01, job cost structure. Seven cost categories and three levels of granularity, built so the estimate and the ledger use the same words. It comes from chapter 1 of CONTROL: The Construction Financial Operating System.
