Acceptance Happens Before the Wall Finishes Curing
They walk the building at dusk with a side light, write up shadowing that's gone by mid morning, and that walkthrough is what releases your money.
A facade trade finishes in month nine of a twenty month job, so your acceptance conversation and your retention release are a year apart with somebody else's work in between. Add a curing surface and a purely visual standard and you get the one trade where the criteria for getting paid come down to the angle of the light. No one argues about light angle over conduit.
The size of it
Retention earned in month nine gets argued in month eleven and released at closeout in month twenty, and the punch list from that walkthrough is unbillable labor you spend after the margin is already gone.
Portland cement plaster needs roughly 28 days to reach full cure, and SMA's inspection bulletin says early inspections finding soft plaster aren't a valid basis for rejection. The same bulletin says the wall is evaluated from 10 feet away, that tolerance is a quarter inch in 10 feet, and that critical light, meaning low angle or parallel lighting, exaggerates minor variation. It calls color variation the peak friction point on every project. None of that language lives in your subcontract, so acceptance ends up as a subjective walkthrough by somebody with a reason to hold money, on a surface that's still curing.
Three moves, in order
Step 07: Monthly cadence
Weekly bookkeeping, cost to complete, and one CEO report, on the same days every month.
What else costs EIFS and stucco contractors money
The same mechanism in other trades
What EIFS and stucco owners ask
GC is holding retention over stucco color variation at walkthrough?
They walk the building at dusk with a side light, write up shadowing that's gone by mid morning, and that walkthrough is what releases your money.
What does it cost?
Retention earned in month nine gets argued in month eleven and released at closeout in month twenty, and the punch list from that walkthrough is unbillable labor you spend after the margin is already gone.
What do I do first?
Write the SMA viewing standard into the proposal: 10 foot viewing distance, normal daylight, no critical light, and no acceptance walk inside 28 days of the finish pass.
What are EIFS and stucco contractors supposed to be making?
EIFS and stucco has 23% gross margin, 15% overhead and 8% net profit after taxes at $1M to $5M. The all-trade average is 7%, so this trade is 1 point above it. The CFOS target is 11.5%.
Which part of the system fixes it?
The step is number 07, monthly cadence. Weekly bookkeeping, cost to complete, and one CEO report, on the same days every month. It comes from chapter 7 of CONTROL: C.F.O.S. Construction Financial Operating System.
Everything on this page is something you can install yourself, and CONTROL is the order to do it in. If you would rather buy the finished result, SPM The Construction CFO does this work for EIFS and stucco contractors as a service. It is a separate firm, Sulphur Prairie Management, LLC, led by the same author.
Wrote CONTROL, the 8 step system behind these figures. More about the author.