FIRE ALARM · MECHANICAL AND LIFE SAFETY · FIXED BY STEP 06

You bid three trips and you've made nine

The estimator priced two mobilizations, and then the schedule gave you six: boxes, wire pull, trim, programming, pretest, acceptance, retest, and ERRCS.

WHY IT'S A FIRE ALARM PROBLEM

Each of those fixes is a two-man crew and a lift for half a day, written on a T&M ticket the superintendent won't sign because he calls it your device. Other trades finish an area and leave it. Fire alarm keeps coming back because its devices live in a ceiling four other trades are still working in, and because acceptance is one event the whole building has to be ready for at once.

WHAT IT COSTS

The size of it

Three unpriced mobilizations at roughly $1,200 to $1,800 each plus device replacements at cost is $6K to $10K off a job that produced $70K of gross profit, and it never shows as a variance because it's coded to the same labor line as production.

OVERHEAD AT $1M–$5M
16%
CFOS target 15% for fire alarm.
GROSS MARGIN AT $1M–$5M
24%
CFOS target 26.5% for fire alarm.
NET PROFIT AT $1M–$5M
8%
CFOS target 11.5% for fire alarm.

The sequence is fixed and it's long. Sleeves and boxes go in at rough, wire pull follows once the walls close, and device trim waits until ceilings go in. After that comes programming plus a full in-house pretest, the AHJ acceptance test, a retest for whatever failed, and often a separate ERRCS grid test once the building is enclosed. That last one can trigger a bi-directional amplifier the spec listed as provide if required, which was never priced. Your trim trip falls behind painters and ceiling crews, so smokes catch overspray, strobes come out for grid changes, and the sheet metal contractor relocates your duct detectors.

WHAT TO DO

Three moves, in order

STEP 01
Split your labor cost codes into rough, trim, programming, pretest, acceptance, and callback so a return trip stops hiding inside install hours.
STEP 02
Count mobilizations on the next estimate the way the schedule really runs, and put each trip on the schedule of values as its own line.
STEP 03
Photograph every damaged device the day you find it, email the super that afternoon with the replacement cost, and hold the crew until the ticket is signed or a change order number exists.
QUESTIONS

What fire alarm owners ask

Fire alarm crew keeps going back to the jobsite unpaid trips?

The estimator priced two mobilizations, and then the schedule gave you six: boxes, wire pull, trim, programming, pretest, acceptance, retest, and ERRCS.

What does it cost?

Three unpriced mobilizations at roughly $1,200 to $1,800 each plus device replacements at cost is $6K to $10K off a job that produced $70K of gross profit, and it never shows as a variance because it's coded to the same labor line as production.

What do I do first?

Split your labor cost codes into rough, trim, programming, pretest, acceptance, and callback so a return trip stops hiding inside install hours.

What are fire alarm contractors supposed to be making?

Fire alarm runs 24% gross margin, 16% overhead and 8% net profit before taxes at $1M–$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 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.

OR HAVE IT HANDLED

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 fire alarm contractors as a service. It is a separate firm, Sulphur Prairie Management, LLC, run by the same author.

What a fractional CFO does for fire alarm contractors

AUTHOR
Josh Luebker
JOSH LUEBKER
MASTER ELECTRICIAN · 150+ PROJECTS · $2.1B+ MANAGED

Wrote CONTROL, the 8 step system behind these figures. More about the author.

8 Steps 60 Days

CONTROL is the full system, written for commercial subcontractors from under $1M to $100M. It's out now. 8 steps, 6 working templates, and the order they install in. $9.99 ebook, $24.99 paperback.