You Fund Engineering and Mockups Before Month One Bills
You're paying a sealed facade engineer and an accredited test lab for months while the schedule of values earns almost nothing.
Other trades buy engineering as an occasional add-on. On curtain wall the delegated design is the product you sold. No drywall sub gets a mockup to build and water-test at a lab before he can order board. Your first four months are an engineering and testing program with a construction contract wrapped around them, while the billing schedule was written as though month one is installation.
The size of it
Engineering is commonly 1 to 3 percent of contract value and a lab performance mockup reaches six figures on a mid-size tower. On a $2.5M curtain wall contract, that's $75K to $250K out the door before the first material invoice, and booking it to overhead leaves the WIP with an underbilling no one can explain.
The curtain wall spec pushes design down to you. A licensed facade engineer has to seal shop drawings and calculations covering aluminum framing, insulating glass, setting points, structural silicone, the attachment hardware, anchors to the structure, and every sealant joint, per USGlass. Then the architect reviews, and that clock belongs to the design team. On institutional, healthcare, and university work an owner-required performance mockup gets built and air, water, and structural tested at an accredited lab before anything releases to production. Fail water at test pressure and you redesign and retest on your own nickel, and all of that spending falls in months 1 through 4 when the SOV has nothing worth billing.
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 curtain wall and glazing contractors money
The same mechanism in other trades
What curtain wall and glazing owners ask
Curtain wall engineering and mockup costs before first billing?
You're paying a sealed facade engineer and an accredited test lab for months while the schedule of values earns almost nothing.
What does it cost?
Engineering is commonly 1 to 3 percent of contract value and a lab performance mockup reaches six figures on a mid-size tower. On a $2.5M curtain wall contract, that's $75K to $250K out the door before the first material invoice, and booking it to overhead leaves the WIP with an underbilling no one can explain.
What do I do first?
Add phase codes for delegated engineering, mockup fabrication, and lab testing so those dollars post to the job where they belong.
What are curtain wall and glazing contractors supposed to be making?
Curtain wall and glazing has 27% gross margin, 18% overhead and 9% net profit after taxes at $1M to $5M. The all-trade average is 7%, so this trade is 2 points above it. The CFOS target is 12.5%.
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: 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 curtain wall and glazing contractors as a service. It is a separate firm, Sulphur Prairie Management, LLC, led by the same author.
What a fractional CFO does for curtain wall and glazing contractors
Wrote CONTROL, the 8 step system behind these figures. More about the author.