GRADING · CIVIL AND EARTHWORK · FIXED BY STEP 06

A Density Tech's Calendar Runs Your Fill Schedule

The next lift doesn't go down until the lab comes out and shoots it, and that lab answers to the owner's geotech, not to you.

WHY IT'S A GRADING PROBLEM

This trade sells compacted volume, and compacted volume isn't finished until an outsider certifies it. That gives a stranger authority over tomorrow's production, which is a control problem no install-and-leave trade has to solve. Your daily ceiling gets set on a calendar you don't control. Iron and crew stay parked until somebody else's technician drives through the gate.

WHAT IT COSTS

The size of it

Two half days a week waiting on a density tech across a 12 week fill operation is roughly 12 lost machine days. At $8,000 to $20,000 a day of direct idle cost for a mid-size fleet, that's six figures buried inside a job that just looks like it underperformed.

OVERHEAD AT $1M–$5M
16%
CFOS target 15% for grading.
GROSS MARGIN AT $1M–$5M
18%
CFOS target 25% for grading.
NET PROFIT AT $1M–$5M
2%
CFOS target 10% for grading.

The pace of a fill operation is set by a third party you don't hire and can't schedule. Every lift has to hit its compaction spec, commonly 95% of standard Proctor verified with a nuclear gauge, before the next lift goes on, and the tech running that gauge works for the owner's geotech firm on the owner's calendar. Subgrade acceptance runs the same way, through a proof roll the geotech signs; fail it and you undercut and replace immediately, then argue about the change order later once the owner's engineer prices it. Your fleet burns fuel and payroll through all of it. No cost code says waiting on the lab, so the delay never reads as a delay, and the job simply comes in soft.

WHAT TO DO

Three moves, in order

STEP 01
Open a standby cost code on every job with fill and make foremen code idle hours to it in half day increments, with the cause written on the ticket.
STEP 02
Get the geotech's testing schedule, contact, and required notice window in writing at the preconstruction meeting, and hold the GC to it.
STEP 03
Bring idle hours by cause to the monthly review while the job is still open, because a delay claim is worth something in week four and worth nothing at closeout.
QUESTIONS

What grading owners ask

Who pays when my crew waits on compaction testing?

The next lift doesn't go down until the lab comes out and shoots it, and that lab answers to the owner's geotech, not to you.

What does it cost?

Two half days a week waiting on a density tech across a 12 week fill operation is roughly 12 lost machine days. At $8,000 to $20,000 a day of direct idle cost for a mid-size fleet, that's six figures buried inside a job that just looks like it underperformed.

What do I do first?

Open a standby cost code on every job with fill and make foremen code idle hours to it in half day increments, with the cause written on the ticket.

What are grading contractors supposed to be making?

Grading runs 18% gross margin, 16% overhead and 2% net profit before taxes at $1M–$5M. The all-trade average is 7%, so this trade is 5 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.

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

What a fractional CFO does for grading 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.