INTERIORS · INTERIORS AND FINISHES · FIXED BY STEP 06

Waiting on the Inspector Is Priced Into Nothing

Your crew is mobilized and can't legally cover the wall until MEP rough, blocking, sound batt, and head-of-wall firestopping pass, and the special inspector books elsewhere.

WHY IT'S AN INTERIORS PROBLEM

Most trades wait for access. Interiors waits for a legal release to conceal, which is a different animal. The AHJ and the special inspector own the clock, while the GC owns the call to proceed. Meanwhile the payroll in front of that open wall is yours alone, and because the same crew closes walls and drops tile, one late inspection on a floor stops both halves of your scope at once.

WHAT IT COSTS

The size of it

Idle or shuffled crews post to job cost as a labor overrun with no scope attached to them. There's no change order for waiting, so it turns up months later as we lost money on that floor, with nothing in the file to show why.

OVERHEAD AT $1M to $5M
13%
CFOS target 12% for interiors.
GROSS MARGIN AT $1M to $5M
19%
CFOS target 22% for interiors.
NET PROFIT AT $1M to $5M
6%
CFOS target 10% for interiors.

Interiors owns the two moments in a building where everybody else's work gets covered. The second side of the wall can't go on until the in-wall inspection clears, and head-of-wall firestopping is frequently a special inspection by a third-party inspector on the GC's dime and the GC's calendar. The ceiling works the same way, since the grid stays open until the above-ceiling inspection passes. Your crew is on payroll the whole time and there's no scope line to charge the hours against.

WHAT TO DO

Three moves, in order

STEP 01
Open a non-productive cost code for inspection hold and have the foreman code hours to it daily, by floor and by inspection type.
STEP 02
Put in-wall and above-ceiling inspection dates on a two-week look-ahead and send it to the GC every Monday, spelling out which special inspector is needed and who is booking him.
STEP 03
When a hold lasts past a full workday, email the superintendent that day with the crew count and the hold start time, so the hours are on the record before you decide whether to claim them.
QUESTIONS

What interiors owners ask

Crew waiting on inspection before we can close the walls?

Your crew is mobilized and can't legally cover the wall until MEP rough, blocking, sound batt, and head-of-wall firestopping pass, and the special inspector books elsewhere.

What does it cost?

Idle or shuffled crews post to job cost as a labor overrun with no scope attached to them. There's no change order for waiting, so it turns up months later as we lost money on that floor, with nothing in the file to show why.

What do I do first?

Open a non-productive cost code for inspection hold and have the foreman code hours to it daily, by floor and by inspection type.

What are interiors contractors supposed to be making?

Interiors has 19% gross margin, 13% overhead and 6% net profit after taxes at $1M to $5M. The all-trade average is 7%, so this trade is 1 point 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 following up on them. It comes from chapter 6 of CONTROL: C.F.O.S. Construction Financial Operating System.

OR HAVE IT HANDLED

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

What a fractional CFO does for interiors 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.

Updated

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.