Your Door Hardware Sits in a Crate for Nine Months
You cut the deposit on doors, frames, and hardware in the spring so hollow metal frames can stand before the walls close, and the leaves and closers sit crated until finishes.
A framing sub buys studs and track, then installs them the week the truck unloads. Interiors has to buy finish hardware at framing time, because the frame and the leaf come off the same made-to-order submittal against an approved hardware and keying schedule with fire labels. That makes the package non-returnable and non-substitutable. Electrified sets routinely run 20 to 30 weeks, so you can't split the buy to match the two install dates.
The size of it
On a $900K interiors contract the DFH package commonly runs $120K to $180K, and the money goes out long before it comes back in. You carry the single largest material buy in the contract for six to nine months on terms that came due back at frames.
The DFH package gets released early because hollow metal frames have to be standing before either side of the wall goes on. Frames are the cheap part of that order. Money sits in the leaves, closers, exit devices, electrified hardware, and access control prep, and none of that installs until finishes. You end up with one purchase order, one deposit, one supplier net-30 clock, and two install dates six to nine months apart.
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 interiors contractors money
The same mechanism in other trades
What interiors owners ask
Paying for door hardware months before hanging any doors?
You cut the deposit on doors, frames, and hardware in the spring so hollow metal frames can stand before the walls close, and the leaves and closers sit crated until finishes.
What does it cost?
On a $900K interiors contract the DFH package commonly runs $120K to $180K, and the money goes out long before it comes back in. You carry the single largest material buy in the contract for six to nine months on terms that came due back at frames.
What do I do first?
Split the DFH package across two cost codes on the day you issue the PO, putting frames, anchors, and prep on the framing phase and leaves, closers, and electrified sets on the finish phase.
What are interiors contractors supposed to be making?
Interiors runs 19% gross margin, 13% overhead and 6% net profit before taxes at $1M–$5M. The all-trade average is 7%, so this trade sits 1 points below it. The CFOS target is 10%.
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: The Construction Financial Operating System.
