LANDSCAPING · LANDSCAPE AND IRRIGATION · FIXED BY STEP 04

The tree can't be expedited at any price

A 3 to 4 inch caliper shade tree is 8 to 12 years in a field, so when the regional growers are short there's no rush fee that fixes it.

WHY IT'S A LANDSCAPING PROBLEM

Manufactured material has a factory that can run overtime when a job gets hot. Your material is a living crop on a growing-season clock, and the binding constraint is the specified cultivar at the specified caliper, which money doesn't move. A closed dig window costs you a season, while every other trade's expediting problem costs them a premium.

WHAT IT COSTS

The size of it

One line on a plant list can move your completion date six to eight months, and the damages clock keeps running against substantial completion while you wait on a grower.

OVERHEAD AT $1M–$5M
15%
CFOS target 14% for landscaping.
GROSS MARGIN AT $1M–$5M
22%
CFOS target 24.5% for landscaping.
NET PROFIT AT $1M–$5M
7%
CFOS target 10.5% for landscaping.

When the plant schedule calls for a specific cultivar at a specific caliper and no grower in the region has it, you get two moves: a substitution request that restarts the approval clock, or freight from Oregon, Florida, or Tennessee on material where trucking is a large share of delivered cost. B&B stock also has a dig window, and in northern markets root balls only get dug in dormancy, so missing that window pushes the item to the next season, not the next week. Landscape Management documented contractors accepting undersized material and long waits after the 2021 Texas winter storm wiped roughly 60 percent of regional stock, with recovery projected at three plus years. The GC, meanwhile, is measuring liquidated damages against substantial completion.

WHAT TO DO

Three moves, in order

STEP 01
Before you sign the bid, call availability on your three longest lead plant lines and get written holds that state the caliper and the dig window.
STEP 02
File substitution requests during buyout rather than at planting, and put the approval time into the schedule you give the GC.
STEP 03
Price freight as its own estimate line separate from plant cost, so an out-of-region source registers as a visible cost change the day you make it.
QUESTIONS

What landscaping owners ask

Specified tree caliper not available anywhere lead time?

A 3 to 4 inch caliper shade tree is 8 to 12 years in a field, so when the regional growers are short there's no rush fee that fixes it.

What does it cost?

One line on a plant list can move your completion date six to eight months, and the damages clock keeps running against substantial completion while you wait on a grower.

What do I do first?

Before you sign the bid, call availability on your three longest lead plant lines and get written holds that state the caliper and the dig window.

What are landscaping contractors supposed to be making?

Landscaping runs 22% gross margin, 15% overhead and 7% net profit before taxes at $1M–$5M. The all-trade average is 7%, so this trade is right on it. The CFOS target is 10.5%.

Which part of the system fixes it?

The step is number 04, estimating system. The estimate maps one to one onto the job cost codes, so variance means something the day it appears. It comes from chapter 4 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 landscaping contractors as a service. It is a separate firm, Sulphur Prairie Management, LLC, run by the same author.

What a fractional CFO does for landscaping 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.