LANDSCAPING · LANDSCAPE AND IRRIGATION · FIXED BY STEP 01

You're the first trade on site and the last one off

You sleeved the site in month two and planted in month nineteen, and every crew in between drove across the work you'd already finished.

WHY IT'S A LANDSCAPING PROBLEM

A trade that installs once and turns the area over can defend its work at a single walkthrough. Your finished product lies at grade where everyone parks, and it stays vulnerable for months. Backcharges for damage to landscaping are the hardest thing to get a GC to accept, because everybody on that job assumes the grass was getting replaced anyway. The repair ends up on your punch list and never on a change order.

WHAT IT COSTS

The size of it

You're eating truck, trailer, skid steer, and drive time on trips that were never in the estimate, plus re-sod and lateral repair absorbed at your cost.

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

CFOS target 10.5% for landscaping.

Irrigation sleeving goes under the paving before the paving sub mobilizes, so you're on site early for a two day scope and then you leave. You come back for mainline and heads, again for rough grade and soil amendment, again to plant, again to sod, again for punch, and again for maintenance visits. That's five to seven mobilizations against a contract priced like one visit. You're last and your product is soft, so other trades drive on your sod, trench through your laterals, and stage material on your beds.

WHAT TO DO

Three moves, in order

STEP 01

Photograph and date every completed area the moment you demobilize, and email the set to the GC with a list of the areas you're turning over.

STEP 02

Open a damage-by-others cost code and write the change order the week the damage happens, while the responsible sub is still on site.

STEP 03

Count the mobilizations you ran on your last three completed jobs, price them out, and put a per-trip number into the next estimate.

THE FIX

Step 01: Job cost structure

Seven cost categories and three levels of granularity, built so the estimate and the ledger use the same words.

CFOS-01 · CHAPTER 1

Job cost codes that match how you bid the work

What this step changes, what it depends on, and how to tell it's installed.

BENCHMARKS

Landscaping by revenue band

All 7 bands are published. The CFOS target is beside the figure up to $10M to $25M, and the 4 bands above that are labelled modeled.

ACROSS EVERY TRADE

Cost codes the field ignores

You have 200 cost codes. The crews use four of them, and one is called Miscellaneous.

SAME TRADE

What else costs landscaping contractors money

LANDSCAPING · CFOS-06

The meter set you don't control ends your job

Every head is in the ground, the trenches are closed, and you can't pressurize a thing because the water purveyor hasn't set the meter yet.

LANDSCAPING · CFOS-01

A 22-week pump skid wants half down before you bill

The pump station quotes in quarters and the vendor wants 30 to 50 percent at release, months before the job produces a single dollar of billing.

LANDSCAPING · CFOS-01

Sleeving goes in month two and bills like nothing

Fifteen percent of your material goes under the pavement early and bills as three percent of a pay application, because the whole scope rides on one schedule of values line.

LANDSCAPING · CFOS-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.

LANDSCAPING · CFOS-06

Your establishment clock starts when they walk it

You finished planting in April, they inspected in June, and you watered and mowed for eight weeks with no billing event attached to any of it.

SAME MECHANISM, OTHER TRADES

The same mechanism in other trades

CIVIL

Four mobilizations, one mob line item

You clear and grub in month one, come back for wet utilities, come back again for paving subgrade at closeout, and the contract still has one mobilization line.

CONCRETE

Six Trips Back for Pads and Sidewalks, One Unit Price

You were first on the site and you're still coming back for stairs, pads, curbs, and exterior flatwork, all priced inside a per-yard number that assumed you never left.

DRYWALL

You Go Back Six Times And No Ticket Gets Signed

You hung the corridor in March and you're still sending a guy back in June, one hole at a time, on somebody else's dime.

QUESTIONS

What landscaping owners ask

Other subs damaged my sod and irrigation lines who pays?

You sleeved the site in month two and planted in month nineteen, and every crew in between drove across the work you'd already finished.

What does it cost?

You're eating truck, trailer, skid steer, and drive time on trips that were never in the estimate, plus re-sod and lateral repair absorbed at your cost.

What do I do first?

Photograph and date every completed area the moment you demobilize, and email the set to the GC with a list of the areas you're turning over.

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 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.

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

MASTER ELECTRICIAN · 150+ PROJECTS · $2.1B+ MANAGED

Wrote CONTROL, the 8 step system behind these figures. More about the author.