LANDSCAPING · LANDSCAPE AND IRRIGATION · FIXED BY STEP 06

Your seed has to germinate before anyone gets paid

The GC can't file the Notice of Termination until your cover hits 70 percent, so your retention is riding on germination weather.

WHY IT'S A LANDSCAPING PROBLEM

Every other sub's final payment depends on installed quantities an inspector measures once and signs off on. Yours depends on living cover reaching a percentage, on a permit the GC holds and you can't close, after a summer that either cooperated or didn't. No other trade's retention is parked behind whether it rained in September.

WHAT IT COSTS

The size of it

You eat two and three reseeding mobilizations, your retention waits behind a permit closeout you don't control, and the site can reopen after you're gone.

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.

EPA's 2022 Construction General Permit requires 70 percent or more of the vegetative cover native to local undisturbed areas for final stabilization before a Notice of Termination can be filed. Your deliverable is then a biological outcome on a seasonal clock, judged against the undisturbed areas next to the site. Seed a site in August in a hot market and it won't come up, so you reseed at your own cost, sometimes twice, while the permit stays open and your retention stays open with it. Inspection findings can also reopen a site weeks after you demobilized.

WHAT TO DO

Three moves, in order

STEP 01

Write a seeding window with real date ranges into the bid and price reseeding as a separate unit outside the lump sum when the GC pushes you past it.

STEP 02

Get the GC's target NOT date in writing at buyout, back-schedule your seeding from it, and send written notice the moment the schedule pushes you out of the window.

STEP 03

Code each reseed as its own mobilization the day it happens, so the second and third trip stay visible and don't vanish into the original seeding line.

THE FIX

Step 06: Project management

Billing dates, change orders, and notices, written as standards that work without anyone chasing them.

CFOS-06 · CHAPTER 6

Billing and change orders that hold without chasing

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

The change orders you did and never billed

The field did the work. The paperwork never caught up. Ninety days later there is no record that proves it happened.

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

DRYWALL

Level 5 gets discovered after the primer goes on

The spec said Level 4, the owner walked it at night with the wall washers on, and now there's a skim coat between you and your retention.

DRYWALL

Piece rate and square-foot bids agree on flat walls only

Your hangers make the same on a clean corridor as on a bathroom full of soffits, so guess which walls are done Friday and which ones aren't.

ELECTRICAL

You hit the hours and still lost money on the rate

You bid labor in unit hours and the field hit the unit hours. The loss lives in the dollars per hour you converted them at, and it moves the same direction on every job you take.

QUESTIONS

What landscaping owners ask

Notice of termination waiting on grass to reach 70 percent?

The GC can't file the Notice of Termination until your cover hits 70 percent, so your retention is riding on germination weather.

What does it cost?

You eat two and three reseeding mobilizations, your retention waits behind a permit closeout you don't control, and the site can reopen after you're gone.

What do I do first?

Write a seeding window with real date ranges into the bid and price reseeding as a separate unit outside the lump sum when the GC pushes you past it.

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 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 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.