MARINE · SPECIALTY · FIXED BY STEP 06

Corps Permit Conditions Hit After Your Price Is Locked

You signed in March and couldn't put a hammer in the water until October, and the permit that held you up belongs to the owner.

WHY IT'S A MARINE PROBLEM

The permit is held by the owner, so you've no right to push the agency and no contract clock running in your favor while you wait. A shoreside trade's permit problem is a plan check with a local reviewer who answers the phone. Yours is a federal district office plus a state certifier plus a consultation you aren't party to, and the answer comes back changing how you're allowed to drive pile.

WHAT IT COSTS

The size of it

A daytime protected species observer plus soft start and shutdown protocol adds $1,200 to $2,000 per driving day and cuts productive driving hours. Across a 30 day driving scope that's $40K to $60K no change order was ever written for, plus a season if the work window closes.

OVERHEAD AT $1M–$5M

15%

CFOS target 14% for marine.

GROSS MARGIN AT $1M–$5M

22%

CFOS target 24.5% for marine.

NET PROFIT AT $1M–$5M

CFOS target 10.5% for marine.

33 CFR 325.2 gives the district engineer 60 days from a complete application, but the Corps decides what complete means, and the clock suspends for 401 water quality certification, ESA consultation, and state coastal zone sign off. A nationwide permit with a pre construction notification runs its own separate 45 day review on top of that. When the permit finally issues, it issues with special conditions: turbidity curtain, bubble curtain, a protected species observer on every driving day, and an in water work window that closes on a date the fish decide. None of that was in the bid documents, and all of it is now means and methods you're expected to perform at the price you already gave.

WHAT TO DO

Three moves, in order

STEP 01

Spell out in your proposal which permit conditions your price assumes, listing the observer, the curtain, and the work window, and price everything else as an allowance.

STEP 02

Pull the public notice comment file and the draft permit before you mobilize, since the special conditions are usually visible weeks ahead of issuance.

STEP 03

Track observer days, soft start hours, and shutdown hours as their own cost codes from day one, so the change order writes itself off your records.

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

Marine 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 marine contractors money

MARINE · CFOS-02

The Mill Rolling Schedule Owns Your Barge Date

The mill gave you a November rolling slot and the barge is booked for September. The mill pays nothing for the six weeks your spread is down.

MARINE · CFOS-04

You Buy Pile by the Ton and Bill It by the Foot

Every cutoff on the barge is footage you already paid for and will never invoice. The same mismatch runs backwards on dredging.

MARINE · CFOS-07

Retention Releases on a Survey You Never Ordered

Ten percent of your scope is stuck behind a hydrographic survey the owner commissions and a mitigation report your crew has no control over.

MARINE · CFOS-01

One Mob Line Never Covered Three Barge Tows

You mobilized the spread three times on a job you bid one mobilization for, and the second and third came out of your margin.

MARINE · CFOS-03

The USL&H Audit Reopens a Year You Already Closed

The comp audit came back for forty grand you never saw coming, against a year that was already booked as profitable.

SAME MECHANISM, OTHER TRADES

The same mechanism in other trades

CIVIL

The grading permit clock isn't on your schedule

Third resubmittal on the grading permit, the power pole relocation is six months out, and your crew and iron cost money while no party in your contract chain is at fault.

CONCRETE

The 28-Day Break Decides a Pour You Already Billed

You poured in March on an approved mix, the cylinders came back low in April, and two floors have already gone up on the slab in question.

DEMOLITION

Four Clocks Own Your Start Date And You Own None

The machine is on the pad, the crew is standing around, and everyone is waiting on a letter from the gas company. None of the clocks that release your start belong to you.

QUESTIONS

What marine owners ask

Who pays for protected species observer during pile driving?

You signed in March and couldn't put a hammer in the water until October, and the permit that held you up belongs to the owner.

What does it cost?

What do I do first?

Spell out in your proposal which permit conditions your price assumes, listing the observer, the curtain, and the work window, and price everything else as an allowance.

What are marine contractors supposed to be making?

Marine 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 marine contractors as a service. It is a separate firm, Sulphur Prairie Management, LLC, run by the same author.

What a fractional CFO does for marine contractors

AUTHOR

JOSH LUEBKER

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

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