MARINE · SPECIALTY · FIXED BY STEP 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.

WHY IT'S A MARINE PROBLEM

Other subs get retention released off a punch walk a superintendent can knock out on a Tuesday afternoon. Marine retention waits on a survey vessel, a licensed hydrographer, and sometimes a resource agency biologist, and none of them are on your calendar or the GC's. That turns retention from a date you can chase into a date you can only wait on.

WHAT IT COSTS

The size of it

Retention on a $1.5M marine scope is $150K parked for 18 to 24 months with no release date you can forecast. That's the difference between funding the next mobilization out of cash and funding it off the line of credit.

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.

Marine goes in first on a waterfront job, so money earned in month two on a two year port, bridge, or marina project releases in month twenty after the topside trades finish. What triggers that release is the part owners don't see coming. Final acceptance turns on a post construction hydrographic or as built survey the owner commissions on the owner's timing, and on public work it often turns on certification of environmental mitigation, plantings, oyster reef, or eelgrass, monitored for three to five years. Your work is submerged or buried behind fill, so any dispute about what got built gets settled by a dive survey you pay for.

WHAT TO DO

Three moves, in order

STEP 01

List every open retention balance on one page next to the specific survey or mitigation milestone that releases it, and walk it monthly.

STEP 02

Negotiate retention reduction at substantial completion of your scope, tied to your own as built survey, and get it in the subcontract before you sign.

STEP 03

Build your cash forecast assuming retention comes late, and price dive survey support as its own bid line so it doesn't disappear into overhead.

THE FIX

Step 07: Monthly cadence

Weekly bookkeeping, cost to complete, and one CEO report, on the same days every month.

CFOS-07 · CHAPTER 7

The monthly close that takes a contractor 5 hours

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

Profitable on the P&L, out of cash

Your P&L says you made money and your bank account says you didn't. Neither is wrong.

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-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.

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-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

Your retainage is waiting on 70 percent grass

You finished grading in month three and utilities in month six, and the last 5 to 10 percent of your contract is locked behind a seed bed that has to hit 70 percent cover.

CONCRETE

Done in June, Retention Releases When the Building Opens

Footings, foundations, and slab-on-grade are the first real dollar volume on the site, so you bill most of your contract early and then wait on a building you left a year and a half ago.

DEMOLITION

Demo Goes First And Gets Its Retention Back Last

You work five weeks and wait twenty months for the money. Your retention rides the prime's substantial completion on a building you left before the foundation went in.

QUESTIONS

What marine owners ask

Marine retention held until owner's hydrographic survey?

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

What does it cost?

What do I do first?

List every open retention balance on one page next to the specific survey or mitigation milestone that releases it, and walk it monthly.

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 07, monthly cadence. Weekly bookkeeping, cost to complete, and one CEO report, on the same days every month. It comes from chapter 7 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.