The casting bed sits empty while the architect reviews
Drawings have sat on somebody else's desk for five weeks. Your bed is reserved for that job, and it's casting nothing all week.
Idle bed time never gets charged to a job. There's no cost code for a reserved bed that cast nothing, so the plant burden and the crew you held for that slot get absorbed into overhead where it reads as a bad month with no cause attached. Other trades waiting on submittals are waiting to start work; a precast shop waiting on submittals is already paying for capacity it committed by date.
The size of it
A shop running six beds that loses two of them for three weeks eats roughly 8% of a quarter's production capacity with no job to charge it to. The erection date the GC is holding you to doesn't move an inch.
Approval runs through two reviewers, and neither one answers to you. Erection and piece drawings go to the EOR and the architect, while your own delegated engineer has to seal the embeds, the lifting inserts, and the stripping and handling stresses before anything releases to the bed. Design and approval commonly runs from week two out past week ten, and multiple review rounds are the most common source of schedule slippage in the whole package. Meanwhile the plant reserved a bed and a production slot by calendar date, and bed capacity is perishable: a day a bed doesn't cast is a day you never get back. A four week approval slip costs you more than four weeks, because the slot goes to whoever is approved and you re-queue behind them.
Three moves, in order
Step 06: Project management
Billing dates, change orders, and notices, run as standards that hold without anyone chasing them.
What else costs precast concrete contractors money
The same mechanism in other trades
What precast concrete owners ask
Precast shop drawing approval delay killing my production schedule?
Drawings have sat on somebody else's desk for five weeks. Your bed is reserved for that job, and it's casting nothing all week.
What does it cost?
A shop running six beds that loses two of them for three weeks eats roughly 8% of a quarter's production capacity with no job to charge it to. The erection date the GC is holding you to doesn't move an inch.
What do I do first?
Log a submittal clock on every job: date out, date due back, date it came back, and how many rounds it took. Review it in the monthly meeting.
What are precast concrete contractors supposed to be making?
Precast concrete runs 22% gross margin, 15% overhead and 7% net profit before taxes at $1M–$5M. The all-trade average is 7%, so this trade sits right on it. The CFOS target is 10%.
Which part of the system fixes it?
The step is number 06, project management. Billing dates, change orders, and notices, run as standards that hold without anyone chasing them. It comes from chapter 6 of CONTROL: The Construction Financial Operating System.
