The Last 10 Percent Costs Four Mobilizations
You built to the flange, demobilized, and came back three more times waiting on a vessel the owner bought, re-renting the crane every trip.
Insulators and painters follow you, so a weld rejected after they've passed generates their removal and reinstall as a backcharge against you. The contract usually makes coordinating with the equipment delivery schedule your job, which means the extra trips aren't change orders even though the delay belongs to somebody else. Every trip restarts supervision and access cost on a scope the estimate treated as one continuous run.
The size of it
You run three to five discrete mobilizations on a job bid for one or two, at $8K to $20K each in crane, access equipment, scaffold, and supervision restart. It reads as unexplained labor overrun in the final 10 percent of the job.
Process piping is a multi-mobilization trade by construction. Underground process and drain lines go in before slab, and rack piping goes in after structural steel. Equipment tie-ins can't start until the vendor skid, vessel, pump, or exchanger is set and grouted, which is owner procurement. So you build to the flange and stop, come back when the vessel gets delivered, then come back again for flushing, hydro, and commissioning support. Each return re-rents the crane and manlift and re-erects or re-rents scaffold for rack-height work. It also restarts a foreman on a job whose details he's already forgotten.
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 process piping contractors money
The same mechanism in other trades
What process piping owners ask
Process piping crew mobilized four times waiting on owner furnished equipment?
You built to the flange, demobilized, and came back three more times waiting on a vessel the owner bought, re-renting the crane every trip.
What does it cost?
You run three to five discrete mobilizations on a job bid for one or two, at $8K to $20K each in crane, access equipment, scaffold, and supervision restart. It reads as unexplained labor overrun in the final 10 percent of the job.
What do I do first?
Split the estimate into mobilization phases (underground, rack, tie-in, and hydro and commissioning support) and price crane, scaffold, and access separately to each one.
What are process piping contractors supposed to be making?
Process piping runs 24% gross margin, 16% overhead and 8% net profit before taxes at $1M–$5M. The all-trade average is 7%, so this trade sits 1 points above 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.
