PROCESS PIPING · MECHANICAL AND LIFE SAFETY · FIXED BY STEP 06

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.

WHY IT IS A PROCESS PIPING PROBLEM

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.

WHAT IT COSTS

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.

OVERHEAD AT $1M–$5M
16%
CFOS target 15% for process piping.
GROSS MARGIN AT $1M–$5M
24%
CFOS target 25% for process piping.
NET PROFIT AT $1M–$5M
8%
CFOS target 10% for process piping.

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.

WHAT TO DO

Three moves, in order

STEP 01
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.
STEP 02
Cost code by mobilization so trip four reads as its own number, and carry that number into the next negotiation with the same GC.
STEP 03
Ask for the owner's equipment delivery log at award and write your remob rate into the contract as a unit price triggered by any equipment date that moves more than 30 days.
QUESTIONS

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.

AUTHOR
Josh Luebker
JOSH LUEBKER
MASTER ELECTRICIAN · 150+ PROJECTS · $2.1B+ MANAGED

Josh Luebker ran commercial construction projects before he ran the numbers behind them, on data centres, military bases, hospitals, and high-rises. He wrote CONTROL: The Construction Financial Operating System, which is an eight-step framework for commercial subcontractors, and it publishes on October 1, 2026. He is a master electrician who moved into the office and kept the field vocabulary.

Sulphur Prairie Operations LLC maintains the benchmark reference behind these figures. Every edition is reconciled against the newest CFMA survey release before it publishes here. Where a figure changes between editions, the older edition keeps its year in the title so a citation to it stays correct.

Eight steps. Sixty days.

CONTROL is the full system, written for commercial subcontractors from under $1M to $100M. It publishes on October 1, 2026. Eight steps, six working templates, and the order they install in.