An open hole is rented equipment with no production
The cut is finished, the sidewalls are trimmed, and your crew and your machines sit there while a lab decides whether you're allowed to backfill.
Every other trade on the site is waiting on you, and you're waiting on a laboratory. Weather and sequencing are arguments you can take to the OAC meeting, while a pending confirmation result has no committed return date and nobody to escalate to. Machines on a remediation hole also can't be shuffled to another job easily, because pulling decon'd equipment out of an exclusion zone costs more than leaving it parked.
The size of it
Idle crew and rented equipment sit on a job that bills by the ton, and the second and third mobilization get absorbed as overhead unless the contract carries a standby clause and a per mobilization unit price.
Remediation goes first on a site and comes back repeatedly, and the trade can't close its own work. The consultant pulls floor and sidewall confirmation samples, the lab runs them, and one sidewall exceedance means another cut and another round of sampling. While that plays out you're holding HAZWOPER qualified labor, exclusion zone setup, air monitoring, decon, and consumables, all of which burn per mobilization. Find a hot spot mid dig and you demobilize and come back, which the lump sum line item paid for one time.
Three moves, in order
Step 02: Equipment cost basis
A true internal rate per machine covering ownership, maintenance, fuel, and transport, charged to the projects that used it.
What else costs remediation contractors money
The same mechanism in other trades
What remediation owners ask
How to charge standby waiting on confirmation samples before backfill?
The cut is finished, the sidewalls are trimmed, and your crew and your machines sit there while a lab decides whether you're allowed to backfill.
What does it cost?
Idle crew and rented equipment sit on a job that bills by the ton, and the second and third mobilization get absorbed as overhead unless the contract carries a standby clause and a per mobilization unit price.
What do I do first?
Build an hourly and daily standby rate for every piece on the site, excavator, plates, shoring, dewatering pump, and air monitoring gear, off your own ownership and rental cost, and attach it to the contract as an exhibit.
What are remediation contractors supposed to be making?
Remediation runs 23% gross margin, 16% 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 02, equipment cost basis. A true internal rate per machine covering ownership, maintenance, fuel, and transport, charged to the projects that used it. It comes from chapter 2 of CONTROL: The Construction Financial Operating System.
