SCAFFOLDING · SPECIALTY · FIXED BY STEP 06

Forty verbal adds a job never become change orders

Masons want a lift raised and painters want a deck moved. Two men go out for three hours, no ticket gets signed, and the same call comes forty more times.

WHY IT'S A SCAFFOLDING PROBLEM

Scaffolding is the only trade that stays occupied on the site while every other trade works around it, which turns your crew into shared infrastructure for the whole project. Masons need lifts raised as the wall climbs, glaziers cut ties to set windows, mechanical hangs their own loads off your frames, and painters want decks moved. A fabricator gets asked for a change and produces a physical item as evidence; you get asked for a change and produce nothing anyone can point to.

WHAT IT COSTS

The size of it

You give away 200 to 400 unbilled erector hours per large project, and those hours corrupt the labor factor in your cost history, which raises the price of every bid you write after it.

OVERHEAD AT $1M–$5M

18%

CFOS target 17% for scaffolding.

GROSS MARGIN AT $1M–$5M

26%

CFOS target 28.5% for scaffolding.

NET PROFIT AT $1M–$5M

CFOS target 11.5% for scaffolding.

A super calls at seven in the morning and by ten your erectors are back on site raising a lift somebody else needs. That's a two-man half-day dispatch with a truck, and almost none of it becomes a change order. The GC files it under service included in the monthly rental, and because you leave no material behind, there's nothing on the wall afterward to point at when you ask to be paid. Multiply the same request across every trade that works around an erected scaffold for the life of the job and you're looking at hundreds of hours you never sold. It ends up as a labor overrun on a job the estimator priced correctly.

WHAT TO DO

Three moves, in order

STEP 01

Print a two-part field ticket for the truck: date, requesting party, trade, hours, men, and what was moved. No crew leaves the site without a signature from whoever called, even if the line reads no charge.

STEP 02

Give the dispatch a cost code that lives outside the base erect code so the hours never blend into the original scope.

STEP 03

Bring the signed tickets to the weekly GC meeting and price them as a lot at month end. Establish in the first thirty days that adds, drops, raises, and moves are billable, before the expectation sets in.

THE FIX

Step 06: Project management

Billing dates, change orders, and notices, written as standards that work without anyone chasing them.

CFOS-06 · CHAPTER 6

Billing and change orders that hold without chasing

What this step changes, what it depends on, and how to tell it's installed.

BENCHMARKS

Scaffolding 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

The change orders you did and never billed

The field did the work. The paperwork never caught up. Ninety days later there is no record that proves it happened.

SAME TRADE

What else costs scaffolding contractors money

SCAFFOLDING · CFOS-01

Your rental line is funding the GC's cash for two years

The GC holds ten percent of your monthly rental invoice the way they hold it on installed work, and keeps holding it until the building is done. Nothing on rent waits to be completed.

SCAFFOLDING · CFOS-02

Owned steel parked on a job costs that job nothing

A tower that ties up forty percent of your yard for fourteen months prices out identically to a three-month job using the same frames. Utilization lives nowhere in the accounting.

SCAFFOLDING · CFOS-06

Your erect date belongs to people who don't work for you

Crew is booked for the fifteenth and the drawings are still on the owner's engineer's desk. You don't control any of the three clocks that release the erect.

SCAFFOLDING · CFOS-04

You sell deck square feet and spend erector hours per lift

Ten thousand square feet at eight feet in an open garage and ten thousand square feet at ninety feet inside an occupied atrium bid identically. One of them costs double.

SCAFFOLDING · CFOS-01

The clamps that never came back are hiding in your overhead

Eleven hundred clamps shipped and nine hundred came home. By the time you know that, the final pay app is cut and the GC's job budget is closed.

SAME MECHANISM, OTHER TRADES

The same mechanism in other trades

CIVIL

Four mobilizations, one mob line item

You clear and grub in month one, come back for wet utilities, come back again for paving subgrade at closeout, and the contract still has one mobilization line.

CONCRETE

Six Trips Back for Pads and Sidewalks, One Unit Price

You were first on the site and you're still coming back for stairs, pads, curbs, and exterior flatwork, all priced inside a per-yard number that assumed you never left.

DRYWALL

You Go Back Six Times And No Ticket Gets Signed

You hung the corridor in March and you're still sending a guy back in June, one hole at a time, on somebody else's dime.

QUESTIONS

What scaffolding owners ask

How to bill for scaffold moves and raises the superintendent asks for?

Masons want a lift raised and painters want a deck moved. Two men go out for three hours, no ticket gets signed, and the same call comes forty more times.

What does it cost?

You give away 200 to 400 unbilled erector hours per large project, and those hours corrupt the labor factor in your cost history, which raises the price of every bid you write after it.

What do I do first?

What are scaffolding contractors supposed to be making?

Scaffolding runs 26% gross margin, 18% overhead and 8% net profit before taxes at $1M–$5M. The all-trade average is 7%, so this trade is 1 point above it. The CFOS target is 11.5%.

Which part of the system fixes it?

The step is number 06, project management. Billing dates, change orders, and notices, written as standards that work without anyone chasing them. It comes from chapter 6 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 scaffolding contractors as a service. It is a separate firm, Sulphur Prairie Management, LLC, run by the same author.

What a fractional CFO does for scaffolding contractors

AUTHOR

JOSH LUEBKER

MASTER ELECTRICIAN · 150+ PROJECTS · $2.1B+ MANAGED

Wrote CONTROL, the 8 step system behind these figures. More about the author.