SIDING · ENVELOPE AND STRUCTURE · FIXED BY STEP 06

Two clocks gate your start and you own neither

The mockup wall went up in a day, and then the crew waited three weeks on an architect who was never on your payroll.

WHY IT'S A SIDING PROBLEM

Siding is the trade that covers the evidence, so both gates fall right on your start date. Framing gets inspected and keeps moving, while cladding can't begin until the layer underneath it has been photographed, walked, and signed. The mockup compounds it, because you build real work that has no line to bill against and no clock you can push.

WHAT IT COSTS

The size of it

You build a $3,000-8,000 mockup that bills as zero, and you fund one to four weeks of a mobilized crew with no billable square footage. The crew either idles on your payroll or leaves and gets paid to come back.

OVERHEAD AT $1M–$5M
14%
CFOS target 13% for siding.
GROSS MARGIN AT $1M–$5M
21%
CFOS target 23.5% for siding.
NET PROFIT AT $1M–$5M
7%
CFOS target 10.5% for siding.

Two signatures release your crew, and you control neither one. The building department has to sign the water-resistive barrier and the window flashing before cladding buries it, and that inspection is the superintendent's call to make. On commercial and multifamily work the architect adds a full-scale mockup on top of it, usually one bay with a window head, a sill, an outside corner, and a joint condition, approved in writing before production siding releases. Your crew furnishes that mockup with scaffold, material, and cut and fit labor, which are real production hours that appear nowhere on the schedule of values. Then the review runs on the design team's calendar while your crew is already mobilized and staged.

WHAT TO DO

Three moves, in order

STEP 01
Put the mockup on the schedule of values as its own funded line, teardown included, before the subcontract gets signed.
STEP 02
Write the release condition into the contract in plain words: WRB and flashing inspection passed, mockup approved in writing, written notice before mobilization, or the standby gets billed.
STEP 03
Log three dates on every job, mockup built, inspection passed, and production released, so you can give the GC the delay in days the next time he asks why you priced it that way.
QUESTIONS

What siding owners ask

Who pays for the siding mockup wall on a commercial job?

The mockup wall went up in a day, and then the crew waited three weeks on an architect who was never on your payroll.

What does it cost?

You build a $3,000-8,000 mockup that bills as zero, and you fund one to four weeks of a mobilized crew with no billable square footage. The crew either idles on your payroll or leaves and gets paid to come back.

What do I do first?

Put the mockup on the schedule of values as its own funded line, teardown included, before the subcontract gets signed.

What are siding contractors supposed to be making?

Siding runs 21% gross margin, 14% overhead and 7% net profit before taxes at $1M–$5M. The all-trade average is 7%, so this trade is right on it. The CFOS target is 10.5%.

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 siding contractors as a service. It is a separate firm, Sulphur Prairie Management, LLC, run by the same author.

What a fractional CFO does for siding contractors

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

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

8 Steps 60 Days

CONTROL is the full system, written for commercial subcontractors from under $1M to $100M. It's out now. 8 steps, 6 working templates, and the order they install in. $9.99 ebook, $24.99 paperback.