SITEWORK · CIVIL AND EARTHWORK · FIXED BY STEP 06

Your Fastest Billable Work Comes Before the Pipe Gets There

You bill five weeks of mass grading, then watch six weeks of operators and iron wait on a wet well that couldn't be ordered until the shop drawing came back approved.

WHY IT'S A SITEWORK PROBLEM

Every other trade mobilizes after its long-lead item is already ordered, often already delivered to site. Sitework mobilizes in week one, burns the unrestricted scope first, and then hits the procurement wall with crews and machines already assigned. Utility-side supply chains still haven't normalized, so a submittal turnaround that slips two weeks moves your production hole two weeks and no other trade on the schedule feels it.

WHAT IT COSTS

The size of it

Revenue front-loads into the first month and a half, then you get a 6 to 8 week hole with operators and iron still on the job. You either demobilize and eat a second mobilization that was never bid, or you hold idle machines against a pay application with nothing on it.

OVERHEAD AT $1M–$5M
15%
CFOS target 14% for sitework.
GROSS MARGIN AT $1M–$5M
18%
CFOS target 24% for sitework.
NET PROFIT AT $1M–$5M
3%
CFOS target 10% for sitework.

The procurement exposure runs backwards from every other trade on the job. Clear and grub and mass excavation are the fastest, highest-volume scope on the contract, and they need nothing but a machine and somewhere to put the dirt, so you bill hard through the first 45 to 60 days. What's left after the dirt moves is scope that can't start until a wet well, a box culvert, a junction structure, or large-diameter RCP gets delivered, and those are built to order off an approved shop drawing, commonly 10 to 20 weeks out. That wait doesn't push your start date; it hollows out your middle.

WHAT TO DO

Three moves, in order

STEP 01
Pull the submittal date and the approval date for every made-to-order underground item before you set the crew schedule: wet wells, junction structures, castings, hydrants, valves, and large-diameter pipe.
STEP 02
Put the procurement-gated scope on its own phase codes so the earned revenue curve shows the hole in front of you, not behind you.
STEP 03
Take the production hole to the GC in writing while you still have leverage, and ask for either a schedule-driven remobilization line or stored-material billing on the fabricated items.
QUESTIONS

What sitework owners ask

Why does sitework revenue stop after mass grading is done?

You bill five weeks of mass grading, then watch six weeks of operators and iron wait on a wet well that couldn't be ordered until the shop drawing came back approved.

What does it cost?

Revenue front-loads into the first month and a half, then you get a 6 to 8 week hole with operators and iron still on the job. You either demobilize and eat a second mobilization that was never bid, or you hold idle machines against a pay application with nothing on it.

What do I do first?

Pull the submittal date and the approval date for every made-to-order underground item before you set the crew schedule: wet wells, junction structures, castings, hydrants, valves, and large-diameter pipe.

What are sitework contractors supposed to be making?

Sitework runs 18% gross margin, 15% overhead and 3% net profit before taxes at $1M–$5M. The all-trade average is 7%, so this trade is 4 points below 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, 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 sitework contractors as a service. It is a separate firm, Sulphur Prairie Management, LLC, run by the same author.

What a fractional CFO does for sitework 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.