You Lock The Price At Bid And Buy Paint Two Years On
You priced the thermoplastic two summers before anybody let you on the road. The unit price never moved and the material did.
Every trade grumbles about material prices, and most of them buy within weeks of bidding. Striping sits at the tail of the prime, so the stretch between the number you signed and the day you buy can run two full seasons of commodity movement. On thermoplastic and durable systems the material is a far larger share of the line than on waterborne paint, which means one bad buyout can take the entire marking package with it.
The size of it
Twelve to twenty-four months of unhedged exposure sits on a line item with no escalation clause, and every month of that window is yours alone. The contract offers no mechanism to recover any of it.
No published benchmark reference breaks this trade out on its own. CFMA reports at NAICS level, and at that level this trade rolls into a broader bucket with several others. That's why this page carries mechanisms and no margin figures. It reports inside NAICS 238990 All Other Specialty Trade, so there's no striping margin figure to put in this box. The 48 trades that do publish average 7% net profit at $1M–$5M before taxes, which is the nearest reference point worth anything here.
Marking is the last work on a multi-year roadway contract, so the unit price gets locked twelve to twenty-four months before you buy the paint, thermoplastic, glass beads, epoxy, or MMA. Traffic paint is built on petroleum resin and titanium dioxide, and beads are an energy-intensive glass product, so both drift with input costs across that entire window. Agency payment is per station, per linear foot, or per each, all-in, and the unit price is written to cover surface preparation, application, maintenance, removal, and disposal. Escalation language on a marking line item is the exception, so you carry the whole commodity move for the life of the prime contract with nothing in the contract that gives any of it back.
Three moves, in order
Step 04: Estimating system
The estimate maps one to one onto the job cost codes, so variance means something the day it appears.
What else costs striping contractors money
The same mechanism in other trades
What striping owners ask
Thermoplastic and bead price increases after the unit price was locked?
You priced the thermoplastic two summers before anybody let you on the road. The unit price never moved and the material did.
What does it cost?
Twelve to twenty-four months of unhedged exposure sits on a line item with no escalation clause, and every month of that window is yours alone. The contract offers no mechanism to recover any of it.
What do I do first?
Tag every open bid with its expected buyout date, not its bid date, and re-price the material portion whenever that date sits more than a year out.
Are there published benchmarks for striping?
No, and this site won't print one. No published benchmark reference breaks this trade out on its own. CFMA reports at NAICS level, and at that level this trade rolls into a broader bucket with several others. That's why this page carries mechanisms and no margin figures. In the surveys it rolls into NAICS 238990 All Other Specialty Trade, so the closest honest reference is the 48-trade table, where net profit at $1M–$5M averages 7% before taxes. Read that as the neighbourhood, and read your own job costing as the answer.
Which part of the system fixes it?
The step is number 04, estimating system. The estimate maps one to one onto the job cost codes, so variance means something the day it appears. It comes from chapter 4 of CONTROL: The Construction Financial Operating System.
