Weather owns your repair schedule; the permit owns the clock
It rains Tuesday night, the crew is out fixing fence Wednesday morning, and there's no pay item anywhere for that truck.
No other trade has a contractual repair deadline measured in business days off a rainfall event, applying continuously from grubbing through NOT. A drywall crew that misses a Wednesday is behind schedule. You're out of compliance, and the notice of violation goes against the owner's permit, which is why you fund availability itself even though a bid form has no unit for it.
The size of it
One two-man crew with a truck on standby costs roughly $18K to $22K a month fully burdened. Fold it into job cost and your jobs look randomly unprofitable by rainfall; leave it out of the bid rate and you're short that number every wet month.
The Construction General Permit says routine maintenance deficiencies found at inspection get initiated immediately and completed by the close of the next business day, with seven calendar days as the documented exception. That clock applies for the entire life of the job and the trigger is weather. You can't forecast a storm into a crew plan six weeks out, so the only way to meet the deadline is holding a truck and two guys available for events that may never come. Reserve capacity isn't chargeable to any single job, and every bid you wrote assumed it existed.
Three moves, in order
Step 03: Overhead calculation
What indirect cost really comes to at your size, and the rate your estimating template should be using.
What else costs SWPPP and erosion control contractors money
The same mechanism in other trades
What SWPPP and erosion control owners ask
How do I price the crew I keep on standby for storm BMP repairs?
It rains Tuesday night, the crew is out fixing fence Wednesday morning, and there's no pay item anywhere for that truck.
What does it cost?
One two-man crew with a truck on standby costs roughly $18K to $22K a month fully burdened. Fold it into job cost and your jobs look randomly unprofitable by rainfall; leave it out of the bid rate and you're short that number every wet month.
What do I do first?
Pull the standby crew and truck out of job cost and give them their own overhead line, so a wet month stops making one job look like a loser.
What are SWPPP and erosion control contractors supposed to be making?
SWPPP and erosion control has 24% gross margin, 14% overhead and 10% net profit after taxes at $1M to $5M. The all-trade average is 7%, so this trade is 3 points above it. The CFOS target is 13.5%.
Which part of the system fixes it?
The step is number 03, overhead calculation. What indirect cost really comes to at your size, and the rate your estimating template should be using. It comes from chapter 3 of CONTROL: C.F.O.S. Construction Financial Operating System.
Everything on this page is something you can install yourself, and CONTROL is the order to do it in. If you would rather buy the finished result, SPM The Construction CFO does this work for SWPPP and erosion control contractors as a service. It is a separate firm, Sulphur Prairie Management, LLC, led by the same author.
What a fractional CFO does for SWPPP and erosion control contractors
Wrote CONTROL, the 8 step system behind these figures. More about the author.