The Inspector's Signature Starts Your Pay Clock
Twelve thousand feet went in the ground in June and the invoice didn't move until September. The crews got paid in June.
Most trades bill percentage complete that a GC can eyeball on a walkthrough. Outside plant quantity gets accepted against a GIS deliverable: point files, stationing, sheet numbers, and splice detail, reviewed by an inspector who works for the carrier and follows a standards manual. A finished bore never gets taken on trust.
The size of it
Sixty to ninety days of finished, cash-spent production stalls in unbilled WIP behind paperwork, so you're financing crews and fuel on work that's done in the dirt and still unbillable.
The as-built package is what makes footage billable, and the plow only makes it expensive. Unit-price telecom pays per foot of bore, per foot of plow, per splice, per pole, and per drop, but quantity isn't accepted until the carrier's inspector walks the footage package and signs it. Redlines come back over missing GPS points, wrong sheet numbers, and splice diagrams a field foreman with a phone camera was never equipped to produce. So the document queue sets your revenue and the crew only sets your cost, and the two are running two or three months apart.
Three moves, in order
Step 06: Project management
Billing dates, change orders, and notices, written as standards that work without anyone chasing them.
What else costs telecom contractors money
The same mechanism in other trades
What telecom owners ask
When can I invoice footage if the as builts aren't accepted yet?
Twelve thousand feet went in the ground in June and the invoice didn't move until September. The crews got paid in June.
What does it cost?
Sixty to ninety days of finished, cash-spent production stalls in unbilled WIP behind paperwork, so you're financing crews and fuel on work that's done in the dirt and still unbillable.
What do I do first?
Make as-built acceptance its own milestone with an owner and a due date on the schedule, the same way a bore is.
What are telecom contractors supposed to be making?
Telecom runs 22% gross margin, 15% 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.
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 telecom contractors as a service. It is a separate firm, Sulphur Prairie Management, LLC, run by the same author.
Wrote CONTROL, the 8 step system behind these figures. More about the author.