A Pre-Term Trunk Cut Wrong Is Scrap You Own
Pre-term trunks run eight to twelve weeks and get cut to a number you took off the ceiling grid. Miss the number and you own an assembly no one can use.
Other trades release long-lead gear off a plan set at buyout and let the factory clock start running months before installation. Somebody from your crew has to walk the building with a measuring wheel first, so your longest lead item is also your latest release, every time. A mismeasured assembly also has no salvage path, because it fits one run in one building and nothing else.
The size of it
Cash goes out two to three months before the assembly ships and four months before it can be billed, and a bad field measurement is a total loss with no 20% restock fee to soften it.
You can't order the longest-lead item on the job early, because the length doesn't exist until pathway and grid are built enough to measure. Pre-terminated MTP and LC fiber trunks, custom copper assemblies, and cassette-loaded enclosures are cut and factory-tested to your dimension, which pushes the purchase order into the back half of the schedule where there is no float left. Eight to twelve weeks of factory lead stacks on top of that, and the distributor wants a deposit or prepay because made-to-order product never goes back on a shelf. Money leaves two to three months before the trunk ships and four months before you can bill the work it belongs to.
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
How do I schedule pre terminated fiber trunk lead times without eating scrap?
Pre-term trunks run eight to twelve weeks and get cut to a number you took off the ceiling grid. Miss the number and you own an assembly no one can use.
What does it cost?
Cash goes out two to three months before the assembly ships and four months before it can be billed, and a bad field measurement is a total loss with no 20% restock fee to soften it.
What do I do first?
Put the field-measure date for every pre-term run on the schedule as a hard predecessor to the PO, with one person responsible for it.
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.