A failed bac-T is a crew week with no pay app
The line is in, backfilled, and the spec says it can't be mandrelled for 30 days. Everything that happens in those 30 days is your cost with no bid item behind it.
Retest hours have nowhere to go in most job cost setups, so they get buried in the pipe item that already looks profitable and the job report reads healthy while the crew burns days on a do-over. Testing is the one place in this trade where the calendar belongs to a city inspector and the bill belongs to you. Code those hours separately and you can finally see which specs, which labs, and which crews are generating the retests.
The size of it
A failed bac-T or deflection test costs three to ten crew days plus a remobilization with zero revenue attached, and today it's invisible in your numbers.
Open a testing and acceptance cost code on every job and make the foreman charge to it, because no spec has a pay item called retest. Gravity sewer commonly bars the deflection test until at least 30 days after final backfill, so there's a mandatory dead period between the last load of stone and the first shot at acceptance. Water main adds a hydrostatic pressure test plus disinfection with two bacteriological samples taken 24 hours apart, and one failed bac-T restarts the sequence: flush, re-chlorinate, re-sample, and wait out another 24 hours. CCTV often waits until after paving, months later, and nearly every spec puts retesting at your expense.
Three moves, in order
Step 01: Job cost structure
Seven cost categories and three levels of granularity, built so the estimate and the ledger use the same words.
What else costs underground utility contractors money
The same mechanism in other trades
What underground utility owners ask
How do I job cost a failed pressure test and retest on a sewer line?
The line is in, backfilled, and the spec says it can't be mandrelled for 30 days. Everything that happens in those 30 days is your cost with no bid item behind it.
What does it cost?
A failed bac-T or deflection test costs three to ten crew days plus a remobilization with zero revenue attached, and today it's invisible in your numbers.
What do I do first?
Add a testing and acceptance code to your cost structure with two buckets: initial test and retest.
What are underground utility contractors supposed to be making?
Underground utility 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 01, job cost structure. Seven cost categories and three levels of granularity, built so the estimate and the ledger use the same words. It comes from chapter 1 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 underground utility contractors as a service. It is a separate firm, Sulphur Prairie Management, LLC, run by the same author.
What a fractional CFO does for underground utility contractors
Wrote CONTROL, the 8 step system behind these figures. More about the author.