You Priced Two Trips And You Made Eight
You're back at the same building for the eighth time on one square foot number. The bid unit is square feet installed and the cost unit is mob-days and kettle-days.
A trade that comes to the site once and leaves can spread mobilization across the whole contract. Waterproofing returns to the same address five to eight times over two years, at the GC's convenience, with a piece of equipment that has a fixed daily cost floor and no partial setting. That's a unit-of-measure mismatch specific to this scope, and one contract line hides all of it.
The size of it
A contractor averaging six mobilizations on a job priced for two is absorbing $15K to $25K of unrecovered mobilization and kettle time per project. It reads as high labor in the P&L when the real problem is in how the bid was structured.
Waterproofing on a job like this runs as a sequence: footings and below grade walls, under-slab pre-applied, elevator pit and sump, podium and plaza deck, above grade air and vapor barrier with window transitions, planter and split-slab, traffic coating in the garage after everyone stops parking in it, and sealants at closeout. Each of those is a separate mobilization with setup, safety, staging, and demob, spread across two years. Hot rubberized asphalt sets a floor under the cost, because a kettle takes 3 to 5 hours to bring 400 degree material up to melt temperature and the melter, generator, and hose crew burn a full day whether the deck is 500 square feet or 5,000. One lump sum square foot number for the whole scope means the small trips lose money from the day they're scheduled.
Three moves, in order
Step 02: Equipment cost basis
A correct internal rate per machine covering ownership, maintenance, fuel, and transport, charged to the projects that used it.
What else costs waterproofing contractors money
The same mechanism in other trades
What waterproofing owners ask
How to price waterproofing remobilizations on a long job?
You're back at the same building for the eighth time on one square foot number. The bid unit is square feet installed and the cost unit is mob-days and kettle-days.
What does it cost?
A contractor averaging six mobilizations on a job priced for two is absorbing $15K to $25K of unrecovered mobilization and kettle time per project. It reads as high labor in the P&L when the real problem is in how the bid was structured.
What do I do first?
Break the bid into the trips the job really takes: footings and walls, under-slab, pit and sump, podium deck, air barrier and window transitions, planters, traffic coating, and closeout sealants. Price a mobilization on each one.
What are waterproofing contractors supposed to be making?
Waterproofing runs 26% gross margin, 17% overhead and 9% net profit before taxes at $1M–$5M. The all-trade average is 7%, so this trade is 2 points above it. The CFOS target is 12.5%.
Which part of the system fixes it?
The step is number 02, equipment cost basis. A correct internal rate per machine covering ownership, maintenance, fuel, and transport, charged to the projects that used it. It comes from chapter 2 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 waterproofing 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.