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TL;DR: SPM provides fractional CFO services for demolition contractors doing $1M-$12M in commercial new construction. Job costing by phase by structure type and hazmat classification in ControlQore, overhead rate including all real costs, WIP reporting monthly, and AR collection system that clears the backlog in 30 days. Most demolition clients find their first month's AR collection exceeds the annual SPM fee.
Demolition
The CFO for
Demolition Contractors.
You bid by the phase. Your margin lives or dies in the field every week. If you find out a job is losing money at closeout it is too late. We make it visible in week two.
Published: May 2026 · Updated: May 2026
The Problem
What Kills Demolition Margins
Most demolition do not know a job is losing money until it is done. The estimate looked right. The crew was working. But the actual cost per phase by structure type and hazmat classification was running over estimate for three weeks and nobody knew it until closeout.
01
Mobilization Costs Not Front-Loaded
A commercial demolition job mobilizes with a 100-ton crane, two excavators, and a material sorting crew. Mobilization represents 25% of total job cost. The SOV assigns 8% to mobilization. You fund the gap from operating cash for the first three weeks of every demo project.
02
Hazmat Discovery Not Documented as Changed Condition
You discover ACM pipe insulation in a mechanical room not identified in the pre-demolition survey. Abatement adds $38,000 to the project cost. The specification says contractor is responsible for hazardous materials encountered. You absorb it without a change order because you did not document the discovery with a cost proposal within the contract's notice period.
03
Tipping Fees Vary From Estimate Without Tracking
Tipping fees at the receiving landfill increased 22% since bid date. Material volumes exceeded estimate by 15% due to additional debris discovered during demolition. Those two factors combined added $29,000 to the job cost. Neither was tracked to a change order.
Prevailing wage note: Demolition contractors doing DOT and municipal work have additional fringe benefit requirements of $12-$20/hour above base wages. SPM calculates separate overhead rates for prevailing wage and private work. Prevailing wage CFO services →
FAQ
Frequently Asked Questions
What does a CFO for demolition contractors do?
A fractional CFO for demolition contractors builds the job costing structure aligned to the estimate - cost codes by phase by structure type and hazmat classification - so actual cost per unit is visible weekly against estimated cost per unit. They manage WIP reporting, overhead rate calculation, billing calendar, and monthly cash flow. The result: you know which jobs are winning and which are losing before you cannot do anything about it. All SPM clients run on ControlQore - purpose-built for construction job costing at $1M-$12M.
What overhead rate should demolition contractors use?
Demolition Contractors at $1M-$3M typically run 14-16% overhead. The most common errors are missing owner compensation at market rate and not including equipment depreciation or vehicle fleet in the SG&A calculation. Each of those understates the real overhead rate and underprices every bid.
What are the most common cash flow problems for demolition contractors?
Three consistent problems: schedule of values that underbills early phases which are the most cash-intensive work, overhead rate below actual because ownership costs are not fully included, and AR sitting uncollected at 45+ days with no follow-up system. Most demolition contractors have all three simultaneously. SPM fixes all three in the first 60 days.
What gross margin should demolition contractors target?
Demolition Contractors at $1M-$12M in commercial new construction typically target 20-25% gross margin. Margin below the lower end of that range usually indicates a markup problem, an overhead rate understatement, or job costing that is not capturing all direct costs accurately.
Do you handle payroll?
No. SPM does not handle payroll. We have vetted partners including prevailing wage and Davis-Bacon integrations that connect directly with ControlQore at additional cost.
How long does onboarding take?
60 days. We migrate your books to the start of your last taxable year, build your ControlQore job costing structure, and get you fully operational in two months.
What software do you use?
All SPM clients run on ControlQore - purpose-built for construction job costing and WIP reporting at $1M-$12M. More capable than QuickBooks for job costing, more affordable than Sage. We set it up and manage it.
Do I need clean books to start?
No. Most clients come with messy books and no job costing. That is exactly what onboarding is for.
