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TL;DR: SPM provides fractional CFO services for underground utility contractors doing $1M-$12M in commercial new construction. Job costing by linear feet by pipe type and depth in ControlQore, overhead rate including all real costs, WIP reporting monthly, and AR collection system that clears the backlog in 30 days. Most underground utility clients find their first month's AR collection exceeds the annual SPM fee.
Underground Utility
The CFO for
Underground Utility Contractors.
You bid by the linear. 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 Underground Utility Margins
Most underground utility 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 linear feet by pipe type and depth was running over estimate for three weeks and nobody knew it until closeout.
01
Utility Conflict Delay Costs With No Change Order
You hit an unmarked utility at depth -8 on a 24-inch main. Work stops. Equipment idles at $800/day. The GC says they will handle it. Six weeks later you have $34,000 in idle time documented in daily reports and nothing in writing.
02
Unit Price Variance Invisible Without Cost Codes
You estimated pipe installation at $41 per linear foot for 8-inch water main at 8-10 feet. You are running at $59 per linear foot in week three. Without cost codes by pipe type and depth that variance is invisible until closeout.
03
Equipment Overhead Understated
An excavator and directional bore running at 60% utilization have fixed ownership costs that run at 100%. Those idle costs need to be in the overhead rate. Most underground utility contractors carry $150K-$400K in equipment with ownership costs not fully captured.
Prevailing wage note: Underground Utility 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 underground utility contractors do?
A fractional CFO for underground utility contractors builds the job costing structure aligned to the estimate - cost codes by linear feet by pipe type and depth - 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 underground utility contractors use?
Underground Utility Contractors at $1M-$3M typically run 13-15% 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 underground utility 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 underground utility contractors have all three simultaneously. SPM fixes all three in the first 60 days.
What gross margin should underground utility contractors target?
Underground Utility 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.
