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TRADE SERVICE · MECHANICAL, PLUMBING & HVAC CLUSTER

FRACTIONAL CFO FOR HVAC CONTRACTORS.

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We manage the finance side for HVAC subcontractors doing $1M to $12M. You get job costing aligned to the way you estimate, a 13 week cash flow forecast, monthly WIP, and a CFO in the room every month. Pricing starts at $1,900 per month.

HVAC operates three businesses out of one truck, so we keep three P&Ls. Service agreements recur with fast cash. Replacement work is consumer-financed and weather-triggered. New-construction subcontracting pays on pay apps and retainage at a 51 day average wait (Billd 2026). One blended book prices all three wrong. We also price regulation as a risk, because the refrigerant rules changed twice in eighteen months. First came a 42 percent producer surcharge on R-454B. Then an EPA final rule effective July 27, 2026 removed the R-410A installation deadline after the industry had already tooled for the ban. Dated price bases, escalation language and inventory sized to work either way keep the next change from costing you margin.

BY JOSH LUEBKERPublished 2026-08-06Updated 2026-11-02
WHERE HVAC LOSES MONEY

THE THREE THINGS THAT DRAIN THE CASH.

LEAK 01

The Regulator's Pen

The refrigerant rules changed twice in eighteen months. Each change repriced inventory, equipment and tooling decisions already made. Treat regulation as a financial risk: date your price bases, write escalation language, and size inventory to work either way.

LEAK 02

The Certification Window

A2L-ready shops billed 18 to 30 percent labor premiums after a weekend of certification and a few thousand dollars of tools per truck. Doing the compliant work lets you charge more. The window goes to shops that tool up before enforcement makes everyone do it.

LEAK 03

The Three-Book Blur

Service, replacement and new construction are three businesses. Each has its own cash curve and, now, its own refrigerant economics. One blended P&L prices all three wrong and doesn't show which one pays for the shop.

THE MATH

FROM 8% TO 11.5% NET.

At $1M to $5M, the average HVAC sub earns 24% gross margin and spends 16% of revenue on overhead. What's left is 8% net profit before taxes (Run On CFOS Trade Benchmark Reference). The CFOS target is 11.5% before taxes. That is the HVAC average plus 3.5 points, and never below 10%. The book CONTROL's 12% is the rule of thumb across trades. It is not the industry average.

Two changes get you to the target. Overhead comes down 1 point to 15%, and gross margin comes up 2.5 points to 26.5%, so 26.5 minus 15 leaves 11.5. The gross margin points come from the three problems above, once you price them and bill for them. On a $3M year, every point is $30,000.

HOW SPM FIXES IT

WHAT WE CHANGE.

These are the HVAC problems we put a number on first. Each one gets its own cost code, its own line on the schedule of values or its own line in the 13 week cash forecast, so you can read it in the monthly meeting while the job is still open.

GAP CALCULATOR

THE HVAC GAP CALCULATOR. AVERAGE AGAINST TARGET, IN DOLLARS.

Put in your annual revenue. You get gross margin, overhead and net profit for HVAC contractors your size: the industry average and the CFOS target, in dollars a year. Nothing you type leaves this page.

Another trade too? The gap calculator for every trade.

Your figures show here once you put in your revenue.

Book a 20 minute call

Why aim for the target. An average is the middle of the pack: about half of companies do worse. And about 6 in 10 construction businesses close within 10 years (U.S. Bureau of Labor Statistics: about 40 percent of construction businesses opened in 2013 were still open in 2023). So the business in the middle is one of the ones that close. On those numbers, average is a business that closes within 10 years. That is why the CFOS target is a requirement.

Want your own numbers against these? The Financial Health Snapshot builds a CEO Report from your last 12 months and sets every figure against your trade.

PRICING

YOU PAY ONE FLAT MONTHLY FEE.

The fee is set by your trailing 12 month revenue. We don't bill by the hour and we don't do payroll. The one-time onboarding fee is in the table too.

Type a number and your band and its prices show here. The full table is below.

Built for subs doing $1M to $12M. Above $12.5M we quote.

Last 12 months revenueCoreStrategicPlatinumOne-time onboarding
Under $1M$1,900$3,100$3,300$2,500
$1M to $3.5M$2,600$4,100$5,300$4,500
$3.5M to $6.5M$3,800$5,900$8,300$6,000
$6.5M to $9.5M$5,100$7,600$11,800$7,500
$9.5M to $12.5M$6,100$8,900$14,900$9,000
Above $12.5MQuotedQuotedQuotedQuoted

The onboarding fee covers migrating your books back to the start of your last taxable year and getting you fully operational in 60 days. It's billed once, with your first invoice. It's the same for all three tiers, and it moves with your revenue band. Your first month is prorated, and your monthly engagement starts on the first of the first full month.

Just want the setup? Onboarding only is the same onboarding work with no monthly service after it, one time, at the onboarding fee plus $2,000. Start a monthly engagement later and $2,000 counts toward it. It starts at $4,500, and the price for every band is on the pricing page.

The three tier columns are the whole price. Which one fits depends on how much of the work you want off your desk. No payroll. No hidden line items. The onboarding fee is right here in the table.

  • Online software only: QuickBooks, Sage, Viewpoint and similar. No VPN or hosted desktop.
  • Not in any tier: payroll, pay applications, collections on receivables.
  • Pricing valid through 2027.

What Core, Strategic and Platinum each include is on the pricing page.

COMMON QUESTIONS

FREQUENTLY ASKED.

HVAC contractors at $1M to $5M net about 8 percent on the SPM 48-trade benchmark dataset, rising to 14 percent by $25M to $50M; the CFOS net profit target is 11.5 percent before taxes at $1M to $5M, the trade average plus 3.5 points. In 2026 margin comes down to how you manage the refrigerant transition. Did you price the back and forth in the rules, get the certification premium, and split your three books? Every net profit figure here is gross margin minus overhead, stated before taxes, the same basis CFMA reports net income on.

See the full benchmarks for every revenue band on Run On CFOS.

Usually it needs the CFO work, and a full time CFO is more than it needs. At $5M to $10M, HVAC subs average 10% net profit before taxes (Run On CFOS Trade Benchmark Reference), and the CFOS target is 13.5%. On $5M of revenue every point is $50,000, so that difference is worth $175,000 a year. A full time CFO costs $150,000 or more in salary alone. SPM's published price for $3.5M to $6.5M is $3,800 a month for Core to $8,300 for Platinum.

From every direction. R-454B had shortages and producer surcharges (42 percent plus per-pound increases). Cylinders cost roughly double R-32's price. A2L equipment has 15 to 20 percent higher manufacturing cost, and retooling costs $3,000 to $8,000 per truck. Then EPA removed the install deadline effective July 2026, which repriced legacy R-410A inventory overnight. Date-stamp every refrigerant and equipment price in every bid.

Under the federal rule effective July 27, 2026, units manufactured or imported before January 1, 2025 can be installed until supply is used up. Existing systems can be serviced indefinitely (reclaim economics apply as virgin stocks deplete). State law can be stricter, and New York kept its own cutoff. Check the current federal and state rules before you quote. This rule has already changed twice.

The 2026 market answered. Certified, tooled shops billed 18 to 30 percent labor premiums while most others caught up. It took a Section 608 update and a few thousand dollars of tools per truck. In every trade, being able to do the compliant work lets you charge more. In HVAC it paid back fastest.

Yes, three divisions: service agreements (recurring, fast, margin-rich), replacement (weather-dependent, consumer-financed) and new-construction subcontracting (pay apps, retainage, 51-day average waits). Each now has different refrigerant economics too. Blended books price all three wrong.

Sulphur Prairie Management, operating as SPM The Construction CFO, publishes the 48-trade benchmark dataset these numbers come from. SPM's deepest specialization is 24 core commercial trades, and SPM works with HVAC contractors who want the same financial system: onboarding, clean books, a maintained 13-week cash flow forecast, and monthly health reviews, with job costing simplified to what the business uses. The full 48-trade benchmark reference exists so owners in every trade can measure against real numbers.

Three tiers, and which one you are in depends on how much of the work you want off your desk. On Core we build your plan every month and your team does the work: job costing built against the way you estimate, a 13 week cash forecast, monthly WIP, and a monthly meeting that ends in decisions, while your bookkeeper keeps doing the books. On Strategic we build the plan, track it and adjust it every month: our team does the bookkeeping and the bank reconciliations, and the job costing and WIP software is set up and managed for you, on your own online software or ours. On Platinum we manage the money side for you every week: our team handles your bills and receivables the way an in-house controller would, and you approve every payment. We don't do payroll.

Sixty days. We migrate your books back to the start of your last taxable year and build your job costing structure from scratch, and on Strategic and Platinum we set up the job costing and WIP software too. You're fully up and working in two months. The onboarding fee is one time, the same for every tier, and set by your revenue band.

ControlQore is the job costing and WIP platform we use on the Strategic and Platinum tiers. It's built for contractors, costs less than the older tools, and has AI built in. We set it up and manage it, so you do not have to learn it. Core is the CFO work only, so it does not include the software.

A bookkeeper records what happened. We tell you what it means and what to do about it. We align job costing to your estimates, track WIP monthly, and hold a monthly meeting where you decide what to fix and who fixes it.
$10.7M+
Client AR Recovered Since 2023
48
Active Trade Specializations
60 DAYS
Average Onboarding Time
HOW HVAC CFO FIRMS COMPARE

In our HVAC firm study, 4 other firms have an HVAC case study with numbers. The top three for HVAC: Salisbury Bookkeeping 77.5 (trade case study with numbers), Straight Talk CPAs 74.5 (trade case study with numbers), SPM 72.9 (trade page). SPM places #3 here with a trade page and no HVAC case study, so weigh the firms with HVAC proof (Salisbury Bookkeeping, Straight Talk CPAs). SPM publishes the study and is one of the firms scored. The method and every source are on the study page.

How HVAC CFO firms compare: the HVAC firm study, with every score and its source.

MORE ON HVAC

EACH HVAC PROBLEM HAS ITS OWN PAGE.

OTHER MEP AND SYSTEMS TRADES

HVAC is one of 14 trades in the MEP and systems family on our CFO for subcontractors page. Nearby trades with their own page:

WHAT THIS TIES INTO
Josh Luebker, SPM The Construction CFO
Josh Luebker
FRACTIONAL CFO · SPM THE CONSTRUCTION CFO

Josh Luebker is a master electrician turned construction CFO, president of SPM The Construction CFO and author of CONTROL: C.F.O.S. Construction Financial Operating System.

THE CHEAPER OPTION WORKS AND TAKES LONGER.

If price comes first, plenty of CFOs and bookkeepers can get your construction company results. It often takes the better part of a year.

If you're a trade contractor, a sub or a GC who wins work, keeps the crews busy and still can't figure out where the money goes, we get in the weeds with you. We change the processes that cost you money on every job, build the ones you're missing and give you the formula, so you see results in 60 to 90 days.

Our guarantee holds when you come to every meeting, do the process and keep a strong pipeline of work. We can fix how your work pays. We can't fix having no work.

DO YOU KNOW YOUR TRUE MARGIN ON HVAC WORK?

Twenty minutes of questions about how you price HVAC work, what your jobs come in at once they close, and what keeps coming back to your desk. Nothing gets sold on that call and nothing gets proposed. If Josh can help, you'll set a longer second call.

You don't hire a CFO because it's safe, you do it because the real risk isn't having one.
Book a 20 minute call

20 minutes. No pitch or proposal. Josh asks questions to find out if he can help.

OR START WITH THE WORKBOOKS. NO CALL NEEDED.