WHY MARINE CONTRACTORS LOSE MARGIN WITHOUT KNOWING IT.
Marine margin is lost to three specific things: the spread that never sleeps, the window, and the sub-tier maze. Marine subcontractors at $1M to $5M run 24 percent gross and 6.5 percent net, against CFOS targets at $1M to $5M of 24 percent gross and 10 percent net. All three are measurable, and all three are invisible without job costing that reads against the estimate.
Marine contractors at $1M to $5M net 6.5 percent, rising to 9.5 percent by $25M to $50M; the CFOS target at $1M to $5M is 10 percent. The distance between the trade average and the CFOS target isn't a pricing problem in this trade. It sits in the three mechanisms below, each of which moves margin without appearing as a failure on any single job. Barges, cranes, and tugs bill by the day whether the weather cooperates or not, which is why marine overhead runs 16 percent at the small end. Spread-day rates and weather-standby cost codes are the trade's version of equipment utilization, at ten times the stakes.
THE MATH BEHIND THE MISSING CASH.
The Spread That Never Sleeps
Barges, cranes, and tugs bill by the day whether the weather cooperates or not, which is why marine overhead runs 16 percent at the small end. Spread-day rates and weather-standby cost codes are the trade's version of equipment utilization, at ten times the stakes.
The Window
USACE permits, environmental windows, and tide tables decide when the work happens; the contractor decides only whether the cash plan matches. Peak-window competition alone can shift bids 10 to 25 percent.
The Sub-Tier Maze
Under a prime on federal or port work, lien rights become Miller Act bond rights, deadlines change, and flow-downs govern. A $25M marine GC runs on systems because at marine scale, paperwork discipline is cash discipline. (cfos-cash-control-system) ---
WHAT CHANGES IN THE FIRST 60 DAYS.
| Metric | $1M to $5M | $5M to $10M | $10M to $25M |
|---|---|---|---|
| Gross margin, industry average | 22% | 23% | 25% |
| Gross margin, CFOS target | 24% | 24% | 25% |
| Net profit, industry average | 7% | 9% | 12% |
| Net profit, CFOS target | 10% | 11% | 13% |
| Overhead, industry average | 15% | 14% | 13% |
| Overhead, CFOS target | 14% | 13% | 12% |
Industry figures are Marine contractors' AVERAGE for each revenue band, not a floor. The CFOS net profit target is set at 10 percent before taxes or 3.5 points better than your trade's average at your revenue, whichever is higher, and the gross margin target is set at whatever gross margin produces that net profit once your overhead is paid, and never below your trade's own average. Gross minus overhead equals net on every column, so the rows tie out.
| Last 12 months revenue | Monthly fee |
|---|---|
| Up to $1M | $1,900 to $2,900 |
| $1M to $3.5M | $2,600 to $3,900 |
| $3.5M to $6.5M | $3,800 to $5,700 |
| $6.5M to $9.5M | $5,100 to $7,100 |
| $9.5M to $12.5M | $6,100 to $8,500 |
| $12.5M to $15.5M | $7,400 to $11,000 |
| $15.5M to $18.5M | $9,400 to $13,500 |
| $18.5M+ | Quoted individually |
Range reflects the three tiers below. Which one you're in depends on how much of the work you want off your desk. No payroll. No hidden line items.
You stop guessing.
You get the CFO work. Job costing built against the way you estimate, a 13 week cash forecast, monthly WIP, and a meeting every month that ends in decisions rather than a report.
Your bookkeeper keeps doing the books.
You stop touching the books.
Everything in Core, and we run the bookkeeping and the controllership as well. Nobody in your office is answering coding questions or chasing a reconciliation at month end.
We do the books. No payroll.
Every job shows its margin while it's still running.
Everything in Executive, plus the job costing and WIP platform set up, loaded with your cost codes, and managed for you every month. You never have to learn it.
We do the job costing.
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