WHY MECHANICAL CONTRACTORS LOSE MARGIN WITHOUT KNOWING IT.
Mechanical margin is lost to three specific things: the equipment float, the three-shop contract, and the subsidy nobody ordered. All three are measurable, and all three are invisible without job costing that reads against the estimate.
Mechanical contractors at $1M to $5M net 7.5 percent on the SPM 48-trade dataset, rising to 10.5 percent by $25M to $50M, the highest ceiling among the 48 trades; the CFOS target at $1M to $5M is 11 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. Chillers at 20 to 85 weeks, deposits at release, payment at delivery: the mechanical contractor is a procurement bank unless the SOV bills deposits and stored equipment explicitly. In 2026's lead-time market, the float is the job.
THE MATH BEHIND THE MISSING CASH.
The Equipment Float
Chillers at 20 to 85 weeks, deposits at release, payment at delivery: the mechanical contractor is a procurement bank unless the SOV bills deposits and stored equipment explicitly. In 2026's lead-time market, the float is the job.
The Three-Shop Contract
Sheet metal, piping, and controls are separate businesses inside one price. Divisional cost codes by discipline are the only way to know which shop earns and which one rides.
The Subsidy Nobody Ordered
Service and construction run opposite cash and margin profiles, and blended books let one silently fund the other for years. The trade's best-in-dataset net ceiling belongs to operators who split the book and manage both on purpose. (cfos-job-profitability-system) ---
WHAT CHANGES IN THE FIRST 60 DAYS.
| Metric | $1M to $5M | $5M to $10M | $10M to $25M |
|---|---|---|---|
| Gross margin, industry average | 25% | 26% | 27% |
| Gross margin, CFOS target | 26% | 26% | 27% |
| Net profit, industry average | 9% | 11% | 13% |
| Net profit, CFOS target | 11% | 12% | 14% |
| Overhead, industry average | 16% | 15% | 14% |
| Overhead, CFOS target | 15% | 14% | 13% |
Industry figures are Mechanical 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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