WHY STRUCTURAL STEEL CONTRACTORS LOSE MARGIN WITHOUT KNOWING IT.
Structural Steel margin is lost to three specific things: the paper gate, the idle crane, and the ton tape. Structural Steel subcontractors at $1M to $5M run 23 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.
Structural steel 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. Nothing fabricates until shop drawings clear the EOR, and most rejections trace to coordination gaps the fabricator controls. Every review cycle moves the mill order, the delivery, and the crane schedule, and the detailing phase is billed or it's donated.
THE MATH BEHIND THE MISSING CASH.
The Paper Gate
Nothing fabricates until shop drawings clear the EOR, and most rejections trace to coordination gaps the fabricator controls. Every review cycle moves the mill order, the delivery, and the crane schedule, and the detailing phase is billed or it's donated.
The Idle Crane
The most expensive spread on the project idles when foundations, inspections, or access aren't ready, and erection crews are rarely the cause. Crane cost coded by lift plus same-day standby documentation converts the GC's unreadiness into a claim instead of a loss.
The Ton Tape
Steel up 18 percent in a year on tariffs, fabrication benchmarked at $1,800 to $3,200 per ton, sold into fixed-price contracts. Without escalation clauses and dated price bases, the steel contractor is trading commodities with a crane. (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 | 23% | 24% | 25% |
| Gross margin, CFOS target | 24% | 24% | 25% |
| Net profit, industry average | 8% | 10% | 12% |
| Net profit, CFOS target | 10% | 11% | 13% |
| Overhead, industry average | 15% | 14% | 13% |
| Overhead, CFOS target | 14% | 13% | 12% |
Industry figures are Structural Steel 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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