WHY SWPPP / EROSION CONTROL CONTRACTORS LOSE MARGIN WITHOUT KNOWING IT.
SWPPP / Erosion Control margin is lost to three specific things: the $56,460 clock, the quarter-inch trigger, and the route ledger. All three are measurable, and all three are invisible without job costing that reads against the estimate.
A verified $5.2M erosion control contractor went from $24K to $1,105,000 in net profit at a 30 percent margin by installing per-site job costing and cash control. 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. Stormwater penalties run to five figures per day per violation, stop-work orders ride along, and the paper trail is the only defense. The SWPPP contractor sells that protection, which means the contractor's own documentation system is the product.
THE MATH BEHIND THE MISSING CASH.
The $56,460 Clock
Stormwater penalties run to five figures per day per violation, stop-work orders ride along, and the paper trail is the only defense. The SWPPP contractor sells that protection, which means the contractor's own documentation system is the product.
The Quarter-Inch Trigger
A 0.25-inch storm obligates 24-hour inspections across every site at once. Surge capacity priced at routine rates is a donation; the rain-event rate class is how the sky's schedule gets paid for.
The Route Ledger
Dozens of small sites live or die on cost per site: drive time, BMP burn, inspection minutes. A verified $5.2M erosion contractor went from $24K to $1,105,000 net at a 30 percent margin on exactly that ledger. (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 | 24% | 26% | 27% |
| Gross margin, CFOS target | 24% | 26% | 27% |
| Net profit, industry average | 10% | 13% | 15% |
| Net profit, CFOS target | 11% | 14% | 16% |
| Overhead, industry average | 14% | 13% | 12% |
| Overhead, CFOS target | 13% | 12% | 11% |
Industry figures are SWPPP / Erosion Control 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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