WHY WATERPROOFING CONTRACTORS LOSE MARGIN WITHOUT KNOWING IT.
Waterproofing margin is lost to three specific things: the uncharged premium, the ten-year photograph, and the unreserved callback. Waterproofing subcontractors at $1M to $5M run 26 percent gross and 7.5 percent net, against CFOS targets at $1M to $5M of 27 percent gross and 11 percent net. All three are measurable, and all three are invisible without job costing that reads against the estimate.
Waterproofing contractors at $1M to $5M net 7.5 percent, the strongest floor among the served trades, rising to 10.5 percent by $25M to $50M; 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. The industry spends $8 billion a year fixing failed waterproofing, and below-grade remediation exceeds $150 per square foot. The trade's 26-to-29 percent gross margin is the insurance premium for that tail; discounting it's underwriting catastrophe risk for free.
THE MATH BEHIND THE MISSING CASH.
The Uncharged Premium
The industry spends $8 billion a year fixing failed waterproofing, and below-grade remediation exceeds $150 per square foot. The trade's 26-to-29 percent gross margin is the insurance premium for that tail; discounting it's underwriting catastrophe risk for free.
The Ten-Year Photograph
Buried work gets judged a decade later by whatever paper exists. Photo-documented installation, written substrate acceptance, and witnessed water tests are the only testimony the membrane will ever give.
The Unreserved Callback
Warranties commit future crew-hours against revenue recognized years earlier. A per-job warranty accrual is what separates a 7.5-plus percent net from a company that re-earns its old jobs every spring. (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 | 26% | 27% | 28% |
| Gross margin, CFOS target | 27% | 27% | 28% |
| Net profit, industry average | 9% | 11% | 13% |
| Net profit, CFOS target | 11% | 12% | 14% |
| Overhead, industry average | 17% | 16% | 15% |
| Overhead, CFOS target | 16% | 15% | 14% |
Industry figures are Waterproofing 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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