ONE PROBLEM, IN DETAIL

CIVIL: IRON THAT BILLS NOTHING

QUICK ANSWER

Ownership cost continues whether machines work or stay idle. A CAT 330 excavator costs roughly $200 per day in ownership cost parked, and $150 to $200 per hour loaded when operating. Industry idle rates average around 30 percent. Bids that skip ownership cost give that money to the owner.

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This page covers one problem. The full picture for this trade, including the other places margin leaks, is on the civil operating system page.

BY JOSH LUEBKERPublished 2026-08-06Updated 2026-11-02
WHAT BREAKS

WHERE THE MONEY GOES.

Iron that bills nothing (equipment ownership costs)

Covered in full in the quick answer above. The sourced numbers and what controls it are below.

WHAT THE NUMBERS SAY

THE COST, SOURCED.

Proof anchor

a $7.1M civil contractor found $779K on the balance sheet in total to date once equipment and mobilization costs were tracked and billed instead of going unseen. (a verified civil client, verified client story, Ch2)

WHAT THE TRADE PRESS SAYS

THE SAME PROBLEM, WRITTEN UP.

Your existing asset continues to sit idle burning a hole in your balance sheet while you continue to pay thousands of dollars each month against your loan on it.

Tenna equipment cost guide

Every machine on the job costs money, whether it's moving or sitting idle.

Excavating Insurance Partners estimating guide, 2026

WHAT THIS TRADE SHOULD EARN

THE NUMBER TO MEASURE IT AGAINST.

Civil contractors have about 7% net profit at $1M to $5M, rising to roughly 10% at $5M to $10M. The CFOS net profit target is 10.5% before taxes at $1M to $5M, the trade's average plus 3.5 points, never below 10%. A problem like this one lives in the distance between those two figures rather than in a loss on any single job.

Gross margin over the same bands is 21% to 23%,against CFOS targets of 23.5% and 25.5%.

Full civil benchmark bands by revenue

WHAT CONTROLS IT

THE SYSTEM THAT FIXES THIS.

Job Profitability System

Cost codes built against the estimate, so a job can be read while it is open.

How the Job Profitability System works

COMMON QUESTIONS

FREQUENTLY ASKED.

Build an hourly rate for every machine that includes depreciation, interest, insurance, and storage, then compare billed hours against that rate monthly. If the rate only covers fuel and maintenance, every idle day comes straight out of net profit. Idle rates in the industry average 30 percent.

Three tiers, and which one you are in depends on how much of the work you want off your desk. Core is where you stop guessing: job costing built against the way you estimate, a 13 week cash forecast, monthly WIP, and a monthly meeting that ends in decisions, while your bookkeeper keeps doing the books. Strategic is where every job shows its margin while it is still open: a bookkeeper we choose does the books and the bank reconciliations, and the job costing and WIP software is set up and managed for you, on your own online software or ours. Platinum is where you approve and the money side gets handled: a controller we choose handles your bills and receivables the way an in-house controller would, and you approve every payment. No payroll. No scope gaps.

Sixty days. We migrate your books back to the start of your last taxable year and build your job costing structure from scratch, and on Strategic and Platinum we set up the job costing and WIP software too. Fully operational in two months. The onboarding fee is one time, the same for every tier, and set by your revenue band.
THERE IS A SESSION ON THIS

PART 3 OF 6, TO WATCH.

Never Miss Payroll Without Taking On Debt is a 6 part series on making payroll out of work already performed, without reaching for a line of credit. One of the sessions covers this:

PART 3 · EQUIPMENT COST BASIS

Your Equipment Is Losing Money, and It's Not the Maintenance Bill

A rate built on what you paid recovers enough to own a worn out machine. It doesn't buy the next one.

Playing on this site, with nothing to enter and nothing to join.

NOTHING TO ENTERWatch part 3All 6 sessions

WHAT THIS TIES INTO
Josh Luebker, SPM The Construction CFO
Josh Luebker
FRACTIONAL CFO · SPM THE CONSTRUCTION CFO

Josh Luebker is a master electrician turned construction CFO, president of SPM The Construction CFO and author of CONTROL: C.F.O.S. Construction Financial Operating System.

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