AHJ RETAINAGE DELAY: THE AHJ GAUNTLET
Sprinkler systems inspect multiple times: rough-in, hydrostatic pressure test, final, and often a separate alarm tie-in. Each gate can hold a billing milestone hostage, and commercial inspection coordination alone consumes 8 to 16 labor hours per project. The site's existing.
This page covers one problem. The full picture for this trade, including the other places margin leaks, is on the fire protection operating system page.
WHERE THE MONEY GOES.
Covered in full in the quick answer above. The sourced numbers and what controls it are below.
THE SAME PROBLEM, WRITTEN UP.
Unforeseen conditions (product delays, failed inspections, or staffing) can wreak havoc on budgets.
National Fire Sprinkler Association TechNotes
THE NUMBER TO MEASURE IT AGAINST.
Fire Protection contractors run about % net profit at $1M to $5M, rising to roughly 11% at $5M to $10M. The CFOS target at $1M to $5M is11%, set at 10 percent before taxes or 3.5 points better than your trade's average at your revenue, whichever is higher. 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 runs % to 25%, against a CFOS target of 11%.
THE SYSTEM THAT FIXES THIS.
Billing, documentation and collections, which is where the days hide.
FREQUENTLY ASKED.
