FIRE PROTECTION: FITTER LABOR: CERTIFIED, SCARCE, AND PREVAILING-WAGED
Sprinkler fitters carry certifications and licensing (state certificates of competency with fines up to $5,000 for lapses in some states), union fitter packages on much commercial work, and prevailing-wage classifications on public projects.
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.
Sprinkler fitters carry certifications and licensing (state certificates of competency with fines up to $5,000 for lapses in some states), union fitter packages on much commercial work, and prevailing-wage classifications on public projects. The labor line is expensive and inflexible; misclassification claws margin back retroactively.
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.
Cost codes built against the estimate, so a job can be read while it runs.
