Blended framing job cost hides where the margin went. Floor-by-floor cost codes show it in week two when there is still time to adjust crew or document a change order.
Total framing labor for the week divided by total SF installed gives a blended rate that looks acceptable. But floor 1 ran at $5.40 per SF and floors 2-4 ran at $4.10 per SF because floor 1 exterior walls had more openings, tighter tolerances at the foundation, and more interruptions per SF. The blended rate of $4.60 per SF does not trigger any action.
Lumber prices increased 14% between bid date and material purchase on a 5-month project. That variance is a $28,000 cost increase not in the original estimate. Most contracts have material escalation provisions that allow recovery when prices exceed a specified threshold. Most framing contractors absorb the variance silently because the purchase price was never compared to the bid price at time of purchase.
The first floor of a wood frame building represents 30-40% of total framing labor. A GC-drafted SOV assigns framing as a single line item billed at percentage of project completion. When the first floor is complete and the second floor is starting the SOV may show only 20-25% billed. You have funded 35-40% of your labor cost from operating cash.
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