ONE PROBLEM, IN DETAIL

FRAMING: THE COMMODITY IN THE CONTRACT

QUICK ANSWER

Framing sells a commodity with a fixed-price wrapper. The Random Lengths composite sat at $487 per thousand board feet in April 2026, expected to trade $440 to $540 through the year, with Canadian softwood carrying tariff burdens above 35 percent. Historically, 20 to 30 percent swings inside a single year are normal.

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

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

WHERE THE MONEY GOES.

The commodity in the contract (lumber volatility)

Framing sells a commodity with a fixed-price wrapper. The Random Lengths composite sat at $487 per thousand board feet in April 2026, expected to trade $440 to $540 through the year, with Canadian softwood carrying tariff burdens above 35 percent. Historically, 20 to 30 percent swings inside a single year are normal. Lumber is 15 to 20 percent of a wood-frame house's cost and 8 to 12 percent of wood-frame commercial, so a mid-job move without an escalation clause comes straight out of the frame crew's margin.

WHAT THIS TRADE SHOULD EARN

THE NUMBER TO MEASURE IT AGAINST.

Framing contractors run about % net profit at $1M to $5M, rising to roughly 7% at $5M to $10M. The CFOS target at $1M to $5M is10%, 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 19%, against a CFOS target of 10%.

Full framing 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 runs.

How the Job Profitability System works

COMMON QUESTIONS

FREQUENTLY ASKED.

Date-stamp the price basis in every bid, attach an escalation clause indexed to a published composite, lock large packages 4 to 6 months ahead where possible, and quote at least two suppliers. Lumber moved to $487 per MBF by April 2026 with 20 to 30 percent intra-year swings historically normal; a fixed bid without a clause is a commodity bet.
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. Executive is where you stop touching the books, because we run the bookkeeping and the controllership as well. Strategic is where every job shows its margin while it is still running, because the job costing and WIP platform is set up and managed for you. No payroll. No scope gaps.
Sixty days. We migrate your books back to the start of your last taxable year, set up ControlQore, and build your job costing structure from scratch. Fully operational in two months.
WHAT THIS TIES INTO
Josh Luebker, The Construction CFO
Josh Luebker
FRACTIONAL CFO · THE CONSTRUCTION CFO

Former commercial project manager and master electrician: 150+ projects worth $2.1B combined, from $50,000 to $300M. Now fractional CFO to commercial subcontractors.

IS THIS COSTING YOU MORE THAN YOU THINK?

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