WHY GRADING CONTRACTORS ABSORB COSTS THEY SHOULD BE RECOVERING.
Cut and fill variance on grading work happens when actual soil quantities, rock presence, moisture content, or bearing conditions differ materially from what was represented in the bid documents. Most commercial grading contracts include a differing site conditions clause that entitles the contractor to additional compensation when those conditions are encountered — but only if the contractor provides written notice within the contract's specified window, typically 7 to 14 days from discovery. Without that notice, the right to recovery expires regardless of how legitimate the claim is.
CFOS builds a daily production tracking process into every grading engagement that flags changed conditions the day they are encountered, triggers written notice within 48 hours, and opens a change order before the next billing period closes.
A grading contractor encounters rock at 4 feet where the geotechnical report showed only gravel to 8 feet. The crew switches to jack hammer and rock saw. Production drops by 60%. The PM calls the GC superintendent, who says 'we know, just keep going, we'll work it out.' The PM keeps going for three weeks while the cost accumulates. When the PM finally submits a change order at the 30-day mark, the GC's legal team denies it on the grounds that the contract required written notice within 10 days of discovery and none was provided.
The changed condition was real. The cost was real. The GC knew about it. The change order is still denied — because the contractual notice requirement was not met. This is not an unusual outcome. It is the predictable outcome of not having a documented changed conditions process.
On grading work, verbal field direction is constant. 'Take that berm down another two feet.' 'Move the spoils pile to the east side.' 'Regrade that swale because the drainage engineer revised the plan.' Each of these directives adds cost that was not in the original contract. Each one feels too small to make an issue of in the moment. Accumulated over a 16-week grading job, they represent $60,000 to $120,000 in unrecovered work on a $2M contract.
CFOS trains the foreman to log every verbal direction that changes scope — what was directed, who directed it, when, and what the estimated cost impact is. That log becomes the basis for change order submissions in the same billing period the work occurred.
Grading estimates are built on plan quantities — cut and fill volumes calculated from design documents. Actual quantities diverge from plan quantities on every job due to survey measurement differences, design changes, and field conditions. When actual cut volumes exceed plan quantities, that additional work is compensable if it results from conditions that differ from the contract documents.
CFOS tracks actual cut and fill quantities weekly against plan quantities. When actual yardage exceeds plan by more than 5% on any phase, the variance is investigated and documented before the next billing period. If the variance is from plan error or design change, a change order is submitted. If it is from estimation difference, it is documented as a lesson learned for the next bid.
FLAT MONTHLY FEE. NO SURPRISES.
Two tiers based on trailing 12-month revenue. No hourly billing. No payroll. No add-ons.
| Revenue | Core Financial | Executive Financial |
|---|---|---|
| Under $1M | $1,900/mo | $2,900/mo |
| $1M–$3M | $2,600/mo | $3,600/mo |
| $4M–$6M | $3,800/mo | $5,500/mo |
| $7M–$9M | $5,100/mo | $6,900/mo |
| $10M–$12M | $6,100/mo | $8,500/mo |
| $13M+ | Quoted | Quoted |
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