BMP MATERIAL COST TRACKING BY SITE: PORTFOLIO ECONOMICS
A SWPPP contractor's book is dozens of small recurring sites: inspection routes, BMP maintenance, and materials per site, against per-site contract pricing. Route density, drive time, and BMP material burn decide margin. Per-site job costing turned $24K of net into $1,105,000 at a 30 percent margin on $5.2M of revenue.
This page covers one problem. The full picture for this trade, including the other places margin leaks, is on the swppp / erosion control 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 COST, SOURCED.
a verified erosion control client, $5.2M erosion control, $24K to $1,105,000 net, 30 percent margin. (Verified, CONTROL Ch8)
THE NUMBER TO MEASURE IT AGAINST.
SWPPP / Erosion Control contractors run about % net profit at $1M to $5M, rising to roughly 13% 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 26%, 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.
