COST PER SITE JOB COSTING: 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 $1.2M 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 and 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 $1.2M net, 30 percent margin. (Verified, CONTROL Ch8)
THE NUMBER TO MEASURE IT AGAINST.
SWPPP and 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.
