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.
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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.
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 $1.1M after taxes, a 30 percent net margin before taxes, on $5.2M of revenue.
THE COST, SOURCED.
a verified erosion control client, $5.2M erosion control, $24K to $1.1M net after taxes, 30 percent net margin before taxes. (Verified, CONTROL Ch8)
THE NUMBER TO MEASURE IT AGAINST.
SWPPP and Erosion Control contractors have about 10% net profit at $1M to $5M, rising to roughly 13% at $5M to $10M. The CFOS net profit target is 13.5% before taxes at $1M to $5M, the trade's average plus 3.5 points, never below 10%. 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 is 24% to 26%,against CFOS targets of 26.5% and 28.5%.
THE SYSTEM THAT FIXES THIS.
Cost codes built against the estimate, so a job can be read while it is open.
