MOBILIZATION BORE PIT CASH FLOW: BORE PITS AND MOBILIZATION
Bore pits, casing, and drill setup concentrate cost before the first foot of product pipe bills. Keep pit excavation, shoring, and dewatering coded separately from bore production so the unit price and the setup cost stop hiding each other.
This page covers one problem. The full picture for this trade, including the other places margin leaks, is on the underground utility 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 NUMBER TO MEASURE IT AGAINST.
Underground Utility contractors run about % net profit at $1M to $5M, rising to roughly 6% 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 20%, against a CFOS target of 10%.
THE SYSTEM THAT FIXES THIS.
Billing, documentation and collections, which is where the days hide.
FREQUENTLY ASKED.
