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Where is your margin leaking?

Heavy civil contractors bid one margin and keep a smaller one. Most of the gap is work you built but couldn't prove, change orders you never collected, and late days you ate. Enter five numbers to see what that costs you a year.

Example numbers for a $22M-a-year pipe contractor. Replace them with yours.

Peer assumptions (override if you know yours)
Margin leaking out of your jobs each year
$0
$0per job, averaged
0%margin you actually keep
$0lost on the one job in three that goes bad
LeakBasisPer year

Get your full report

See what each leak looks like with daily measured quantities, and get a summary to send your estimator.

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How this is calculated

  1. Unprovable quantity. Share of revenue that is unit-price work (by trade) × a variance band set by how you measure: foreman's report 4%, survey per pay app 2.5%, weekly 1.5%, daily 0.5%. Half of that variance is assumed to go against you. Propeller's field data puts conventional survey variance at 3–5% versus 1–3% measured (source); a TDOT audit found quantity overruns were 94% of change-order dollars (source).
  2. Change orders never collected. Revenue × CO share × unrecovered share. Dodge found 32% of potential change-order revenue is lost to unbilled or unpaid COs (source).
  3. Late days. Jobs × share late × days late × (liquidated damages + field overhead). INDOT: 40% of contracts delayed, 2010–2020 (source). Damages default to a state DOT calendar-day schedule by contract size (ALDOT). Overhead defaults to $600 a day per $1M of job size.
  4. The bad job. Dodge: margins fade about 5 points on average and nearly a third of jobs lose 7 or more points. The bad-job figure is 7 points of your average job.
  5. Prequal gate. TRIR = cases × 200,000 ÷ hours, against BLS 2024 rates by NAICS (source). Many owners cap bidders at EMR 1.00; each 0.10 of mod moves premium about 10% (source). The score is Nomon's estimate of how owner prequal platforms weigh these stats, not any platform's actual score.