Busy yard, thin margins
The yard is busy, the wagons are always out, the gangs are working every day. But the bank balance does not match how busy it feels. Which jobs are paying? The big commercial job with long hire? The domestic scaffolds for roofers? The chimney scaffolds? Nobody knows, because nobody has put the figures for a job together since it was quoted.
The accountant can tell you the year's margin. Not which jobs made it.
Why scaffold job costs are scattered
Scaffold jobs earn money in several ways, the erect and dismantle, hire extensions, alterations, extras, and cost money in several more: gang days or price work, wagon runs, cross-hire, damaged and lost kit, licences. Each is recorded, if at all, in a different place.
- Income from extensions and alterations is invoiced separately.
- Gang time per job is not recorded.
- Wagon runs are not allocated to jobs.
- Cross-hire and licence costs sit in general accounts.
- Damaged and lost kit is never costed.
What not knowing costs
You keep pricing work that loses money. You chase volume from customers who are expensive to serve, with lots of alterations, damaged kit and abortive visits. And you cannot tell whether a price rise is needed, or where.
It also makes customer conversations harder. If a builder pushes back on price, you cannot show him that his jobs generate more alterations, abortive visits and damaged boards than average, because you do not have the figures yourself.
Scaffolding is a business where small things add up per job: one extra wagon run, a few boards scrapped, a licence renewal. Seeing them job by job is the only way to see them at all.
The job costing we build
- Income for each job is collected from the quote, extension invoices, alteration and extras charges, and damage charges.
- Gang cost comes from days or price work recorded against the job.
- Wagon runs are allocated from the transport plan, using a cost per run or per hour you set.
- Cross-hire, licence and other direct costs are matched to the job from supplier invoices.
- Kit damaged or lost and not charged back is costed at your replacement rates.
- Each job shows income, costs and margin, updated as it runs and final at strike.
- Reports group jobs by customer, job type and size, so patterns show over many jobs.
| Income | Cost |
|---|---|
| Erect and dismantle | Gang days or price work |
| Hire extensions | Wagon runs |
| Alterations and extras | Cross-hire and licences |
| Damage charges | Unrecovered damaged and lost kit |
The figures come from your records. Your accountant still owns the accounts; this shows the jobs behind them.
What you can see
Which customers and job types make money and which do not. Whether long hire makes up for thin erect prices. How much alterations and abortive visits really cost. And what to change in pricing, backed by evidence rather than a feeling.
It also gives you something concrete to take into price reviews with regular builders. Showing a customer the pattern of alterations and damaged kit on their jobs is a more useful conversation than a general price rise.
Do you know your job margins?
- You find out about margin at year end.
- Wagon costs are not allocated to jobs.
- Lost kit is never costed.
- You do not know which customers are profitable.