How big is the bus?
I am not sure whether the client usually gets to see the value of each of the subcontracts but it appears that we do. So for my FtIG project I can see that ‘the bus’ is costing us approximately $110,000 or 27.5% of the contract value. From what I have seen so far this pays for two slippery salesmen and an OAP in a portacabin who is going to run the site. Although we are supposed to get the information it has been accidentally added into the emergency contact submittal, which was clearly part of a larger spreadsheet, but you can get the idea
Contract values
Flippant as I may be this clearly also considers the various overheads that have been incurred not least the cost of tendering for the project and the 4 months of paperwork that has been done prior to getting out onto site. This in cash-flow terms is a significant burden for a small company. Also in there will be the risk for things not going well, something that is quite likely in replacing an old system. I am not sure whether Greg or Steve have any thoughts on the general mark up on something like this.
As far as progress goes, yesterday I met the aforementioned OAP who is to be the superintendent, Quality Control Manager and Site Safety and Health Officer (SSHO) and some materials were delivered. I took the opportunity to get some shots of the interior:
Left: Air conditioning unit not being replaced. Right: Two boilers being replaced.
Left: Three pumps, to be replaced with two pumps.
Right: Domestic Hot Water Heaters to be replaced.
Holdfast Training Services Trial Blog 
Henry, the profit margin is a figure as large as you can get away with and the real value of this percentage will be the most closely guarded secret in the company. Even the figure published for tax purposes is something you need to be a chartered accountant to understand, with acronyms such as EBITDA getting kicked around like tin cans in a playground whenever investors, directors and senior staff get together. All you have to worry about at this stage is bringing it in for the sticker price.
Henry,
What does the 110,000 and “bus” refer to in the blog? I think I must be missing something obvious.
Jim,
Understood.
Rich,
Sorry, I got a little carried away by the metaphor! The $110,000 is the main contractor’s slice of the payments, calculated by subtracting the subcontract values from the overall contract value. The main contractor, as you have blogged in the past, doesn’t actually construct anything and just manages his subcontractors. The ‘bus’ is Steve Payne’s bus driving through contracts.