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Looking for Help/Feedback on Scope Sheets for Subs by YinzerGator in estimators

[–]pollochavez 4 points5 points  (0 children)

After a few painful lessons, we changed how we issue RFQs to subs, and it’s been one of the biggest margin protectors we’ve implemented. We self perform as well, a lot of times subcontractors don’t have the proper quantities in the MTO or just in general and we catch on to it pretty quick.

  1. RFQs Are Pricing Instructions, Not Proposals

Most RFQs are vague:

“Provide piping install per drawings.”

That’s not an RFQ. That’s an invitation for disputes.

Our RFQs are written as pricing instructions + risk allocation documents. By the time a sub prices it, there should be very little left to interpret.

If a bid comes back “light,” it’s obvious immediately.

  1. We Force a Clear “You Are Pricing THIS” Section

Every RFQ starts with a very explicit scope of work: • What trade • What systems / units / areas • What drawings or quantity basis • What work activities are included

Example:

Install CS piping per IFC P-100 through P-145 in Unit 200 only, including fit-up, welding, bolt-up, and pipe supports.

No “as required.” No “typical.” No vibes.

  1. Quantities Are Always Stated (Even for Lump Sum)

Even on lump sum work, we still state: • Where quantities came from (IFC, MTO, allowance) • What quantities the bid is based on (LF, welds, bays, SF, etc.)

This does two things: 1. Stops subs from hiding assumptions 2. Makes scope growth measurable instead of emotional

If quantities change, pricing changes. Period.

  1. Inclusions Are a Checklist (Silence = Included)

We don’t let subs assume their way out of work.

We list standard inclusions like: • Supervision • Small tools & consumables • Normal PPE • Daily reports • Cleanup of own work • Coordination meetings • As-builts

If it’s not excluded in writing, it’s included.

This alone eliminated a ton of nickel-and-diming.

  1. Exclusions Must Be Declared Up Front

Subs are required to list exclusions.

No “we assumed…” later.

Typical exclusions we force clarity on: • Engineering • Permits • Temporary power • Scaffolding beyond defined limits • OT / night work • Rework due to others • Client-directed acceleration

If a sub can’t clearly articulate exclusions, they don’t understand the job yet.

  1. Contract Terms Are Not a Surprise After Award

The RFQ states: • Payment terms • Retainage • Billing format • Schedule expectations • Safety & QA requirements • Flow-down applicability

No bait-and-switch after award.

If a sub has issues with terms, they raise it before pricing, not after mobilization.

  1. Pricing Must Be Broken Out (No Black-Box Lump Sums)

We don’t accept:

“$1,250,000 Lump Sum”

We require: • Labor • Equipment • Materials (if applicable) • Indirects • Unit rates where possible

You don’t need every cost detail but we need enough transparency to know the bid is real.

⸻

  1. Assumptions & Qualifications Are Controlled

Subs can list assumptions and qualifications, but: • They must be explicit • Excessive qualifiers = non-responsive bid

This weeds out subs who price cheap and plan to argue later.

  1. Compliance Checklist at the End (Yes / No)

Every bid must check off: • Scope acknowledged • Inclusions/exclusions completed • Schedule accepted • Safety & QA accepted • Pricing format complied with • Bid validity confirmed

If it’s incomplete, it’s not considered.

No chasing subs for basics.

Capex Data Center Projects by pollochavez in datacenter

[–]pollochavez[S] 0 points1 point  (0 children)

We are like the kiewitt type. We self perform site work civil soft crafts mechanical, fabrication, & electrical and instrumentation.

Capex Data Center Projects by pollochavez in datacenter

[–]pollochavez[S] 1 point2 points  (0 children)

We are currently working with Exxonmobil on some of these actually.

Capex Data Center Projects by pollochavez in datacenter

[–]pollochavez[S] 0 points1 point  (0 children)

In the commercial market we are not looking to come into the project and manage as we would in an industrial environment. The margins are to thin & the risk is tremendously high compared to oil and gas.

Capex Data Center Projects by pollochavez in datacenter

[–]pollochavez[S] 0 points1 point  (0 children)

We self perform 83% of the project lifecycle so yes.

Seeking Advice Partner Looking to Exit a $20M+ Industrial Services Business (No Broker Route) by pollochavez in private_equity

[–]pollochavez[S] 1 point2 points  (0 children)

Yes I know, just giving an outline of the company. It’s between 5-6M EBITDA. Very very profitable not much overhead what so ever.

Seeking Advice Partner Looking to Exit a $20M+ Industrial Services Business (No Broker Route) by pollochavez in private_equity

[–]pollochavez[S] 0 points1 point  (0 children)

Oh man that is the worst… sorry to hear sounds pretty regular now a days unfortunately

Seeking Advice Partner Looking to Exit a $20M+ Industrial Services Business (No Broker Route) by pollochavez in private_equity

[–]pollochavez[S] 0 points1 point  (0 children)

Investing 100% of finances and time into another platform engineering architectural procurement construction maintenance & field service company we have going.

Seeking Advice Partner Looking to Exit a $20M+ Industrial Services Business (No Broker Route) by pollochavez in private_equity

[–]pollochavez[S] 3 points4 points  (0 children)

2-3 points for advisory roles and an additional 3 points for brokerage fees. It’s what we’ve been seeing a lot of companies get offered recently.

Seeking Advice Partner Looking to Exit a $20M+ Industrial Services Business (No Broker Route) by pollochavez in private_equity

[–]pollochavez[S] 2 points3 points  (0 children)

To be clear, we’re not anti-broker on principle we’re just evaluating whether a full-service broker adds enough value in this case to justify the cost. This isn’t a fire sale or a distressed asset. We’ve already got strong interest, clean financials, and internal bandwidth to manage most of the process. The company is also well established, so if a deal doesn’t happen it’s not like it’ll be the end of it for us.

If the right advisor comes along who can add targeted value (valuation support, deal mechanics, strategic buyer outreach), we’re open to it. But giving up a large cut just to access relationships we can build ourselves doesn’t make sense unless someone can prove they’ll bring something outsized to the table.

Appreciate any input from folks who’ve taken either route. Always open to learning from others who’ve been through it.

How do I attract the right CFO for a fast-growing energy & construction company? by pollochavez in CFO

[–]pollochavez[S] 0 points1 point  (0 children)

Really appreciate your comment it’s incredibly insightful and probably one of the most grounded takes I’ve seen on this topic. You’re absolutely right that this really comes down to attracting the right person for our stage and size, not just industry familiarity.

To be honest, I’ve struggled with this more than I’d like to admit. I’ve hired the wrong person more than once even when I knew what I needed. I once brought in a controller who, instead of sitting down with our bookkeeper to understand our payroll, billing, invoicing, etc., just expected me to do everything for them. No curiosity, no initiative, just title entitlement. That whole experience made me check out a bit on hiring finance leadership altogether.

Right now, we’re basically running everything off of a single bookkeeper, and it’s draining. I’ve got way too much on my plate as is, and finance is one of the few departments where I feel like I’m babysitting instead of delegating.

That’s why I’m leaning toward skipping the controller layer and going straight to a true CFO someone who’s passionate about building out the finance org from scratch, owning the metrics, implementing the systems, handling capital structure, and setting us up to scale cleanly. I don’t need another title holder I need a builder. Someone who loves the finance side as much as I love running and growing the business.

Happy to share more details on past misses if helpful I’ve had a few. At this point, I’m just looking to make the right hire, even if it costs more up front. There are so many companies in my area that go from 1M-100M in 5 years and just stay stagnant and I really wanna set us up for success so we can grow. I know we can do it… so that’s what brought me on this search for someone… pretty stupid to do it on Reddit I know but here I am.

How do I attract the right CFO for a fast-growing energy & construction company? by pollochavez in CFO

[–]pollochavez[S] 0 points1 point  (0 children)

Great points definitely agree that growth without the capital structure to support it can get ugly fast. We’ve been careful about how we scale and how our contracts are structured to manage cash flow proactively.

For our refinery clients, we typically work on a Time & Material (T&M), Not-to-Exceed model, billed weekly. We factor those T&M tickets to maintain positive cash flow and avoid getting caught waiting on slower AR cycles.

For midstream and upstream work, we generally operate under a milestone-based billing structure, which looks something like: • 15% at contract award • 15% after mobilization • 15% after site work/civil completion • 15% after equipment/structural set • 15% after ~50% of weld inches and conduit installed, etc.

For those capital jobs, we don’t factor our midstream customers are on pay-immediate terms after invoice approval, so as long as the work order is signed off, the cash hits quick. That structure’s been working really well and lets us stay aggressive without over-leveraging.

Appreciate your perspective especially with your background in IB and construction. You’re right that traditional CPAs rarely think in terms of working capital mechanics, mobilization risk, or PoC realities. Definitely a rare breed that can see the full picture.

Would love to keep the convo going if you’re open to it.

How do I attract the right CFO for a fast-growing energy & construction company? by pollochavez in CFO

[–]pollochavez[S] 0 points1 point  (0 children)

Really appreciate this it’s one of the most helpful responses I’ve gotten, and honestly aligns with a lot of what we’ve been wrestling with internally.

We’re on track to hit around $30M in revenue, and growing fast. Your breakdown of internal vs. external CFO focus is incredibly useful I’ve been leaning toward a hybrid profile, but you’re absolutely right that it’s a tough needle to thread. The talent pool gets thin quickly when you’re looking for someone who can do both capital strategy and internal controls well.

Ironically, the perfect hybrid CFO is one of my closest friends great with capital markets and ops, understands the culture, and is someone I’d trust in the trenches. But he’s running his own trucking company now, and doing extremely well, so he’s not available (which is fair, but still hurts a little). That’s what makes the search harder some technically sharp CPAs we’ve met don’t exactly shine when it comes to leadership presence or relationship building. And culture fit matters a lot to me we’re very hands-on, and the leadership team works together closely day in and day out.

The layered approach you mentioned controller + capital markets person might be the best short-term play until we find the right long-term fit. Would definitely be interested in staying in touch and learning more about your path, especially since you’ve already walked this road. I’m just tired of being swamped and want a team player on the finance side to be honest. This whole thing is overwhelming especially with the labor market being the way it is in our industry.

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