Craig

18-person team
4%
14% gross margin
new south wales

before

Craig had been building for sixteen years. the post-covid construction boom had been good to him, more work than he could handle. then the supply chain broke. material costs doubled. three key subcontractors went under mid-project. Craig was managing every project personally because the volatility meant every project was a problem waiting to happen. supply delays, cost variations, subcontractor failures, client escalations., all of it came to Craig. he was working seven days. renegotiating contracts at 9pm. the architecture meant every project genuinely did need him because nothing in the structure had ever distributed that authority anywhere else.

the margin picture was worse than Craig knew. reporting was reactive. Craig found out at project completion what the margin had been, not during the project when he could have done something about it. three projects completed in the prior six months had delivered under 4% margin. two had lost money. Craig had been attributing it to the supply chain. the supply chain was part of it. the pricing and the lack of real-time visibility were the rest.

the shift

triage first. the existing portfolio was reviewed: which projects were recoverable, which needed renegotiation, which needed to be wound down. site supervisors were given authority to manage day-to-day issues with a defined escalation threshold. financial reporting rebuilt. weekly real-time project margin visibility replaced end-of-job discovery. Craig could see which projects were bleeding while there was still time to act.

three projects were renegotiated. one was exited at a small loss that would have been a large loss if continued. new work was priced with a floor Craig could now see clearly and hold. he declined two fixed-price contracts that didn't work at the new floor.

after

Craig's working week dropped from seven days to five within the third cycle. margins recovered to 14% within twelve months. Craig described it as the year the business stopped running him. the supply chain beginning to normalise was part of the recovery. the structure was the rest. without it, the normalisation would have arrived into the same broken architecture.

the lesson

market volatility doesn't create founder dependency. it weaponises it. structure doesn't prevent the hard times. it makes the hard times survivable.

Transformation metrics

Hrs per week in operations

55–60

Under 20
Consecutive days off

0 in 3 years

42 across 9 weeks
Revenue

$1.5m

$8m in 15 months
Below-margin work

Regularly accepted

Eliminated
days worked per week

7

5 within third cycle
project margin visibility

end of job

weekly real-time
gross margin

under 4% on recent projects

recovered to 14%
fixed-price contracts declined

0 - no capacity to say no

unviable work declined
time to first structural shift

6 weeks

ready to stop being
the bottleneck?

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