SummitPentagon Premier Roofing Business Plan — People and Production

Crew structure, recruitment and retention in a tight labour market, and the scheduling discipline behind consistent throughput.

People and Production

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Role

Year 1

Year 3

Year 5

Responsibility

Owner

1

1

1

Sells and runs production in Year 1; commercial, funding and job costing thereafter

Production manager

1

1

From Year 3; schedules crews, manages material delivery and quality

Crew foremen

1

3

5

One per crew; tear-off, deck inspection, installation and site condition

Crew members

3

9

15

Three per crew; installation, flashing, clean-up

Salespeople

2

4

From Year 2; inspection, estimate, close. Paid on commission

Estimator

1

1

From Year 3; aerial takeoff, material ordering and job costing

Office and administration

1

2

3

Scheduling, permits, invoicing, certificates, collections

$’000

Year 1

Year 2

Year 3

Year 4

Year 5

Crew labor

151

453

814

1,231

1,722

Workers’ compensation on that labor

28

81

140

204

276

Fully-loaded crew cost

179

534

954

1,435

1,998

As a share of revenue

33.5%

32.9%

32.2%

31.6%

31.1%

Owner compensation

62

84

108

130

154

Total people cost

291

757

1,302

1,917

2,633

As a share of revenue

54.4%

46.6%

44.0%

42.2%

41.0%

Total people cost falls from 68.4 per cent of revenue to 40.5 per cent. Owner compensation is a real cost from Year 1 at $62,000 rising to $154,000, deducted before EBITDA — so the break-even in Section 15 and the net margin throughout are calculated after the owner has been paid, which is the distinction Section 2 identifies as the core reporting error in the trade.