Fence and deck bookkeeping: cost per foot, by product line

Fence and deck work is priced by the foot and lost in the details: the extra posts a corner needed, the concrete that went into a soft hole, the survey nobody quoted for, the return trip for a gate. Material is a large share of every job, and the margin is decided in how closely the finished job matches the one that was priced.

Cost per linear foot — and per square foot

Fence jobs are usually priced per linear foot by material and height; deck jobs per square foot by material and design. The books should turn every finished job back into the same unit: actual material and labor per foot against what you charged per foot.

Across a season, that comparison shows which products and job types are priced right. Chain link, wood, vinyl, aluminum and ornamental all behave differently, and so do pressure-treated and composite decking. Most companies find one or two product lines consistently under-priced.

Material by the job, including what came back

Posts, panels, pickets, rails, hardware, concrete, fasteners — ordered per job and coded to it. Two leaks to watch:

• Returns and leftovers. Extra panels and hardware returned to the supplier, or carried to the next job, should be credited back to the job they came from.
• Special-order items — colors, ornamental panels, composite profiles — that cannot be returned. Leftovers are inventory until used or written off.

Deposits

Because material is ordered per job, most fence and deck companies take a deposit. It is a liability until the job is built, not revenue in the month it arrives. See deposits and progress billing. In the busy season, deposits held can be large — and they are already owed in work.

Surveys, locates and permits

Property-line surveys, utility locates, HOA approvals and permits are real costs and real delays. Where you pay them, code them to the job. Where they hold up a job with a crew scheduled, the idle time is a cost too.

Recording these per job builds a record of what the paperwork side of the work costs, which is usually more than owners assume and is rarely in the estimate.

Crews and subs

Many fence companies use subcontracted crews paid per foot. Collect a W-9 and insurance certificate before the first payment, and track pay per foot against price per foot. See who needs a 1099 and 1099 or W-2 — a crew working only for you, on your schedule, may be employees.

Seasons

Fence and deck work is seasonal in most of the country, with a spring rush and a winter slowdown. A reserve built in the busy months carries the quiet ones; the seasonal reserve calculator sizes it. Winter is also when to review the season’s job costs by product line and reprice before spring.

Sales tax on materials

Whether fence and deck materials are taxed as a sale to the customer or as a purchase you consume depends on your state and sometimes on how the contract is written. Confirm your state’s treatment. See sales tax for contractors.

Callbacks

Leaning posts, sagging gates, popped boards. Return visits belong to the original job, which shows whether particular materials, soil conditions or crews bring you back. See what callbacks are really costing you.

Related

• Landscaping bookkeeping
• How to bid a job so it makes what you intended
• Job costing for contractors

General information, not tax or legal advice. Sales tax treatment varies by state.