**SUBCONTRACTOR**
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INSULATION SCOPE OF WORK

Objective of this Scope of Work

► To ensure that Insulation is installed in a manner consistent with all applicable building codes, manufacturer's instructions and warranty requirements, and acceptable construction practices.

Terms used in this document

►SITE SUPERINTENDENT: shall refer to any Company representative with authority to enforce this Scope of Work.
►SUBCONTRACTOR: shall refer to the Subcontractor's organization, its employees, or any representative of the Subcontractor assigned the authority to perform per this Scope of Work.

Acceptable Performance
► Insulation is divided into three phases: Floor, Wall, and Ceiling . While individual subcontractor does not necessarily work on every phase, all three phases are included in this Scope of Work. Payment will be made per each of the phases.
Insulation: General

► Insulation may be fiberglass, foam, blown-in cellulose or a combination of materials. Ask the Site Superintendent if there are questions about insulation application.
► Prior to beginning work the Subcontractor must review the plans with the Site Superintendent to ensure that the Subcontractor has a full understanding of the job requirements.
► All work is to be done by trained, experienced individuals.
► All insulation must meet or exceed the R-value specified in the applicable state energy code for single-family homes and FHA standards.
► All areas of penetration in the roof, siding, or floor, such as penetrations for plumbing, wiring, etc., shall be sealed.
► All areas of the walls, floors, and ceilings facing unheated areas shall be insulated. Vapor barriers, if installed, shall face areas heated in winter. Insulation shall be placed on the outside, or cold side, of pipes and ducts. Wall portions separating heated and unheated areas in houses shall be insulated. Insulation shall be stuffed in openings around ducts, pipes, and wires between heated and unheated areas. All openings in jacks and headers shall be stuffed with insulation to prevent air penetration at these areas.
► Batts shall be butted tightly and fastened snugly against framing members.
► Fasteners shall be installed so as to avoid gaps. Rips and tears in the vapor barrier shall be repaired.
► Insulation shall be cut approximately 1 inch larger than nonstandard width spaces. Cut edge of vapor barrier shall be fastened to framing members.
► Avoid over-compression of insulation material, which reduces the R-value.
► Insulation materials shall meet Company's specifications for type, brand, and R-value. Materials should be new, dry, undamaged, and stored to remain that way.
► All trash and building debris must be removed to the dumpster or to the site designated for trash.
► The Subcontractor is responsible for cleaning up all residual materials before the job will be accepted as complete.
► House shall be left clean and broom-swept for job to be considered complete.
► A letter certifying the R-values of the insulation must be furnished for each house. The letter should be in a format approved by FHA and VA.
► Any items found during the final inspection that need correction shall be corrected before payment will be made.

Insulation: Floor

► Unheated floor insulation shall be applied with the vapor barrier up.
► Floor insulation may be installed with pointed-end wire fasteners or wire lacing.

Insulation: Wall

► All areas behind tubs, showers, etc., whether on an exterior or interior wall, must be insulated.
► All bath walls shall be sound-insulated.

Fiberglass Insulation

► If fiberglass wall insulation is specified, all wall insulation shall be wallpaper-backed insulation with an appropriate or specified R-value.
► Insulation should be cut to fit snugly in wall areas without being compressed.
► Insulation cut short should have the gap filled with small pieces. Insulation should be stuffed in narrow areas between framing members and around windows and doors. These areas should be covered with vapor barrier material.
► Areas that cannot be insulated using normal batts, etc., because of size, shape, or installed fixtures or units shall be insulated by stuffing insulation around and in the areas. No area is to be left uninsulated.

Foam Insulation

► If foam insulation is specified, the foam will be of the appropriate mixture and depth to provide the specified R-value.
► Foam insulation shall be trimmed and ready for drywall installation.

Insulation: Ceiling

► All attic access areas shall have weather-stripping.
► All areas between walls and roof/ceilings and between panels shall be sealed.
► Baffleboards shall be installed as required to ensure adequate ventilation in attic area if eave vents are installed in house.
► To mitigate fire danger, do not cover recessed lighting fixtures with insulation.

Cellulose Insulation

► Ceiling insulation should cover as much of top wall plate as possible. Where eave venting is installed, leave a 1-inch gap between the top of the ceiling insulation and underside of the roof sheathing.
► All ceiling insulation will be blown-in insulation with a R-38 value, except for tray-ceiling and vaulted-ceiling insulation, which shall have R-38 value batts.
► The Subcontractor shall furnish one ruler per each 500 square feet of attic space with a minimum of three (3) rulers. Rulers must be readily visible in the attic.

Foam Insulation

► If foam insulation is specified, the foam will be of the appropriate mixture and depth to provide the specified R-value.

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🏅 Create a Business Worth Owning

📶 Integrated step-by-step program using all tools and systems

💡 Two coaching sessions per month

📊 Monthly scorecard to measure the journey

🛠️ Tools: All tools (Chart of Accounts, Cost Codes, BBOS Estimator, Builder Business Model Canvas, SubManager, ClientManager, Policy Handbook, Management Scorecard).

🤝 What we do together:

  • A 180+-day engagement covering financials, estimating, subcontractors, clients, and workforce.
  • Coaching sessions every two weeks to review your real numbers and coach policy implementation.
  • A monthly “Business Health Scorecard” that shows where you are strong and where to strengthen.
  • Focus on building a business system that allows you to:
    • move out of day-to-day management;
    • develop a valuable legacy enterprise; and
    • create a business with significant market value.

💲 Investment: $3,500-$5,000.

🪜 Progression logic:

  • This is the capstone — combining all five prior steps into one system that builds a business worth owning.

🎯Outcome: "Now I control my business, not the other way around."

👷 Manage Your Workforce

👷‍♀️ Put the right people in the right position

📄 Create an Organization Chart and Position Descriptions

📄 Integrate employment policies

🛠️ Tools: OrgChart, Position Descriptions, Company Policy Template

🤝 What we do together:

  • Create a Company organization chart.
  • Create Job Descriptions.
  • Implement employee policy handbook
  • Identify inefficiencies in labor margins.
  • Discover hidden labor costs.

💲 Investment: $1,250-$1,500.

🪜 Progression logic:

  • Labor is usually the last controllable variable — now you are tackling optimization and efficiency.

🎯Outcome: "Now I am in control of the work that must be completed, and my employees understand their positions and accountabilities."

🗣️ Control the Client Relationship

📄 Client log, Change Order system

📄 Notice of Completion, Draw Requests

📄 Communication templates for disputes

🛠️ Tools: ClientManager, Client Contact Log, Initial Specifications, NAHB Residential Construction Guide

🤝 What we do together:

  • Implement a structured client management system.
  • Introduce the Client Contact Log.
  • Provide templates for change order and scope adjustments.
  • Train on reducing disputes and managing client expectations.

💲 Investment: $750-$1,250

🪜 Progression logic:

  • With the business financially stable and risk-protected, control of clients and their expectations ensures smoother operations and fewer profit leaks.

🎯Outcome: "Now I can manage clients and their expectations without projects spinning out of control."

🧯Identify and Manage Risks

🏠 Project Risks:

  • Site Risks – site injuries with no primary insurance coverage.
  • Reputational Risks – You don’t deliver what you promised because your subcontractors were not on the same page.
  • Capacity Risks – You can’t deliver what you promised because you don’t have the organizational structure to support your sales.

🔍 Management Risks:

  • Company Structural Risks – You don’t have the right people in the right positions.
  • Promotional Risks – Your market doesn’t know or care about your products.
  • Competitive Risks – You haven’t differentiated your company, so lowest price is the only way you can compete. 
  • Market Demand Risks – a bad market cycle will cripple or destroy your business.

🛠️ Tools: SubManager, Organizing for Success, Builder Business Model Canvas, Budgeting Forecasts

🤝 What we do together:

  • Implement Terms and Conditions, Scopes of Work, and Inspection Reports for all Subcontractors.
  • Review how you track subcontractor insurance and compliance.
  • Analyze your organizational structure to optimize production capacity.
  • Review your business model.
  • Create “Expected Case”, “Best Case”, and Worst Case” budgeting scenarios.

💲 Investment: $1,000-$1,500

🪜 Progression logic:

  • After financial clarity and profitable estimating, risk management provides the next layer of company stability.

🎯Outcome: "Now I can reduce or transfer risk exposure; identify and appeal to my primary market; and plan for any type of economic environment."

🧮Price with Confidence

🔍 Audit your estimating process

🔎 Review all active projects monthly for budget-to-actual performance

🔍 Debrief every completed project for profitability and work flow

📶 Install a margin-tracking dashboard

🛠️ Tools: BBOS Estimator, Overhead Calculator, Completed Project Profitability Report

🤝 What we do together:

  • Audit your current estimating process.
  • Benchmark your margins against industry and market standards.
  • Optimize estimating margins for maximum profitability.
  • Track true budget-to-actual expenditures.

💲 Investment: $750-$1,250

🪜 Progression logic:

  • Once finances are stable, you can sharpen your pricing to stop leaving money on the table.
  • You’ll know the margin to use to make sure overhead is allocated profitably. 

🎯Outcome: "Now I can bid jobs knowing I'll profit, not just hoping for profit."

💰90-Day Financial Reset

🗄️ Rebuild Chart of Accounts on NAHB Model

🗃️ Rebuild Cost Codes on CSI model

🛠️ Tools: Accounting platform, NAHB Chart of Accounts, CSI Cost Codes, Management Scorecard

🤝 What we do together:

  • Access to your accounting platform is required.
  • Rebuild your Chart of Accounts for project-level profitability.
  • Create and align Cost Codes so estimating, job costing, and reporting all “speak the same language.”
  • One-on-one coaching call every two weeks during the program to interpret your numbers.

💲 Investment: $1,500-$3,000

🪜 Why start here?

  • Without financial clarity, nothing else matters.
  • The reason you are in business is to make a profit. 
  • Do you KNOW if you are doing that?

🎯Outcome: "Now I know if my business is profitable and my business model is sound."

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