What to measure. Traditional metrics vs systemized metrics vs protocol-era metrics.
| Category | What It Measures | Traditional | Systemized | Protocol-Era |
|---|
| Financial | Profitability | Bank balance | Job-level P&L | Real-time margin oracles |
| Operational | Efficiency | Hours worked | Schedule variance | Automated coordination |
| Owner | Liberation | Exhaustion | Delegation rate | System autonomy |
| Quality | Outcomes | Punch lists | Rework rate | Verified completion proofs |
Financial Metrics
The Illusion Gap
The gap between perceived profit and actual profit. Most builders steer by bank balance.
| Metric | Struggling | Average | Systemized | Evidence |
|---|
| Gross markup | 15-18% | 20-25% | 30-33% | SORCI benchmark |
| Net profit margin | 2-3% | 5-6% | 10-15% | Industry data |
| Job cost accuracy | Estimated | Partial allocation | Full allocation | APB best practice |
| Monthly financials | Quarterly | By 15th | By 10th | Correlation with profit |
Key Financial KPIs
| Metric | Formula | What It Reveals |
|---|
| Net Profit Margin | Net profit (after owner salary) / Revenue | True profitability |
| Revenue per Hour | Annual revenue / Owner hours worked | Owner efficiency |
| Gross Profit per Job | (Contract - Direct costs) / Contract | Job-level health |
| Cash Position | Working capital / Monthly overhead | Runway |
| Illusion Indicator | Bank balance - True WIP-adjusted profit | Reality gap |
The Revenue Ceiling
| Revenue Band | Typical Constraint | System Fix |
|---|
| Under $1M | Owner does everything | Document top 5 processes |
| $1M - $2.5M | Sales bottleneck | Repeatable sales system |
| $2.5M - $5M | Capacity bottleneck | Production planning + delegation |
| $5M - $10M | Cash flow bottleneck | Progress claims + variation management |
| $10M+ | Leadership bottleneck | Management layer + exception reporting |
Operational Metrics
| Metric | Traditional | Systemized | Why Better |
|---|
| Schedule variance | "About on time" | Days +/- per phase | Actionable |
| Trade handoff time | Whenever they show up | Planned gaps measured | Predictable |
| Rework rate | "Normal amount" | % of budget re-spent | Reducible |
| Variation turnaround | Days to weeks | Documented SLA | Client trust |
Systemization Index
Four equal-weight components measuring operational maturity:
| Component | Score 0-25 | What It Measures |
|---|
| Documentation | % critical processes written down | Can someone else follow this? |
| Delegation | % critical processes run by non-owner | Does the business need you? |
| Training | % team trained on documented processes | Do they know what to do? |
| Exception Reporting | % processes with KPI tripwires | Do you know when it breaks? |
Scoring:
- 0-25: Owner-dependent (danger zone)
- 26-50: Partially systemized (most builders)
- 51-75: Systemized (scaling possible)
- 76-100: Self-running (owner as architect)
Owner Metrics
The Bottleneck Score
Composite metric measuring how trapped the owner is:
| Component | Weight | Measurement |
|---|
| Decision dependency | 30% | % decisions requiring owner approval |
| Task concentration | 30% | % tasks tagged "owner only" |
| Project attachment | 20% | % revenue from owner-PM'd projects |
| Approval latency | 20% | Average days for owner sign-off |
Owner Liberation KPIs
| Metric | Trapped | Transitioning | Liberated |
|---|
| Hours/week | 60+ | 50 | 40 |
| Time on vs in | 10/90 | 30/70 | 60/40 |
| Vacation days/year | 5 | 10 | 20+ |
| Revenue per owner hour | Below $100 | $100-200 | $200+ |
| Two-week test | Business stops | Business slows | Business runs |
Quality Metrics
| Metric | Measurement | Target | Warning |
|---|
| Client satisfaction | NPS or survey | 8+/10 | Below 7 |
| Defect rate | Punch list items per $100K | Under 5 | Over 15 |
| Warranty callbacks | Calls per completed project | Under 2 | Over 5 |
| Referral rate | % new clients from referrals | Over 50% | Under 25% |
Opportunity Assessment
Scoring Dimensions
| Dimension | Weight | Construction Score | Evidence |
|---|
| Market Attractiveness | 20% | 8.0 | $17T+ TAM, fundamental human need |
| Technology Disruption | 20% | 6.0 | Second-least digitalized industry |
| VVFL Alignment | 25% | 7.5 | Systemization loop proven by SORCI |
| Competitive Position | 20% | 7.0 | Fragmented market, systemized players win |
| Timing Risk | 15% | 6.5 | Interest rates, material costs, labor gaps |
Aggregate: 7.1/10 — Active Opportunity
Opportunity Matrix
| Opportunity | Score | Timing | Key Risk |
|---|
| Builder systemization (SaaS) | 8.5 | Now | Adoption resistance |
| Equipment sharing (DePIN) | 7.0 | Now | No scaled protocol |
| Material provenance | 7.5 | 1-2 years | 2028 carbon mandate driver |
| Worker credentials | 6.5 | 2-3 years | Fragmented adoption |
| AI project management | 8.0 | Now | ConTech investment surge |
Watch Signals
| Signal | Bullish | Bearish |
|---|
| SORCI adoption | More builders benchmarking | Industry ignores data |
| ConTech investment | $3.55B Q1 2025, 46% to AI | Capital dries up |
| Carbon mandates | 2028 disclosure accelerates | Delayed or weakened |
| Labor shortage | 439K gap forces automation | Immigration solves it |
| Interest rates | Rates drop, volume returns | Prolonged high rates |
| Principle | What to Measure |
|---|
| Systems scale, heroes don't | Systemization Index, owner bottleneck score |
| Margin is managed, not hoped | Net profit margin, job cost accuracy, illusion gap |
| Coordination is the product | Schedule variance, handoff time, rework rate |
| Trust compounds through proof | Referral rate, dispute rate, client retention |
| Communities build communities | Local trade utilization, material sourcing |
Context