5 KPI & Metrics for Construction and Demolition Waste Management: What Should We Track?
Construction And Demolition Waste Management
You're scaling a C&D waste service-track Diversion Rate, Yield per Ton, Cost per Ton, Machine Utilization Rate, and Accounts Receivable Days. Compare Yield per Ton net of the 20% commodity commission to Cost per Ton to judge gross margin, note breakeven in Year 2 and Year 1 revenue of $1,770,000, and plan for the Data Integration Subscription launch in October 2026.
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KPI Metric
Description
1
Diversion Rate
Percentage of C&D volume diverted from landfill; measures compliance, recycling performance, and value recovery.
2
Yield per Ton
Revenue per ton sold, guiding material priorities, pricing, and sorting investments.
3
Cost per Ton
All direct processing costs allocated per ton; primary lever to reduce hauling expenses.
4
Machine Utilization Rate
Active processing hours divided by available hours; indicates idle capital and redeployment needs.
5
AR Days
Average days to collect from contractors; affects cash runway, payment terms, and financing.
Key Takeaways
Track diversion rate weekly to hit client guarantees.
Reduce cost per ton 10% within twelve months.
Monitor machine utilization daily to avoid idle capex.
Collect receivables within 30 days to protect runway.
What Are The 5 Must-Track KPIs?
You're deciding which construction and demolition waste management KPIs matter-track five that tie operations to cash and contracts, and read costs here: What Operating Costs Construction and Demolition Waste Management Entails?. Focus on Diversion Rate, Yield per Ton Processed, Cost per Ton Processed, Revenue Share Capture (the 20% commodity commission), and Machine Utilization Rate to see if recycling ops scale profitably. These C&D waste KPIs give quick signals on revenue, margin, and idle capital so you can act fast.
Five KPIs to watch now
Diversion Rate - % of incoming C&D volume diverted from landfill
Yield per Ton Processed - revenue from sold commodities (net of the 20% commission)
Cost per Ton Processed - all direct processing and deployment costs per ton
Machine Utilization Rate - active hours ÷ available hours (idle units raise per-ton cost)
What Numbers Tell You If You're Actually Making Money?
You're checking if operations convert to profit - focus on gross margin per ton, EBITDA trend, cash runway timing, and contribution margin from service fees to see it. Calculate gross margin per ton after the 20% commodity commission and direct processing costs; track EBITDA trajectory across years and note breakeven timing (breakeven reached in Year 2). Watch minimum cash balance and runway to spot shortfalls early; compare to Year 1 revenue of $1,770,000. Read cost details and upfront spend planning here: How Much Does It Cost to Start Construction and Demolition Waste Management?
Numbers to watch now
Gross margin per ton (net of 20% commission)
EBITDA trajectory across forecast years
Minimum cash and cash runway month
Contribution margin from service fees
Which KPI Predicts Cash Flow Problems Early?
Minimum cash and receivables are the earliest red flags. Read these alongside machine utilization and deployment fee timing to catch shortfalls before they force stops - and see related operating costs What Operating Costs Construction and Demolition Waste Management Entails?. Track minimum cash month, accounts receivable days, machine utilization rate, and delayed deployment/decommission fees every week to spot risk fast. Here's the short list of triggers to monitor now.
Early cash-flow triggers
Minimum cash and the month low cash appears - early warning.
Accounts receivable days from GCs delaying cash inflows.
Delayed deployment & decommission fees (and spikes in capex or spare parts) drain cash quickly.
Which KPI Shows If Marketing Is Paying Off?
You know marketing is working when customer acquisition cost compares favorably to first-year contract lifetime value, plus you're winning large GC projects-keep reading for the exact KPIs to track. If you need setup steps, see How to Start Construction and Demolition Waste Management? Track win rate, lead-to-sign timing, and subscription growth to prove channel ROI. These KPIs map marketing to cash and recurring revenue.
Marketing KPIs that prove ROI
CAC vs first-year LTV
Number of projects above $50 million
Win rate for Tier 1 and Tier 2 GCs
Time from lead to signed deployment + subscription growth
What KPI Do Most New Owners Ignore Until It's Too Late?
Accounts receivable aging and concentration is the KPI that kills cash first, so watch it daily and act fast. Also track committed lifecycle cost of containers, commodity revenue-share terms and recycler payment timing, plus regulatory reporting accuracy tied to diversion guarantees; these drive cash and compliance. Check fleet depreciation and replacement schedules early and link them to your accounts receivable days and machine utilization rate. For upfront cost context, see How Much Does It Cost to Start Construction and Demolition Waste Management?
Hidden KPIs new owners miss
Accounts receivable aging and concentration by a few large customers
Committed lifecycle cost of containers, including maintenance and spare parts
Contract terms: commodity revenue share and timing of recycler payments
Regulatory reporting accuracy for diversion guarantees and fleet depreciation schedule
What Are 5 Core KPIs Should Track?
KPI 1: Diversion Rate
Definition
Diversion Rate measures the percentage of incoming construction and demolition (C&D) volume routed to recyclers or recovery instead of landfill. It shows how well on-site sorting and processing create saleable clean streams that meet client compliance and LEED (Leadership in Energy and Environmental Design) reporting needs.
Advantages
Improves revenue by increasing saleable material streams to recyclers.
Supports diversion guarantees and client compliance on LEED projects.
Provides a clear operational target to justify additional sorting units.
Disadvantages
Can be overstated if inputs aren't weighed or third-party verified.
Improvement may raise processing costs and lower short-term margins.
Doesn't show value per ton-high diversion can still give low revenue.
Industry Benchmarks
Target to exceed manual separation diversion by 30-40% on large C&D jobs; this gap is often the difference between meeting client mandates and failing them. For high-performing programs, aim for diversion rates above 50% when clean-stream sorting and optical separation are used.
How To Improve
Install targeted on-site sorting to create cleaner streams for recyclers.
Use optical scanners and AI to increase capture on high-value streams.
Require source-separation or minimum contamination limits in contracts.
How To Calculate
Diversion Rate = (Tons diverted to recyclers ÷ Total incoming tons) × 100%
Example of Calculation
Diversion Rate = (400 ÷ 1,000) × 100% = 40%
Tips and Trics
Weigh inbound and diverted loads; third-party verification reduces disputes.
Report diversion alongside Yield per Ton to show revenue impact.
Build diversion targets into contracts and tie payments to verification.
Yield per Ton Processed measures the revenue realized from sold commodities divided by tons processed on-site. It shows how much cash the recovered material streams generate after the service model captures its 20% commodity commission.
Advantages
Prioritizes high-value streams for scanner and AI tuning
Links commodity recovery directly to pricing of tiered service fees
Guides decisions on deploying extra sorting units to high-yield sites
Disadvantages
Varies with commodity prices and seasonal market swings
Can mislead if tons processed mix changes (contamination shifts value)
Ignores timing of recycler payments and the 20% commission delay
Industry Benchmarks
Benchmarks depend on job type and material mix; use project-level comparisons. Track improvements versus manual separation baselines and aim to exceed those diversion-linked yields by 30-40% when on-site sorting raises clean-stream value.
How To Improve
Optimize optical scanners and AI to boost saleable commodity share
Reassign sorting to projects with higher clean-stream percentages
Negotiate faster recycler payment terms to convert yield to cash sooner
How To Calculate
Yield per Ton Processed = (Gross commodity revenue from sold materials × (1 - 0.20 commodity commission)) ÷ Tons processed
Example of Calculation
Yield per Ton Processed = (Gross $100.00 × (1 - 0.20)) ÷ 1 ton = $80.00 per ton
Tips and Trics
Report yield net of the 20% commodity commission every period
Segment yield by material stream (concrete, wood, metal) for clear decisions
Compare yield to Cost per Ton Processed to get gross margin per ton
Use Data Integration Subscription reports (launching October 2026) to verify recycler payments
KPI 3: Cost per Ton Processed
Definition
Cost per Ton Processed measures all direct onsite processing costs allocated to each ton handled (labor, consumables, fuel allocation, haul-avoidance). It shows whether on-site sorting and recovery is cheaper than traditional hauling and underpins pricing, breakeven, and per-ton gross margin decisions.
Advantages
Directly compares on-site processing to hauling expense avoided
Drives decisions on redeployment vs. buying more units (affects $6,000,000 capex payback)
Shows progress as per-ton costs fall across forecast years
Disadvantages
Hard to allocate shared costs accurately across tons processed
Can hide receivables or timing issues that hurt cash runway
Ignores commodity commission impacts unless combined with Yield per Ton
Industry Benchmarks
Benchmarks vary by contract and region; compare Cost per Ton Processed directly to the hauling expense you replace and to manual separation baselines. Aim for per-ton costs low enough that combined with Yield per Ton (net of the 20% commodity commission) you reach the project breakeven achieved in Year 2.
How To Improve
Standardize time-and-motion to cut onsite labor minutes per ton
Cluster deployments to raise Machine Utilization Rate
Negotiate consumables and fuel bulk rates tied to deployment schedules
Cost per Ton Processed = ($120,000 total direct costs) / (1,500 tons processed) = $80.00 per ton
Tips and Trics
Track cost line-items per shift, not just monthly totals
Report Cost per Ton alongside Yield per Ton net of 20% commission
Flag months where utilization drops - fixed cost per ton spikes
Use deployment deposits to cover early spare-parts or capex draws
KPI 4: Machine Utilization Rate
Definition
Machine Utilization Rate measures active processing hours divided by total available machine hours in a period; it shows how much your on-site recycling units are actually working. This KPI links directly to capital payback on high-cost equipment (for example, the $6,000,000 capex unit) and to revenue and EBITDA ramp that led to breakeven in Year 2.
Advantages
Reveals idle capital that delays payback on $6,000,000 units
Drives redeployment, cluster scheduling, or fleet expansion decisions
Reduces per-ton fixed cost as utilization rises, improving gross margin per ton
Disadvantages
Can hide low yield if machines run on low-value material streams
Overstates performance when hours counted but throughput is poor
Seasonal project timing can skew short-term readings
Industry Benchmarks
Compare utilization against planned deployment schedules and payback targets tied to the unit purchase price (example: $6,000,000). Use utilization trends alongside financial milestones such as breakeven in Year 2 and early revenue figures (first-year revenue reported at $1,770,000) to assess whether the fleet scale or scheduling needs change.
How To Improve
Cluster deployments by geography to boost active hours
Prioritize high-yield sites to raise revenue per active hour
Shorten mobilization to increase available productive time
Track hourly throughput, not just running time, to avoid false positives
Link utilization to cash metrics: low utilization often precedes minimum cash shortfalls
Set minimum utilization thresholds tied to payback on the $6,000,000 unit
Use short weekly reports to catch drops in utilization before they hit EBITDA-defintely act fast
KPI 5: Accounts Receivable Days
Definition
Accounts Receivable Days measures the average days between invoicing general contractors and cash collection; it shows how quickly invoices convert to cash and signals near-term liquidity stress for construction and demolition waste management operations.
Advantages
Shows cash runway impact and early warning of low minimum cash
Guides payment terms, deposit needs, and performance guarantees
Reveals customer concentration risk when few GCs drive receivables
Disadvantages
Can mask seasonal project timing if measured only monthly
Skews higher when large Tier 1 projects invoice on milestone schedules
Doesn't show which invoices are contested or at risk of write-off
Industry Benchmarks
Benchmarks vary by contract type: typical contractor collections run 30-60 days for standard progress invoices and extend to 90+ days for milestone or retainage-heavy contracts. Use these bands to compare your Accounts Receivable Days and to assess cash-risk versus your breakeven timing (breakeven reached in Year 2 for the plan).
How To Improve
Require deposits and milestone payments on large projects
Negotiate shorter GC payment terms and penalize late pay
Invoice immediately and use electronic invoicing with clear diversion proofs
Track five core KPIs: Diversion Rate, Yield per Ton, Cost per Ton, Machine Utilization Rate, and Accounts Receivable Days These KPIs connect operational performance to cash: breakeven was reached in Year 2 and IRR stands at 37% Use the five metrics to monitor revenue growth from $1,770,000 in Year 1 to planned scale
Review operational KPIs weekly and financial KPIs monthly for Tier 1 and Tier 2 projects Weekly checks help optimize Machine Utilization Rate and diversion performance while monthly reviews capture Cost per Ton and Yield per Ton trends Monitor cash-level metrics including Minimum Cash timing and revenue cadence across the 5-year plan
Aim to exceed manual separation diversion by 30-40% through on-site sorting to meet client mandates Use that improvement to support diversion guarantees sold to GCs and to boost certified clean streams sold to recyclers Combine diversion targets with Revenue Share Capture and service fees to measure project profitability
Yes start with deployment & decommission fees and initial data integration to demonstrate value capture Data Integration Subscription launches in October 2026 and supports verifiable reporting tied to diversion guarantees Service contracts later fund recurring Maintenance & Service Contracts that scale from $0 in Year 1 to forecasted growth
Commodity commission at 20% directly reduces gross commodity revenue but provides immediate cash upside from recovered materials Track Yield per Ton net of the 20% commission and compare to Cost per Ton to determine true gross margin Use commodity sales plus service fees to reach EBITDA improvement over five years
