What Is a Ramp Period for Construction Investments?
Why Ramp Period Matters
The ramp period is the silent killer of investment projections. When you assume a new hire will be productive from day one, you're setting yourself up for disappointment—and potentially a cash crisis.
Reality check: A construction sales rep typically takes 6-12 months to build a pipeline and close their first significant deals. During that time, you're paying full salary for partial (or zero) output.
Typical Ramp Periods by Investment Type
Sales Representatives
- Months 1-3: Learning products, processes, building relationships (0-20% productivity)
- Months 4-6: Pipeline building, first small wins (30-50%)
- Months 7-9: Consistent activity, larger deals (60-80%)
- Months 10-12: Full productivity (100%)
Total ramp: 9-12 months
Project Managers
- Month 1: Onboarding, shadowing (0%)
- Month 2: First project assignment with oversight (50%)
- Month 3: Managing independently (75%)
- Month 4+: Full capacity (100%)
Total ramp: 3-4 months
Equipment
- Month 1: Delivery, setup, operator training (50%)
- Month 2+: Full utilization (100%)
Total ramp: 1-2 months
Market Expansion
- Months 1-6: Establishing presence, zero revenue (0%)
- Months 7-9: First projects, building reputation (20-40%)
- Months 10-12: Growing pipeline (60-80%)
- Year 2: Approaching target volume (100%)
Total ramp: 12-18 months
How to Model a Ramp Schedule
A ramp schedule maps each month to a productivity percentage:
Month 1: 0%
Month 2: 0%
Month 3: 20%
Month 4: 30%
Month 5: 50%
Month 6: 70%
Month 7: 80%
Month 8: 90%
Month 9+: 100%
This schedule gets applied to your target revenue to calculate actual expected revenue each month.
Common Ramp Patterns
Linear Ramp
Steady increase from 0% to 100% over the ramp period. Unrealistic for most investments but simple to model.
Slow Start (S-Curve)
Low productivity early, acceleration in the middle, leveling off at the end. Most realistic for people-based investments.
Fast Start
Quick initial productivity, then gradual improvement. Typical for equipment or technology where capability is immediate but optimization takes time.
Step Function
Discrete jumps in productivity tied to milestones (training complete, certification earned, first project closed).
The Cost of Underestimating Ramp
Scenario: You hire a PM expecting full productivity in Month 2.
Reality: They don't hit full capacity until Month 4.
Impact:
- 2 extra months of salary with reduced output: $24,000
- Breakeven pushed back 3-4 months
- Maximum cash investment 30% higher than projected
- Potential cash crunch if multiple hires ramping simultaneously
How to Get Ramp Estimates Right
Ask your existing team — How long did it take your current sales reps to hit quota? Your PMs to run projects independently?
Add a buffer — Whatever number feels right, add 25%. Optimism bias is real.
Model scenarios — Run your J-Curve with optimistic, expected, and pessimistic ramp schedules. Know your downside.
Track actuals — Compare projections to reality and refine your assumptions for future investments.