What Is a Ramp Period for Construction Investments?

By Martin · Updated 2026-02-03
The ramp period is the time between when you start paying for an investment and when it reaches full productive capacity. For a new sales rep, this might be 6-12 months. For equipment, it could be 1-2 months. Underestimating ramp time is the #1 reason investment projections miss their targets.

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

Total ramp: 9-12 months

Project Managers

Total ramp: 3-4 months

Equipment

Total ramp: 1-2 months

Market Expansion

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:

How to Get Ramp Estimates Right

  1. Ask your existing team — How long did it take your current sales reps to hit quota? Your PMs to run projects independently?

  2. Add a buffer — Whatever number feels right, add 25%. Optimism bias is real.

  3. Model scenarios — Run your J-Curve with optimistic, expected, and pessimistic ramp schedules. Know your downside.

  4. Track actuals — Compare projections to reality and refine your assumptions for future investments.

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