The commercial model
Net Scrap Share
Revenue, not cost. How scrap recovery works for Prime Contractors and operators, including exactly what arrives with every settlement statement.
The problem with the standard model
Most scrap subcontractors quote a flat removal price. The Prime records it as a project cost. The Prime has no visibility into what the scrap actually sells for at the mill, what grade discounts were applied, or where the margin sits between the mill cheque and what the Prime was charged. Scrap removal becomes an opaque line on the project budget.
The reframe
ProCur takes recovered metal to market on the Prime’s behalf, deducts a flat mobilization fee and day rate from gross mill revenue, and shares the net pool with the Prime on a per-contract split. Scrap removal converts from a cost line to a revenue line on the Prime’s project P&L. Settlement is open-book: mill tickets, weighbridge tickets, day logs and explicit grade discounts are included with every monthly statement.
The mechanics
Gross to net, then the split
Illustrative only; proportions are not a quote. The mobilization fee, day rate and split percentages are bespoke to each contract and are set out in the contract, known up front. Only the mill price moves, and you see it directly.
Step by step
How it works
- On-lease recovery. ProCur shears, hauls and weighs material at your site. Photos and weight tickets are generated per load.
- Mill delivery. Material is delivered to a qualified Alberta or Manitoba mill. The mill ticket carries grade classification, final weight and payment date.
- Mill payment received. Gross revenue is logged against the project.
- Monthly settlement. You receive a statement showing gross revenue, every deduction, the net pool, the split applied and your share.
- Payment to you. Your share is paid within 30 days of mill payment receipt, with all supporting documentation attached.
Open-book settlement: what you receive
- Mill tickets for every delivery, with grade classification and weight
- Weighbridge tickets for every load leaving the site
- Day logs showing equipment and crew time deployed
- Grade discount documentation wherever the mill applied a deduction for contamination, mixed grades or specification gaps
- A settlement statement reconciling gross revenue, deductions, net pool, split and your payment
- On high-volume programs, a project-specific dashboard view
Why this model works for both sides
ProCur earns more when you earn more. There is no hidden margin between the mill cheque and the net pool.
Every cut, weigh and mill ticket is documented. Your audit team sees the full chain of custody and pricing.
The mobilization fee and day rate are known up front. Only the mill price moves, and you see it directly.
Larger and longer programs earn more favourable splits without compromising operational margin.
Questions
Asked by every procurement team
What arrives with a monthly settlement statement?
Mill tickets for every delivery with grade classification and weight, weighbridge tickets for every load leaving the site, day logs showing equipment and crew time, documentation for any grade discount the mill applied, and a settlement statement reconciling gross revenue, deductions, net pool, split and your payment.
Do you publish your split, mobilization fee or day rate?
No. They are bespoke to each contract and are set out in the contract: known up front, fixed for the engagement. Only the mill price moves, and you see it directly on the settlement documentation.
When do we get paid?
Your share is paid within 30 days of mill payment receipt, with all supporting documentation attached.
Which mills do you sell to?
Qualified Alberta and Manitoba mill accounts. Mill account names and supplier history are available as part of a formal pre-qualification submission, on signed NDA where commercially appropriate.
Next step
Request the Net Scrap Share framework document
Sent as a PDF. Name, company and email is all we ask.