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How Much Profit Should a Contractor Make?

Completed job profitability screen showing 50% actual gross margin against a 40% expected margin

TL;DR The average contractor nets about 6% to 7% before taxes. A well run company should target 8% to 10%, and top performers clear 12%. Most owners are working from a wrong number, usually because overhead is a guess and transactions never get allocated to the jobs they belong to. The target matters less than […]

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