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Digital Builder Ep 57: Global Construction Professionals Share Their Thoughts on Protecting Margins

Autodesk Construction Cloud

While bringing in large projects and generating revenue is essential, it’s equally important to manage profit effectively and ensure healthy margins. And while profit margins in construction are notoriously tight (4-6%), there are steps you can take to increase your profitability without compromising the quality of your work.

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Digital Builder Ep 57: Global Construction Professionals Share Their Thoughts on Protecting Margins

Autodesk Construction Cloud

While bringing in large projects and generating revenue is essential, it's equally important to manage profit effectively and ensure healthy margins. And while profit margins in construction are notoriously tight (4-6%), there are steps you can take to increase your profitability without compromising the quality of your work.

professionals

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Types of Capital for Construction Businesses

Levelset

Businesses whose assets (like cash, accounts receivable, inventory, or materials) exceed the value of their liabilities (like wages, debts, vendor payments, or overhead costs) have working capital to use to maintain or grow. That’s because shareholders typically want a much greater return than whatever current interest rates are.”

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The High Cost of Low Bids: When Contractors Compete on Price, Everyone Loses

Levelset

But low bidding is a zero-sum game : When owners push bid prices down, cost savings often come at the expense of performance. Contractors fall victim to the low-bid mindset as well, believing that if they are always the lowest bid, they will win more jobs and therefore increase revenue. And guess what? Contractors build them.

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How Brexit Will Affect The Construction Industry – Infographics

Lets Build

Cheaper labour results in better project margins and allows businesses to tender for work that they would otherwise not be able to. Although this loss in revenue could potentially be replaced by the savings from an EU membership, it is also unlikely with current ongoing government cuts, that this saving would be spent on infrastructure.

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How Successful Contractors Optimize Opportunity Costs

Contractor Bookkeeping

Construction Company Opportunity Costs. Opportunity costs are something contractors earning over $200,000 a year in take home pay understand and use on a daily basis and since the majority of our readers earn less than $75,000 I felt it would be something useful to share. What is an opportunity cost?

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Home Building by the Numbers

Pro Builder

Shinn, perhaps more than most housing industry prognosticators, had the advantage of historical perspective. Predicting Profit: How to Know Your Margin Before You Close. Predicting Profit: How to Know Your Margin Before You Close. As most operating expenses are fixed, less revenue requires less spending to stay in balance.