General Inquiries

General Contractor Data - Gross Margin % & Net Profit (Operating Margin %)

  • 1.  General Contractor Data - Gross Margin % & Net Profit (Operating Margin %)

    Posted 05-13-2019 13:45
    Can the CFMA group help provide me with some comparative data or direct me to some data to review as far as what % profit people are having at the end of jobs (Gross Margin % (income minus project expenses)) and what your company is seeing as Operating Margin %(after subtracting out G&A Expenses).  Trying to look at data for General Contractors in the $5 million to $15 million dollar range.  

    Thanks!

    Jordan Davidson
    Accounting Manager
     
    1033 Lafayette Ave
    Terre Haute, IN 47804
    812-232-3700 Office
    812-235-6757 Fax


  • 2.  RE: General Contractor Data - Gross Margin % & Net Profit (Operating Margin %)

    Posted 05-14-2019 09:29

    Jordan,

    The CFMA benchmark builder tool is a good at providing the information that you are looking for. I believe the basic report is around $60-$80 and allows you to select up to 5 categories of contractors to see the results of. For our client base in 2018 which is primarily Midwestern companies (includes subs) we see gross margin's ranging from 14-28% and net income from 4-12%.

    Gross margin is more difficult to benchmark due to varying proportions of costs being job costed vs. G&A. Net income is the better % to look at because it cannot be manipulated.

    Hope this helps,



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    Andrew Goodman CCIFP, CPA
    CPA
    Katz Sapper & Miller, LLP
    Indianapolis IN
    (317) 452-1232
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