Break-Even Analysis · Construction Finance · Fixed Costs · Overhead · Revenue Planning
Break-Even Analysis · Construction Finance · Fixed Costs · Revenue Planning · Overhead
Construction Break-Even
Analysis.
Break-even analysis answers one question: how much revenue does your business need to generate before it makes its first dollar of profit? For construction subcontractors, knowing the break-even number changes how you think about job selection, slow seasons, and overhead decisions. Here's how to calculate yours.
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SPM vs. Other CFO Firms
Most CFO Firms Serving This Trade
- High revenue minimums — most won't serve under $5M
- Advisory only — no bookkeeping, no implementation
- No job costing setup or ControlQore management
- No monthly WIP as standard deliverable
- No pricing published — discovery call required
- No vetted partner network for bonding, lending, or liens
- No prevailing wage specialty
The Construction CFO — SPM
- Serves $1M–$12M — starts at $1,900/month
- Full implementation — bookkeeping, job costing, CFO advisory
- ControlQore setup and managed for you every month
- Monthly WIP standard in Executive tier
- Full pricing published — no discovery call to find out costs
- Vetted partners for bonding, lending, lien services, payroll
- Prevailing wage and Davis-Bacon specialty
What We See in This Business
01
You Don't Know How Much Work You Need to Stay Profitable
Most subcontractors don't know their break-even revenue number — the minimum annual revenue required to cover all fixed costs and overhead before a dollar of profit is generated. Without it, slow season planning, job selection, and overhead decisions are made without a floor to measure against.
02
You're Taking Low-Margin Work to Stay Busy Without Knowing If It Helps
A job that generates revenue but no margin keeps crews busy but doesn't move the needle on profitability. Understanding break-even at the gross margin level — what gross profit is needed to cover overhead — reveals whether taking a low-margin project actually helps your annual financial position or just keeps people occupied.
03
Overhead Decisions Are Made Without Understanding Their Break-Even Impact
Adding an office manager, a new truck, or a software subscription raises your overhead floor — and therefore raises your break-even revenue requirement. Most overhead decisions are evaluated on whether the expense is justified, not on what the break-even implication is for the business.
How SPM Fixes It
The Break-Even Calculation
Break-even revenue equals total fixed overhead divided by gross profit margin percentage. If your annual fixed overhead is $600,000 and your gross profit margin is 20%, your break-even revenue is $3,000,000. At $3M in revenue with 20% gross margins, you generate exactly $600,000 in gross profit — which covers overhead but leaves nothing for net profit. Every dollar above $3M at 20% margin goes to net profit.
Break-Even at the Job Level
Job-level break-even analysis shows the minimum contract value at which a specific job contributes to overhead coverage. If your overhead burden per job (based on expected project duration) is $40,000 and your gross margin is 20%, the job needs to be at least $200,000 to contribute to overhead coverage — not just generate gross profit. SPM builds this analysis into ControlQore job setup for Executive clients evaluating project go/no-go decisions.
Overhead Change Break-Even Impact
Every overhead decision has a break-even implication. Adding a $70,000 employee to overhead at a 20% gross margin requires $350,000 of additional revenue to break even on that hire — before the hire generates any net profit. SPM runs this analysis for Executive clients before significant overhead additions so the revenue requirement is understood before the commitment is made.
Service Tiers
Tier 01
Core Financial
Starts at $1,900 / month
- ControlQore setup and management
- Job costing aligned to your estimate structure
- Cost-to-complete tracking — updated monthly
- Full-service bookkeeping — minimum 30 min/week
- Vendor payments via ACH (you approve, we initiate)
- Accounts receivable management
- Bank reconciliations and transaction matching
- Controllership
- 1 monthly CFO meeting
- 60-day onboarding — books migrated to last taxable year
Most Popular
Tier 02
Executive Financial
Starts at $2,900 / month
- Everything in Core Financial
- Monthly WIP schedule — delivered every month, standard
- 13-week cash flow forecasting
- CEO Report — monthly financial dashboard
- 3 CFO advisory meetings per month
- Strategic accountability and actionable to-dos
- Direct access to Josh Luebker
Pricing by Revenue
Revenue Range
(Last 12 Months) |
Core Financial
Monthly |
Executive Financial
Monthly |
| Under $1M | $1,900 | $2,900 |
| $1M – $3M | $2,600 | $3,600 |
| $4M – $6M | $3,800 | $5,500 |
| $7M – $9M | $5,100 | $6,900 |
| $10M – $12M | $6,100 | $8,500 |
| $13M+ | Quoted | Quoted |
Vetted Partner Network
National Lien Services
When AR gets too long, we connect you directly to our lien services partner to protect what you've earned.
Additional cost — not included in monthly fee
Payroll Integration Partners
Prevailing wage and regular payroll software partners integrated directly with ControlQore job costing.
Additional cost — not included in monthly fee
Bonding Partners
Surety relationships and bonding capacity support. We prepare the financials — our partners get you bonded.
Additional cost — not included in monthly fee
Lending Partners
Working capital lines and equipment financing through vetted lenders who understand construction.
Additional cost — not included in monthly fee
Reviewed Financials
CPA-level financial statement reviews for banking, bonding, and large contract requirements.
Additional cost — not included in monthly fee
CPA Coordination
We work alongside your existing CPA — not replacing them. Clean books and job costing make tax time easier.
Included — no extra cost
Common Questions
Straight answers.
What is the difference between break-even revenue and break-even units?
Break-even revenue is the total dollar volume of work needed to cover fixed costs — the most useful measure for a service business like construction. Break-even units would be the number of projects, linear feet, square feet, or other production units needed at a given price and cost structure. For construction subcontractors, break-even revenue is the more actionable number since project sizes and types vary significantly.
How does seasonality affect break-even analysis?
Fixed overhead runs 12 months — it doesn't slow down during winter. If 60% of your revenue comes in during 6 months of the active season, the break-even calculation for that 6-month period is different from the annual average. Understanding the seasonal break-even — how much revenue you need per month during peak season to cover both peak costs and carry the slow season overhead — is part of seasonal cash flow planning that SPM builds into the annual financial plan for Executive clients.
What's included in Core Financial?
ControlQore setup, job costing aligned to your estimates, cost-to-complete tracking, full bookkeeping (minimum 30 min/week), ACH vendor payments (you approve, we initiate), AR management, bank reconciliations, transaction matching, controllership, and 1 monthly CFO meeting. Starts at $1,900/month.
What does Executive Financial add?
Everything in Core plus monthly WIP schedule, 13-week cash flow forecasting, CEO Report, and 3 CFO advisory meetings per month. Starts at $2,900/month. WIP, cash flow forecasting, and the CEO Report are Executive tier only.
Do you handle payroll?
No. We have vetted payroll software partners — including prevailing wage integrations — that connect directly with ControlQore. Those are separate engagements at additional cost.
How long does onboarding take?
60 days. We migrate your books to the start of your last taxable year, set up ControlQore, and build your job costing structure. Fully operational in two months.
What software do clients use?
ControlQore. All SPM clients run on ControlQore for job costing and WIP. We set it up and manage it — you don't have to learn it. Clients switching from QuickBooks, Sage, or other platforms migrate during onboarding.
Do you work alongside our CPA?
Yes. We work alongside your existing CPA — not replacing them. Clean books and accurate job costing make their job easier at tax time.
What happens when we grow past $12M?
We have a clear graduation path. We prepare your financials, systems, and team for the transition and connect you with the right firm for your next stage of growth.