CIVIL CONTRACTOR NET PROFIT BENCHMARKS.
Civil subcontractors typically net 5.5% to 8.5% at $1M to $10M. The Construction CFO targets 12% net by loading the real overhead rate into every bid and fixing the cost structure underneath, not by underbidding the work.
Net profit is the only number that says a civil business works, not just that the jobs do. A civil sub can hold a healthy gross margin and still net near zero if overhead is unmanaged. The numbers below show where a civil sub should land and the three things that move the number. If civil margin is under 23%, look at whether equipment is costed by the day on its own line, what your real overhead rate is once every cost is loaded, and whether earthwork quantities are tracked against the estimate weekly. Most civil subs believe overhead is 10% and actually run 25% to 40%, and that gap is the missing margin.
Civil subcontractors at $1M to $5M typically net the lower end of 5.5% to 8.5%, with gross margin in the 21% to 23% band. The Construction CFO targets 12% net by managing overhead and aligning estimating to real job cost, not by cutting price.
How it is calculated: Net profit margin is net income, what is left after every cost including overhead, divided by total revenue. Gross margin tells you if the jobs work; net margin tells you if the business works. A trade can hold a healthy gross margin and still net near zero if overhead is unmanaged.
CIVIL BENCHMARKS: WHERE YOU SHOULD BE.
| METRIC | INDUSTRY LOW | SPM TARGET | STRONG | NOTES |
|---|---|---|---|---|
| Gross Margin | 17% | 21–25% | 27%+ | Equipment is costed by the day on its own line, not bundled into an all-in rate |
| Net Profit Margin | 4% | 12% | 13% | After real overhead is loaded into every bid; the number that says the business works |
| Overhead Rate | 30% | 12–14% | 9% | Lower is better; most subs assume 10% and run far higher |
| Days Sales Outstanding | 75 | 45 | 30 | Retention and pay-app timing hold the last slice longest |
| Working Capital Ratio | 1.1 | 1.5 | 2.0 | Material and mobilization hit before the first billing event |
WHAT MOVES THE CIVIL NET.
Overhead is the number that decides it.
Net profit is gross margin minus overhead, and overhead is where most subs lose the money they made on the jobs. Most believe overhead is 10%; the real number is often 25% to 40%. Every point of overhead comes straight off net, so a trade with a fine gross margin nets near zero when overhead is uncalculated and unmanaged.
Equipment is allocated, overhead is normalized, quantities are tracked.
Top civil subs build a cost basis for every machine and charge a daily standby rate so idle days are covered, track earthwork quantities against the estimate, and run a real overhead number instead of an assumed 10%. One civil contractor found overhead was actually 30%, fixed it to 18%, and turned a hidden 1% loss per job into an 11% net.
Check equipment allocation, overhead, and quantity overruns.
If civil margin is under 23%, look at whether equipment is costed by the day on its own line, what your real overhead rate is once every cost is loaded, and whether earthwork quantities are tracked against the estimate weekly. Most civil subs believe overhead is 10% and actually run 25% to 40%, and that gap is the missing margin.
FLAT MONTHLY FEE. NO SURPRISES.
Two tiers based on trailing 12-month revenue. No hourly billing. No payroll. No add-ons. Everything included in the flat monthly fee.
| Revenue | Core Financial | Executive Financial |
|---|---|---|
| Under $1M | $1,900/mo | $2,900/mo |
| $1M–$3M | $2,600/mo | $3,600/mo |
| $4M–$6M | $3,800/mo | $5,500/mo |
| $7M–$9M | $5,100/mo | $6,900/mo |
| $10M–$12M | $6,100/mo | $8,500/mo |
| $13M+ | Quoted | Quoted |
ControlQore billed separately at ~$100/month per $1M in revenue. SPM does not handle payroll.
FREQUENTLY ASKED.
