CONCRETE CONTRACTOR NET PROFIT MARGIN.
Healthy net profit margin for concrete contractors runs 5.5–6.5% at $1M–$10M in revenue, below the 12% CFOS target. The single biggest compressor is labor variance against the bid placement rate that goes untracked until closeout, well after the overrun could have been caught.
Concrete jobs are priced against an assumed placement rate, cubic yards per crew per day, but most contractors don't compare actual placement rate to that assumption until the job closes out. By then, whatever labor variance occurred is baked into the final number with no chance to correct course. That lag between when the variance happens and when it's discovered is what separates net margin from gross margin here.
Net Profit Margin Formula: Net Profit ÷ Total Revenue × 100. Net margin measures what's left after every cost is paid, including overhead; gross margin only measures job-level cost before overhead absorption.
CONCRETE NET PROFIT BENCHMARKS WHERE YOU SHOULD BE.
| METRIC | INDUSTRY LOW | SPM TARGET | STRONG | NOTES |
|---|---|---|---|---|
| Net Profit Margin | 5.5% | 12% | 11.5% | Primary bottom-line indicator; most compressed by unbilled cost categories. |
| Gross Margin | 21% | 22–30% | 28% | Job-level margin before overhead absorption. |
| Overhead Rate | 14% | 9–13% | 8% | Lower is better; scales down as revenue grows. |
| Days Sales Outstanding | 90 | 45 | 30 | Time from billing to cash in hand. |
| Working Capital Ratio | 1.0 | 1.5 | 2.0+ | Current assets to current liabilities. |
DSO and Working Capital Ratio targets are flat across trades; margin and overhead targets are CFOS targets applied to concrete subcontractors. Benchmarks validated 2026-06-14.
WHAT MOVES THIS NUMBER.
Labor variance discovered at closeout instead of weekly is the primary compressor
Concrete crews are priced against a bid placement rate. Without weekly comparison of actual to bid rate, variance compounds silently across the job and only shows up in full at closeout, long after there was any opportunity to adjust crew size, sequencing, or billing.
Above-benchmark concrete contractors track cost-to-complete by pour, weekly
Top performers compare actual placement rate to bid rate every week, by pour, not just at month-end. That visibility lets them catch and correct variance in week two or three instead of discovering it in the closeout report.
Check weekly placement-rate tracking, SOV billing structure, and change order discipline on weather holds first
If net margin is below benchmark, check whether placement rate is tracked weekly against the bid, whether the SOV bills mobilization and materials as their own line ahead of the placed-concrete milestone, and whether weather delays are documented as change orders.
FLAT MONTHLY FEE. NO SURPRISES.
Three tiers based on trailing 12-month revenue. No hourly billing. No payroll. No add-ons.
| Revenue (Trailing 12 Months) | Monthly Fee |
|---|---|
| Under $1M | $1,900 – $2,900 |
| $1M–$3M | $2,600 – $3,900 |
| $4M–$6M | $3,800 – $5,700 |
| $7M–$9M | $5,100 – $6,900 |
| $10M–$12M | $6,100 – $8,500 |
| $13M+ | Quoted |
Range reflects three service tiers (Core Financial, Executive Financial, Strategic Financial) · scope and fee within each band depend on which tier fits your business. Strategic Financial includes ControlQore job costing and WIP software at no added cost. SPM does not handle payroll.
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