CONCRETE CONTRACTOR NET PROFIT BENCHMARKS.
Concrete 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 concrete business works, not just that the jobs do. A concrete sub can hold a healthy gross margin and still net near zero if overhead is unmanaged. The numbers below show where a concrete sub should land and the three things that move the number. If concrete margin is under 23%, look first at whether labor is tracked against real production rates, what your overhead actually is once every cost is loaded, and whether rework and tear-out are funded or quietly draining finished jobs. One concrete sub thought overhead was 5%; the real number was 12%, and that gap was the missing margin.
Concrete subcontractors at $1M to $5M typically net the lower end of 5.5% to 8.5%, with gross margin in the 21% to 22% 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.
CONCRETE BENCHMARKS: WHERE YOU SHOULD BE.
| METRIC | INDUSTRY LOW | SPM TARGET | STRONG | NOTES |
|---|---|---|---|---|
| Gross Margin | 17% | 21–24% | 26%+ | Labor productivity is priced to real pour rates, not an optimistic yards-per-day assumption |
| 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 CONCRETE 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.
Production is tracked weekly and rework is funded.
Top concrete subs track labor in both dollars and hours against the estimate every week, by phase: forming, placement, finishing. They price pump and equipment time as their own line, fund a rework and tear-out reserve in overhead, and document weather standby as a change condition instead of eating it. That discipline is what separates a 26% gross margin from a 20% one on the same work.
Check production rates, the overhead number, and rework.
If concrete margin is under 23%, look first at whether labor is tracked against real production rates, what your overhead actually is once every cost is loaded, and whether rework and tear-out are funded or quietly draining finished jobs. One concrete sub thought overhead was 5%; the real number was 12%, and that gap was 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.
