INTERIOR CONTRACTOR NET PROFIT MARGIN.
Healthy commercial interior contractors run 10–14% net margin at $1M–$5M and 11–16% at $5M–$12M. The single biggest compressor is multi-trade coordination overhead — superintendent and coordination time — running to overhead instead of to the projects that caused it. One correction moves overhead from 20%+ to benchmark and net margin follows.
Interior subcontractors have a unique overhead problem. The superintendent coordinating five simultaneous tenant improvement projects is doing project work — but in most interior contractor books that time posts to general overhead. On a $3M interior sub, misallocated superintendent time can inflate overhead by 6–8 points. Fix the allocation and the overhead rate drops to benchmark without cutting a single expense. Net margin moves from 4% to 10%+ on the same revenue.
INTERIOR NET PROFIT BENCHMARKS — WHERE YOU SHOULD BE.
| METRIC | INDUSTRY LOW | SPM TARGET | STRONG | NOTES |
|---|---|---|---|---|
| Net Profit Margin | 3–6% | 10–14% | 14–18% | Coordination overhead allocation is the primary driver of variance from benchmark |
| Gross Margin | 18–24% | 26–34% | 30–36% | Appears inflated when supervisor costs run to overhead — restating gives real number |
| Overhead Rate | 17–22% | 12–16% | 9–13% | Above-benchmark overhead almost always includes misallocated coordinator and super time |
| Days Sales Outstanding | 55–75 days | 38–52 days | 28–38 days | Scope-based SOV billing brings DSO toward benchmark vs turnover-held billing |
| Working Capital Ratio | 1.0–1.2x | 1.4–1.9x | 2.0x+ | Low WCR in interior from funding multi-scope work before scope-level billing opens |
WHAT DRIVES NET PROFIT IN INTERIOR WORK.
Coordination Overhead Belongs on Projects, Not in the Overhead Pool
An interior sub managing five simultaneous TI projects has a superintendent spending 60–70% of their time on project-specific coordination. That time is a direct job expense — not overhead. When it runs to overhead instead, the overhead rate inflates by $50K–$80K annually on a $2M–$4M interior sub. Every project's reported gross margin is overstated by the same amount. You think you are making 28% gross. You are making 21% gross and the rest is overhead that was never captured at the project level.
Scope-Based Billing and Per-Scope Job Costing
Top-performing interior contractors bill by scope completion — painting by zone, millwork by defined area, FF&E by phase — instead of at project turnover. The combination of scope-based billing and per-scope job costing keeps DSO under 45 days and makes cost variance visible in week 2. They also track superintendent and coordinator time by project weekly so overhead reflects actual business overhead.
Three Corrections That Move the Number
First: estimate how much superintendent and coordination time is project-specific vs truly company overhead — that allocation correction alone typically moves overhead 5–8 points. Second: restructure your next project SOV to bill by scope completion instead of space turnover. Third: code your last 12 months of warranty and callback costs back to originating projects. Those three items explain most of the gap.
FREQUENTLY ASKED.
FLAT MONTHLY FEE. NO SURPRISES.
Two tiers based on trailing 12-month revenue. No hourly billing. No payroll. No add-ons.
| 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.
