MARINE CONTRACTOR NET PROFIT MARGIN.
Healthy marine contractors run 10–14% net margin at $1M–$8M and 11–16% at $8M–$12M. The single biggest compressor is vessel and equipment costs running to overhead instead of to the projects they support — which inflates the overhead rate and hides per-project margin simultaneously.
Marine net margin is more sensitive to equipment cost allocation than almost any other trade. A marine GC with two barges and a crane vessel has $6K–$15K per day in vessel-carrying costs. When those costs do not have daily rates that charge to projects, they inflate overhead. The overhead rate goes from 11–16% benchmark to 20–28% above-benchmark. Every estimate is wrong. Every project margin is wrong. The problem is invisible until someone builds vessel cost basis and reallocates the costs correctly.
MARINE NET PROFIT BENCHMARKS — WHERE YOU SHOULD BE.
| METRIC | INDUSTRY LOW | SPM TARGET | STRONG | NOTES |
|---|---|---|---|---|
| Net Profit Margin | 4–7% | 10–14% | 14–18% | Vessel cost allocation is the primary driver of variance from benchmark in marine |
| Gross Margin | 16–22% | 22–30% | 28–34% | Per-scope job costing required — dock/dredge/structural blend hides scope-level margin |
| Overhead Rate | 17–24% | 11–16% | 8–12% | Above-benchmark overhead almost always includes vessel costs that belong on projects |
| Days Sales Outstanding | 60–90 days | 45–60 days | 35–45 days | Mobilization SOV line billed at execution is the key lever for DSO in marine |
| Working Capital Ratio | 1.0–1.2x | 1.4–1.9x | 2.0x+ | Low WCR common in marine from funding mobilization before billing opens |
WHAT DRIVES NET PROFIT IN MARINE WORK.
Vessel and Equipment Costs Not Allocated to Projects Inflate Overhead and Hide Margin
A marine GC with two barges at $8K/day carrying cost each has $2.9M in annual vessel expense. If those costs run to overhead instead of to the projects they support, the overhead rate is inflated by that full amount — and every project margin is overstated correspondingly. The business thinks it is making 22% gross on dock construction. It is making 14% gross and the rest is vessel overhead never captured at the project level.
Vessel Cost Basis, Mobilization SOV Lines, and Per-Scope Job Costing
Top-performing marine contractors run daily cost rates on every vessel and crane that charge to the projects they support. They front-load mobilization in every SOV so it bills at execution. They track gross margin by scope — dock, dredge, structural, underwater — separately. The combination keeps DSO under 50 days and makes overhead rates accurate.
Three Checks That Move the Number
First: calculate a daily cost rate for every vessel on your fleet — replacement cost over ownership life plus annual maintenance, insurance, and charter costs — and see what happens to your overhead rate when those costs move to projects. Second: look at your last three project SOVs and see if mobilization billed at execution or was buried in percentage-complete. Third: separate scope-level margin for your last three multi-scope contracts. 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.
