SITEWORK CONTRACTOR NET PROFIT MARGIN.
Healthy net profit margin for sitework contractors runs 5.5–6.5% at $1M–$10M in revenue, below the 12% CFOS target. The single biggest compressor is a blended SOV line across cut, fill, grade, and paving phases, which hides an underperforming phase inside an otherwise-healthy project total.
Sitework margin problems are usually phase-specific, not project-wide, but a blended SOV line makes every phase look the same. A project can carry two strong phases and one that's quietly losing money, and the aggregate number will still look acceptable. Net margin only improves once phase-level cost and billing visibility replaces the single blended project total.
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.
SITEWORK 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 | 18% | 22–30% | 28% | Job-level margin before overhead absorption. |
| Overhead Rate | 15% | 9–13% | 9% | 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 sitework subcontractors. Benchmarks validated 2026-06-14.
WHAT MOVES THIS NUMBER.
Blended SOV lines across phases hide which phase is actually underperforming
When cut, fill, grade, and paving are billed under one combined line, an underperforming phase, often due to unexpected soil conditions or scope creep, gets absorbed into the project total instead of flagged and corrected in real time.
Above-benchmark sitework contractors track profitability phase by phase
Top performers break the SOV out by phase so each one's cost and billing can be tracked independently. They also forecast cash around the developer's actual pay-when-paid milestone structure instead of assuming standard 30-day terms.
Check phase-level SOV structure, remobilization billing, and developer payment terms first
If net margin is below benchmark, check whether the SOV is split by phase or blended, whether equipment remobilization between phases is billed as its own cost code, and whether the cash forecast matches the developer's real payment milestone structure.
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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