OVERHEAD BENCHMARKSFRAMING CONTRACTORS$1M TO $500M+REVENUE BAND DATAGROSS MARGINNET MARGINOVERHEAD RATEOVERHEAD BENCHMARKSFRAMING CONTRACTORS$1M TO $500M+REVENUE BAND DATAGROSS MARGINNET MARGINOVERHEAD RATE
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Framing Contractors · Wood Frame · Metal Stud — Overhead Rate Benchmarks — By Revenue Band

Framing Contractor
Overhead Rate.

Framing subcontractors operate volume-driven businesses with labor as the dominant cost and overhead driven by supervision infrastructure, tool maintenance, and the scheduling coordination required across multiple simultaneous framing crews.

Overhead Benchmarks — Framing Contractors — By Revenue Band

What Normal Looks Like
At Your Revenue Level.

These benchmarks are drawn from SPM's work with commercial framing contractors and industry data. Calculate your actual overhead rate — total G&A expenses divided by total revenue for the trailing 12 months — and compare to your revenue band below.

How to use this data: If you're above the top of the range, specific categories need review. If you're below the bottom, you may be underinvesting in systems and staff. Use the benchmark as a target range, not a single number.

$1M – $5M
Overhead Rate
12–18%
Gross Margin Target
16–22%
Net Margin Target
4–6%
Largest Overhead Driver
Labor supervision
Framing is labor-intensive and volume-driven. Owner supervision overhead and crew management are proportionally high at small scale.
$5M – $10M
Overhead Rate
10–15%
Gross Margin Target
17–23%
Net Margin Target
5–7%
Largest Overhead Driver
Crew coordination
Multiple simultaneous framing crews require dedicated field supervision and scheduling infrastructure.
$10M – $25M
Overhead Rate
9–14%
Gross Margin Target
18–24%
Net Margin Target
6–8%
Largest Overhead Driver
Estimating and takeoff
Detailed wood frame or metal stud takeoff requires experienced estimating staff.
$25M – $50M
Overhead Rate
8–12%
Gross Margin Target
19–25%
Net Margin Target
7–9%
Largest Overhead Driver
Safety and labor
Formal fall protection programs and labor management infrastructure at mid-scale.
$50M – $100M
Overhead Rate
7–11%
Gross Margin Target
20–26%
Net Margin Target
8–10%
Largest Overhead Driver
Corporate overhead
Multi-region framing operations with regional management.
$100M – $500M
Overhead Rate
6–10%
Gross Margin Target
21–27%
Net Margin Target
9–11%
Largest Overhead Driver
Corporate and compliance
Large framing programs with formal labor and safety management systems.
$500M+
Overhead Rate
5–9%
Gross Margin Target
22–28%
Net Margin Target
10–12%
Largest Overhead Driver
Finance and legal
Scale overhead at large framing contractor level.

Trade note for Framing Contractors: Framing contractors consistently show lower overhead rates than most specialty trades — reflecting a volume business with relatively simple overhead structure. The primary overhead challenge for framing contractors is labor efficiency — keeping crews productive and minimizing downtime between phases. Overhead rate above 18% at $1M–$5M suggests administrative overhead that's disproportionate to the business model.

Why Overhead Rate Gets Off Track

Three Reasons Your
Overhead Is Drifting.

01

Crew Downtime Gets Hidden in Overhead

When framing crews are between phases — waiting for inspections, waiting for MEP rough-in, waiting for material delivery — that downtime labor cost often gets coded to overhead rather than to the job causing the delay. Job margins look better. Overhead looks worse.

02

Tool and Equipment Maintenance Gets Buried

Nail guns, compressors, saws, and scaffolding maintenance costs often go to a general overhead account. For high-volume framing contractors, tool maintenance is material and should be tracked at the equipment level.

03

Multiple Crew Supervision Overhead

The transition from running one crew to running three simultaneous crews requires a foreman or superintendent infrastructure that adds $150K–$250K in overhead before the revenue from the additional crews fully materializes.

How SPM Manages It

Overhead Rate as a
Managed Number.

Crew Downtime Cost to Jobs

Crew downtime caused by specific job conditions — delayed inspections, MEP coordination holds, material delays — is coded to those jobs in ControlQore rather than to overhead. Jobs that create crew downtime reflect their true labor cost.

Tool Maintenance Cost Tracking

Tool and small equipment maintenance costs are tracked as a dedicated overhead category in ControlQore — separate from general G&A. For high-volume framing operations, tool maintenance overhead reveals the true cost of maintaining a productive tool inventory.

Supervision Infrastructure Planning

When Executive clients are expanding from one crew to multiple crews, SPM models the overhead rate impact of the supervision infrastructure required — showing when the additional crew revenue is projected to absorb the overhead investment in field management.

Service Tiers

Two Ways to
Work With SPM.

Core Financial
From $1,900/mo
  • ControlQore setup and management
  • Job costing aligned to your estimates
  • Bookkeeping and bank reconciliations
  • AR and AP management
  • Monthly overhead rate tracking
  • 1 monthly CFO meeting
  • 60-day onboarding
Executive Financial
From $2,900/mo
  • Everything in Core Financial
  • Monthly WIP schedule
  • 13-week cash flow forecast
  • CEO Report and financial dashboard
  • 3 monthly CFO advisory meetings
  • Overhead rate vs. benchmark monthly
  • Direct access to Josh
Common Questions

Straight Answers.

How do I calculate my overhead rate?
Add up every expense that isn't a direct job cost for the trailing 12 months — office staff, rent, insurance, equipment payments not allocated to jobs, vehicles, software, marketing. Divide by total revenue for the same period. That percentage is your overhead rate. Compare it to the benchmark for your revenue band above.
Does SPM serve framing contractors at all revenue levels?
SPM's direct engagement covers $1M–$12M in revenue. The benchmark data on this page covers the full revenue spectrum for reference. For contractors above $12M, SPM can make the right introduction to firms that specialize at larger scale.

IS YOUR OVERHEAD
IN RANGE?

Find out in a free 30-minute call. Josh will tell you straight where your overhead rate stands and what to do about it.

Schedule a Free Call →
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