48 SPM TRADES · 7 REVENUE BANDS · 1008 DATA POINTS

THE THREE NUMBERS THAT EXPLAIN EVERY CASH ISSUE.

Gross margin. Overhead rate. Net profit. Three numbers, tracked against the industry benchmark for your trade and revenue band, explain almost every cash issue a subcontractor faces.

QUICK ANSWER

Three numbers decide whether a subcontractor keeps what the work earns: gross margin, overhead rate, and net profit. Across 48 commercial trades at $1M to $5M, industry gross margin runs 18 to 27 percent, overhead runs 13 to 18 percent, and net profit runs 2 to 10 percent before taxes. Within any one trade, gross margin minus overhead is net profit, so one of the three read on its own can't tell you whether a thin bottom line came from the bid or from the office. On the CFOS target, overhead is set a point leaner than your trade's average at your revenue, net profit is set at 10 percent before taxes or 3.5 points better than your trade's average at your revenue, whichever is higher, and gross margin is set at whatever gross margin produces that net profit once your overhead is paid, and never below your trade's own average.

BY JOSH LUEBKERPublished 2026-08-08Updated 2026-08-0848 trades · 1008 data points

WHAT A POINT IS WORTH TO YOU

YOUR REVENUE, IN REAL DOLLARS.

Your annual revenue

$30,000

One point of margin equals this per year

Industry average net profit in dollars, before taxes

$30,000

Every point you add, straight to the bottom line

This is the industry benchmark, not your number. It shows what other subcontractors in your trade run, so you have something to measure against.

GROSS MARGIN, OVERHEAD, AND NET PROFIT · INDUSTRY BENCHMARKS BY TRADE AND REVENUE BAND

ALL 48 TRADES, SIDE BY SIDE.

Every trade here is an SPM trade with its own operating system page, linked in the first column.° marks a figure derived from the nearest comparable trade, with no direct measurement behind it. Every figure is an industry AVERAGE for that band, with the CFOS target in its own column beside it.

Three rows per trade, one for each metric, because gross margin minus overhead equals net profit and the three only mean something read together. Each trade links through to its operating system page, and each metric to that trade's own benchmark page for that metric.

Trade	Metric	$1M to $5M	$5M to $10M	$10M to $25M	$25M to $50M	$50M to $100M	$100M to $500M	$500M+	CFOS target, $1M to $5M
CIVIL & EARTHWORK
Civil	Gross margin	21%	23%	25%	26%	27%	28%	30%	23%
	Net profit	7%	10%	13%	15%	17%	19%	22%	10%
	Overhead	14%	13%	12%	11%	10%	9%	8%	13%
Demolition	Gross margin	20%	22%	23%	25%	26%	28%	29%	25%
	Net profit	4%	7%	9%	12%	14%	18%	20%	10%
	Overhead	16%	15%	14%	13%	12%	10%	9%	15%
Environmental Remediation	Gross margin°	23%	24%	26%	27%	28%	30%	31%	25%
	Net profit	7%	9%	12%	14%	16%	19%	21%	10%
	Overhead°	16%	15%	14%	13%	12%	11%	10%	15%
Excavation	Gross margin	21%	23%	24%	26%	27%	28%	30%	23%
	Net profit	7%	10%	12%	15%	17%	19%	22%	10%
	Overhead	14%	13%	12%	11%	10%	9%	8%	13%
Grading	Gross margin	18%	20%	22%	23%	25%	27%	28%	25%
	Net profit	2%	5%	8%	10%	13%	17%	19%	10%
	Overhead	16%	15%	14%	13%	12%	10%	9%	15%
Paving	Gross margin	20%	22%	23%	25%	26%	28%	29%	23%
	Net profit	6%	9%	11%	14%	16%	19%	21%	10%
	Overhead	14%	13%	12%	11%	10%	9%	8%	13%
Sitework	Gross margin	18%	20%	22%	24%	26%	27%	28%	24%
	Net profit	3%	6%	9%	12%	15%	17%	19%	10%
	Overhead	15%	14%	13%	12%	11%	10%	9%	14%
SWPPP and Erosion Control	Gross margin	24%	26%	27%	29%	30%	32%	34%	24%
	Net profit	10%	13%	15%	18%	20%	23%	26%	11%
	Overhead	14%	13%	12%	11%	10%	9%	8%	13%
Underground Utility	Gross margin	18%	20%	22%	23%	25%	27%	28%	24%
	Net profit	3%	6%	9%	11%	14%	17%	19%	10%
	Overhead	15%	14%	13%	12%	11%	10%	9%	14%
HEAVY CIVIL & INFRASTRUCTURE
Bridge	Gross margin°	22%	23%	24%	25%	27%	28%	30%	24%
	Net profit	7%	9%	11%	13%	16%	18%	21%	10%
	Overhead°	15%	14%	13%	12%	11%	10%	9%	14%
Tunnel	Gross margin°	23%	24%	25%	26%	28%	29%	31%	25%
	Net profit	7%	9%	11%	13%	16%	18%	21%	10%
	Overhead°	16%	15%	14%	13%	12%	11%	10%	15%
CONCRETE & MASONRY
Concrete	Gross margin	21%	22%	23%	24%	25%	26%	28%	23%
	Net profit	7%	9%	11%	13%	15%	17%	20%	10%
	Overhead	14%	13%	12%	11%	10%	9%	8%	13%
Concrete Flatwork	Gross margin	22%	23%	24%	25%	26%	27%	29%	23%
	Net profit	8%	10%	12%	14%	16%	18%	21%	10%
	Overhead	14%	13%	12%	11%	10%	9%	8%	13%
Masonry	Gross margin	21%	22%	23%	24%	25%	26%	28%	23%
	Net profit	7%	9%	11%	13%	15%	17%	20%	10%
	Overhead	14%	13%	12%	11%	10%	9%	8%	13%
Precast Concrete	Gross margin°	22%	23%	24%	25%	26%	27%	29%	24%
	Net profit	7%	9%	11%	13%	15%	17%	20%	10%
	Overhead°	15%	14%	13%	12%	11%	10%	9%	14%
CONCRETE & SPECIALTY
Concrete Pumping	Gross margin°	23%	24%	25%	26%	28%	29%	31%	25%
	Net profit	7%	9%	11%	13%	16%	18%	21%	10%
	Overhead°	16%	15%	14%	13%	12%	11%	10%	15%
SITE & GROUNDS
Irrigation	Gross margin°	22%	23%	24%	25%	26%	27%	29%	24%
	Net profit	7%	9%	11%	13%	15%	17%	20%	10%
	Overhead°	15%	14%	13%	12%	11%	10%	9%	14%
Landscaping	Gross margin°	22%	23%	24%	25%	26%	27%	29%	24%
	Net profit	7%	9%	11%	13%	15%	17%	20%	10%
	Overhead°	15%	14%	13%	12%	11%	10%	9%	14%
ELECTRICAL & TECH
Electrical	Gross margin	25%	27%	28%	29%	30%	32%	33%	26%
	Net profit	9%	12%	14%	16%	18%	21%	23%	11%
	Overhead	16%	15%	14%	13%	12%	11%	10%	15%
Fiber	Gross margin	22%	23%	24%	25%	27%	28%	30%	24%
	Net profit	7%	9%	11%	13%	16%	18%	21%	10%
	Overhead	15%	14%	13%	12%	11%	10%	9%	14%
Low Voltage and AV	Gross margin°	24%	25%	26%	27%	29%	30%	32%	25%
	Net profit	8%	10%	12%	14%	17%	19%	22%	10%
	Overhead°	16%	15%	14%	13%	12%	11%	10%	15%
Security Systems	Gross margin	22%	24%	25%	26%	28%	29%	31%	25%
	Net profit	6%	9%	11%	13%	16%	18%	21%	10%
	Overhead	16%	15%	14%	13%	12%	11%	10%	15%
Solar	Gross margin	22%	23%	24%	25%	27%	28%	30%	24%
	Net profit	7%	9%	11%	13%	16%	18%	21%	10%
	Overhead	15%	14%	13%	12%	11%	10%	9%	14%
Telecom	Gross margin	22%	23%	24%	25%	26%	28%	29%	24%
	Net profit	7%	9%	11%	13%	15%	18%	20%	10%
	Overhead	15%	14%	13%	12%	11%	10%	9%	14%
MECHANICAL, PLUMBING & HVAC
HVAC	Gross margin°	24%	25%	26%	27%	29%	30%	32%	26%
	Net profit	8%	10%	12%	14%	17%	19%	22%	11%
	Overhead°	16%	15%	14%	13%	12%	11%	10%	15%
Mechanical	Gross margin	25%	26%	27%	28%	30%	31%	33%	26%
	Net profit	9%	11%	13%	15%	18%	20%	23%	11%
	Overhead	16%	15%	14%	13%	12%	11%	10%	15%
Plumbing	Gross margin	25%	26%	27%	28%	30%	31%	33%	26%
	Net profit	9%	11%	13%	15%	18%	20%	23%	11%
	Overhead	16%	15%	14%	13%	12%	11%	10%	15%
Process Piping	Gross margin°	24%	25%	26%	27%	29%	30%	32%	25%
	Net profit	8%	10%	12%	14%	17%	19%	22%	10%
	Overhead°	16%	15%	14%	13%	12%	11%	10%	15%
FIRE & LIFE SAFETY
Fire Alarm	Gross margin	24%	25%	26%	27%	29%	30%	32%	26%
	Net profit	8%	10%	12%	14%	17%	19%	22%	11%
	Overhead	16%	15%	14%	13%	12%	11%	10%	15%
Fire Protection	Gross margin	23%	25%	26%	27%	28%	30%	31%	25%
	Net profit	8%	11%	13%	15%	17%	20%	22%	11%
	Overhead	15%	14%	13%	12%	11%	10%	9%	14%
VERTICAL TRANSPORTATION
Elevator	Gross margin	27%	28%	29%	30%	32%	33%	35%	29%
	Net profit	9%	11%	13%	15%	19%	21%	25%	12%
	Overhead	18%	17%	16%	15%	13%	12%	10%	17%
STRUCTURE & ENVELOPE
Curtain Wall and Glazing	Gross margin	27%	28%	29%	30%	31%	32%	34%	28.5%
	Net profit	9%	11%	13%	15%	18%	20%	24%	11.5%
	Overhead	18%	17%	16%	15%	13%	12%	10%	17%
EIFS and Stucco	Gross margin	23%	24%	25%	26%	27%	28%	30%	24%
	Net profit	8%	10%	12%	14%	16%	18%	21%	10%
	Overhead	15%	14%	13%	12%	11%	10%	9%	14%
Framing	Gross margin	18%	19%	20%	22%	23%	25%	27%	22%
	Net profit	5%	7%	9%	12%	14%	17%	19%	10%
	Overhead	13%	12%	11%	10%	9%	8%	8%	12%
Insulation	Gross margin	22%	23%	24%	25%	26%	28%	29%	23%
	Net profit	8%	10%	12%	14%	16%	19%	21%	10%
	Overhead	14%	13%	12%	11%	10%	9%	8%	13%
Roofing	Gross margin°	22%	23%	24%	25%	27%	28%	30%	24%
	Net profit	7%	9%	11%	13%	16%	18%	21%	10%
	Overhead°	15%	14%	13%	12%	11%	10%	9%	14%
Siding	Gross margin°	21%	22%	23%	24%	25%	26%	28%	23%
	Net profit	7%	9%	11%	13%	15%	17%	20%	10%
	Overhead°	14%	13%	12%	11%	10%	9%	8%	13%
Structural Steel	Gross margin	23%	24%	25%	26%	28%	29%	31%	24%
	Net profit	8%	10%	12%	14%	17%	19%	22%	10%
	Overhead	15%	14%	13%	12%	11%	10%	9%	14%
Waterproofing	Gross margin	26%	27%	28%	29%	31%	32%	34%	27%
	Net profit	9%	11%	13%	15%	18%	21%	24%	11%
	Overhead	17%	16%	15%	14%	13%	11%	10%	16%
INTERIORS & FINISH
Acoustic Ceiling	Gross margin°	21%	22%	23%	24%	26%	27%	29%	22%
	Net profit	8%	10%	12%	14%	17%	19%	21%	10%
	Overhead°	13%	12%	11%	10%	9%	8%	8%	12%
Drywall	Gross margin	19%	21%	22%	23%	25%	27%	28%	22%
	Net profit	6%	9%	11%	13%	16%	19%	20%	10%
	Overhead	13%	12%	11%	10%	9%	8%	8%	12%
Flooring	Gross margin	19%	21%	22%	23%	25%	26%	28%	23%
	Net profit	5%	8%	10%	12%	15%	17%	20%	10%
	Overhead	14%	13%	12%	11%	10%	9%	8%	13%
Interiors	Gross margin	19%	21%	22%	23%	25%	26%	28%	22%
	Net profit	6%	9%	11%	13%	16%	18%	20%	10%
	Overhead	13%	12%	11%	10%	9%	8%	8%	12%
Painting	Gross margin	18%	20%	21%	22%	24%	25%	27%	22%
	Net profit	5%	8%	10%	12%	15%	17%	19%	10%
	Overhead	13%	12%	11%	10%	9%	8%	8%	12%
Tile & Stone	Gross margin°	22%	23%	24%	25%	26%	28%	29%	23%
	Net profit	8%	10%	12%	14%	16%	19%	21%	10%
	Overhead°	14%	13%	12%	11%	10%	9%	8%	13%
MARINE & SPECIALTY
Marine	Gross margin	22%	23%	25%	26%	27%	28%	30%	24%
	Net profit	7%	9%	12%	14%	16%	18%	21%	10%
	Overhead	15%	14%	13%	12%	11%	10%	9%	14%
INDUSTRIAL & ENERGY
Tank and Vessel	Gross margin°	23%	24%	25%	27%	28%	30%	32%	24.5%
	Net profit	8%	10%	12%	15%	17%	20%	23%	10.5%
	Overhead°	15%	14%	13%	12%	11%	10%	9%	14%
ACCESS & SPECIALTY
Scaffolding	Gross margin°	26%	28%	29%	31%	32%	34%	36%	27%
	Net profit	8%	11%	13%	16%	18%	22%	25%	10%
	Overhead°	18%	17%	16%	15%	14%	12%	11%	17%

One point of margin is worth $10,000 at $1M of revenue, $50,000 at $5M, and $100,000 at $10M. The CFOS target column shows $1M to $5M; the per-trade pages carry it for $5M to $10M and $10M to $25M as well.

Industry averages are shown for all 7 bands as published. The CFOS target stops at $10M to $25M on purpose: above that, the source reference's own gross margin and overhead rows imply a net profit 8 to 12 points higher than the net profit row it publishes, so a target derived from them wouldn't be defensible. Those bands are being reconciled against CFMA Benchmarker data by revenue segment. We would rather leave a column blank than publish a number that doesn't survive checking.

SOURCES AND METHOD

Trade figures are from the SPM Trade Benchmark Reference, 48 trades, published by Sulphur Prairie Management, LLC. Net profit by trade and revenue band, validated at all 336 values against SPM_Trade_Benchmarks_Master.xlsx. Gross margin and overhead from SPM's trade benchmark engine, with 16 trades derived from the nearest comparable and disclosed as such on the page. Net profit is stated before taxes, on the same basis CFMA reports, so the two are directly comparable. Re-validate against CFMA reporting on the normal quarterly cycle, per the benchmark reference's own instruction.

2024 Construction Financial Benchmarker, Executive Summary, Construction Financial Management Association, 2024. 21.8% gross profit margin, 11.8% SG&A and 6.3% net income before taxes across all respondents, with a best-in-class top quartile at 11.9% net income before taxes.
2025 Performance Benchmarks, Construction Companies, Jones Maresca and Company, 2025. Specialty contractor gross margin of 15% to 25%, net profit of 5% to 8% for a well managed company, and total indirect cost of 8% to 15%.

All 48 trades are available as JSON and CSV, one plain-language statement per row, free to use with attribution under CC BY 4.0.

HOW THE TARGET IS SET

WHY IT IS NOT ONE NUMBER.

A single target across every trade and every size is the reason most benchmark tables are useless. A framing contractor at $2M and an electrical contractor at $18M don't carry the same overhead, don't bid the same way, and can't reach the same margin by the same route.

OVERHEAD RATE

The CFOS target is set a point leaner than your trade's average at your revenue.

NET PROFIT MARGIN

The CFOS target is set at 10 percent before taxes or 3.5 points better than your trade's average at your revenue, whichever is higher, and it's stated before taxes.

GROSS MARGIN

The CFOS target is set at whatever gross margin produces that net profit once your overhead is paid, and never below your trade's own average. The three tie out: the gross margin target minus the overhead target equals the net profit target on every row of the table.

$10.7M+

Client AR Recovered Since 2023

Active Trade Specializations

60 DAYS

Average Onboarding Time

PRICING

FLAT MONTHLY FEE. NO SURPRISES.

Three tiers, priced by your trailing twelve month revenue. Which one you're in depends on how much of the work you want off your desk. No hourly billing and no payroll.

Last 12 months revenue	Monthly fee
Up to $1M	$1,900 to $2,900
$1M to $3.5M	$2,600 to $3,900
$3.5M to $6.5M	$3,800 to $5,700
$6.5M to $9.5M	$5,100 to $7,100
$9.5M to $12.5M	$6,100 to $8,500
$12.5M to $15.5M	$7,400 to $11,000
$15.5M to $18.5M	$9,400 to $13,500
$18.5M+	Quoted individually

Range reflects the three tiers below. Which one you're in depends on how much of the work you want off your desk. No payroll. No hidden line items.

Core

You stop guessing.

You get the CFO work. Job costing built against the way you estimate, a 13 week cash forecast, monthly WIP, and a meeting every month that ends in decisions rather than a report.

Your bookkeeper keeps doing the books.

Executive

You stop touching the books.

Everything in Core, and we run the bookkeeping and the controllership as well. Nobody in your office is answering coding questions or chasing a reconciliation at month end.

We do the books. No payroll.

Strategic

Every job shows its margin while it's still running.

Everything in Executive, plus the job costing and WIP platform set up, loaded with your cost codes, and managed for you every month. You never have to learn it.

We do the job costing.

COMMON QUESTIONS

FREQUENTLY ASKED.

What are the three financial benchmarks a construction subcontractor should track?

Gross margin, overhead rate, and net profit margin. At $1M to $5M, industry gross margin across the 48 trades in this table runs 18 to 27 percent, overhead runs 13 to 18 percent, and net profit runs 2 to 10 percent before taxes. Every figure is an average for the band and the trade, with the CFOS target beside it in its own column.

What's a good gross margin, overhead rate, and net profit for a subcontractor?

It depends on the trade and on the revenue band, which is why this table has 48 rows in it. At $5M to $10M the industry ranges are 19 to 28 percent gross margin, 12 to 17 percent overhead, and 5 to 13 percent net profit before taxes. Beside each average is the CFOS target for that trade at that band: net profit is set at 10 percent before taxes or 3.5 points better than your trade's average at your revenue, whichever is higher, and overhead is set a point leaner than your trade's average at your revenue.

How do gross margin, overhead, and net profit tie together?

Gross margin minus overhead rate equals net profit margin. That's the reason all three sit on one table: a 26 percent gross margin is strong for one trade and thin for another once you know what its office costs to run. The CFOS target is built the same way, so the target gross margin minus the target overhead equals the target net profit on every row here.

How are the three metrics calculated?

Gross margin is revenue minus direct job costs, divided by revenue. Direct job costs are what the job consumes: material, field labour, equipment on the job and subcontracted work. Not office staff, not rent, not owner salary. Overhead rate is annual overhead divided by annual revenue. Overhead is everything needed to keep the business open between jobs: rent, office staff, owner salary at market rate, software, insurance other than project insurance, professional services and any labour not charged to a job. Net profit margin is net income divided by total revenue. Net income is revenue minus direct job costs, meaning material, field labour, equipment and subcontracted work, minus every overhead cost including owner salary at market rate.

Why do these numbers improve at higher revenue levels?

Overhead is mostly fixed cost in the short run, and it doesn't grow in step with revenue. A subcontractor at $3M carrying $540,000 of overhead runs 18 percent. The same business at $6M carrying $720,000 runs 12 percent: revenue doubled, overhead grew by a third, and the rate dropped 6 points. That single mechanism is why every revenue band in this table moves the way it does.

Where does this data come from?

SPM Trade Benchmark Reference, 48 trades, published by Sulphur Prairie Management, LLC. Net profit by trade and revenue band, validated at all 336 values against SPM_Trade_Benchmarks_Master.xlsx. Gross margin and overhead from SPM's trade benchmark engine, with 16 trades derived from the nearest comparable and disclosed as such on the page. Net profit is stated before taxes, the same basis CFMA reports on, so the two are directly comparable. Construction Financial Management Association 2024 reports 21.8% gross profit margin, 11.8% SG&A and 6.3% net income before taxes across all respondents, with a best-in-class top quartile at 11.9% net income before taxes. Jones Maresca and Company 2025 reports specialty contractor gross margin of 15% to 25%, net profit of 5% to 8% for a well managed company, and total indirect cost of 8% to 15%.

Which trades does SPM serve?

All 48 in this table. Each one has its own operating system page covering the specific way cash and margin fail in that trade, and its own benchmark page for each of the three metrics. 32 of the 144 trade and metric rows here carry a figure derived from the nearest comparable trade in the same dataset, marked with a degree sign in the metric column so you can see which. Net profit is never derived.

ONE METRIC AT A TIME

BENCHMARK INDEXES

Gross Margin Benchmarks Overhead Rate Benchmarks Net Profit Margin Benchmarks

THE DATA

Full dataset, JSON Full dataset, CSV Machine-readable site index

DECIDE

Pricing by Revenue Band Book a Call

Josh Luebker

FRACTIONAL CFO · THE CONSTRUCTION CFO

Former commercial project manager and master electrician: 150+ projects worth $2.1B combined, from $50,000 to $300M. Now fractional CFO to commercial subcontractors.

About Josh | LinkedIn