US Contractors: Why You Think You're Profitable But You're Not
Construction contractors often quote jobs profitably but deliver them at a loss — because they don't track actual costs against estimates. AskBiz closes that gap automatically.
- The job costing gap
- How AskBiz tracks actual job costs
- Real scenario: a general contractor in Georgia
- Bid smarter
The job costing gap#
A survey by the Construction Financial Management Association found that 67 percent of contractors with revenue under $5 million do not perform post-job cost analysis. They quote a kitchen remodel at $45,000, spend roughly what they expected, and assume they made money. But when actual labor hours (including callbacks and punch list work), material waste, and subcontractor overruns are totaled, the real cost is often $43,500-47,000 — turning an expected $9,000 profit into a $2,000 loss on some jobs.
How AskBiz tracks actual job costs#
Upload your estimates, timesheets, material receipts, and subcontractor invoices for completed jobs. AskBiz compares estimated versus actual costs for every line item and every job, showing you exactly where overruns occurred. It identifies patterns: maybe framing labor always runs 15 percent over estimate, or your drywall sub consistently bills 8 percent more than quoted. These patterns let you adjust future estimates to reflect reality.
Real scenario: a general contractor in Georgia#
Marcus runs a residential remodeling company doing $1.8 million annually across 24 projects. He believed his average margin was 22 percent based on his estimates. After uploading 12 completed job files to AskBiz, the analysis showed his actual average margin was 14 percent. The biggest variance: labor. His crews were averaging 18 percent more hours than estimated, primarily because his estimates were based on new-construction productivity rates — not remodel rates, which are slower due to demo, protection of existing finishes, and access constraints. AskBiz recommended he apply a 1.2x labor adjustment factor to all remodel estimates. On the next 12 jobs, his actual margins averaged 21 percent.
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Warranty cost tracking#
AskBiz also tracks warranty callback costs per job — a hidden expense most contractors ignore. When you can see that certain finishes or subcontractors generate 3x more callbacks, you can adjust your spec choices and sub selection.
Bid smarter#
Once you know your actual costs, you can bid smarter. AskBiz shows which project types (kitchens vs. bathrooms vs. additions) yield the best actual margins, so you can focus your marketing and sales effort on the work that actually makes money.
People also ask
How do contractors track job costs?
Upload estimates, timesheets, material receipts, and sub invoices. AskBiz compares estimated vs. actual costs per line item and identifies systematic variances you can correct in future bids.
What is a good profit margin for contractors?
Most residential contractors target 15-25 percent net margin, but CFMA data shows 67 percent of small contractors don't verify their actual margins through post-job analysis.
Why do construction projects go over budget?
Labor overruns are the most common cause — estimates based on ideal conditions don't reflect the reality of remodel work, weather delays, or crew variability. AskBiz identifies these patterns.
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Know your real job costs
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