The selling price is only the beginning.
A job can keep everyone busy and still contribute less than expected. The question is what remains after the costs of delivering the work and the overhead the business needs to recover.
Start with what the job requires: labor hours and their total cost, material quantities and prices, and subcontractor quotes. Then consider overhead. Reference prices can be useful checks, but they cannot show whether your own costs are covered.
Illustration · not client results
One job. Two views of the result.
| Job revenue | $100,000 |
|---|---|
| Labor, materials, subcontractors | $70,000 |
| Allocated overhead | $20,000 |
The $30,000 remaining still needs to cover this job’s share of business overhead. It is not the final profit.
Hypothetical figures. The overhead allocation is an example, not a recommended rate or an industry benchmark. Your business requires its own cost review.
Close the loop after the job.
An estimate expresses what you expect. Actual costs show what happened. Compare the two, investigate differences, and use what you learn in the next estimate.
That comparison needs usable records and a process the team can maintain. A spreadsheet, existing software, and a consistent review routine may be more useful than a complicated new system.
A question to start with:
For one completed job, can you compare the estimate with actual costs and allocated overhead?
Bring the question
to your own business.
A recent job, a confusing report, or a cash concern can be the starting point.
What to expect