pricing for profits Ryan McVay/Photodisc/Thinkstock

Pricing for Profit

Exploring common challenges in overhead allocation/recovery in the construction industry

We lost a little bit, but the job still made money.” As a construction business owner, you know that “making money” at the project level does not necessarily equate to a profit on the project after overhead allocation. Projects must generate marginal contributions in excess of total selling, general, and administrative (overhead) costs in order for the business to generate an operating profit and produce a positive return on investment.

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