Marginal gains: Why contractors need help to make a bigger profit

By Dave Rogers2023-04-04T06:00:00

Source: Shutterstock

For years, margins have barely shifted much beyond 3% and, to some, talk of 5% and above seems fanciful. But others believe that mandating a figure like that would turn the industry on its head

Can you spot the difference?

“[The firm] argues that margins of 2% to 2.5% in construction undermine arguments that the private sector is ripping off the taxpayer.” That was a line from a newspaper article on whether contractors were, well, fleecing the state.

“You can’t run a multibillion-pound business on a 2% margin. That’s not normal business practice.”

Already registered? Login here

To continue enjoying Building.co.uk, sign up for free guest access

Existing subscriber? LOGIN

Stay at the forefront of thought leadership with news and analysis from award-winning journalists. Enjoy company features, CEO interviews, architectural reviews, technical project know-how and the latest innovations.

Limited access to building.co.uk
Breaking industry news as it happens
Breaking, daily and weekly e-newsletters

Get your free guest access SIGN UP TODAY

Subscribe now for unlimited access

Subscribe to Building today and you will benefit from:

Unlimited access to all stories including expert analysis and comment from industry leaders
Our league tables, cost models and economics data
Our online archive of over 10,000 articles
Building magazine digital editions
Building magazine print editions
Printed/digital supplements

Subscribe now for unlimited access.

View our subscription options and join our community