Construction site margin: what it is, how to calculate and protect it | archim

§ 01 / Glossary

Construction site margin

The construction site margin is the difference between a project's revenues and the direct costs incurred to carry it out, expressed in absolute value or as a percentage.

Updated 3 September 2026Reviewed by Matthieu Crétier
§ 02

What is Construction site margin?

The construction site margin is the difference between a project's revenues and the direct costs incurred to carry it out, expressed in absolute value or as a percentage.

Key points
  • Direct costs include labour, materials, equipment, subcontractors and specific overheads.
  • The percentage margin is calculated by dividing the absolute margin by revenues.
  • Without up-to-date data the margin only emerges at project close, when it is too late.
§ 03

In practice

  • Direct costs include labour, materials, equipment, subcontractors and specific overheads.
  • The percentage margin is calculated by dividing the absolute margin by revenues.
  • Without up-to-date data the margin only emerges at project close, when it is too late.
§ 04

How archim handles it

  • Collects hours, materials, DDTs and invoices directly on the project.
  • Updates costs and revenues in real time, project by project.
  • Shows you which projects are profitable and which are heading for a loss.
§ 05

FAQ

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