Which costs count in the site margin?

Direct costs: internal and external labour, materials, equipment hire, subcontractors, transport and other costs directly attributable to the project. General company overheads are usually excluded.

What is a good margin for a construction company?

It depends on the type of work and contractual risk. Many small companies operate between 5% and 20%, but the useful answer is: a margin you know before the project closes.

Can I calculate the margin on time-and-materials work?

Yes. Just record the hours and materials associated with that job. archim adds up the costs and compares them with invoiced amounts or the estimate.

§ 01 / Glossary

Construction site margin

Work through the costs that belong to a project, read margin in money and percentage, and identify the records needed to spot drift before completion.

Updated 12 October 2026Reviewed by Matthieu Crétier

§ 02

What is Construction site margin?

Direct project margin is the difference between the revenue included in the review and the direct costs recorded for the job. It is not statutory or tax net profit.

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 recorded operational costs allocated to the project.
•Compares those costs with revenue entered or recognised in the review.
•Shows a management margin based on included records, not net profit or a payment forecast.

§ 05

FAQ

§ 06

Continue

Go deeper with the related resources.

Feature

The work moves forward. The margin comes into view.

Job costing compares included revenue with costs allocated to the project. archim brings together recorded labour, materials, equipment, subcontractors and other expenses so you can read the margin and open its source entries.

Guide

How to keep your site margin under control

A simple system to monitor costs and revenues project by project, without waiting until the end of the job.

Tool

Site margin calculator

Compare the revenue and direct costs you include in your project review.

The work moves forward. How is the margin doing?

Link recorded costs and revenue to the job and trace its operational margin back to the records included in your review.

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