Construction Industry Benchmarks 2026
Building is a low-margin, high-risk game. One bad job can wipe out the profit from three good ones. Knowing your numbers is survival.
Residential Builders (Turnover $2m - $10m)
- Gross Margin: Target 18% - 22% (after materials and subs).
- Net Profit: Target 5% - 8%.
- WIP Days: Should be under 30 days (time between doing work and invoicing).
Warning: With material price increases, many builders are operating on outdated margins. If you quoted a job 12 months ago, you might be building it at a loss today.
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