Recent Articles

Direct Costs

A section of the income statement customarily found in manufacturing and construction. It refers to the physical materials and labor associated with the manufacturing or construction of the project the company is producing. From the direct margin is subtracted indirect costs.

Roofer – Business Dynamics

06/01/2015

Within the residential construction industry is a subset referred to as ‘Trades’.  Within this group exists one particular trade that has its own set of business dynamics.  Roofers depend heavily on labor to accomplish their task.  They are [...]

Markup Percentage for Remodelers

05/20/2015

In the construction industry, remodelers face a different set of criteria than your traditional new home builder.  Because of these issues the markup percentage on costs is generally much higher than other forms of construction.  If you are a [...]

Construction Accounting Terminology

05/15/2015

In construction accounting accountants and bookkeepers use certain terms and there are distinct meanings associated with these terms.  This article is designed to introduce beginner accountants and contractors to these terms from the perspective of [...]

What is a Reasonable Profit in Construction?

01/31/2013

For any company, profit is based on the risk reward concept.  So in construction, what should be the profit (reward) given the risk?  What is a reasonable expectation given the industry and the particular business?  There is no single correct [...]