Recent Articles

What is a Reasonable Profit in Construction?

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?

Contractor’s Profitability

01/09/2015

I’m surprised at how many visitors to this section of the website are oriented to what is a fair profit for a contractor.  I’m not referring to the industrial or the commercial contractor; I’m referring to your standard residential [...]

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 [...]

The Financial Truth about Flipping Houses

12/31/2012

During my recent vacation, I had the chance to watch one of those reality shows about flipping real estate.  These two partners in Texas bought a house, fixed it up, and then sold the house.  The show illustrated that they made $52,000 from the [...]