Profit standards for residential contractors vary depending on the type of contractor. In general, the net profit standard for contractors in the upper tier of performance range from 5.8% to as high as 9.6% of sales.
Profit Standards for Contractors
Profit standards for contractors exist and are based on three tiers. The top 20% is the highest tier and the level for the other contractors to achieve. In general, the highest level has net profits of greater than 9%. The construction industry section of this website goes into more details about how this is achieved and the processes that a contractor should use to get there.