Oneestimate: practical 2026 guide for construction budgeting
OneEstimateJanuary 22, 202610 min read
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Table of Contents
Understanding Profit Margins in Construction
Profit margins in construction are notoriously thin. The industry average is 5-10% net profit, but with proper strategy, you can achieve 15-20% consistently.
Types of Margins
Gross Margin
Revenue minus direct costs. Typical range: 20-35%.Net Margin
Revenue minus ALL costs (direct + indirect). Typical range: 5-15%.Markup vs. Margin
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Activate my free accountFactors That Determine Your Margin
Recommended Margins by Project Type
| Project Type | Markup | Net Margin Target |
|---|---|---|
| Residential | 20-30% | 8-15% |
| Commercial | 15-25% | 7-12% |
| Public Works | 10-20% | 5-10% |
| Renovations | 25-40% | 10-20% |
OneEstimate's Smart Margins
Our AI suggests optimal margins based on project type, complexity, and market conditions. No more guessing.
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