The Build Show Podcast Understanding Profitability for Builders, Contractors, and Remodelers
24 snips
Apr 4, 2025 
Tim Hill, business partner at Risinger Build and seasoned builder/project manager, shares operational and financial perspective on construction profitability. They cover why net margins sit near 5–6%, the risk versus reward of projects, dissecting P&Ls, throughput and scheduling, rigorous pre-construction alignment, and avoiding portfolio jobs that look good but lose money.
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Tiny Net Margins, Big Risk
- Net industry profits for homebuilders and remodelers average only 5–6% across the U.S.
- That margin is low relative to the risk, so small budget misses can erase profit.
Manage P&L By Component
- Break down your P&L into moving parts and manage each component closely.
- Plan throughput per year and stick to that plan to protect profit margins.
Pre-Construction Is Profit Protection
- Invest in detailed pre-construction so jobs hit the planned start and schedule.
- Use pre-construction as a guidebook to create accurate budgets and schedules.