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Concrete contractor Subcontract Quote Margin: what changes in a second scenario?

Check retained margin on work delivered by a subcontractor.

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Concrete contractor / concrete job economics
Answer

In this example, increasing customer quote from 3,000 to 3,300 changes the result from 25 % to 31.8182 %. All other inputs stay the same.

Try this with your own numbers

Formula and worked example

Margin = (quote − subcontract charge − coordination cost) / quote × 100

Example figures
InputExample
Customer quote3,000
Subcontract charge2,000
Internal coordination cost250
Calculated result25 %

Illustrative example: $20 profit on a $100 sale is a 20% margin; compared with $80 cost, it is a 25% markup.
Illustrative example: $20 profit on a $100 sale is a 20% margin; compared with $80 cost, it is a 25% markup.

Choose reliable inputs

Plan materials, travel and crew time before committing to a price. For this concrete contractor calculation, use a completed job sheet, supplier quotes and a crew schedule and a consistent definition of one concrete job.

  • Mix: include the portion belonging to this concrete job or reporting period, and record where the value came from.
  • Formwork: include the portion belonging to this concrete job or reporting period, and record where the value came from.
  • Delivery: include the portion belonging to this concrete job or reporting period, and record where the value came from.

Use the same currency for every money input. Do not mix weekly costs with monthly revenue, or count the same expense in both an itemised cost and allocated overhead.

Is the subcontract invoice my total delivery cost?

Include coordination, inspections, customer service, and expected rework when those costs are yours.

Only entered costs are counted; warranty and rework costs may require an allowance.

Compare a different assumption

What if this input changes?

If customer quote rises by 10%, this example changes by 6.8182 %. This shows the effect of one change; it does not predict what will happen.

Open the calculator, save your baseline, then change the input supported by the least reliable estimate in your records. Compare both scenarios before committing to a price or capacity promise.

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