The deposit is 30%. Materials are 60% of the cost.

A project business can hold a healthy margin on every job and still find that winning more work is what empties the bank account.

By Steve 5 min read
Abstract bridge artwork for The deposit is 30%. Materials are 60% of the cost.

A contractor, fit-out firm, equipment installer or agency running fixed-price projects can price well, deliver well, and still spend every January borrowing against work it has already won. The margin is real. The order book is real. The cash is not there, and nobody can say precisely where it went. Usually it went into the gap between when the business pays for a project and when the project pays for the business. That gap has a size, it can be calculated per job, and it is the number that determines…

Keep reading for free

Create an account to read the rest.

The whole library is free. No card, no subscription, no trial that quietly ends. An account simply lets us know who we are writing for, and opens every article from here on.

  • Every article, in full, at no cost
  • New articles published every weekday
  • Takes about twenty seconds
Create a free account I already have one

Free means free. We will not charge you for the library, and you can read as much of it as you like.

Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

More on Operations

Scroll to Top