http://bit.ly/2vI3g6T If you are adding a margin to the cost of materials & labour in order to calculate a contract price…then stop right now. Your building company is in serious danger of losing money, especially if you plan on growing. The traditional method of pricing jobs is to apply a margin to the cost of sales. The problem with this method is that you are hoping you make enough profit to cover your overheads and wages. Building companies with revenues of less than $6m DO NOT enjoy the sam