A S$100,000 contract sounds like S$100,000 of success. From contract value and variation orders to materials, suppliers and subcontractors, here is what a project is actually worth.
A S$100,000 renovation contract sounds like S$100,000 of success. But the real story is what remains after the project's direct costs.
Project Gross Profit ÷ Project Revenue = Project Margin %
A project with a lower contract value can sometimes produce a better margin than a larger one — it depends on how the costs behave.
Draft template — to be reviewed and completed before publication.
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Wafra Insights provides general information for educational purposes and should not be treated as accounting, tax, legal or other professional advice specific to your circumstances. Requirements may differ depending on your business and situation. Seek appropriate professional advice where required.
More projects and higher sales don't automatically mean higher profits. For renovation and project-based businesses, understanding project costs, margins and cash flow can reveal a very different picture.
Variation orders add revenue — but they also add materials, labour, subcontractor costs and project duration. Here's why VO profitability deserves its own attention.
From total contract value to project gross margin % — seven numbers that tell a renovation business owner exactly where each project stands.
If you’ve recognised some of these challenges in your own business, let’s understand what’s happening behind your numbers.
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