The fight goes on – Considering costs and revenue when battling profit fade

Description

Abstract: When construction costs start to creep over revenue coming in, a contractor is suffering from “profit fade.” This problem can arise out of costs or revenues (or both), so it’s important to look at each of these elements independently. This article examines two common cost factors and discusses contributing revenue factors. A sidebar delves into how indirect costs, namely insurance expenses, can trigger profit fade.