Twelve numbers that run a contractor
The KPIs we put on every client's Taxtful View, with the benchmark band for £1m–£15m construction companies and how to calculate each one.
Gross margin per job
The number that tells you which jobs make money while they're still running. Company-level margin is an averag…
Labour as % of certified value
Labour is the biggest cost and the first to drift. This is the early-warning light for productivity, rework an…
Retention days outstanding
Retentions are loans to your customers. This measures how long they're keeping money past the point they agree…
Certification lag
This is why the accounts say profitable and the bank says otherwise. Work done, applied for, and sitting in so…
Work in progress ratio
High WIP means you're funding work before you've asked to be paid for it. It's the quietest cash drain in cons…
Overhead recovery rate
If it isn't in the tender, the job is priced at cost plus optimism.…
Cash runway
The one number an owner should be able to say without looking it up.…
CIS suffered outstanding
Anything here is an interest-free loan to HMRC. Monthly offset should keep it at zero.…
Debtor days by customer
The company average is useless. The customer with 78 days is the one costing you money.…
Plant utilisation
Below about half, hiring is usually cheaper once maintenance, insurance and yard space are counted.…
Admin as % of revenue
The fixed cost the business has to clear every month before a job contributes. When revenue dips, this is why …
Tender-to-actual margin variance
Tells you whether your pricing is wrong or your delivery is. Consistently negative means the estimator is opti…
Looking for a term rather than a number? See the construction finance glossary.
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