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What’s Really Killing Your Margins? (It’s Not Materials)

What’s Really Killing Your Margins? (It’s Not Materials) 24 April 2025Leave a comment
Margin Killer

Let’s cut through the noise. Materials prices have jumped. Labour’s tight. Payment terms are brutal. But they’re not the reason your margin is disappearing.

It’s the systems.

Where’s the biggest leakage? It’s in missed variation notices. Untracked prelim overruns. Forgotten subcontractor claims. Cost plans that don’t evolve.

What’s the Root Cause?

Most construction businesses are still running their commercial data like it’s 2010 – spread across Excel files, email chains, and memory. It works, until it doesn’t. And when it doesn’t, your margin goes with it.

One main contractor we worked with uncovered over £300k of missed opportunities on one job alone – simply because variation timings didn’t align with the notice requirements under NEC.

Visibility Drives Confidence

The best commercial teams don’t work harder. They work earlier. They have systems that track risk. Templates that auto-populate. Logs that show them what’s late, what’s pending, what’s agreed.

Margins aren’t saved at final account. They’re protected every day along the way.

Final Thought

If you want stronger margins, start with stronger systems. Not more effort – more structure.

#ConstructionFinance #CommercialManagement #ConstructionMargins #ProjectControl #NEC #JCT #GinjoConstruction #QSInsights

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