You don’t need an MBA or a room full of consultants to tighten up your margins. With three focused actions—budgeting, detailed estimating, and disciplined job‑costing—you can transform a chaotic construction business into a predictable profit engine. Below is a step‑by‑step playbook you can follow this week.

Step 1 – Build a Real Budget & Calculate Your True Overhead Rate

Goal: Know exactly what every billable field hour must carry to keep the lights on.
Gather All Overhead Costs (Monthly or Annual):

Rent / utilities

Office salaries & payroll taxes

Insurance, licenses, software (e.g., Zevbit)

Vehicles, fuel, repairs, loans

Marketing, phones, utilities, office supplies

Find Your “Billable Field Hours” for the Year:

Take the total hours your crews are on site actually producing (not vacation, rain days, or shop time).

Example: 6 field employees × 1,600 billable hours / yr = 9,600 hrs.

Compute Overhead Rate Per Hour:
Overhead per Hour=Total Annual Overhead divided by Annual Billable Field Hours
If overhead is $280,000 and billable hours are 9,600: $29.17/hr overhead.

Double‑Check Your Labor Charge:

Average Loaded Labor Cost: Wage + payroll taxes + benefits (say $27/hr).

Minimum Break‑Even Labor Rate: $27 (loaded wage) + $29.17 (overhead/hr) = $56.17/hr.

Target Labor Charge: Add your desired net profit (e.g., 20 % ⇒ +$11.23/hr) → $67.40/hr.
If you currently charge $70/hr, you’re profiting $13.83 for every man‑hour on site.

Why it matters: Until you trust this number, every bid is a gamble. Get it right once, and every future estimate gains instant accuracy.

Step 2 – Create Detailed, Data‑Rich Estimates

Goal: Give yourself enough information to compare planned costs to actual costs later.
Break the Job into Scopes:

Example scopes: Site prep, concrete pour, hardscape, cleanup.

List Materials per Scope:

Unit cost, quantity, supplier. No guesswork.

Assign Labor Hours per Task:

Use production rates (sq ft / hr, linear ft / hr).

Multiply by your target labor charge, not “what feels right.”

Include Subs, Equipment, Permits, Contingencies:
Everything that touches the job belongs in the estimate.

Lock the Estimate in Your Software (Zevbit):

Each line item becomes a reference point for job costing.

Automated templates speed this up after the first pass.

Pro tip: The more granular your estimate, the easier Step 3 becomes—and the faster you’ll spot profit‑draining patterns.

Step 3 – Job Cost Every Project in Real Time

Goal: Turn each project into a feedback loop that tells you exactly what’s making money (and what isn’t).
Track Labor Hours Daily:

Mobile timesheets tied to specific scopes (Zevbit’s timesheet module makes this painless).

Record Material Receipts Immediately:

Snap a photo, tag the scope, and upload. No end‑of‑month shoe‑box accounting.

Log Sub & Equipment Costs as They Happen:

Waiting until the project ends hides overruns until it’s too late to react.

Compare Estimated vs. Actual Weekly:

Over on labor hours? Identify why—slow production, bad weather, wrong crew mix?

Material overages? Check take‑offs or waste factors.

Adjust Future Estimates & Production Rates:

If patios average 15 % more man‑hours than you planned, raise your rate or tweak your process.

Repeat—your estimating accuracy (and confidence) will skyrocket.

Result: Within a few cycles you’ll know, with data, which services yield the highest gross margin, which crews are most efficient, and where price increases (or process changes) are overdue.

Putting It All Together
Budget → sets the floor you must cover every hour.

Detailed Estimate → creates the map you’ll measure against.

Job Costing → provides the truth about profit in real time.

Master these three steps and you’ll:
Price jobs with confidence instead of hope.

Detect margin leaks before they drain cash.

Scale your construction company on solid, data‑driven footing.

Ready to lock this in? Zevbit unites budgeting, estimating, timesheets, and job costing in one dashboard—so the math above happens automatically while your crew keeps working.
👉 Curious how it looks in action? Schedule a 15‑minute demo—and start turning every hour on site into reliable profit.

Mobile App

COMING SOON

The perfect app for Landscape Contractors on the go! Write estimates, manage crews, schedule projects, and more with the ZevBit Mobile app!

App Store Badge
Google Play Badge