Understanding Profitability for Builders, Contractors, and Remodelers

Matt and his business partner, Tim Hill, dive deep into the realities of profitability in the construction industry. Recorded in the brand-new Risinger Build studio, Matt & Tim share a candid conversation about the challenges general contractors, home builders, and remodelers face when it comes to profit margins, client expectations, and project planning. Despite the common misconception that builders are highly profitable, they reveal that average net profits hover around just 5–6%. This low margin—combined with high risk—requires smart planning, detailed pre-construction processes, and disciplined financial management to ensure long-term sustainability.Matt and Tim stress the importance of transparency in pricing and standing firm on realistic budgets, even if it risks losing a job. They warn against chasing "portfolio projects" that look good on paper but lead to financial losses and client frustration. A major theme is the need for builders to carefully align with clients, architects, and budgets before contracts are signed to avoid scope creep and misaligned expectations.Not only do Matt & Tim discuss the “what” and the “why” of profit margins but also share the “how” to manage profit and loss statements effectively, including separating direct costs, indirect costs, and overhead.Thank you to episode sponsor Arclin! Learn more about their brand-new product, Firepoint: https://firepoint.arclin.com/.Find Tim on the Web:Website: https://risingerbuild.com/Instagram: @risingerbuild_atx & @tim_risingerbuildFind Matt and The Build Show on the web:Build Show Videos: https://buildshownetwork.com/go/mattrisingerInstagram: @risingerbuild and @thebuildshowYouTube channel: https://www.youtube.com/@buildshowWebsite: https://buildshownetwork.com/Save the Date for Build Show LIVE 2025 in Dallas, TX: October 16-18, 2025! Watch full episodes of Matt on Facebook, Instagram and Build Show Network. https://www.facebook.com/buildshownetworkhttps://www.instagram.com/risingerbuild/https://buildshownetwork.com/go/mattrisinger Don't miss a single episode of Build Show content. Sign up for our newsletter.