The $2M Contractor Who “Thought” He Was Fine

I recently spoke with a contractor doing just over $2M in revenue.

Busy.Booked out.Strong team.

He assumed margins were solid.

When we walked through his job costing structure, we found:

 • Labor wasn’t fully burdened 

• Overhead wasn’t consistently allocated 

• Change orders were tracked manually 

• Profitability wasn’t reviewed monthly

Nothing catastrophic.

Just small gaps.

But small gaps at $2M scale quickly.

Construction accounting isn’t about fear.

It’s about visibility.

And visibility creates control.