Measure the right six things.
We don't publish industry averages we can't stand behind. What we can give you is exactly what to measure, how to calculate it, and a calculator that shows what burden and overhead really do to a job.
What does this job actually make?
Most quick margin checks leave out labor burden and overhead. Add them back and see what's left.
Your job
What the job actually makes
This job loses money.
Once burden and overhead are applied, the contract doesn't cover the cost of the work.
This calculator runs entirely in your browser. Nothing you type is sent anywhere. It’s a simplified model for illustration — it doesn’t account for change orders, retainage timing, or escalation between bid and build.
Six numbers worth knowing every month.
If you only ever instrument six things in a paving business, make it these.
Gross margin by job
(Contract − direct job cost) ÷ contract
Direct cost must include labor burden. Without it you're measuring something that doesn't exist.
Labor burden rate
(Total employment cost − base wages) ÷ base wages
Calculate it per employee class, not company-wide. A foreman and a first-season laborer don't carry the same rate.
Estimated vs. actual variance
(Actual cost − estimated cost) ÷ estimated cost
Run it per category, per job, weekly. A single company-wide number tells you nothing actionable.
Revenue per field hour
Contract revenue ÷ total field labor hours
The cleanest single measure of whether crews are being deployed on the right work.
Backlog coverage
Contracted work not yet built ÷ average monthly revenue
Expressed in months. The earliest warning you'll get of next season's revenue gap.
Days sales outstanding
(Accounts receivable ÷ revenue) × days in period
Track retainage separately. Blending it hides how long your real receivables are actually out.
Why there are no industry averages on this page. A benchmark is only meaningful against companies doing comparable work in comparable markets with comparable cost structures. Publishing a national average margin would give you a number to feel good or bad about, and nothing you could act on. Members compare against each other, on standardized job costing practices, which is the only version of this that works.
Or start with the assessment.
It scores the systems that produce these numbers — which is usually the actual problem.
Free · About 10 minutes · No obligation