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Establishing a ROI for a Construction Firm

September 27, 2008  |  from The Construction Contractor's Digest

What is the appropriate compensation for an owner of a contracting firm? How much is the right number? Isn't just a salary with expenses enough?

These are good questions for all construction contractors. People have different answers. Thus, it is reflected in the bid results on any given day. Some contractors want to make a living while others are trying to build wealth for themselves. To be sure, if you compete with those who just want to make a living, you will have to be satisfied with just that. There is no profit margin in their bids therefore; there can't be any margin in yours.

If you want to build wealth, compete against those contractors who want to do the same. Their prices are higher and so, your bids can be higher. Great news for anybody in business.

Filed: Customer-Service