Markup and Profit: A Contractor’s Guide, Revisited

The Markup and Profit: A Contractor’s Guide, Revisited is a practical business manual designed to help contractors in the construction industry price their work correctly, manage their finances, and run a profitable business. Michael Stone draws on decades of experience as a contractor, consultant, and instructor to present formulas, strategies, and best practices that are applicable to general and specialty contractors alike—whether in remodeling, new construction, or commercial work. The book emphasizes that many construction businesses fail not because of poor craftsmanship but because of flawed pricing and financial management. To counter that, Stone lays out how to calculate full overhead, determine an appropriate markup, manage cash flow, estimate job costs, set a breakeven point, and collect payments. In addition to these core financial tools, the guide addresses writing effective contracts, managing crews and subcontractors, and warning signs that point to business distress. Supplemented by easy-to-follow examples and downloadable forms (e.g., cost worksheets, overhead charts, contract templates), the book serves as both a training resource and a field‑ready reference. The revised edition also includes updated organization, clearer explanations of markup versus margin, and expanded content on business issues that often challenge contractors.

Key aspects:

Accurate Pricing Strategies

• Teaches contractors how to calculate markup correctly to ensure profitability.

Understanding Overhead & Profit

• Breaks down how to determine true overhead costs and apply markups to cover them.

Markup vs. Margin Clarification

• Explains the often-confused difference between markup and gross profit margin.

Estimating & Bidding Techniques

• Offers methods for building profitable estimates and avoiding underbidding.

Contractor-Specific Business Advice

• Covers topics unique to construction, such as job costing, payment terms, and managing subcontractors.

Signs of Business Trouble

• Helps identify red flags before financial or operational problems become critical.

Tools for Financial Management

• Includes formulas, breakeven analysis, and cash flow strategies tailored to contractors.

Legal & Contract Guidance

• Discusses writing effective contracts and avoiding disputes.

Support Materials

• Comes with access to downloadable forms, charts, and templates.

Written by an Industry Expert

• Authored by a seasoned contractor and consultant with decades of hands-on experience.

Highlights:

• Step-by-step pricing guidance that helps contractors avoid undercharging and losing money.
• Proven markup formulas that ensure overhead and profit are properly covered in every job.
• Clear explanation of markup vs. margin, a critical concept often misunderstood in construction.
• Real-world job costing and estimating examples that apply to remodelers, builders, and specialty contractors.
• Practical business strategies tailored to contractors — including collections, contract management, and customer control.
• Red flag checklists to help identify and correct common business mistakes before they become costly.
• Downloadable templates and tools for contracts, worksheets, and estimating aids.
• Focus on profitability, not just completing jobs — helping contractors build financially sustainable businesses.
• Written in plain language, making complex financial and business concepts easy to understand and apply.

About Michael

Michael C. Stone is a veteran contractor, business coach, and author with over four decades of experience in the construction industry. He began his career as a remodeling and construction professional before transitioning into consulting and education. Through his company, Construction Programs & Results, Michael has helped thousands of contractors across North America build profitable, sustainable businesses by teaching practical skills in estimating, markup, sales, and project management. His no-nonsense, real-world approach has made him a trusted voice among small to mid-sized contractors looking to improve their bottom line. In addition to writing, Michael frequently speaks at industry events and offers online training and one-on-one coaching.

Other Works:

• Construction Accounting and Financial Management
• Builder’s Guide to Accounting Revised Edition Paperback
• BNi General Construction Costbook 2021 Edition