Question 1

How does subcontractor software benefit construction projects?

Katrina Meyer · Accepted Answer

Subcontractor software streamlines project management, helping builders track subcontractor work, schedules and communication more efficiently.

Question 2

Can subcontractor software integrate with other construction software tools?

Katrina Meyer · Accepted Answer

Yes, subcontractor software often integrates with various construction tools, simplifying data sharing and improving project coordination. When using Buildertrend, for example, subcontractor features are integrated alongside sales, project and financial management toolkits.

Question 3

Is training required to use subcontractor software effectively?

Katrina Meyer · Accepted Answer

Training is recommended to maximize the benefits of subcontractor software, ensuring effective usage and adoption. Buildertrend offers many ways to maximize software use, including Buildertrend Learning Academy, Buildertrend University, Onsite Consulting and more.

Question 4

What is a good gross margin for a residential builder?

Emily Johnson · Accepted Answer

A healthy gross margin depends on the builder’s business model, project type and cost structure. Gross margin should be evaluated alongside net margin because a strong project-level margin doesn’t necessarily translate into strong company-wide profitability.

Question 5

What is a healthy net margin for a $10 million builder?

Emily Johnson · Accepted Answer

The 2026 SORCI report found a median net profit margin of 9.0% for builders with $10 million or more in revenue in 2025. That provides a useful benchmark for evaluating your own residential builder profit margin.

Question 6

What causes construction gross margin to decline?

Emily Johnson · Accepted Answer

Common causes include inaccurate estimates, subcontractor overruns, poor job costing and change order leakage. Small cost variances can become significant when they occur across multiple projects.

Question 7

How does job costing help protect construction margins?

Emily Johnson · Accepted Answer

Job costing compares budgeted costs with actual and committed costs during a project. That visibility can help builders identify overruns earlier and take corrective action before they significantly affect the final margin.

Question 8

What is the difference between a change order and a construction change directive?

Emily Johnson · Accepted Answer

A change order is a formal document that outlines changes to a construction project's scope of work, schedule or budget. On the other hand, a construction change directive is an order issued by the owner or architect that requires a change in the work without specifying the change's details. The contractor is responsible for proposing the scope of the change and the cost, which the owner must then approve before the additional work can proceed.

Question 9

How do you avoid construction change orders?

Emily Johnson · Accepted Answer

While completely avoiding construction change orders may not be possible, several strategies can help minimize their occurrence. These include having a clear and detailed construction contract, providing comprehensive and accurate project specifications, conducting thorough job site inspections, and maintaining open communication with all stakeholders throughout the construction process. Additionally, anticipating potential changes and incorporating construction contingency plans into the project budget can help reduce the impact of any changes that do occur.

Question 10

How common are change orders in construction?

Emily Johnson · Accepted Answer

Change orders are standard in the construction industry. It's rare for a construction project to go through without any scope changes or modifications. The frequency and magnitude of change orders can vary depending on the project's complexity, unforeseen site conditions, design changes, or client requests.

Question 11

Can change orders be rejected?

OGM Staff · Accepted Answer

Change orders can be subject to review and approval processes. If the proposed change is deemed unnecessary, unreasonable or a breach of contract, it may be rejected. Rejections should be communicated in a timely manner, and alternative solutions or negotiations may be explored to address the underlying issues.

Here are the results for "Managing complexity: How top contractors scale their business"

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Manage Subs with Subcontractor Software

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Live from IBS with Matt Risinger

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Buildertrend spotlight: Eric Fischer, Director of Product

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What does a healthy net margin actually look like for a $10M residential builder?

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Construction change order best practices, examples and more

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Principles of change management with the Breakthrough Academy

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