From The Build Show.
Matt and his business partner, Tim Hill, dive deep into the realities of profitability in the construction industry. Recorded in the brand-new Risinger Build studio, Matt & Tim share a candid conversation about the challenges general contractors, home builders, and remodelers face when it comes to profit margins, client expectations, and project planning. Despite the common misconception that builders are highly profitable, they reveal that average net profits hover around just 5–6%. This low margin—combined with high risk—requires smart planning, detailed pre-construction processes, and disciplined financial management to ensure long-term sustainability.
Matt and Tim stress the importance of transparency in pricing and standing firm on realistic budgets, even if it risks losing a job. They warn against chasing "portfolio projects" that look good on paper but lead to financial losses and client frustration. A major theme is the need for builders to carefully align with clients, architects, and budgets before contracts are signed to avoid scope creep and misaligned expectations.
Not only do Matt & Tim discuss the “what” and the “why” of profit margins but also share the “how” to manage profit and loss statements effectively, including separating direct costs, indirect costs, and overhead.
Thank you to episode sponsor Arclin! Learn more about their brand-new product, Firepoint: https://firepoint.arclin.com/.
Find Tim on the Web:
Website: https://risingerbuild.com/
Instagram: https://www.instagram.com/risingerbuild_atx/&
https://www.instagram.com/tim_risingerbuild/
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Huge thanks to our Show sponsors Builders FirstSource, Huber, Pella & Viewrail for helping to make these videos possible! These are all trusted companies that Matt has worked with for years and trusts their products in the homes he builds. We would highly encourage you to check out their websites for more info.
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