Thursday, 2026-05-28 — Your Fudge Factor Is Killing Profits

You won the bid. The client’s happy. The job’s done.

And you still lost $6,200.

How?

Because you confused estimating with bidding and that 20% fudge factor you threw in didn’t protect your profit. It just hid the fact that you don’t actually know what the job costs.

Estimating and bidding are two completely different things. Estimating is calculating your direct costs with precision. Bidding is applying your markup based on overhead and desired profit. Skip the first step and the second one is just a guess dressed up as a number.

Most contractors never build a real estimating system. They eyeball, they buffer, and they hope. Until one job wipes out three months of margin.

Your costs aren’t random. You can project them accurately. But only if you build the system.

The contractors making real profit aren’t better builders. They’re better at knowing their numbers before they ever swing a hammer.

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Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.