United States
Hong KongWhat commercial contractors earn
The Bureau of Labor Statistics publishes wages for construction managers, which describes employed staff rather than business owners. An owner's income is business profit and varies with the work won and the margin held.
A question with a published answer that does not answer it.
What the published data covers
The Bureau of Labor Statistics reports wages for Construction Managers under occupation code 11-9021. That is employed staff on a payroll.
A licensed contractor running their own business does not take a wage in that sense. They take profit, which is revenue less every cost including their own overhead.
The reported wage understates a contractor with a good book of work and overstates one whose margin does not cover overhead. It is describing a different economic position from the one an owner is in.
What actually determines an owner's income
- Volume of work won, which depends on relationships and bidding discipline
- Margin held, which depends on estimating and cost control
- Overhead recovered, which many contractors get wrong
- The rate environment and local construction demand
- Whether the license permits the size of work available
What the license changes
Access. A commercial general building license lets you bid work that was previously closed to you, and NASCLA reciprocity extends that across state lines.
Access is not income. It is the opportunity to earn it, and the earning still depends on bidding well and building profitably.
The employed route
Plenty of licensed people work as employed project managers, estimators or qualifying parties rather than running a business. There the BLS data is directly relevant, because it is describing that job. Access, not income.
Common questions
What do commercial general contractors earn?
It varies enormously. Published wage data covers employed construction managers rather than business owners, who take profit rather than a wage.
Why does the published figure mislead?
It describes a payroll position. An owner's income is business profit, which depends on volume, margin and overhead recovery.
Does the license increase income?
It increases access to work. Whether that becomes income depends on bidding and building profitably.
Is the BLS figure ever relevant?
Yes, for licensed people working as employed project managers, estimators or qualifying parties.
What determines an owner's income most?
Volume won, margin held and whether overhead is actually recovered in the markup.