Margin
The Code of Estimating Practice, seventh edition, published by the Chartered Institute of Building (CIOB) in 2009 suggests the term ‘margin’ refers to:
‘The sum that is required by an organisation, from a project, as a contribution towards its head office overheads and profit.’
Where profit is the money the project makes after accounting for all costs and expenses, and overheads refer to the costs of running the company, often described as head office administrative costs (although in some cases there may also be factory or manufacturing overheads).
Confusingly, profit may also be referred to as a ‘profit margin’. Profit margin is the percentage of the gross revenue that represents profit.
The term ‘mark up’ refers to the sum added to a cost estimate to arrive at a tender sum, including margin, allowances for exceptional risks, and adjustments for commercial matters such as financial charges, cash-flow, opportunities (scope) and competition.
[edit] Find out more
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
Everything you need to know about acoustics in under 800 words.
Check out our list of the 90 most unusual buildings of all time.
The government is to set a personal consumption target to reduce water use.
BSRIA calls for more education to promote fuels that are fit to burn.
Michael Gove admits air pollution is making people ill and shortening lives.
BRE response to NPPF consultation
BRE call for a clearer, focused drive for the delivery of sustainable, quality developments.
Proposals for a 140m high observation wheel next to the Tyne.
Consistently one of our most popular articles - so just how much do you know about BoQ's?
Significant updates encourage whole building life cycle assessment and recognise products with Environmental Product Declarations.
Are you interested in giving or hosting a talk to explain how civil engineers transform lives?
Gustavo Giovannoni’s role in integrating modern planning requirements into historic town centres.