Margin
Margin is a term used in both business and finance to refer to the difference between the price of a good or service and the amount of money required to produce it. It is the amount of money that remains in your pocket once you have delivered a service.
Margin is usually expressed in percentage. Ex: if you sell a product or service for $1,000 with a 40% margin, you earn $400.
In Conduite, margins apply to many things:
- Labor (though Daily Rates)
- Budgets
- Contracts
- Projects
Margin Types
| Margin Type | Description |
| Margin at Signature ($/%) | The margin computed at the time a contract is signed (provided by the associated Budget Builder). For a project this is a static value. |
| Margin Objective ($/%) |
The margin objective that is set for a project. At the beginning of a project that value equals the Margin at Signature. But it can evolve overtime (up or down). In Conduite, setting a margin objective is the primary way to steer the performance of a project. |
| Expected Margin ($/%) | The margin that we expect to make on a project at any given time based on what was spent and what we think we need to spend to finish the work. |