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.