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 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)
• Expenses / Direct Costs
• 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 the what was spent and what we think we need to finish the work.