Time, Utilization & Profitability
Delivery Margin
Definition
Profit margin on the actual delivery of work, before overhead, sales, and admin costs. Formula: (Revenue − Direct Delivery Costs) ÷ Revenue × 100. A $20K project costing $8K labor + $2K tools has a 50% delivery margin.
Why It Matters
Benchmark is 50-70%. Below 40% consistently means pricing or scoping is broken.
Related Terms
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