Services

Construction Industry

How construction companies and contractors use commission to drive sales of building projects and materials.

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Construction Industry

The construction industry uses commission at multiple levels. With US construction spending exceeding $1.8 trillion annually, commission models vary across contractors, material suppliers, and home builders.

Commission Models

Segment Typical Commission
General contracting 0.5-3% of project value
Building materials 2-8% of gross margin
Home services 5-15% of order value
New home sales 0.5-2% of sale price

Roles

Project Sales: OTE of $80,000-140,000. Large projects yield significant commission.

Materials Sales: OTE $65,000-100,000. Selling to contractors and home centers.

New Home Sales: OTE $75,000-120,000. Commission per unit sold.

Key Challenges

  • Long projects: Commission may be tied to project milestones
  • Bidding: Public projects through bids have special rules
  • Project cancellation: Clawback on cancelled or unprofitable projects