What Are The Profit Margins For Commercial Painting?
Commercial painting looks simple from the outside: crews, lifts, paint, and a deadline. Profit lives in the gaps most people miss — production rates, schedule discipline, material control, and change-order management. If you run a painting business in Edmonton or manage facilities here, understanding profit margins is not academic. It decides if your company grows or struggles. It also explains why some bids come in lower and some crews finish faster. For property managers and GC partners, this knowledge helps you judge quotes with a sharper eye and avoid costly surprises.
This guide breaks down how margins actually work in commercial painting, which numbers matter, where money leaks, and how a contractor like Depend Exteriors approaches commercial painting in Edmonton to keep projects on time and on budget. The goal is clarity. You will see real ranges, the reasons behind them, and how local market factors in Edmonton, AB shape the numbers.
Gross margin vs. net margin in commercial painting
In this trade, we talk about two levels of profit. Gross margin is your sales minus direct job costs. That means labor, materials, equipment rental, subcontractors, site parking, and any job-specific expenses. Net margin is what remains after overhead and taxes. Overhead includes office staff, estimators, insurance, WCB, marketing, vehicles, training, and software.
On typical commercial painting projects, healthy gross margins land in the 30% to 45% range when production runs as planned. That is before overhead. After overhead, net margins often land between 8% and 18% for stable firms with good systems. Newer firms may see 5% to 10% net while they dial in estimating and production. Well-run specialty crews on tight scopes can break past 20% net on select jobs, but that is not the average across a year.
If you want a mental model: a project billed at $100,000 might carry direct costs of $55,000 to $70,000, leaving $30,000 to $45,000 in gross margin. From that, the company pays overhead. If overhead runs at 15% to 20% of revenue across the year, net settles in the single digits to the mid-teens on that job.
Why commercial painting margins vary so much
Profit depends on three variables: production speed, material control, and schedule. Each one shifts with site conditions, substrate, and how tightly the job is run.
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Production speed hinges on surface prep, access, and crew mix. Smooth drywall under ideal access can hit 400 to 600 square feet per hour per painter for a single topcoat with airless spray, not counting masking and cleanup. Structural steel with complex geometry may drop under 100 square feet per hour with brush and roll touchups after spray. A misread on production rates can wipe out margin fast.
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Material control affects waste and returns. A 30,000-square-foot office repaint might use 200 to 350 gallons depending on coverage, color changes, and number of coats. Buying at contractor pricing, managing tint accuracy, and planning deliveries to match phases keeps material cost in the 10% to 18% of revenue band. Overspray, mis-tints, or change of sheen can push material up several points.
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Schedule is the silent killer. If access windows shift, or other trades block lifts, labor costs rise while revenue stays fixed. In Edmonton winters, curing times stretch and night work is common, which hits productivity. Float and contingency in the estimate matters here.
Typical margin ranges by project type
Not all commercial painting is equal. Edmonton’s mix includes office towers, retail plazas, warehouses, schools, health care, and multifamily. Each type carries its own risk and margin profile.
Office interiors often land mid-range. Clear floor layouts and repeatable rooms help production. Expect gross margins near 35% to 40% if the schedule holds and colors do not change midstream. Retail buildouts swing wider. Tight timelines and after-hours access can dent productivity, while light scope changes can add billable extras. Warehouses with tilt-up concrete or metal deck roofs can be efficient for crews that spray at scale. Those jobs can hit solid margins when access is open and lift use is predictable.
Schools and public facilities often have strict specs. The submittal process is longer. Product approvals and safety protocols add admin hours. If the bid did not account for that admin load, margins narrow. Health care sites demand infection control and clean-room practices. That slows work by design. Pricing must reflect it, or net profit drops into the low single digits.
Exterior repaint projects add weather risk. Edmonton’s temperature swings and wind set the working window. Elastomeric coatings and high-build primers improve performance on stucco or EIFS but add material cost and longer cure times. Good planning preserves margin; poor sequencing exposes you to rework.
Labor: the largest lever
Labor is the largest single cost and the most adjustable variable. In Alberta, total labor burden includes wages, CPP, EI, vacation pay, WCB, and any benefits. The fully loaded hourly cost often runs 1.25x to 1.5x the base wage. If a painter earns $28 per hour, your burden may sit between $35 and $42 per hour for costing. Supervisors cost more, but a strong lead boosts speed and quality. That trade-off often pays.
Production rates are where profit shows up. Estimators translate scopes into hours using assemblies. For example, two coats on new drywall with minimal prep might be priced at 175 to 225 square feet per hour per painter using spray and back roll. Old alkyd trim conversion to waterborne urethane might fall to 40 to 80 linear feet per hour. Touch-ups and punch lists often push a job over budget because those hours are easy to underestimate. A tight daily log and photo records help control that risk.
Travel time inside a large site can eat 30 minutes each way per shift. If the estimator missed that, margin erodes. The same goes for elevator waits, distances from staging to the work face, or long walks to wash stations. On urban sites in Edmonton’s core, parking and loading schedules can delay starts. Accounting for those friction points keeps labor estimates honest.
Materials: small percentage, big impact
Paint is usually 10% to 18% of project revenue. That looks small compared to labor, but material choices affect speed and callbacks. Cheaper paint often needs an extra coat to hide a color change. That adds labor, which is far more expensive than the few dollars saved per gallon. On metal and masonry, the primer system dictates adhesion and long-term performance. A coating failure wipes out profit.
For commercial painting in Edmonton, cold-weather products matter. Many interior jobs run during winter. Low-temperature acrylics help inside unheated shells, but cure tests are still wise. For exteriors, shoulder-season coatings with wider temperature windows reduce lost days. Material reps can assist with data sheets, but field tests on a small area before full application reduce surprises. That simple step protects margin.
Buying smarter helps too. Contract pricing, early orders to avoid rush fees, and accurate tint counts prevent waste. Keep tight control of color approvals. Nothing drains profit like painting a floor of offices and hearing the client wants a lighter shade after seeing it live.
Equipment and access: the quiet cost centers
Lifts, swing stages, scaffolding, and masking systems are core to production. Rental costs vary by season and availability. In summer, boom lifts can be tight across Edmonton and surrounding areas, especially during infrastructure rushes. Book early or carry a contingency. A week of rental overrun due to schedule slips can wipe out several points of gross margin.
On interiors, good sprayers with the right tips speed coverage and reduce fatigue. Poor tip selection spikes overspray, wastes paint, and causes touch-ups. That is a small detail with large ripple effects. For high-traffic sites, dust control systems and zipper walls cut disruption complaints and protect your change order leverage.
Bidding strategy: where margin is made or lost
Low bid wins work but can lose money. Smart contractors decide where to be aggressive and where to pass. Volume is not the goal; profitable volume is. On negotiated work, build clear scopes and get early input on color, sheen, and mockups. On tendered jobs, study the schedule, framing density, and finish schedule. If drywall is late, the painter’s schedule compresses. Compression steals profit.
Include realistic production rates, prime cycles, and expected touch-ups in the estimate. Carry allowances for patching and caulking if specs are vague. Clarify what is excluded: damaged substrate repairs, access, off-hours work, or specialty coatings. The clearer the scope, the fewer unpaid extras.
Change orders are a fact of life. Treat them with documentation, not emotion. Log directives in writing, price them quickly, and keep labor tags clean. Delay hurts collection and cash flow. Good change order discipline often adds two to five points to gross margin over a year.
Overhead discipline: turning gross into net
A painting company can hit 40% gross and still show weak net if overhead runs hot. Vehicles, insurance, and administrative time can bloat. Track overhead as a percentage of revenue monthly. Many firms in our region sit around 15% to 20%. In slow months, that percentage spikes. In peak months, it drops. The year-end net margin tells the truth.
Tight scheduling reduces idle time for crews and supervisors. Route planning cuts fuel costs for multi-site work. Repeatable processes for submittals, safety, and punch lists reduce admin hours per job. Simple tools like shared daily logs and standard color approval sheets keep teams aligned and save time.
Edmonton market factors that shape margin
Local realities in Edmonton affect profit. Winter schedules push work to nights and weekends for occupied interiors. Night shifts lower productivity by 10% to 20% in many cases due to access limits and staffing. Factor that into bids, not after the award.
Humidity swings and freeze-thaw cycles stress exterior coatings. Proper prep on stucco, EIFS, and parged foundations matters. Elastomeric systems add cost but prevent callbacks from hairline cracking. On structural steel and parkades, chloride exposure and de-icing salts call for stronger primers and topcoats. The right spec protects both the client and your margin.
City permits, loading zones, and downtown access rules influence staging. On projects near Whyte Ave, Oliver, Downtown, or Ice District, plan for material runs and lift delivery windows. West and south industrial zones usually allow easier access and faster Depend Exteriors setup. Small geographic details change costs.
What clients should know about price and profit
A fair price allows a contractor to staff the job well, use the right products, and stand behind the work. A price that is too low usually means short staffing, shortcuts, or contentious change order battles. Over the life of a building, repaint cycles and maintenance cost more than the savings from one lower bid.
Ask your painter how they handle access, touch-ups, protection, and schedule shifts. Request product data sheets. Ask for a clear exclusion list. If you are managing multiple properties in Edmonton, set standard sheens and colors to reduce change-order churn. Consistency speeds production and lowers cost in the long run.
Ballpark numbers: how estimates stack up
While every project is unique, a few rough benchmarks help frame margin discussion. On interior commercial repaints, labor often runs 45% to 60% of revenue, materials 10% to 18%, equipment and rentals 2% to 6%, with the rest split between subcontracted scopes, project management, and contingency. Hitting a 35% to 40% gross margin is common when production rates match the estimate and changes are controlled.
Exteriors swing wider. Weather buffers and access drive risk. You might see labor at 40% to 55%, materials at 12% to 22%, equipment at 5% to 12% for lifts or staging, with gross margin closer to 30% to 38% on average. If the building requires swing stages, the equipment slice rises and gross margin narrows unless priced with care.
High-spec environments such as hospitals, labs, and food processing plants require more containment, surface testing, and paperwork. Here, labor climbs, admin hours increase, and net margin often drops unless the bid reflects that intensity. Contractors who understand these settings price them accordingly and protect the schedule.
How Depend Exteriors approaches commercial painting in Edmonton
Our crews live in the details that move margins: clean scopes, accurate production rates, and tight site coordination. We track daily output by area, not just by hours. That gives real-time visibility. If a zone falls behind, we correct the cause that same day, whether it is access, coverage, or sequencing with other trades.
We standardize on coating systems that perform well in Edmonton’s climate. For interiors, we select low-VOC acrylics with strong hide to reduce coat counts on color changes. For exteriors, we match primers to substrate — alkali-resistant primers for masonry, DTM systems for steel. We stage deliveries to match phases and keep surplus under control. Those choices guard both quality and profit.
For general contractors, we engage early on finish schedules. If drywall slips, we help re-sequence painting to keep other trades moving, often starting in mechanical rooms or cores. That flexibility keeps the project healthy and avoids reactive overtime. For property managers, we build off-hours schedules that respect tenants and maintain speed. Clear notices, protection, and tidy daily cleanup prevent costly rework.
If you need commercial painting in Edmonton, we can quote fast, provide product recommendations for your use case, and build a schedule that fits your site. You get a clear scope, firm pricing where possible, and clean documentation for any changes along the way.
The common margin killers — and how we address them
- Vague scopes: We clarify what is included, from baseboards to back-of-house areas. That reduces unpaid extras.
- Access gaps: We align with site supervisors on lift locations, keys, and sequence. Fewer idle hours, steadier production.
- Color churn: We lock approvals and do on-site samples before full areas. That avoids repainting rooms after first coat.
- Punch list drag: We plan a targeted punch window with the GC and trade partners to finish cleanly without multiple returns.
- Weather and curing: We use products that suit the season and verify substrate temps with a surface thermometer before coating.
Each of these items protects margin while improving the client experience. They are simple, but skipping them costs money.
Practical example: office tower floor repaint
Take a 25,000-square-foot floor with corridors, open office, and meeting rooms. Scope: two coats on walls, one coat on doors and frames, minimal drywall repairs, occupied space with off-hours work. Estimated labor at 1,100 hours, materials at 230 gallons, equipment and sundries included.
If the crew hits the planned rate, gross margin sits near 38%. If tenant access tightens and nightly start times slide by an hour, you lose 40 to 60 hours over the phase. If color shifts after first-coat review, add 100 hours. Two common disruptions just shaved 5 to 6 points off gross margin. With clear communication and enforceable approvals, those hours can be avoided or billed as changes. That difference is the line between a healthy job and a break-even.
Practical example: warehouse exterior repaint
A 120,000-square-foot tilt-up warehouse needs pressure wash, crack repair, primer, and elastomeric topcoat. Lift plan includes two 60-foot booms for four weeks. If weather cooperates and access stays open, production is high and the job lands near a 35% gross margin. If winds push spray days back and the lifts sit for a week, rental overruns and crew downtime erode margin by several points. Booking flexible rental terms and sequencing walls to chase the wind direction helps preserve profit.
Should clients care about contractor margins?
Yes, for a simple reason. Healthy margins mean the contractor can keep skilled crews, use better materials, and respond quickly if issues arise. Low-margin work drives high turnover and reactive behavior. That hurts schedules and quality. If you value predictable outcomes, you want your painter to run at a sustainable margin.
You can support that while still protecting your budget. Ask for alternates: two-coat vs. one-coat on ceilings in utility areas, or standard vs. premium washability in low-traffic rooms. Target performance where it matters and save where it does not. That approach keeps pricing fair and avoids over-spec.
How to compare bids without guessing
Look beyond the bottom line. Review the scope line by line. Confirm the number of coats, primer types, areas included, night work premiums, and protection plans. Check the schedule assumptions and milestones. Ask about change order process and average response time. A detailed, transparent proposal is more likely to hold up on site.
If one bid undercuts the others by a large margin, look for exclusions. Is patching included? Are door frames, back rooms, stairwells, and mechanical spaces included? Is lift rental included or assumed by others? Answers to those questions often explain price differences.
The path to stable margins year-round
For contractors, the goal is consistent execution. Train crews to read specs, mix materials, and document progress. Keep equipment in good order. Track production by zone daily. Share the numbers with the team so they see where they stand. Reward crews that hit targets with quality and safety intact.
For property managers and GCs, partner with painters who show up prepared and communicate clearly. When you find one, keep them close. Repeat work builds shared standards, speeds mobilization, and reduces friction. Over time, both sides spend less time on admin and more time moving the job forward.
Why Depend Exteriors is a strong fit for commercial painting in Edmonton
We focus on clarity, steady production, and client communication. Our estimators walk the site, measure access, and factor the details that affect margin and schedule. Our crew leads plan each shift with defined areas, target footage, and quality checks. We use coating systems that suit Edmonton’s climate and building types. We document progress daily and handle changes with clear pricing and written approvals.
If you manage office, retail, warehouse, or multifamily properties in Edmonton, we can help with interior repaints, exterior systems, parking structures, and common areas. We can work nights and weekends, coordinate with tenants, and keep noise and dust low. You get a clean job and predictable results.
Ready to price your next project or need advice on scope? Contact Depend Exteriors for commercial painting in Edmonton. Request a site visit, and we will provide a clear quote with schedule options and product recommendations that fit your building’s needs.
Quick reference: what drives profit in commercial painting
- Labor productivity: Accurate production rates and clear daily targets.
- Scope clarity: Defined inclusions, exclusions, and approval steps.
- Material choices: Products that reduce coat counts and prevent callbacks.
- Access and equipment: Early planning for lifts and staging to avoid idle time.
- Change order discipline: Fast documentation and pricing to keep cash flow steady.
Profit margins in commercial painting are not a mystery. They reflect planning, communication, and execution. With the right partner, you can protect your budget, maintain your schedule, and get a finish that lasts through Edmonton’s seasons. If you need a quote or want to talk through an upcoming project, we are ready to help.
Depend Exteriors provides commercial and residential stucco services in Edmonton, AB. Our team handles stucco repair, stucco replacement, and masonry repair for homes and businesses across the city and surrounding areas. We work on exterior surfaces to restore appearance, improve durability, and protect buildings from the elements. Our services cover projects of all sizes with reliable workmanship and clear communication from start to finish. If you need Edmonton stucco repair or masonry work, Depend Exteriors is ready to help.