Page 86 - FINAL Combined CB2_Neat

The split of revenue between new buildings and major additions (42.4% of net revenue),
renovation/maintenance and repair projects (52.9% of net revenue), and studies (4.8% of net
revenue) was more balanced than last year due to the large projects that were in
design/documentation. This past year saw much better balance in profitability from larger projects
and smaller projects – new buildings and major additions (29.2%), renovation/maintenance and
repair projects (22.7%), and studies (21.3%). The overall profitability of 25.4% exceeded the 20%
standard. New efforts and focus on improving fees, development of fees as a collaborative
process involving several principals, development of and implementation of project plans, and
Project Manager and project team focus on profitability have all contributed to good profitability
of the practice area in spite of the tough economic climate that has kept fees very competitive
amidst the overall volatility of the construction market.

Mkt Cost PK-12 Education Net Revenue

$800,000 8,000,000
$700,000 7,000,000

$600,000 6,000,000

$500,000 5,000,000

$400,000 4,000,000
$300,000 3,000,000

$200,000 2,000,000

$100,000 1,000,000
$- -
FY13 FY14 FY15 FY16 FY17

Mkt Labor Mkt Exp Net Revenue

Mkt Cost PK-12 Education Net Revenue

$1,200,000 8,000,000
7,000,000
$1,000,000
6,000,000
$800,000
5,000,000
$600,000 11% 4,000,000
9% 13%
$400,000 7% 11% 3,000,000
2,000,000
$200,000
1,000,000
$- -
FY13 FY14 FY15 FY16 FY17

Mkt Labor Mkt Exp Net Revenue