Page 40 - Annual Report 2016 - Cover & Divider Pages.indd

Overall, PK-12 Education project profitability decreased from 29% in FY15 to 21% in FY16.

The split of revenue between new buildings and major additions (31.4% of net revenue),
renovation/maintenance and repair projects (66.7% of net revenue), and studies (1.9% of net
revenue) was slightly more balanced than last year. This past year saw relatively strong differences
in profitability from larger projects and smaller projects – new buildings and major additions
(39.1%), renovation/maintenance and repair projects (14.3%), and studies (-28.4%). The overall
profitability of 21% 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.

PK-12 Education
$500,000 9,000,000

$450,000
8,000,000
$400,000
7,000,000
$350,000
6,000,000
$300,000
5,000,000
$250,000
4,000,000
$200,000
3,000,000
$150,000

2,000,000
$100,000
$50,000 1,000,000

$- -
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Mkt Labor Mkt Exp Net Revenue

PK-12 Education
Mkt Cost Net Revenue
$800,000 9,000,000
8,000,000
$700,000
7,000,000
$600,000
11% 13%
9%
6,000,000
$500,000
5,000,000
$400,000 7%
7%
6% 7% 8% 4,000,000
$300,000
6% 3,000,000
4%
$200,000
2,000,000
$100,000
1,000,000
$- -
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Mkt Labor Mkt Exp Net Revenue