What is Profit Fade?

Profit fade in the construction industry refers to the gradual reduction of profit margins on a project over time. It can occur due to a variety of factors such as unexpected delays, changes in scope, or cost overruns. As a project progresses, unanticipated expenses may arise, causing the initial profit estimates to diminish.Profit fade can be particularly detrimental to construction companies as it can eat into their bottom line and erode their profitability. In some cases, profit fade can even lead to financial losses on a project if not properly managed. To mitigate profit fade, construction companies need to closely monitor project costs, ensure accurate budgeting, and proactively address any issues that may arise during the construction process. By staying vigilant and proactive, construction companies can minimize profit fade