In a market where costs are rising and competition remains fierce, many construction businesses are still charging at rates that fail to cover their true costs. The result? Margins that disappear and cash flow pressure that undermines growth.
This challenge is not new, but the pressure has never been greater. That’s why the Master Plumbers Association of Queensland (MPAQ), in collaboration with Xact Accounting, has released an updated Charge Out Rates Guide and Calculator. Updated in August 2025, the guide is designed to help business owners in construction understand their real costs and set sustainable, competitive charge-out rates that protect profitability.
Too often, businesses confuse markup with margin, or they forget to factor in the full impact of overheads. The difference can mean the loss of thousands of dollars each year.
Plumbing and construction businesses sell two key things: labour and materials. Both carry hidden costs. Labour requires not only wages, but superannuation, insurance, downtime, and inefficiencies across public holidays, travel, and RDOs. Materials involve more than purchase price – they require trade accounts, cash flow, administration, and logistics.
When these costs aren’t accounted for correctly, the charge-out rate ends up too low. The outcome is the same across the industry: overheads aren’t covered, owners underpay themselves, and businesses struggle to remain viable.
The updated Charge Out Rates Guide and Calculator gives construction businesses a clear and practical way to calculate sustainable rates.
Here’s what it helps you do:
Importantly, the guide also provides a framework for communicating price increases to clients – a task many business owners find uncomfortable but unavoidable in today’s environment.
To make the guide more accessible, Penny Cornah, CEO of MPAQ, and Zoe Wainscott from Xact Accounting sat down to discuss why the calculator matters, how to use it, and what construction businesses should consider when reviewing their charge-out rates.
The video takes the guesswork out of the process, showing how to input real numbers into the calculator and understand the impact on profitability. It’s a straightforward, practical resource designed to help owners take action with confidence.
While the calculator is a valuable starting point, every business has its own circumstances. Factors like job mix, subcontractor arrangements, and financing structures all play a role in shaping sustainable pricing.
That’s where expert advice makes the difference. At Xact Accounting, we work with construction businesses every day to go beyond the guide and ensure pricing decisions are aligned with broader business goals. The calculator gives you clarity – we help you turn that clarity into strategy.
If you haven’t reviewed your charge-out rates recently, now is the time. Costs have shifted, margins are under pressure, and too many businesses are leaving money on the table.
Download the updated Charge Out Rates Guide and Calculator today, and watch Penny and Zoe’s video to see exactly how to apply it to your business.
And if you want to go further – ensuring your pricing strategy supports growth, protects cash flow, and maximises profitability – talk to Xact Accounting about tailoring these insights to your business.
