Definition
A margin guardrail is a system-enforced floor on the margin of any quote being issued. When an estimator builds a quote whose calculated margin falls below the guardrail, the system blocks the send and prompts a re-scope conversation, an explicit override (logged), or a price adjustment.
Example
Worked exampleA joinery shop sets a 28% margin guardrail. An estimator builds a quote that calculates to 22% margin. The system blocks the send. The estimator either reduces scope, raises the price, or escalates to the owner who can override (with the override logged on the quote audit trail).
Why it matters
Without a guardrail, below-target quotes are sent in good faith and discovered as below-target weeks later when the closing report runs. Guardrails surface the issue at the moment of decision, not after the work is committed.