Overhead Markup and Profit Sample Clauses

The Overhead Markup and Profit clause defines how a contractor is compensated for indirect costs and profit in addition to direct project expenses. Typically, this clause specifies the percentage or method by which overhead (such as administrative expenses, insurance, and office costs) and profit are calculated and added to the base cost of work items or change orders. By clearly outlining these rates and their application, the clause ensures transparency in pricing and helps prevent disputes over contractor compensation, thereby allocating financial risk and clarifying expectations for both parties.
Overhead Markup and Profit. (i) For professional services labor engaged under Section 19.4.4(a) above, five percent (5%) for Overhead Markup, and a profit up to and not to exceed ten percent (10%), shall be applied to the billable labor cost, including the audited overhead rate. (ii) For craft labor engaged under Section 19.4.4(b) above, Equipment and Materials furnished under Section 19.4.4(c) above, rented and owned equipment under Section 19.4.4(d) above, ten percent (10%) for Overhead Markup. Profit shall be added to the direct cost plus Overhead Markup not to exceed ten percent (10%) for totals up to $100,000, seven percent (7%) for totals in excess of $100,000 and up to $500,000, and five percent (5%) for totals over $500,000. (iii) Contractor and each higher-tier Subcontractor not performing the Work will be allowed five percent (5%) Overhead Markup, and a profit not to exceed three percent (3%) on the lower-tier Subcontractor’s direct costs (i.e., excluding the lower-tier Subcontractor’s Overhead Markup and profit), regardless of the tier of the Subcontractor. (iv) The maximum aggregate Overhead Markup per Change Order shall not exceed twenty percent (20%) of the direct cost. The maximum aggregate profit shall not exceed: sixteen percent (16%) for the direct cost plus Overhead Markup for totals up to $100,000, thirteen percent (13%) for direct costs plus Overhead Markup for totals in excess of $100,000 and up to $500,000, and eleven percent (11%) for direct costs plus Overhead Markup for totals over $500,000.
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Related to Overhead Markup and Profit

  • Overhead and Profit The percentage for overhead and profit to be used in calculating additive changes in the Work (not including changes covered by unit prices) shall not exceed the percentages for each category listed below. Said percentages for overhead and profit shall be applied only on the net cost of the changed Work, (i.e., the difference in cost between original and revised Work).

  • Overhead Contractors’ and its Subcontractors’ overhead shall include but not be limited to, all administration, supervision, scheduling, construction engineering, estimating, accounting, coordination, shop drawings and other submittals, record drawings, clerical services, documentation, reporting, transportation of personnel, security, communications, offices, small tools, legal services, insurance, financing and other construction services, goods and incidentals necessary or required to complete the Work in accordance with the proposed change order, except for direct cost items. Direct cost items shall only include labor, overtime and shift work, social security, and unemployment insurance and fringe benefits required by agreement or custom and workers' compensation insurance; materials and supplies whether unincorporated or consumed, rental machinery and equipment whether rented from the Contractor itself or others and excepting small tools; transportation of materials, supplies, machinery and equipment to the job site; temporary facilities; cleaning; testing, power and utilities; premiums for all bonds; permit fees and sales, use and other taxes not exempted.

  • Overhead Rates The Engineer shall use the provisional overhead rate indicated in Attachment E. If a periodic escalation of the provisional overhead rate is specified in Attachment E, the effective date of the revised provisional overhead rate must be included. For lump sum contracts, the overhead rate remains unchanged for the entire contract period.

  • DIRECT PERSONNEL EXPENSE 4.1. Direct Personnel Expense of employees engaged on the Project by the ARCHITECT/ENGINEER includes ARCHITECT/ENGINEERS, other engineers, designers, job captains, draftsmen, specification writers and typists, in consultation, research and design in producing Drawings, Specifications and other documents pertaining to the Project, and in services during construction at the site. 4.2. Direct Personnel Expense includes actual cost and of mandatory and customary financial benefits paid.

  • STATEMENT OF EARNINGS AND PROFITS As promptly as practicable, but in any case within sixty days after the Closing Date, the Acquired Fund shall furnish the Acquiring Fund, in such form as is reasonably satisfactory to the Acquiring Fund, a statement of the earnings and profits of the Acquired Fund for federal income tax purposes that will be carried over by the Acquiring Fund as a result of Section 381 of the Code, and which will be certified by the Trust's Treasurer.