Construction · Defined
Overhead and profit (O&P)
An allowance or markup for business overhead and profit, calculated as specified in a proposal or contract.
Why it matters
Confirm the percentage, cost basis, exclusions, and whether subcontractor markups are already included. The acronym should be interpreted from the document rather than assumed.
In practice
A project example
A change estimate is checked for duplicated markup on a subcontract price that already includes its own fee.
General educational guidance from KOW Building Consultants. Examples are illustrative, not project records. The applicable contract, standard, program, and jurisdiction control the requirements for a specific assignment.