Construction Overhead and Profit Calculator

GC O&P is 8–18% layered on top of direct cost.

Direct cost

General conditions

Overhead %

Profit %

Total project cost

$9,845,280

Overhead amount

$516,000

Profit amount

$729,280

How the math works

Subtotal = direct + GC. OH = subtotal × OH %. Profit = (subtotal + OH) × profit %.

($8M + $600k) × 6% = $516k OH. ($8.6M + $516k) × 8% = $729k profit. Total $9.85M.

How to Use

Enter direct cost.
Enter general conditions.
Enter overhead %.
Enter profit %.
Read total project cost.

Frequently Asked Questions

O&P benchmarks?

Overhead: 4–9% (corporate office, accounting, business development, GC liability insurance). Profit: 5–12% (margin to firm). Combined O&P: 10–18% typical, 8–12% on competitive bid public work, 12–18% on negotiated private projects. CM-at-risk: open-book O&P, contract-defined fee. Design-build: 12–20% fee on combined design + construction. Mark-up structure varies: some bid as flat % on direct, others tiered (lower % on materials, higher % on labor and subs).

How does this impact project budget?

Construction budgets layer hard costs (50–65%), soft costs (15–25%), financing (5–10%), contingency (5–10%), and developer fee (3–5%). Schedule risk often equals or exceeds cost risk — every month delay carries carry cost (interest, real estate tax, insurance, opportunity cost) of 0.5–1.5% of project budget. This calculator quantifies one cost component.

Owner-controlled vs GMP vs CM-at-risk?

Lump sum/GMP: contractor takes risk above guaranteed maximum price, owner pays for change orders. CM-at-risk: open book, fee + GMP, more transparent. Construction management: agent for owner, GC subcontracted directly. Design-build: single accountability, faster but less price competition. Match delivery method to project complexity and owner sophistication.

Schedule and cost contingency?

Standard contingency: 10% of hard cost for entitlement, 5–8% for construction. Schedule contingency: 60–90 days buffer past target completion. Force majeure provisions: weather, material lead time, labor strike, permit delay. Track via critical path method (CPM) schedule. Major lender draws contingent on schedule + cost variance to budget remaining within 5%.