Contractor Overhead Markup Calculator

GC markup stacks costs. This calculator rebuilds.

Trade contract base

Overhead %

Profit %

Bond %

Insurance %

Full contract price

$2,893,750

Total markup $

$393,750

Total markup %

15.75%

How the math works

Total markup % = overhead + profit + bond + insurance. Contract = base × (1 + total markup).

On $2.5M trade base with 15.75% stack: $394k markup, $2.89M contract. Understanding markup composition enables targeted negotiation — often owner can push back on one or two components.

How to Use

Enter trade contract base.
Enter overhead %.
Enter profit %.
Enter bond %.
Enter insurance %.
Read full contract price.

Frequently Asked Questions

Typical markups?

Overhead: 5-8% (GC staff allocation). Profit: 5-10% (return to GC). Bond: 1-2% (performance + payment). Insurance: 1-2% (GL, umbrella, builder's risk). Combined 12-22% stack on trade costs. Cost-plus contracts negotiate each separately.

Owner leverage?

Competitive bid: 3+ GCs bid, pressure markups. Cost-plus: limit profit to fixed %. Lump sum with open book: review markups line by line. Design-build: markups bundled into price. No one structure universally best — depends on project complexity.

Change order markup?

Most contracts cap change order markup at 10-15% total (vs 15-22% base contract). Protects owner from punitive change order pricing. Some contracts exclude bond/insurance from CO markups. Worth negotiating upfront.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.