Often abbreviated as OH&P and usually calculated by applying a percentage to the total material and labor cost of the work, the total Overhead & Profit amount is the sum of its two components:
- Overhead: A company's general operating expenses necessary for it to conduct business, such as their facilities, equipment, and administration costs.
- Profit: A company's financial gain associated with the project.
Emprove's proprietary data engine includes Subcontractor Overhead & Profit in its provision for Material & Labor Costs. General Contractor Overhead & Profit are provided for separately in the Scope List.