Change Order Price with Overhead and Profit
Change-order price = direct cost x (1 + OH%) x (1 + profit%), the compounded markup. $10,000 direct at 10% and 10% -> $12,100 (markup $2,100, 17.4% gross margin); the additive method gives $12,000. Applied to a $500K contract -> $512,100 new total. The contract's general conditions govern the allowed markup.
Formula and source
price = direct x (1 + OH%) x (1 + profit%); markup = price - direct; margin% = markup/price x 100.
The change-order overhead-and-profit markup (compounded) from construction estimating practice / AIA G701, by name.
Audience
This tile is built for accounting and the adjacent professions in the Accounting, Tax, and Small-Business group. The interactive calculator runs entirely in your browser. No account, no fee, no advertising, no tracking.
Related tools
Posture
Rough Logic answers the math question the working professional asks on the job. The site is a calm, fast, ad-free, account-free, ever-free reference. It does not interpret code. It does not replace the licensed professional. It does not store your inputs. The Authority Having Jurisdiction governs all installations and inspections.