Common use of Agreed Overhead and Profit Rates Clause in Contracts

Agreed Overhead and Profit Rates. For any adjustment to the Contract Sum for which overhead and profit may be recovered, the combined overhead and profit included in the total cost to the Owner for a change in the Work shall be based on the following schedule: a. For the Contractor, for Work performed by the Contractor’s own forces, not to exceed seventeen (17%) percent of the Contractor’s actual costs. b. For the Contractor, for Work performed by the Contractor’s Subcontractors, not to exceed ten (10%) percent of each Subcontractor’s actual costs (not including the Subcontractor’s overhead and profit.) c. For each Subcontractor involved, for Work performed by that Subcontractor’s own forces, not to exceed seventeen (17%) percent of the Subcontractor’s actual costs. The percentages cited above shall be considered to include all indirect costs including, but not limited to, field and office managers, supervisors and assistants, incidental job burdens, small tools, and general overhead allocations.