Contractor’s Markup on Subcontractor’ Work Clause Samples

The "Contractor’s Markup on Subcontractor’s Work" clause defines the percentage or amount a general contractor is permitted to add to the cost of work performed by subcontractors. Typically, this markup covers the contractor’s overhead, administrative expenses, and profit, and is applied to the subcontractor’s invoices or costs before billing the client. This clause ensures transparency and agreement on additional charges, preventing disputes over unexpected costs and clarifying the total project pricing structure.
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Contractor’s Markup on Subcontractor’ Work. The Contractor's management markup on the subcontractor's net additional allowable expenditures shall be seven and one half percent. The Contractor shall not be permitted the overhead and profit markup on Time Dependent Overhead Costs, but shall be permitted a management markup of five percent on Time Dependent Overhead Costs.
Contractor’s Markup on Subcontractor’ Work. The Contractor's management markup on the Subcontractor's net additional allowable expenditures shall not exceed seven and one half percent.