Common use of Overhead and Profit Clause in Contracts

Overhead and Profit. The percentage for overhead and profit to be used in calculating additive changes in the Work (not including changes covered by unit prices) shall not exceed the percentages for each category listed below. Said percentages for overhead and profit shall be applied only on the net cost of the changed Work, (i.e., the difference in cost between original and revised Work). Unless otherwise agreed in the Change Order, half of the percentage shall be applied to the maximum amount for Overhead Costs and Expenses; and the balance applied to the Construction Fee. If any extension of time is deemed eligible for Time Dependent Overhead costs, the amount calculated by multiplying the daily rate for Time Dependent Overhead Costs times the number of days approved shall additionally be added to the maximum amount for Overhead Costs and Expenses. Payments on account of change orders shall then be made as set forth in Section 4 of the General Requirements. CM/GC. If the CM/GC does all or part of the changed Work with employees that work directly for the CM/GC (self-performance), its markup for overhead and profit on the changed Work the CM/GC performs with its employees shall not exceed twenty percent (20%) of the net Allowable Costs, if any.