Overhead And Profit On Change Orders
from Markup and Profit
From July 10:
There are risks involved in signing a contract that limits you to a 10% overhead and profit on additional work orders. A note we received recently: "I have a question. Many of the projects we have contracts on, with a GC or a CM, are with Colleges and Universities. It is written in the contract specs that you can only have 10% OH&P on any change. Recently one of our projects that we already have a contract on put out an ASI that asked to add flooring in every office and corridor in several stories of the building. This ‘add' is worth significantly more than our contract. I am being told that I have to stick to the 10%.
7701 Las Colinas Blvd., Ste. 800, Irving, TX 75063