Understand markup and OH&P before you approve
Where markup usually appears in a change order, how to spot markup applied twice, and what a typical range looks like for your type of project.
Markup is a normal part of construction pricing, but it’s hard to check when it’s blended into totals. This guide shows how to separate the visible costs from the markup and where the gaps usually hide.
Knowing what the markup is applied to matters more than any single percentage.
What the review does with markup
- Shows whether overhead & profit is listed separately, built into subtotals, or applied twice.
- Compares labor and material unit prices with local ranges.
- Gives you a line-by-line summary to use in the pricing conversation.
Where markup problems usually hide
- Overhead & profit added to a subtotal that already includes it.
- A separate management fee on top of overhead & profit, with no explanation.
- Markup percentages with no line-item costs underneath.
- Subcontractor costs passed through without disclosure.
- Time-and-materials entries missing hours or rates.
When higher markup can still be fair
- Small jobs where setup and supervision are a large share of the cost.
- Rush work that needs overtime or re-sequencing.
- Hard-to-access work that slows the crew down.
Keep in mind: this is a comparison with published benchmarks, not a construction estimate, legal opinion, or replacement for a competing bid.