The percentage a GC adds to costs to cover their overhead and profit.
GC markup is the percentage or fixed amount added by a general contractor to the cost of work, materials, or subcontractor scope to cover overhead and profit. Standard GC markups on subcontractor change order work are typically 10% overhead plus 10% profit (10/10), though amounts vary by contract, market conditions, and project type. Markup on self-performed work typically covers direct project costs plus a portion of home office overhead.
The contract limited the GC's markup on approved change order work to 10% combined overhead and profit, with no additional markup on subcontractor markups.
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