What are a contractor's O&P values?

Answer by  arcitec (78)

O & P values refer to what a contractor charges for 'overhead' and 'profit'. Overhead is considered the cost related to the contractor's ability to perform construction work, such as insurance, office space, labor and material bonds, etc. Profit is money that the contractor will receive from performing the work.

Answer by  joeinphilly (388)

Specific Overhead and Profit numbers vary by contractor type, location and type of contract. Overhead covers the contractors insurance, licenses, training, tools, transportation, etc. generally the costs of doing business. Profit is what s/he is trying to clear on a job.