What is margin for OH & Profits in Rate analysis

Question

Accepted Answer

Margin for OH & Profits in rate analysis is the additional amount added to cover overhead costs and generate profit.

Margin for OH & Profits is added to the direct cost of a project to cover indirect costs and generate profit.
It is usually expressed as a percentage of the direct cost.
The margin for OH & Profits varies depending on the nature of the project and market conditions.
For example, if the direct cost of a project is $100,000 and the margin for OH & Profits is 10%, then the additional amount added would be $10,000.
This additional amount helps cover expenses such as administrative costs, equipment maintenance, insurance, and other overhead costs.
The margin for OH & Profits also allows the contractor or quantity surveyor to generate profit from the project.
It is important to carefully calculate and include the margin for OH & Profits in rate analysis to ensure the project remains financially viable.

Accepted Answer

OH - 2 to 5 % and the profit 10 to 15 % are considered in rate analysis.

Accepted Answer

Both combined 17-19%

Accepted Answer

As per CPWD overheads and contractor's profit is 15%

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