Change order markup calculator
Price a change order the way owners review it: direct cost by type, overhead and profit on self-performed work, a lower tiered markup on subs, then insurance and bond.
Sample inputs (sample data): CO #14, fire dampers found behind a hidden condition (RFI-212) on Riverside Medical Center. Lands at about $86,400.
How this is calculated
Most contracts spell out allowable markups. This tool applies them in the order owners usually expect to see them on a change order proposal.
Self-performed = labor + material + equipment OH&P = self-performed × OH&P % Sub markup = min(sub, tier limit) × tier 1 % + max(0, sub − tier limit) × tier 2 % Subtotal = self-performed + OH&P + sub + sub markup Insurance = subtotal × insurance % Bond = (subtotal + insurance) × bond % CO total = subtotal + insurance + bond
Why subs get a lower markup
A sub's quote already carries the sub's own overhead and profit. Owners push back on a full GC markup stacked on top, so many contracts set a lower rate on sub work, sometimes tiered so large sub COs carry a smaller percentage.
Insurance and bond
Bond premiums are typically charged on the total contract value, so bond is applied last, on the subtotal plus insurance. Some contracts fold insurance into overhead or treat bond as a pass-through at actual cost. Match your contract.
Before you send it
- Back up labor with hours × burdened rate by craft, and attach quotes for material and subs.
- Price time impact (extended general conditions) separately if the change moves the schedule.
- Reference the RFI or directive that triggered the change.
Stop re-keying the numbers behind this math.
We're building one record for contracts, change orders, job cost and billing, with founding contractors, so WIP, retainage and cost-to-complete are already right when you open them.